Massively ripped of at a "car supermarket" Tell or not?
Discussion
After some opinions here.. A colleague has just bought himself a "new" car from one of these Car Supermarkets, and is absolutely chuffed to bits. Unfortunately he's their perfect customer, and they saw him coming a mile off! I'll outline briefly what he's done.
Gone in there with his 57 plate Corsa (worth £2500) and £2000 cash. Test drove an 08 Audi A3 TDI sport 170 with 53,000 miles and loved it. Started talking figures, and when they asked him what he wanted for his car, he thought he'd be cheeky and say £3000. They agreed of course, and he's now thinking they are the mugs and they are giving him an amazing deal.
Now the shocking part.... The Audi was up for £13700!!! So with his £3000 trade in, and £2000 cash, he "only" needed to get £8700 on their finance. They again impressed him with a monthly repayment figure, which he didn't bother to work out. £195 x 60 months. So he's essentially now paying £16700 over 5 years for this A3... EXACT same spec on Autotrader are around the £9000 mark. So he's paying almost double the true value of the car! they will be laughing at him, as they have effectively taken his Corsa and £2000 savings from him for absolutely nothing. He's still paying the full value of what that car is truly worth.
So he's been completely done over. Some would say it's his fault for being stupid and not doing his research. But the purpose for this thread is this... Should I tell him? Could he take the car back to them, or would I just been taking the shine off his new car purchase, and making him feel completely rubbish about it? I only want to tell him if he has a chance of cancelling the whole deal!
Gone in there with his 57 plate Corsa (worth £2500) and £2000 cash. Test drove an 08 Audi A3 TDI sport 170 with 53,000 miles and loved it. Started talking figures, and when they asked him what he wanted for his car, he thought he'd be cheeky and say £3000. They agreed of course, and he's now thinking they are the mugs and they are giving him an amazing deal.
Now the shocking part.... The Audi was up for £13700!!! So with his £3000 trade in, and £2000 cash, he "only" needed to get £8700 on their finance. They again impressed him with a monthly repayment figure, which he didn't bother to work out. £195 x 60 months. So he's essentially now paying £16700 over 5 years for this A3... EXACT same spec on Autotrader are around the £9000 mark. So he's paying almost double the true value of the car! they will be laughing at him, as they have effectively taken his Corsa and £2000 savings from him for absolutely nothing. He's still paying the full value of what that car is truly worth.
So he's been completely done over. Some would say it's his fault for being stupid and not doing his research. But the purpose for this thread is this... Should I tell him? Could he take the car back to them, or would I just been taking the shine off his new car purchase, and making him feel completely rubbish about it? I only want to tell him if he has a chance of cancelling the whole deal!
That's what I was after! Ok i'll just leave him to it. I guess you're all right. I just genuinely feel sorry for him, and every time I look over at him it bothers me! I hate seeing things like that happen to people!
Genuinely not trying to piss on his chips! Just concerned for him, but I see exactly how it might come across...
Genuinely not trying to piss on his chips! Just concerned for him, but I see exactly how it might come across...
Jessicus said:
What is the benefit to anybody of telling him that you think he's been done over? You feel smug, he feels like s
t.
If it was before the purchase, then yes, you could have informed him of your opinion. Now, when nothing can be done about it, what is the point? You'll sound like a wker, and any happiness from his purchase will be blown away.
Well that was the whole point in my post! He only got it at the weekend, so didn't know if there was some sort of 7 day cooling off period where he can take the car back and cancel the deal?! t.If it was before the purchase, then yes, you could have informed him of your opinion. Now, when nothing can be done about it, what is the point? You'll sound like a w
ker, and any happiness from his purchase will be blown away.As I said, if that's not possible I wouldn't dream of mentioning it!!
longblackcoat said:
If he's already got the car, I'd say nothing.
Should he still be waiting to pick it up, I might have a conversation with him about how cheap finance is these days, and that getting it from the dealer isn't the only option. If he chooses to do nothing about at that stage, it'd be his own look out.
I appreciate that he could buy it cheaper privately, but a lot of people refuse to buy from other than a dealer!
Not just privately! Other dealers are selling them on the trader for between £9000-£9500 for the EXACT same spec! Should he still be waiting to pick it up, I might have a conversation with him about how cheap finance is these days, and that getting it from the dealer isn't the only option. If he chooses to do nothing about at that stage, it'd be his own look out.
I appreciate that he could buy it cheaper privately, but a lot of people refuse to buy from other than a dealer!
I just can't believe some people don't do their own research! Who spends that much money without checking if they're getting a fair deal or not first?!
mrmr96 said:
Not sure he's paid double for the car, maybe 50% too much. The rest of the money over and above the car value is the finance charge, and they are providing finance. So we need to price that separately to see if it's any good.
Up for 13,700, should be 9,000
Trade in 3,000 should be 2,500
His cost to change was 13700-3000 = 10700
But it should have been 6,500
So he's overpaid on the car by 10700-6500 = 4200, so about 50% (4,200 / 9000 = 47%)
We can work out the finance cost as the difference between repayments and capital (195*60)-8700 = 3000 finance over 5 yrs, so 600/yr or 50/mth. Not sure what APR that works out at but £3k interest to borrow £8.7k sounds kind of steep, but not payday loan steep.
The other factor is his overpayment on the purchase of the car, which we can see what it equates to monthly 4200/60 = 70 per month.
Yeah, I think it's fair to say he's not done the worlds best deal there has he? I wonder why he didn't spot any of these identical cars for £9k and choose one of those instead?
Nicely put! That makes it a lot clearer.Up for 13,700, should be 9,000
Trade in 3,000 should be 2,500
His cost to change was 13700-3000 = 10700
But it should have been 6,500
So he's overpaid on the car by 10700-6500 = 4200, so about 50% (4,200 / 9000 = 47%)
We can work out the finance cost as the difference between repayments and capital (195*60)-8700 = 3000 finance over 5 yrs, so 600/yr or 50/mth. Not sure what APR that works out at but £3k interest to borrow £8.7k sounds kind of steep, but not payday loan steep.
The other factor is his overpayment on the purchase of the car, which we can see what it equates to monthly 4200/60 = 70 per month.
Yeah, I think it's fair to say he's not done the worlds best deal there has he? I wonder why he didn't spot any of these identical cars for £9k and choose one of those instead?
With regards to not noticing identical cars for 9k. He didn't even know what car he wanted. Went into the car supermarket and they showed him a Focus, a Golf etc, and then the Audi. so he hadn't been previously looking at them at all, and had no idea of the price of any cars. Wasn't as if he'd been browsing Autotrader for them before going in or anything.
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