Mercedes Dealer HP question
Discussion
Hi,
I have left a £1k deposit on a used Mercedes C220 CDI Convertible from a Mercedes dealer. My plan was to purchase the car for cash and I can still do this should I wish.
After agreeing to purchase the car, the salesman tried on his sales pitch and gave the option of buying on finance. Obviously, I’m doing my homework before agreeing but his approach if correct seemed a better offer.
In summary, he suggested:
• Buy car with HP and dealer will give additional 2 yr warranty so 3 yr warranty in total. Plus dealer will give an additional £600 contribution for deposit.
• He then suggested, after first payment is taken, to call Mercedes Finance and reduce the monthly payment to £25 which is the minimum. This means my second payment will be for most of the balance owed.
• The remaining interest (12.3% APR) will only be charged on the remaining balance which he said will be approx £300/£400 in total. So with their £600 contribution I am approximately £200 better off and I benefit for 2 years extra warranty.
Am I missing something here?
Thank you in advance.
I have left a £1k deposit on a used Mercedes C220 CDI Convertible from a Mercedes dealer. My plan was to purchase the car for cash and I can still do this should I wish.
After agreeing to purchase the car, the salesman tried on his sales pitch and gave the option of buying on finance. Obviously, I’m doing my homework before agreeing but his approach if correct seemed a better offer.
In summary, he suggested:
• Buy car with HP and dealer will give additional 2 yr warranty so 3 yr warranty in total. Plus dealer will give an additional £600 contribution for deposit.
• He then suggested, after first payment is taken, to call Mercedes Finance and reduce the monthly payment to £25 which is the minimum. This means my second payment will be for most of the balance owed.
• The remaining interest (12.3% APR) will only be charged on the remaining balance which he said will be approx £300/£400 in total. So with their £600 contribution I am approximately £200 better off and I benefit for 2 years extra warranty.
Am I missing something here?
Thank you in advance.
I'm sure someone better informed than me will be along shortly to correct me if I'm wrong but I believe the best option for you would be to accept the dealers finance terms sign for the car and drive away but then within the mandatory 14 day cooling off period for finance call the finance company and tell them you wish to cancel the finance and pay the full amount off.
That way you have the dealer contribution and the extended warranty but pay no interest at all, the dealer won't tell you this because I believe the dealer won't get their commission for the finance this way, I understand this is quite common and never heard of anyone having their other perks taken back from them in the process.
That way you have the dealer contribution and the extended warranty but pay no interest at all, the dealer won't tell you this because I believe the dealer won't get their commission for the finance this way, I understand this is quite common and never heard of anyone having their other perks taken back from them in the process.
Jamescrs said:
I'm sure someone better informed than me will be along shortly to correct me if I'm wrong but I believe the best option for you would be to accept the dealers finance terms sign for the car and drive away but then within the mandatory 14 day cooling off period for finance call the finance company and tell them you wish to cancel the finance and pay the full amount off.
That way you have the dealer contribution and the extended warranty but pay no interest at all, the dealer won't tell you this because I believe the dealer won't get their commission for the finance this way, I understand this is quite common and never heard of anyone having their other perks taken back from them in the process.
That way you have the dealer contribution and the extended warranty but pay no interest at all, the dealer won't tell you this because I believe the dealer won't get their commission for the finance this way, I understand this is quite common and never heard of anyone having their other perks taken back from them in the process.
Yep do this, ignore the salesmans "advice", I've read if a few times and still can't work it out.
Sign the docs, drive off and a couple of days later phone the finance company and withdraw from the agreement; pay the amount financed, you will benefit from the deposit contribution and extended warranty, the dealer won't get any commission but TBH that is their problem, its all about playing the game and your legal rights.
You will however have to pay a few days interests but it will be a negligible amount.
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