Car Dealers & Finance
Discussion
Is it me? or has the world gone mad?
Thought I would share my recent experiences going around the car dealers and applying for HP finance. First of all I have a average credit rating so was not expecting to get the so called competitive rates offered by the mainstream lenders used in dealerships. Currently with Toyota Finance and looking to pay the settlement figure before I take out more finance. Getting to the point - been offered finance deals at 16% - 18% APR on a car cost of approx £10,500 and willing to put down min 10% deposit or maybe 20% if that strengthen the deal offered. What amazes me is that car dealers just expect you to sign up there and then without me the customer looking at the terms and the likely costs over the term of the agreement, in my case it was going to cost me anything from £3.5k to £4K over a 5 year term in interest alone! worth mentioning I would never go 5 years anyway would always settle early as I change cars every 2/3 years. Being in my late 50's I like to think I can smell a bad deal from miles away so politely turned down their offers and the dealers look at you as if you just killed someone, they cannot understand why I said no, does that mean then that most folk just sign up on the dotted line and dolt think about the true cost of how much that car is going to cost? Have car dealers just had it too good?
Anyone else had similar experiences?
Thought I would share my recent experiences going around the car dealers and applying for HP finance. First of all I have a average credit rating so was not expecting to get the so called competitive rates offered by the mainstream lenders used in dealerships. Currently with Toyota Finance and looking to pay the settlement figure before I take out more finance. Getting to the point - been offered finance deals at 16% - 18% APR on a car cost of approx £10,500 and willing to put down min 10% deposit or maybe 20% if that strengthen the deal offered. What amazes me is that car dealers just expect you to sign up there and then without me the customer looking at the terms and the likely costs over the term of the agreement, in my case it was going to cost me anything from £3.5k to £4K over a 5 year term in interest alone! worth mentioning I would never go 5 years anyway would always settle early as I change cars every 2/3 years. Being in my late 50's I like to think I can smell a bad deal from miles away so politely turned down their offers and the dealers look at you as if you just killed someone, they cannot understand why I said no, does that mean then that most folk just sign up on the dotted line and dolt think about the true cost of how much that car is going to cost? Have car dealers just had it too good?
Anyone else had similar experiences?
Informative comments thanks. I had a telephone conversation with a major dealer saying passed finance at 16% APR but the condition was I must part ex my car with them to get the deal, well that conversation didn't last much longer. All the dealers I have spoken want my car due to low mileage but offering decent money but I know I can sell it via motorway or sell it privately which I will probably do and pay just pay cash for a car. The only reason I was considering finance is that I did not want to break into my savings even though I knew I would have to pay interest but not at those stupid rate. One thing that did cross my mind was that due to having current car on finance which has only £2k left on it and payments been made on time wondered if this impacted their decision. If I paid this off now would my chances for a better rate increase 2-6 months down the line.
really great response to my original question keep em coming.
Had to laugh though went I went into dealers discuss the proposal and they wanted to add on all these extras like gap insurance, paintwork protection, warranty etc this adding hundreds of pounds to the final price. I just said no no no just want to borrow for the sticker price maybe its my northern, Yorkshire background that puts the fur on my back stand up.
Had to laugh though went I went into dealers discuss the proposal and they wanted to add on all these extras like gap insurance, paintwork protection, warranty etc this adding hundreds of pounds to the final price. I just said no no no just want to borrow for the sticker price maybe its my northern, Yorkshire background that puts the fur on my back stand up.
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