APR on a PCP deal

[sidicks]

oldnbold said:

Well on new he didn't need to get into his system, the APR is laid out by the manafacturer in its quartly marketing campaign. A sales manager would be able to quote you that chapter and verse!

The only situation's I can think of is if you were buying on the last day or so of the quarter and he hadn't been told what the next quarters campaign was and he was hedging his bets, or he was trying to put you into non supported finance.

Both of which would be highly unusual.

Manufacturer's finance often has an advertised rate but the finance manager has some scope to flex the actual rate offered. (Hence most times you see something along the lines of "typical APR 8%.....")

[oldnbold]

sidicks said:

Manufacturer's finance often has an advertised rate but the finance manager has some scope to flex the actual rate offered. (Hence most times you see something along the lines of "typical APR 8%.....")

I can only speak for the manafactures I have worked with, In both cases the rate was fixed with no negotiation possible on New cars under a suported marketing campaign by ANYONE.

Surely the "Typical APR" is because it can vary because of the term selected as you have already explained.

[sidicks]

oldnbold said:

I can only speak for the manafactures I have worked with, In both cases the rate was fixed with no negotiation possible on New cars under a suported marketing campaign by ANYONE.

Surely the "Typical APR" is because it can vary because of the term selected as you have already explained.

No, because of different credit history for one thing.

And APR would normally be the same regardless of term!

[oldnbold]

sidicks said:

No, because of different credit history for one thing.

And APR would normally be the same regardless of term!

On a manafacturer supported finance deal you either qualify for the rate or you don't. If you don't the dealer will probably try a non manafacturer supported finance house at a simular rate. If you get declined for that they may go to a sub prime lender.

I am happy to be corrected but I am not aware of any manafacturer supported finance on new vehicles where the dealer has the ability to alter the rate advertised by the manafacturer.

Again in my experience

[sidicks]

oldnbold said:

I am happy to be corrected but I am not aware of any manafacturer supported finance on new vehicles where the dealer has the ability to alter the rate advertised by the manafacturer.

Again in my experience

Fair enough - when I bought my current car I was provided with a finance quote which I said wasn't good enough and if they couldn't improve the rate, I'd arrange my own finance. I showed them some numbers that I'd calculated and they matched the rate...

[Deva Link]

oldnbold said:

Well on new he didn't need to get into his system, the APR is laid out by the manafacturer in its quartly marketing campaign. A sales manager would be able to quote you that chapter and verse!

The only situation's I can think of is if you were buying on the last day or so of the quarter and he hadn't been told what the next quarters campaign was and he was hedging his bets, or he was trying to put you into non supported finance.

Both of which would be highly unusual.

I can't remember the exact details as I'd no intention of taking finance but it must have been a supported deal as the main persuasion point was the 3 year servicing deal (£300) would be free if we took finance. However I couldn't work out if that would be worth it or not as he wouldn't give me a complete quote.

Also I was buying the car a gift for my daughter, she was there too and it would be a bit tacky to put it on finance, not to mention messy as the car is in her name.

[GTIR]

Deva Link said:

It was new. He said he couldn't do it because the system didn't work at weekends, which I suppose is possible, but seems unlikely. However he still expected me to agree. I did buy the car (cash) but they desperately wanted me to agree to take it on finance. The sales manager stormed off in the end.

I understand the incentives and pressures on the dealer to sell finance but he genuinely seemed to think I was some kind of lunatic for paying cash.

A friend had the same at a VW dealership
Just sold his company for £100 million + and "treated" himself to his first car (He's 44!) and wanted a Golf.

They pushed him so hard to take finance he walked away. I pointed him in the direction of Broadspeed website.




Oh. Sidiicks explanations are as confusing as a piece of paper with "PTO" on both sides.

[Deva Link]

GTIR said:

A friend had the same at a VW dealership
Just sold his company for £100 million + and "treated" himself to his first car (He's 44!) and wanted a Golf.

They pushed him so hard to take finance he walked away.

Late 2010 and into 2011 many VAG diesel's were on tremendous delivery times and, where cars were available more quickly there were stories in forums of dealers refusing to accept orders from people if they didn't want finance.

It's clear from the car salesman's thread on here that there are situations where the salesman / dealer would be best off not taking an order for cash as if their percentage sold on finance drops too much it costs them money (and/or their job).

GTIR said:

I pointed him in the direction of Broadspeed website.

...who are owned by Inchcape, who own my local VW dealer.

[sidicks]

GTIR said:

Oh. Sidiicks explanations are as confusing as a piece of paper with "PTO" on both sides.

Doesn't mean they aren't entirely accurate though!

That's the problem, many people are ignorant about finance and hence can be easily confused by a dealer trying to get them to focus on the (lower) flat rate....


Sidicks