Dealer discount and finance question
Dealer discount and finance question
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Discussion

PaulD86

Original Poster:

1,844 posts

157 months

Monday 10th November 2014
quotequote all
First off, excuse me if this is a stupid question but having been given conflicting information from several parties I was wondering if anyone on here may be able to clarify.

The scenario is that a dealer is offering a car for sale at £X. They have said that if I take their finance they will sell for £X-1800 but if I take finance from a third party provider that they want the full asking price. This hardly seems surprising to me as obviously they make money on the finance, however several people have said that this is no longer allowed and you can't offer a car at a different price only if the buyer uses your finance due to some regulation or other and I am curious if there is any truth in this? I've no interest in the rights or wrongs of this and I know it's their car to refuse to sell if that's what they want to do etc, I just want to know if it is actually true or not. If anyone can answer especially citing why that would be appreciated.

Butter Face

35,110 posts

191 months

Monday 10th November 2014
quotequote all
They aren't allowed to give you two different prices, but they can offer you a 'deposit contribution' on their finance that is not allowable on others.

You can of course take this finance and settle later down the line. You're within your rights to do so.

hornetrider

63,161 posts

236 months

Monday 10th November 2014
quotequote all
Butter Face said:
You can of course take this finance and settle later down the line. You're within your rights to do so.
This. Take the finance (probably uncompetitive) and settle it a couple of weeks after you've bought the car.

PaulD86

Original Poster:

1,844 posts

157 months

Monday 10th November 2014
quotequote all
Butter Face said:
They aren't allowed to give you two different prices, but they can offer you a 'deposit contribution' on their finance that is not allowable on others.

You can of course take this finance and settle later down the line. You're within your rights to do so.
Thanks for the info. I hadn't really thought of swapping the finance after a short period. It's a lease purchase agreement I am looking at - would this be something that would be likely to be easily swappable? Excuse my ignorance but to date the only finance I've ever had is the mortgage on my property so this is slightly alien territory for me.

Butter Face

35,110 posts

191 months

Monday 10th November 2014
quotequote all
PaulD86 said:
Butter Face said:
They aren't allowed to give you two different prices, but they can offer you a 'deposit contribution' on their finance that is not allowable on others.

You can of course take this finance and settle later down the line. You're within your rights to do so.
Thanks for the info. I hadn't really thought of swapping the finance after a short period. It's a lease purchase agreement I am looking at - would this be something that would be likely to be easily swappable? Excuse my ignorance but to date the only finance I've ever had is the mortgage on my property so this is slightly alien territory for me.
I don't deal with LP but I think different rules may apply as far as paying it off early. I was talking about Standard HP or PCP.

PaulD86

Original Poster:

1,844 posts

157 months

Monday 10th November 2014
quotequote all
Butter Face said:
I don't deal with LP but I think different rules may apply as far as paying it off early. I was talking about Standard HP or PCP.
I had thought that might be the case. Cheers for your help. thumbup