Discount for one day of finance
Discussion
I presume my mother-in-law isn’t the first cash buyer to be asked by a main dealer (Mini) to take finance she doesn’t need for a day (paying it off the next day) in exchange for a decent discount.
How shady is this practice (sounds quite) and what are the downsides to the buyer (credit rating?)?
How shady is this practice (sounds quite) and what are the downsides to the buyer (credit rating?)?
Seems quite common for manufacturer disvounts to be conditional on finance being taken. I asked the salesman dealing with my new Skoda how long the PCP had to run before affecting his commission. He said 6 months. So I'll look at paying it off at that point as I think I can get a bank loan a couple of points cheaper.
Unless of course there is any hassle with pickup etc. Otherwise happy with deal and happy for salesman to get his commission secured before I pay it off.
Mini may do things differently so there is no downside to the dealer/salesman with paying finance off right away.
Unless of course there is any hassle with pickup etc. Otherwise happy with deal and happy for salesman to get his commission secured before I pay it off.
Mini may do things differently so there is no downside to the dealer/salesman with paying finance off right away.
It’s not a voluntary termination, just an early settlement in full of a credit line secured on a car. Can’t see it having any adverse impact on a credit rating! In fact I did the same to get another £1,500 off the SEAT Ibiza I bought for my partner; I settled it after a couple of weeks at an interest cost of around £20.
You need to request a withdrawal within 14 days. You’ll only then be charged interest for the days you’ve had the finance amount.
You then have 14 days to pay that figure. The sooner you request the withdrawal, the cheaper the interest.
I believe I paid £17 on £15k a month ago for having the finance in place for 4 days.
If you seek settlement figure, it will calculate a whole months interest, thus more expensive than withdrawing.
I’ve done it twice on the last 2 cars I’ve purchased to get a better deal, once with VWFS and once with Black Horse (to get a better kick back than VWFS)
You then have 14 days to pay that figure. The sooner you request the withdrawal, the cheaper the interest.
I believe I paid £17 on £15k a month ago for having the finance in place for 4 days.
If you seek settlement figure, it will calculate a whole months interest, thus more expensive than withdrawing.
I’ve done it twice on the last 2 cars I’ve purchased to get a better deal, once with VWFS and once with Black Horse (to get a better kick back than VWFS)
I've done it. Bought a car, was told if I financed it I'd get £3000 discount for that alone. Asked if it was allowed to pay off early, was told there was no minimum term, so it was a no brainer to me.
Then a couple years later when selling a different car, same reg, I was told I'd finance outstanding. Asked what car etc and when the person buying car read out the details they realised their mistake. At least they did try to check things I guess.
Then a couple years later when selling a different car, same reg, I was told I'd finance outstanding. Asked what car etc and when the person buying car read out the details they realised their mistake. At least they did try to check things I guess.
ishay said:
I presume my mother-in-law isn’t the first cash buyer to be asked by a main dealer (Mini) to take finance she doesn’t need for a day (paying it off the next day) in exchange for a decent discount.
How shady is this practice (sounds quite) and what are the downsides to the buyer (credit rating?)?
Its a finance contribution by the manufacturer through their finance company - and its not the dealer giving the discount.How shady is this practice (sounds quite) and what are the downsides to the buyer (credit rating?)?
Perfectly legal to avail of the offer, then pay off the finance
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