Car finance question. Dodgy dealer.

[stepmeek]

The initial message was deleted from this topic on 18 November 2019 at 22:13

[HTP99]

Probably an "admin fee".

[rix]

Possibly that, what does the breakdown of the invoice show?

[R.Sole]

Has he made the term longer and there is more interest accrued?

[Sheepshanks]

Perhaps it’s a mistake.

[InitialDave]

You were expecting the financing of the car, for which you wanted to pay a lower amount per month than initially proposed, and therefore be over a longer term/have more put on the PCP back end, to cost you the same overall as if you paid it off in a shorter time with higher monthly payments/lower balloon?

Unless I'm misunderstanding the scenario at hand, that seems a bit naive?

Is this your first time purchasing something with some form of finance?

Edited by InitialDave on Thursday 31st October 07:53

[Sheepshanks]

Post up the details of the two quotes.

[LeoSayer]

The dealer met your requirement but this is the problem when people focus on monthlies and not the total cost.

As said before, people can help if you post up both deal details.

[DonkeyApple]

stepmeek said:

Quick one for any car salesmen or the more savvy buyers.

I seen a car on autotrader I liked and made a quick enquiry to the dealer for a finance quote. He gave me a PCP quote which I said was too much monthly. He then asked me what monthly payment I would be comfortable with and I gave him a figure. Low and behold his new quote comes in at exactly that amount.

Now I don't have a problem with this, he met my agreed monthly budget and I was happy with the car so agreed to do a deal.

However, on receiving the paperwork via e mail to sign, I notice that the total cost of the car is now £200 higher than the original autotrader advert. Surely that's a bit unfair. If he had just have me a quote for the price the car was up for sale at I would have been happy. Instead I feel he has tried to make more out of me by skewing the original quote to make it look like I am getting a good deal.

I haven't actually signed for the car yet. Just the finance application. Seriously considering pulling out of the deal as I am just not impressed with how this has happened.

What do you think? Am I wrong to feel a bit let cheated here?

I think a bit more detail is needed for clarity but on the surface you and the dealer have simply used consumer finance for the precise purpose that it is intended for, it allows the rejigging of a total cost into a monthly breakdown. PCP is even more efficient as there are more variables to play with to make the monthly number smaller and so more accessible to a wider group of consumers.

One has to conclude on what’s given so far that all that has happened is that the termnor balloon have been rejigged to make for a smaller monthly number that fits your request. You need to ask the dealer what the £200 pertains to, whether it’s a fee that would be added regardless of any finance agreement or whether it’s linked to having to fudge the monthlies lower, or whether he was just given the impression that you’d pay more.

[KTF]

Sheepshanks said:

Post up the details of the two quotes.

This. Without seeing the numbers its hard to say either way.

[rfoster]

Yes - as mentioned best thing would be to question with the dealer why the supply price of the car has increased - has he added warranty / road fund licence / admin fee to the price? There is almost certainly a straight forward reason for it.

[evsky]

Road tax cost?

[Simpo Two]

stepmeek said:

the total cost of the car is now £200 higher

Logic dictates it's because you're borrowing money for a longer time so will pay more interest = higher total cost. The total cost in the advert would have been calculated using the original deal.

A former bank manager once told me that a person in debt is like a person in the sea. When you extend the terms of their debt, you move them into shallower water - but further from the shore.

[HTP99]

Simpo Two said:

stepmeek said:

the total cost of the car is now £200 higher

Logic dictates it's because you're borrowing money for a longer time so will pay more interest = higher total cost. The total cost in the advert would have been calculated using the original deal.

A former bank manager once told me that a person in debt is like a person in the sea. When you extend the terms of their debt, you move them into shallower water - but further from the shore.

Total cost of the car, not the total cost of the finance agreement?

[DonkeyApple]

HTP99 said:

Simpo Two said:

stepmeek said:

the total cost of the car is now £200 higher

Logic dictates it's because you're borrowing money for a longer time so will pay more interest = higher total cost. The total cost in the advert would have been calculated using the original deal.

A former bank manager once told me that a person in debt is like a person in the sea. When you extend the terms of their debt, you move them into shallower water - but further from the shore.

Total cost of the car, not the total cost of the finance agreement?

I suspect we will never know.