Strange dealer issue
Discussion
I’m trying to buy a car to replace the lease that’s recently went back and I’ve arranged a good finance deal through a broker.
The car I want to buy is at a local garage (fully franchised VAG group dealer) and they won’t sell it to or raise an invoice to the broker as they are refusing to accept external finance!
I’ve even agreed to pay sticker price on it.
Is this a new normal?? I’ve not bought a “new” car for about 4-5yrs and this was never an issue before!
The car I want to buy is at a local garage (fully franchised VAG group dealer) and they won’t sell it to or raise an invoice to the broker as they are refusing to accept external finance!
I’ve even agreed to pay sticker price on it.
Is this a new normal?? I’ve not bought a “new” car for about 4-5yrs and this was never an issue before!
They make commission on finance, sounds like they want to sell it to someone who'll take their finance.
They may not have much profit in the car itself so were relying on finance commission and possibly part exchange of a car they can retail back out to make the deal worthwhile for them.
They may not have much profit in the car itself so were relying on finance commission and possibly part exchange of a car they can retail back out to make the deal worthwhile for them.
Not a massive surprise to hear, finance is an important revenue stream and franchise dealers usually have lending targets that are linked to unit stocking (don’t know if that is the case with VW specifically though) so don’t want to be encouraging finance deals that have no benefit beyond shifting a unit.
There are also the regulatory implications, these are more easy to control when dealt with fully in-house.
There are also the regulatory implications, these are more easy to control when dealt with fully in-house.
I bought a stock Golf for cash some years ago and the sales manager got very annoyed that I wouldn't take finance and suggested they might not be able to do the deal, but in the end they did.
I recall reading reports of VW dealers refusing to take cash orders when diesel engines were in short supply and lead-times were out at 9mths.
I recall reading reports of VW dealers refusing to take cash orders when diesel engines were in short supply and lead-times were out at 9mths.
alorotom said:
I’m trying to buy a car to replace the lease that’s recently went back and I’ve arranged a good finance deal through a broker.
The car I want to buy is at a local garage (fully franchised VAG group dealer) and they won’t sell it to or raise an invoice to the broker as they are refusing to accept external finance!
I’ve even agreed to pay sticker price on it.
Is this a new normal?? I’ve not bought a “new” car for about 4-5yrs and this was never an issue before!
Probably because the broker is charging a fee to the dealer, CarFinance247 for example charge £150-£200 to the dealer for brokering a deal. As a car dealer I wont entertain any 3rd party finance companies without something in writing that they're not going to charge me for the privilege of selling my own car.The car I want to buy is at a local garage (fully franchised VAG group dealer) and they won’t sell it to or raise an invoice to the broker as they are refusing to accept external finance!
I’ve even agreed to pay sticker price on it.
Is this a new normal?? I’ve not bought a “new” car for about 4-5yrs and this was never an issue before!
It would be interesting to know the finance offer OP. It might be that your broker isn't offering you the best deal on a loan and you can get rid and go direct to the dealer with your finance already in place.
In my experience unless a dealer is offering 0% or major dealer deposit then the high street is a far better option for borrowing money. I've never used a broker to source a car/finance before
In my experience unless a dealer is offering 0% or major dealer deposit then the high street is a far better option for borrowing money. I've never used a broker to source a car/finance before
TheDrownedApe said:
It would be interesting to know the finance offer OP. It might be that your broker isn't offering you the best deal on a loan and you can get rid and go direct to the dealer with your finance already in place.
In my experience unless a dealer is offering 0% or major dealer deposit then the high street is a far better option for borrowing money. I've never used a broker to source a car/finance before
It’s a 3.4% deal from Alphera that’s been secured for me. The lowest rate the dealer will to is 7.9%In my experience unless a dealer is offering 0% or major dealer deposit then the high street is a far better option for borrowing money. I've never used a broker to source a car/finance before
It’s not over a vast sum ... £10k (well 9.5k after a deposit)
The car is a 2013 TT convertible ... low miler ... 1 previous owner
alorotom said:
It’s a 3.4% deal from Alphera that’s been secured for me. The lowest rate the dealer will to is 7.9%
It’s not over a vast sum ... £10k (well 9.5k after a deposit)
The car is a 2013 TT convertible ... low miler ... 1 previous owner
3.4 is very good, I can see why you are keen to secure the offer but i usually look here for the best rates:It’s not over a vast sum ... £10k (well 9.5k after a deposit)
The car is a 2013 TT convertible ... low miler ... 1 previous owner
https://www.moneysavingexpert.com/loans/cheap-pers...
Assuming your credit score will secure these rates you will save on the loan and no broker fees
I have a pretty substantial personal loan from a shortfall on my house build that still has about £45k outstanding and 3yrs to run which is why I went down the secured route as that wedge hasn’t exactly helped my “score” lol
There isn’t that much in the rate difference either looking at the relevant sum bracket.
There isn’t that much in the rate difference either looking at the relevant sum bracket.
To close this off, I spoke with the dealership brand digital and finance teams (who contacted me to see how my contact with the garage sales associate had been) who said they’re was no reason at all for used sales to not sell me the car using 3rd finance and a broker and apologised (which wasn’t necessary)
They expedited the process this morning, raised an invoice and the car is now mine, awaiting collection.
They expedited the process this morning, raised an invoice and the car is now mine, awaiting collection.
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