Taking Finance to get dealer contrib then paying off?
Discussion
Check the specific T&C's but there's usually no issue providing that you settle within a specified time frame.
I did this several years ago and there was a 14 day window after having entered the agreement in which I could pay up in full and not incur any penalties. Took the finance and incentive and paid it off a week later, easy.
I did this several years ago and there was a 14 day window after having entered the agreement in which I could pay up in full and not incur any penalties. Took the finance and incentive and paid it off a week later, easy.
Caddyshack said:
Might be worth asking the salesman if they will get a clawback of any commission, seems unfair if they do.
Who cares? This is about the pound in his/her pocket, nobody else's. If they'll discount the car by a grand to cover this then fair enough, but I suspect that incentive isn't in place or the question wouldn't even be getting asked.
Axionknight said:
Caddyshack said:
Might be worth asking the salesman if they will get a clawback of any commission, seems unfair if they do.
Who cares? This is about the pound in his/her pocket, nobody else's. . Remember this next time you get screwed over by someone being selfish.
Yomamaisasnowblower said:
Like salesmen actually give two s
ts about the customer. No matter what the price level, as long as they score a sale and make commission, zero fks given at what happens after that. Its been shown on countless threads here when problems occur post sale.
Thats a very sweeping statement and IMHO grossly unfair, you will always hear more negative stories than positives, thats human naturets about the customer. No matter what the price level, as long as they score a sale and make commission, zero fks given at what happens after that. Its been shown on countless threads here when problems occur post sale.Caddyshack said:
Might be worth asking the salesman if they will get a clawback of any commission, seems unfair if they do.
I'd see that as an added bonus. Incentivising the customer to buy finance packages they don't need deserves punishment. Incentivising the salesman to sell unneeded finance also deserves to be punished. Taking then cancelling the finance package is certainly going to cost the finance provider. If they then share the pain with the salesman, so much the better.ATG said:
I'd see that as an added bonus. Incentivising the customer to buy finance packages they don't need deserves punishment. Incentivising the salesman to sell unneeded finance also deserves to be punished. Taking them cancelling the finance package is certainly going to cost the finance provider. If they then share the pain with the salesman, so much the better.
That is more a making of the finance company and employer- the salesman doesn’t create the remuneration package.Caddyshack said:
ATG said:
I'd see that as an added bonus. Incentivising the customer to buy finance packages they don't need deserves punishment. Incentivising the salesman to sell unneeded finance also deserves to be punished. Taking them cancelling the finance package is certainly going to cost the finance provider. If they then share the pain with the salesman, so much the better.
That is more a making of the finance company and employer- the salesman doesn’t create the remuneration package.ATG said:
Caddyshack said:
ATG said:
I'd see that as an added bonus. Incentivising the customer to buy finance packages they don't need deserves punishment. Incentivising the salesman to sell unneeded finance also deserves to be punished. Taking them cancelling the finance package is certainly going to cost the finance provider. If they then share the pain with the salesman, so much the better.
That is more a making of the finance company and employer- the salesman doesn’t create the remuneration package.The dealer is being open and honest as to the way they are discounting the car, it isn’t a sneaky trick.
Play the game they won’t discount or deal for cash sale. Take the best deal to get the most kickback from dealer & manufacturer.
Wait till cars delivered then phone the owning finance company & pay off via card win win.
Did it in Oct no cash or discounts on the car I wanted, spec’d car with a couple of options took the best finance option.
Sat back & waited for car to arrive, phoned finance company paid the outstanding, saved 3.5k.
Wait till cars delivered then phone the owning finance company & pay off via card win win.
Did it in Oct no cash or discounts on the car I wanted, spec’d car with a couple of options took the best finance option.
Sat back & waited for car to arrive, phoned finance company paid the outstanding, saved 3.5k.
Caddyshack said:
The op wants a discount of £1000 for taking the finance out - seems a fair exchange. The company can make up the lost income with the finance commission. Just seems dishonest to me to take it in full knowledge that you will then cause them to lose that income.
The dealer is being open and honest as to the way they are discounting the car, it isn’t a sneaky trick.
If the T&C allow it, them there's nothing dishonest about it.The dealer is being open and honest as to the way they are discounting the car, it isn’t a sneaky trick.
Most punters entirely understandably are not in a good position to figure out if a finance package is fairly priced or not. The very fact that there's a "discount" on offer to encourage you to take on the finance package should be telling you that the finance package's headline price is not close to representing fair value. Even with the discount thrown in, the financed package is still a more expensive way of buying the car. Is the salesman making that clear to the punter? Of course not.
The salesmen may not be aware of this. They may be selling crap in good faith, so I have a degree of sympathy. But this is exactly the same dynamic that underpinned the miss-selling scandals in a load of British financial institutions in the last few decades.
Edited by ATG on Monday 10th April 10:04
We didn’t do the deal in the end but a Toyota dealer encouraged us to take the contribution then pay it off - he said ‘everyone’ says they’ll pay it off but in practice few do.
We did do it on a VW and the salesman blanked me next time I saw him but I’ve found salesman generally don’t engage anyway if you’re taking a car for service (this aspect of car sales people’s behaviour has always bemused me).
It is a bit of a grey area though - if you Withdraw it’s supposed to be as if the deal never existed so in theory the deposit contribution wouldn’t have existed. Having said that, I was surprised with the VW deal to have to pay interest (£30 in our case) for the few days from collection until I Withdrew - if the deal had literally never existed there couldn’t be any interest. The daft thing is they then give you 28 days to pay. I made sure to get VWFS to say the amount to pay was full and final.
We did do it on a VW and the salesman blanked me next time I saw him but I’ve found salesman generally don’t engage anyway if you’re taking a car for service (this aspect of car sales people’s behaviour has always bemused me).
It is a bit of a grey area though - if you Withdraw it’s supposed to be as if the deal never existed so in theory the deposit contribution wouldn’t have existed. Having said that, I was surprised with the VW deal to have to pay interest (£30 in our case) for the few days from collection until I Withdrew - if the deal had literally never existed there couldn’t be any interest. The daft thing is they then give you 28 days to pay. I made sure to get VWFS to say the amount to pay was full and final.
OP, I take it this for the car discussed recently ?
Absolutely nothing wrong with taking the contribution and then cancelling the Finance ( personally I would leave in place for 10days or so ) although if you don’t really want or need the Finance then nothing to stop you being open with the salesman , telling him this and see what the reaction is.
I’ve bought various cars with Finance and separate Dealer contributions and have always been up front with what I plan on doing( I have both kept and cancelled depending on the rate of interest ) and it’s never been an issue.
Absolutely nothing wrong with taking the contribution and then cancelling the Finance ( personally I would leave in place for 10days or so ) although if you don’t really want or need the Finance then nothing to stop you being open with the salesman , telling him this and see what the reaction is.
I’ve bought various cars with Finance and separate Dealer contributions and have always been up front with what I plan on doing( I have both kept and cancelled depending on the rate of interest ) and it’s never been an issue.
Andy665 said:
Yomamaisasnowblower said:
Like salesmen actually give two sts about the customer. No matter what the price level, as long as they score a sale and make commission, zero fks given at what happens after that. Its been shown on countless threads here when problems occur post sale.
Thats a very sweeping statement and IMHO grossly unfair, you will always hear more negative stories than positives, thats human naturets about the customer. No matter what the price level, as long as they score a sale and make commission, zero fks given at what happens after that. Its been shown on countless threads here when problems occur post sale.
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