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From: Ret. on 30 Apr 2010 13:38
Car dealers are taking customers for a ride by not being clear about how
much interest they'll pay on a motor, says Which? Car.

Overall, details of car finance deals weren't properly explained and on some
occasions interest rates weren't even mentioned during the rigorous
undercover investigation.

APR not stated
Not one of the sales staff at the 15 dealerships we visited verbally told
researchers the total cost of the interest on a finance agreement. Two
thirds failed to mention the APR and a third didn't include it on their
written quote either.

Without this information, it's impossible for a buyer to work out how much
interest they'd pay on a finance deal. Not including the APR in a written
quote also contravenes the Consumer Credit Act.

One salesman even refused to give our shopper a written quote at all,
wrongly claiming that to do so would break the law.

Car buyers risk paying thousands more:
On a typical car such as a �13,000 Fiat Bravo - one of the cars we shopped
for - a regular bank loan would cost a customer �15,319 (including �1,000
deposit).

Using a dealership's hire purchase scheme with payment protection insurance
would cost �18,433 - a difference of more than �3,000. Even without PPI, the
hire purchase deal was still much more costly, at �15,943.

http://www.which.co.uk/news/2010/04/which-car-slams-car-finance-sales-tactics-212994

Kev

From: Mike P on 30 Apr 2010 13:41
On Fri, 30 Apr 2010 18:38:13 +0100, Ret. sang, in the style of Bill
Bailey:

> Car dealers are taking customers for a ride by not being clear about how
> much interest they'll pay on a motor, says Which? Car.
>
> Overall, details of car finance deals weren't properly explained and on
> some occasions interest rates weren't even mentioned during the rigorous
> undercover investigation.
>
> APR not stated
> Not one of the sales staff at the 15 dealerships we visited verbally
> told researchers the total cost of the interest on a finance agreement.
> Two thirds failed to mention the APR and a third didn't include it on
> their written quote either.
>
> Without this information, it's impossible for a buyer to work out how
> much interest they'd pay on a finance deal. Not including the APR in a
> written quote also contravenes the Consumer Credit Act.
>
> One salesman even refused to give our shopper a written quote at all,
> wrongly claiming that to do so would break the law.
>
> Car buyers risk paying thousands more: On a typical car such as a
> £13,000 Fiat Bravo - one of the cars we shopped for - a regular bank
> loan would cost a customer £15,319 (including £1,000 deposit).
>
> Using a dealership's hire purchase scheme with payment protection
> insurance would cost £18,433 - a difference of more than £3,000. Even
> without PPI, the hire purchase deal was still much more costly, at
> £15,943.
>
> http://www.which.co.uk/news/2010/04/which-car-slams-car-finance-sales-
tactics-212994


I don't wish to appear rude, but this is hardly news. I thought this was
well known. It certainly has been throughout my driving days. Car finance
is a rip off and always has been AFAIK.

--

Mike P

'98 Citroen Xantia Activa
'97 Peugeot 306D. The slowest post 1996 car ever built.
From: Ret. on 30 Apr 2010 13:46
Mike P wrote:
> On Fri, 30 Apr 2010 18:38:13 +0100, Ret. sang, in the style of Bill
> Bailey:
>
>> Car dealers are taking customers for a ride by not being clear about
>> how much interest they'll pay on a motor, says Which? Car.
>>
>> Overall, details of car finance deals weren't properly explained and
>> on some occasions interest rates weren't even mentioned during the
>> rigorous undercover investigation.
>>
>> APR not stated
>> Not one of the sales staff at the 15 dealerships we visited verbally
>> told researchers the total cost of the interest on a finance
>> agreement. Two thirds failed to mention the APR and a third didn't
>> include it on their written quote either.
>>
>> Without this information, it's impossible for a buyer to work out how
>> much interest they'd pay on a finance deal. Not including the APR in
>> a written quote also contravenes the Consumer Credit Act.
>>
>> One salesman even refused to give our shopper a written quote at all,
>> wrongly claiming that to do so would break the law.
>>
>> Car buyers risk paying thousands more: On a typical car such as a
>> £13,000 Fiat Bravo - one of the cars we shopped for - a regular bank
>> loan would cost a customer £15,319 (including £1,000 deposit).
>>
>> Using a dealership's hire purchase scheme with payment protection
>> insurance would cost £18,433 - a difference of more than £3,000. Even
>> without PPI, the hire purchase deal was still much more costly, at
>> £15,943.
>>
>> http://www.which.co.uk/news/2010/04/which-car-slams-car-finance-sales-
>> tactics-212994
>
>
> I don't wish to appear rude, but this is hardly news. I thought this
> was well known. It certainly has been throughout my driving days. Car
> finance is a rip off and always has been AFAIK.

Absolutely - but car dealers have been castigated for years for failing to
comply with the law in relation to providing proper information about the
finance deals they are offering. Despite all this castigation - they are
still failing to comply with the law.

It's astonishing just how financially 'illiterate' so many people are - and
they *will* be taken in by a glib-talking salesman.

Kev

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