Do car dealerships really think all customers are stupid !!!

[auroan]

Turned up at the dealership to collect my new pride and joy tonight. Looked around the car and all is good. Start going through all the paper work and everything is looking great. Right up until the credit agreement comes out.

Some how they had managed to add an extra £720 to the amount of credit I actually needed, and their excuse was "so we could sort the APR" to match the monthly amount they had quoted me.

I do NOT work on how much I can afford a month and base everything around that on discussion with car salemen. I look at the headline cost of the car and then if I can afford the monthly payment at a good APR rate then I will buy it. AAAAARRRRGGGGHHH god knows what the saleman told the finance guy when they drafted up the docs.

So now I have to wait till Friday to go back and see if they can actually give me the deal that we shook hands on on Monday, and not try an pull the damn wool over my eyes.

 

[Staz]

Pfft that's pretty nuts!

But in answer to your question, yes. Yes they think we're all stupid but with a bit of knowledge learned from the wonderful site that is ASN you can quickly learn that it is them that are the stupid ones

 

[JohnboyC]

I always pay cash for my cars.....and start saving for my next one as soon as I get my new one....
Have never used finance/tick for any cars....
I remember buying a 6 month old ex demo BMW once....I was on my way home from a bit of mountain biking and was pretty grubby....the smug tw*t of a used car dealer sneered "and how will sir being paying for this car"....he became a different person when I said CASH !

Its just really irritating when dealers don't budge on their prices, even when you offer cash......I s'pose they have to make their £2000 profit on every used car eh !

 

[Ads]

If possible always get a bank loan for a car rather than finance.
The dealer will be receiving cash for the sale so hopefully you have a better chance of settling on a more favourable price to you. You should also get a better rate of interest on a bank loan also. And the car is yours to sell if you want to get rid of it before the loan is fully repaid. None of that mess of explaining why there is outstanding finance etc on the car.

 

[auroan]

Just to follow up on this.... I now have the car. Long story short, looks like the sales man messed up on the deal we agree'd. It ended up going to the dealer principle for approval, so they've either sold me the car at a loss, or with very little profit.

 

[auroan]

If possible always get a bank loan for a car rather than finance.
The dealer will be receiving cash for the sale so hopefully you have a better chance of settling on a more favourable price to you. You should also get a better rate of interest on a bank loan also. And the car is yours to sell if you want to get rid of it before the loan is fully repaid. None of that mess of explaining why there is outstanding finance etc on the car.

I got a better rate with Audi finance, than any bank would offer.

 

[Ads]

I got a better rate with Audi finance, than any bank would offer.

It's not all about the rate though, are there lump sums to be paid at the end of the agreement etc?

I've always found that at the bottom line (total amount paid back at the end of the loan term) bank loans are cheaper than finance. Especially if you can drawn down on your mortgage if you have one (which is probably the best rate loan possible) and set yourself a repayment plan to recredit your mortgage account.

 

[auroan]

It's not all about the rate though, are there lump sums to be paid at the end of the agreement etc?

I've always found that at the bottom line (total amount paid back at the end of the loan term) bank loans are cheaper than finance. Especially if you can drawn down on your mortgage if you have one (which is probably the best rate loan possible) and set yourself a repayment plan to recredit your mortgage account.

How does 5% Apr (not flat... thats worked at about 1.5%) sound ? for £14.5K over 3 yrs

Find me something cheaper than that ;-)

I've finance'd enough cars and houses in my life to not get ripped of by looking at just one figure.

But I do agree on one point... on avg if you don't negotiate hard, dealer finance is usually the move expensive route.

 

[voorhees]

I got 2% on mine

 

[Ads]

I was looking at 2.99% but decided against borrowing all together.

So there's two for ya

 

[auroan]

In the month of December 2009 ? Which finance companies ? Because I'd refinance with those if you really got that low.

Or we're those low "APR" deals during the silly period where anyone could get a loan ?

 

[Ads]

Tbh, the 2.99% available to me is by drawing down on my mortgage. It's available to me for the next three years, no fees or penalties for withdrawing or overpaying to pay it back either.
I was going to do it and then set up a standing order back to my mortgage account to repay the extra money borrowed for the car, but in the end decided on buying something cheaper that I could afford to pay for using only my savings.

I looked at all 'borrowing' options available to me and the mortgage avenue was the best in every way for me.

But your rate does sound pretty good for how things are at the moment though.

 

[Dazmo]

I took a personal loan as its a safer method.

Does not tie your car to finance if you right it off or cannot afford the payments.

Cash is great but it isnt very good for your credit report or furture credit rating.

If you do have the cash i would say the best mehtod is get a credit card with some sort of bonus/points scheme or something then buy your car on that card.

Then just pay off the balance with your cash and hey presto you have 20,000 points or whatever the reward maybe.

Plus it will be positive for your credit rating as you have instantly paid it off!