Time to use cash perhaps?

[otherclive]

Last Friday the courts gave a judgement relating to the non disclosure of commission paid to car dealers when the customer opted for finance. Almost immediately the major finance lenders stopped lending to motor dealerships. As 80% of cars are bought using some form of finance it’s causing a few issues in the trade. I dare say caravan and motorhome lenders have not been disclosing commission.

Some business gurus are reporting that the costs to lenders could be on a par with the compensation for PPI, and mis sold endowment mortgages.

Might be a good time to use cash, albeit with a bit paid by credit card for a caravan 😂😂

 

[RogerL]

The ruling seems to require sellers to show how much commission they earn from the finance arrangement - now many buyers will be shocked at the size of the figure but it doesn't seem a difficult requirement to comply with.

 

[Jcloughie]

When I bought my new MG in 2023, I paid cash. The salesman said that if I took out HP or PCP via Santander. I would get £1000 back as long as I paid in full within 3 weeks. So I did. All went without a hitch. I just wonder if there was also a payout for the salesman. I guess a lot of people would just continue with the monthly payments.

In 2017 I bought a Volvo V70, 4 years old from a main dealer. The dealer really wanted me to take out some form of payment scheme. But I insisted on cash. I smiled when the sales person said they could not accept that amount in cash. I needed to explain it was just a turn of phrase and I would not be turning up with a fat brown envelope.


John

 

[otherclive]

Certainly the £1000 probably included some of the commission paid by the finance house. I remember buying a Nissan Note in 2010 and the salesman insisted on reading me lots of finance stuff even though I told him I was paying cash. But he said it was to comply with finance regulations. I got irritated when I was asked to sign forms acknowledging that I had been offered finance. But that was baloney it was probably to show the management that he had tried his best to sell the car with finance agsinst it. He shut up pretty quick when I said I didn’t need to see or sign forms, and if it continued consider the sale binned.

 

[Buckman]

Going back to 2012 it does seem that we will be due a refund? It did seem strange that one could get a loan from the same company at a lower rate. I have already applied for the refunds.

 

[Mel]

Going back to 2012 it does seem that we will be due a refund? It did seem strange that one could get a loan from the same company at a lower rate. I have already applied for the refunds.

How did you go about applying for a refund? I have given my daughters the heads up about this and they would probably like to apply as well. Thanks
Mel

 

[Buckman]

How did you go about applying for a refund? I have given my daughters the heads up about this and they would probably like to apply as well. Thanks
Mel

Go to Martin Lewis at https://www.moneysavingexpert.com/reclaim/reclaim-car-finance/ No need to pay someone else to do it for you.

 

[Mel]

Go to Martin Lewis at https://www.moneysavingexpert.com/reclaim/reclaim-car-finance/ No need to pay someone else to do it for you.

Thank you. I have sent them the link.
Mel

 

[RogerL]

Thank you. I have sent them the link.
Mel

Not all Finance companies operated the Discretionary Commission system - according to Martin Lewis, only 40% did - I applied to VW Finance when this issue first came to light but they didn't operate the scheme so no compensation due to me!

 

[Buckman]

Not all Finance companies operated the Discretionary Commission system - according to Martin Lewis, only 40% did - I applied to VW Finance when this issue first came to light but they didn't operate the scheme so no compensation due to me!

VW like some other brands had their own inhouse finance so no need to bump up interest rates.

 

[Mr Plodd]

Have never used finance from acar dealership. I have purchased using a personal loan from my bank. Lower interest rates!

 

[Beachball]

Go to Martin Lewis at https://www.moneysavingexpert.com/reclaim/reclaim-car-finance/ No need to pay someone else to do it for you.

Thanks for that might have a look for one of ours cars 👍

 

[Buckman]

Have never used finance from acar dealership. I have purchased using a personal loan from my bank. Lower interest rates!

However no protection if things go wrong. Worked for us in the past and saved us a fortune. 👍 😀

 

[Sam Vimes]

In the 80s I had a tenuous connection with the London Lotus and Sports Car Centre. It was not unknown for someone to wander in with a bag of cash, point and say 'I'll have that one'.