30/04/2010
Wheeler Dealers Drive Which? To Distraction
Car dealers are taking customers for a ride by not being clear about how much interest they’ll pay on a motor, a study has revealed
WhichCar? claim that overall details of car finance deals aren’t properly explained and on some occasions interest rates aren't even mentioned during the rigorous undercover investigation.
Accoring to WhichCar? not one of the sales staff at the 15 dealerships 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 a written quote at all, wrongly claiming that to do so would break the law.
On a typical car such as a £13k Fiat Bravo, a bank loan would cost a customer £15,319 whereas hire purchase with payment protection insurance would cost them £18,433 – a difference of more than £3k.
The Survey alleges that not only are customers losing out on thousands of pounds, some car dealers are failing to properly explain the risks of complex, expensive products.
Peter Vicary-Smith, Chief Executive, Which?, said:"When you take out a mortgage, the bank or building society has to clearly state APR rates up front, and explain terms and conditions fully.
"We think car finance deals should be conducted in the same way. We urge car buyers to avoid showroom finance deals if they think dealers haven’t given them all the necessary information."
(LB/GK)
WhichCar? claim that overall details of car finance deals aren’t properly explained and on some occasions interest rates aren't even mentioned during the rigorous undercover investigation.
Accoring to WhichCar? not one of the sales staff at the 15 dealerships 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 a written quote at all, wrongly claiming that to do so would break the law.
On a typical car such as a £13k Fiat Bravo, a bank loan would cost a customer £15,319 whereas hire purchase with payment protection insurance would cost them £18,433 – a difference of more than £3k.
The Survey alleges that not only are customers losing out on thousands of pounds, some car dealers are failing to properly explain the risks of complex, expensive products.
Peter Vicary-Smith, Chief Executive, Which?, said:"When you take out a mortgage, the bank or building society has to clearly state APR rates up front, and explain terms and conditions fully.
"We think car finance deals should be conducted in the same way. We urge car buyers to avoid showroom finance deals if they think dealers haven’t given them all the necessary information."
(LB/GK)
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16 December 2009
Motor Finance Growth Cautiously Welcomed
New motor finance statistics have shown a strong demand from consumers for new cars, according to Finance & Leasing Association (FLA). But motor finance providers have remained cautious about the prospects for 2010 as the UK slowly recovers from recession.
Motor Finance Growth Cautiously Welcomed
New motor finance statistics have shown a strong demand from consumers for new cars, according to Finance & Leasing Association (FLA). But motor finance providers have remained cautious about the prospects for 2010 as the UK slowly recovers from recession.
28 January 2010
2010 'Year Of The Used Car'
Leading independent car advice site honestjohn.co.uk believes that 2010 could be the year of the good value used car. But, in the aftermath of the worse winter spell for more than 20 years, it’s also warning used car buyers to be especially watchful over vehicle condition before doing a deal.
2010 'Year Of The Used Car'
Leading independent car advice site honestjohn.co.uk believes that 2010 could be the year of the good value used car. But, in the aftermath of the worse winter spell for more than 20 years, it’s also warning used car buyers to be especially watchful over vehicle condition before doing a deal.
15 January 2010
'Challenging' Year For Used Car Dealers
Supply shortages, tighter trading margins and limited retail demand will make 2010 a particularly tough year for used-car dealers, Glass's Guide has predicted. With the expected return of seasonal used-car depreciation, success will depend on a greater focus on the procurement of trade cars and a strict policy of managing ageing stock.
'Challenging' Year For Used Car Dealers
Supply shortages, tighter trading margins and limited retail demand will make 2010 a particularly tough year for used-car dealers, Glass's Guide has predicted. With the expected return of seasonal used-car depreciation, success will depend on a greater focus on the procurement of trade cars and a strict policy of managing ageing stock.
20 January 2010
Forecourt Finance End Of Year Jump
Motorists buying new cars in November bought 82% more cars using dealer finance than in the same month a year earlier, according to new statistics released today by the Finance & Leasing Association. In a race to beat the VAT rise, new car buyers took out motor finance deals worth more than half a billion pounds in November.
Forecourt Finance End Of Year Jump
Motorists buying new cars in November bought 82% more cars using dealer finance than in the same month a year earlier, according to new statistics released today by the Finance & Leasing Association. In a race to beat the VAT rise, new car buyers took out motor finance deals worth more than half a billion pounds in November.
25 February 2010
Renewed Car Theft Warning
The ever present threat of vehicle theft remains a real danger to dealers, with analysis from HPI revealing that 4x4s and compact executive-style vehicles are most at threat from being stolen.
Renewed Car Theft Warning
The ever present threat of vehicle theft remains a real danger to dealers, with analysis from HPI revealing that 4x4s and compact executive-style vehicles are most at threat from being stolen.
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Northern Ireland WeatherToday:A sunny but frosty start for many. However cloud increases by midday with a few showers reaching the north coast, these mostly light but spreading inland this afternoon. Chilly. Maximum temperature 8 °C.Tonight:A rather cloudy evening with scattered showers. Becoming drier through the night with some good clear spells developing and a patchy frost away from coasts. Minimum temperature 0 °C.