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Car buyers overcharged £1,000 by dealers for loans, says watchdog

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Car buyers overcharged £1,000 by dealers for loans, says watchdog

https://www.bbc.co.uk/news/business-47438681

I posted this on the long running pcp car thread, but thought it deserved its own thread 

https://www.housepricecrash.co.uk/forum/index.php?/topic/229784-boe-investigates-terrifying-rise-in-borrowing-to-fund-new-car-purchases/page/44/

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The customer would probably be told that they have failed the loan/PCP application unless they took the higher rate of interest, and as its only an additional £22.92 pcm its manageable. 1 take away a month less to get the car of your dreams....

Edited by Monkey

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52 minutes ago, dpg50000 said:

Definitely another PPI in the works, to reward the feckless and keep them spending.

Good job that Mark Carney is being so vigilant.

Nurse!

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What's so wrong with them setting their own interest rates? The banks already do this for personal loans, based on your circumstances/history.

Thick buyers who can't use an interest calculator, or make a basic comparison with rates at other car dealers.

They'll always be the case of poor credit rating buyers who will eventually find finance but at a higher rate to offset the risk.

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1 hour ago, Andy T said:

What's so wrong with them setting their own interest rates? The banks already do this for personal loans, based on your circumstances/history.

Thick buyers who can't use an interest calculator, or make a basic comparison with rates at other car dealers.

They'll always be the case of poor credit rating buyers who will eventually find finance but at a higher rate to offset the risk.

Why are people surprised that the interest rates offered by the car dealerships are higher than if you shop around?

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8 hours ago, Si1 said:

Why are people surprised that the interest rates offered by the car dealerships are higher than if you shop around?

Exactly. I bought a car using a bank loan about 15 years ago. The dealership were pushing hard for me to take their finance. I'd already done my homework and got a personal loan approval in principle from the bank, I knew the dealership wasn't competitive, so I shut them up by saying "If your interest rate is lower than 5.9%, then I'll gladly take your credit." Funnily enough, they gave up at that point.

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I bought my car outright but the dealership was still trying to push finance as "wouldn't you rather have the money in the bank" ... not at <1% interest paid by bank vs ~3% interest asked for the loan. 

 

 

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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