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Buying a car
Korting
post Fri, 18 May 2018 - 16:14
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I'm buying a new car, not brand new but a 2015 model from a main dealer.

The dealer is trying to get me to take out paint protection coating, is it really worth it, I'm not sure that it is.

The dealer has also suggested that is I take finance out with them, the finance company will contribute towards any major mechanical/electrical repairs if needed.

Personally and considering the car has a 1 year warranty, I dont think they would, or are the bound by the credit consumer act?

Dealers interest rate is circa 8%, whereas I could get 3.6% from my bank or 2.6% from another lender.

Is it worth getting finance through the dealer compared to other sources?
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post Fri, 18 May 2018 - 16:14
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cp8759
post Fri, 18 May 2018 - 16:25
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I would go with the cheapest finance, the dealer's rate seems extortionate. As for the Paint Protection Coating, the name is reminiscent of another widespread protection product that was widely mis-sold...


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The Rookie
post Fri, 18 May 2018 - 17:20
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The finance company would be liable under the consumer credit act and that can make it easier to enforce using the financial ombudsman, your call if the cost is worth it.
Paint protection is a con.


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southpaw82
post Fri, 18 May 2018 - 17:22
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QUOTE (The Rookie @ Fri, 18 May 2018 - 18:20) *
The finance company would be liable under the consumer credit act

Liable for what?


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Any comments made do not constitute legal advice and should not be relied upon. No lawyer/client relationship should be assumed nor should any duty of care be owed.
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Korting
post Fri, 18 May 2018 - 17:45
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QUOTE (southpaw82 @ Fri, 18 May 2018 - 18:22) *
QUOTE (The Rookie @ Fri, 18 May 2018 - 18:20) *
The finance company would be liable under the consumer credit act

Liable for what?


Thats what I'm wondering, I can understand if the car is faulty and spends more time at the dealer within the first say 6 to 12 months but would they be liable if something major failed whilst the loan is being paid off?

Look at it another way: Let us say you took out finance for 6 years, and you do around 15K miles per year, after say 5 years the car would have done 75K miles on top of its mileage at the moment which is around 50K, would the finance company really cough up if the engine failed at over 100K miles?
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southpaw82
post Fri, 18 May 2018 - 18:06
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QUOTE (Korting @ Fri, 18 May 2018 - 18:45) *
QUOTE (southpaw82 @ Fri, 18 May 2018 - 18:22) *
QUOTE (The Rookie @ Fri, 18 May 2018 - 18:20) *
The finance company would be liable under the consumer credit act

Liable for what?


Thats what I'm wondering, I can understand if the car is faulty and spends more time at the dealer within the first say 6 to 12 months but would they be liable if something major failed whilst the loan is being paid off?

Look at it another way: Let us say you took out finance for 6 years, and you do around 15K miles per year, after say 5 years the car would have done 75K miles on top of its mileage at the moment which is around 50K, would the finance company really cough up if the engine failed at over 100K miles?

I’d like someone to explain how the finance company would be liable at all.


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BaggieBoy
post Fri, 18 May 2018 - 18:14
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QUOTE (Korting @ Fri, 18 May 2018 - 17:14) *
Dealers interest rate is circa 8%

That might well be a flat rate, the motor trade loves to use them. If so the APR would likely to be around twice that.
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666
post Fri, 18 May 2018 - 19:22
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If you pay part (at least £100?) by credit card that will give you the same protection as you would get by paying the whole lot on credit. Then take the bank loan for the balance.

The dealer is talking rubbish. The only additional protection provided by using credit is that the credit provider is jointly liable with the seller. E.g. for any defects in the first 6-12 months.
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DancingDad
post Fri, 18 May 2018 - 19:49
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Check what warrantee is left on car anyway.
Many cars from new have 5 years on major components and paint.
Some longer on paint.
Apart from that, if dealer is not willing to give 12 months on a 3 year old car in this day and age, I'd look elsewhere.
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Korting
post Fri, 18 May 2018 - 20:07
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Dealer is main agent and does give 12 months warranty, + I f there is a problem, I can take it to any main dealership for that manufacturer.
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DancingDad
post Fri, 18 May 2018 - 20:21
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On finance....check the bottom line, forget interest and the like, at end of term, how much in total will you pay?
Sometimes shorter term may cost a little more per month but save hundreds if not thousands.
Or longer term will have better interest rates so final tally is less.
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Incandescent
post Fri, 18 May 2018 - 20:45
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Paint protection is useless, they are just trying to sell you a very expensive add-on to make their numbers up. As for dealer finance, forget it, they are always very high interest and with no benefits at all. Dealers make money from selling add-ons to a sale; don't be a mug !! What make of car is this ? A 2015 car should be in apple-pie order and not need any repairs for a long time.
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Fredd
post Fri, 18 May 2018 - 21:07
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The only thing that challenges death & taxes for certainty in this life is that add-ons offered by car dealers are either pointless or more cheaply bought from a third-party specialist.


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glasgow_bhoy
post Fri, 18 May 2018 - 22:33
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Is that 8% flat rate or APR? If flat rate I'd walk away fast!

Personally I'm always happy to take car finance rather than a loan if its only a few pounds more per month. The help a finance company can be when trying to get major faults resolved with a dealer is worth a few quid.

That said, on a 15 plate car (depending on the make), I'd suggest PCP nowadays (you can usually get them on cars upto 4 years old/upto 50k-ish miles) as some of the deals out there right now are fantastic. A 7/8 year old car (assuming you HP over 48 or 60 months) isn't going to command a strong trade in value, but if you have a PCP and you've kept the car in reasonable condition, the guarenteed future value gives you the security of being able to hand the car back to the finance company in the situation where the dealer won't offer a trade in value greater than the GFV.

I'd suggest ditching the car care kit- if you really want a treatment, buy it directly from a decent valeting/detailing company and just buy a decent valet kit for yourself going forward online.
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The Rookie
post Sat, 19 May 2018 - 05:24
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QUOTE (southpaw82 @ Fri, 18 May 2018 - 18:22) *
QUOTE (The Rookie @ Fri, 18 May 2018 - 18:20) *
The finance company would be liable under the consumer credit act

Liable for what?

If your car is bought on credit the credit company have joint liability.

My sons BMW was defective and we made a claim on the finance company and it went to the ombudsman who riled that it was defective and the finance company was jointly liable and ordered them to cancel the agreement, take the car back and make a compensation payment.


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There is no such thing as a law abiding motorist, just those who have been scammed and those yet to be scammed!

S172's
Rookies 1-0 Kent

Council PCN's
Rookies 1-0 Warwick
Rookies 1-0 Birmingham

PPC PCN's
Rookies 8-0 PPC's
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southpaw82
post Sat, 19 May 2018 - 11:50
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QUOTE (The Rookie @ Sat, 19 May 2018 - 06:24) *
QUOTE (southpaw82 @ Fri, 18 May 2018 - 18:22) *
QUOTE (The Rookie @ Fri, 18 May 2018 - 18:20) *
The finance company would be liable under the consumer credit act

Liable for what?

If your car is bought on credit the credit company have joint liability.


They can be - it depends on the relationship between the creditor, debtor and supplier.


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Any comments made do not constitute legal advice and should not be relied upon. No lawyer/client relationship should be assumed nor should any duty of care be owed.
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The Rookie
post Sat, 19 May 2018 - 13:13
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Indeed, I was referring to the relationship in the first post when talking to the OP.


--------------------
There is no such thing as a law abiding motorist, just those who have been scammed and those yet to be scammed!

S172's
Rookies 1-0 Kent

Council PCN's
Rookies 1-0 Warwick
Rookies 1-0 Birmingham

PPC PCN's
Rookies 8-0 PPC's
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glasgow_bhoy
post Sat, 19 May 2018 - 16:04
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QUOTE (southpaw82 @ Sat, 19 May 2018 - 12:50) *
QUOTE (The Rookie @ Sat, 19 May 2018 - 06:24) *
QUOTE (southpaw82 @ Fri, 18 May 2018 - 18:22) *
QUOTE (The Rookie @ Fri, 18 May 2018 - 18:20) *
The finance company would be liable under the consumer credit act

Liable for what?

If your car is bought on credit the credit company have joint liability.


They can be - it depends on the relationship between the creditor, debtor and supplier.

As well as the potential legal liability, the finance companies can put a lot of pressure on the dealers when something goes wrong- for the sake of a few hundred quid to fix a car, the dealer won't want to miss out on future commission from the finance company.
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Korting
post Sat, 19 May 2018 - 18:12
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I've paid a deposit on credit card which does indeed make them liable as long as the total price paid is not over £30K which it isn't.
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samthecat
post Sun, 20 May 2018 - 09:07
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Regarding paint protection....

You can buy a kit to DIY for less than £20 and are likely to get as poor a result as the dealer, if you want it doing properly find a local detailer and leave the car with them for a day.

These products can be very good but rely on the car being prepared properly which is time consuming and unlikely to be done by most dealers.

If you want to see the obsessive dedication some have towards a shiny car head over to the 'detailing world' website.


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