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Difference Apr Rate That Different Dealers Charge


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#81 Black Grouse

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Posted 01 September 2017 - 06:44 pm

I've never heard of a dealer not accepting credit cards for deposits, only for large balances.

Derby Caravans wouldn't, nor would Listers VW Nuneaton.

 

I only have my own experiences so I don't how widespread, or not, it is.



#82 Steamdrivenandy

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Posted 01 September 2017 - 07:16 pm

Derby Caravans wouldn't, nor would Listers VW Nuneaton.

 

I only have my own experiences so I don't how widespread, or not, it is.

 

As I say, seems odd not to accept credit cards for the reason you suggest when most of a caravan and car dealer's new vehicle business is financed by customers using credit of one sort or another. Most by HP or PCP, both of which are credit instruments that are covered by S.75 of the CCA and renders the dealer liable to the finance company.



#83 Black Grouse

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Posted 01 September 2017 - 07:33 pm

 

As I say, seems odd not to accept credit cards for the reason you suggest when most of a caravan and car dealer's new vehicle business is financed by customers using credit of one sort or another. Most by HP or PCP, both of which are credit instruments that are covered by S.75 of the CCA and renders the dealer liable to the finance company.

With HP or PCP, the dealer will be getting the commision for selling it.



#84 Durbanite

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Posted 02 September 2017 - 08:30 am

With HP or PCP, the dealer will be getting the commision for selling it.

So the higher the APR the more commission?



#85 Llew

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Posted 02 September 2017 - 08:59 am

We received our current van in April this year. When we ordered it last October, a £500 deposit was paid by credit card. At the time the dealer had a "special offer" on finance, which if memory serves me right was around 7-8%.
However, my bank was offering a loan for the same amount at 3.2%, so this is what we went for.
£500 deposit on credit card and a loan for the remaining amount after deducting the part ex price.
I didn't get too hung up on the protection that finance offers you, because the credit card offers protection should anything go wrong. Also, a lot of people forget that they may have legal cover with their van, car or house insurance which also offers protection. I have also been a union member since starting work some 30 odd years ago, and am now a union rep myself, anybody that is in a union also has the backing of the union's legal department, which my current dealer has been notified of.
Don't get too swayed by the protection that finance offers you, there are other avenues that offer the same if not better protection should anything go wrong, and for a lot cheaper than finance deals.

Edited by Llew, 02 September 2017 - 09:04 am.

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#86 Black Grouse

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Posted 02 September 2017 - 09:16 am

So the higher the APR the more commission?

I don't know the detail - but probably as the finance company has more to "play" with.



#87 Durbanite

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Posted 02 September 2017 - 09:28 am

We received our current van in April this year. When we ordered it last October, a £500 deposit was paid by credit card. At the time the dealer had a "special offer" on finance, which if memory serves me right was around 7-8%.
However, my bank was offering a loan for the same amount at 3.2%, so this is what we went for.
£500 deposit on credit card and a loan for the remaining amount after deducting the part ex price.
I didn't get too hung up on the protection that finance offers you, because the credit card offers protection should anything go wrong. Also, a lot of people forget that they may have legal cover with their van, car or house insurance which also offers protection. I have also been a union member since starting work some 30 odd years ago, and am now a union rep myself, anybody that is in a union also has the backing of the union's legal department, which my current dealer has been notified of.
Don't get too swayed by the protection that finance offers you, there are other avenues that offer the same if not better protection should anything go wrong, and for a lot cheaper than finance deals.

I think you may be mistaken on the cover that a credit card offers if something goes wrong.  It has to be very big for them to even agree to think about it and a complaint of damp in the caravan probably would not even move them.  Have you ever tried using S75 and doing a chargeback?  Not easy at all.

Have you ever tried to use the legal cover that comes with the car or home insurance?  I have got the t shirt and I can promise you it is not easy by any stretch of the imagination as they will try and find every way to make it as difficult as possible to refund you in the hope that you will give up.  The Union's legal department may be every clued on on employment law, but may not have the expertise needed for Consumer law.

It took another poster on this forum 18 months to get a refund.  In comparison after nearly 2 months we are at the beginning of our battle for a refund even though a rejection has been agreed despite the legislation being heavily in our favour and also using a solicitor.



#88 Llew

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Posted 02 September 2017 - 09:38 am

That may have been the case with union's a few years ago, but now, not only are you covered in work, but are covered outside of work. I no longer have legal cover on the van, car or house due to the cover now offered by union's, well mine at least. To quote my union, "as well as being covered for all work related matters, you and members of your family are also covered by our legal team for any non working related matter".

Edited by Llew, 02 September 2017 - 09:41 am.


#89 Grandpa Steve

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Posted 02 September 2017 - 04:20 pm

So the higher the APR the more commission?


No, the FCA put a stop to that, usually the finance company pays the dealer a fee, but the days of loading the rate of the loan to earn large commissions has gone.
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#90 Malc Edge

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Posted 03 September 2017 - 10:49 am

Why not try your bank first. Most do a preferential rate for their current account customers. In my case (Nationwide) its 3.4%.

I've seen better than that too. Sainsburys recently were around 3.0%.

Only problem with Nationwide ( I know because I tried and its my bank ) is that this low rate is only available if you meet some very very strict criteria, once you apply you find out that the rate is no different than just about any loan institution and I got a better quote when buying my Land Rover ( £15,000 loan ) from JLR themselves and I did not waste about 45mins at the bank after being interviewed.By the way I have no mortgage,I have retired with a good income.Sorry computer says no !



#91 Steamdrivenandy

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Posted 03 September 2017 - 11:54 am

For loans between £7,000 and £30,000 First Direct are offering 3.3% at present. I did borrow £7,000 from them more than two years ago and got their lowest rate.



#92 Ern

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Posted 03 September 2017 - 02:16 pm

Only problem with Nationwide ( I know because I tried and its my bank ) is that this low rate is only available if you meet some very very strict criteria, once you apply you find out that the rate is no different than just about any loan institution and I got a better quote when buying my Land Rover ( £15,000 loan ) from JLR themselves and I did not waste about 45mins at the bank after being interviewed.By the way I have no mortgage,I have retired with a good income.Sorry computer says no !

I've found it pretty straight forward to deal with them, even getting them to price match a competitor last time I used them (which did surprise me). You always have two choices though with any of them.


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