Unfair PCP & HP deals - £1000 compensation

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Flyingscotsman

Flyingscotsman

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Just spotted this on MoneysavingExpert forum.

Apparently many of these deals had hidden 'optional' commission to those selling the deals.
If this applies to your specific deal then it may be possible to claim £1000 compensation. MoneysavingExpert explain how to do this without involving any claims companies who take a chunk of the compensation.

https://www.moneysavingexpert.com/reclaim/reclaim-car-finance/
 
This is interesting. I have always thought that BMW interest rates were expensive, this might explain why... Even so, I've bought a few bikes via BMWFS in this period. However, when I bought a BMW car in 2018 I distinctly remember the sales manager being very disappointed when he learned I was not using BMWFS for the car, because of the difference in monthly cost (because I got something like 4/5% elsewhere, when they were charging 8/9/10% APR).

When I told him how much cheaper the interest rate I'd got elsewhere was, he said that the FS rate was 'a starting point' (or words to that effect), and they could have 'done something about that'... which sounds like what MSE are talking about. In my experience there has always been a bit of give and take on the purchase price/accessories package, but I never thought to question/haggle the finance rate - I just learned, slowly, not to take it if I could avoid it..
 
BMW have taught us all to ignore their FS deal and distrust the offering. You reap what you sow.
I do wonder how much the dealers make out a sale. Not nearly as much as we think, I’ll wager. Hence the incentive to sell overpriced finance and ‘extras’.
 
I'm not sure I'll get £1,000 with my claim on BMWFS. When I bought my K46 from Vines, Guildford, I got 0% finance over two years 50% deposit and £1 per month PCP payment for 24 months and I paid off the balloon at the end. I thought that finance deal was as good as a discount as I tried to haggle and the only thing I got was the pillion seat replacement thrown in.
 
In September 2022 I took some finance purely to get the contribution from BMW. I paid it off before the first payment was due I think. Not sure if I'd be entitled to any compo?
 
pauly said:
In September 2022 I took some finance purely to get the contribution from BMW. I paid it off before the first payment was due I think. Not sure if I'd be entitled to any compo?
Click to expand...
You won’t get any as you paid it off so early as the dealership will have had any commission clawed back from them
 
Did the same when I bought a new Gen2 near the end of 2013, but I recall the dealer asking me to let it run for 3 or 4 months. So I did.
 
They usually have claw back ranging from 3 months to 6 months. So back in 2013 they may have had a 3 month clawback…. But it is generally now 6 monthly payments otherwise their commission is clawed back
 
Perhaps it was 6 months, the sales wallys went from being my new best mates, to totally blanking me when I took the bike in for services.
 
I had 2 finance deals in the qualifying period, only took the finance to get the £1000 contribution that was being thrown in. Both Ford and BMW have said they can't find me on their systems, I expect they try that with every claim. Unfortunately for them, I saved the paperwork.
 
What the courts look at is the commission they got paid versus the benefit you got from going with them. So if you got the £1000 contribution and they got paid £250 then you are probably in a better position versus no £1000 and going elsewhere for your loan.
 
Did I get the £1000, or did the dealer to enable them to discount the bike/car. So the so called deposit contribution may just be a way to discount the bike without devaluing it.
 

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