Car lenders CLOSE BUSINESS! What is going on right now?!

[@jonathanquinn9178]

I once purchased a car on finance. I didn’t look at the paperwork fully until I got home and realised the car dealer had put £1000 finance charge on the deal. I had no idea. It was a major used car dealership in Belfast. Ever since I’ve taken a personal loan. They tend to be much cheaper anyway. I’ve learnt now the best way is not to borrow money full stop. Car dealers really don’t like ‘cash’ sales as they do make more from the finance commission.

[@DodgeCity111]

Was it Charles Hurst Boucher?

[@jonathanquinn9178]

@@DodgeCity111 no it was Sere

[@sean-wh3it]

As a manager of a major car supermarket once told me they don't sell cars they sell finance agreements

[@c11yan]

He’s just saying that as he has to sell their finance as they will have tied in stocking facility.

[@propertydevelopmentlive1223]

I disagree with one statement that was make in the video. He said "someone has to pay for it" I view has always been. That no one should be paying a fee to the car dealer for using finance to sell a car. No the customer, not the finance company. The car retail is being paid the full price for the car. They do not need a fee on top of the sale price of the car for the amount of work involved in completing the finance documents.

[@aceace5457]

great your the only dealer who has been honest . well done you.

[@Pyramid333]

The motoring industry needs a deep reform. Not only do dealers and finance companies rip off they also sell crap damaged cars as normal. I just got scammed by a car dealer. Also, 4 years ago the main VW dealership did the same. The dealers must be honest as they exist to provide service and charge normal rates. The finance companies charge 350£ for simple agreement sign by docusign. Financial grifters. You have a great channel just continue doing good videos and thank you for the info.

[@BRFC23]

Spot on Rob, let's be honest there's plenty of sharp practice around. Paint 'Protection', 3rd Party Warranties & Gap Cover. Products DESIGNED to rinse customers with terrible value using pressure sale tactics. Everyone in the Trade knows. Margin over people, every time.

[@stuartd9741]

Gap protection is actually good. If the cover is correct. and the loan to car value isn't upside down. .. (The value of the loan + interest is more than the cars market value) .. But I had all the above that you mentioned when I visited a south Korean car dealership inquiring about an SUV.. It was something like 800£s of extras...

[@7417cd]

Tnx for your honest appraisal and honesty. Well done you.

[@THELOGBOOKUK]

Thank you! You're very welcome, thanks for watching :)

[@jermainerobinson7098]

Good video that was nice to know. I might put my claim in they lent me money some years ago 😂👍🏽👊🏽

[@andyjenkins5637]

Great content, fully agree its been coming , ambulance chasing legal firms will be the winner here for sure.😢

[@philwindows6932]

Great Video and luckily you have experience in this field so you can see it from all sides. Looking forwards to the video on bringing your home to life. Keep smiling, stay focused and all will be well.

[@simoncrookston459]

Great info and video looking forward to house video

[@liamegan4303]

Hello from Ireland again Rob. This is Crazy 🤪. Thank God someone has taken the lenders to Court over this. Respect Rob. 🙏🙏👌👏👏👏👏👏👏👏👏👏👏

[@daveandjanwoolf8078]

As ever those who can least afford it pay the highest price. Reality is if you have a good Credit rating you would never use a Dealers finance.

[@royster3345]

Usually because they're the highest risk for default.

[@bluesky4733]

Never mind finance companies it’s insurers who need looking At . I renewed my insurance in August on e class. And have just changed car to a newer model insurance went up £300 and broker charged £75 admin fee for 2 minutes work it’s now 100% dearer than 2 years ago. And to cap it all the monthly insurance payments are with close brothers fees are scandalous.

[@MaxMax-th7uz]

💯 ! Sold a young lady a £900 Hyundai I 10 , her insurance quote was £3300 the day before she came to buy the car … on the day she came to buy the car went up to £3800 .. £500 increase. Overnight .. That is theft !

[@bluesky4733]

@@MaxMax-th7uz It’s disgusting the government need to intervene I’ve been driving for 37 years and never had a claim

[@Cookatron]

@@bluesky4733a KZbinr got a petition done that needed over 100k signatures to get car insurance looked into by the government. His name is mark McCann sure it was a couple of months ago. Not sure if it reached the number yet but I’m assuming it did.

[@alangravy27]

Really appreciate your informed comments on this. I can imagine some dealers without your expert knowledge will be having a reactionary rant. Top content as always. Hope things pick up for you!

[@stuartd9741]

Can't see why the finance people would close their doors to business if they're not informing customers (accurately) of commission charges... .. It's been a grey area for a number of years...

[@tobiasdickinson3615]

In insurance , commissions have to be declared as a broker if the consumer asks . The FCA make it very clear and have serious consequences if not followed. Some dealers have basically been operating as unlicensed finance brokers in certain circumstances. How many horror stories do you hear of a 21 year old buying a new Audi S3 ( insert any vehicle) on PCP with no fixed income and then surprise surprise they cant pay it.

[@tonycook1186]

Totally agree. I've been telling customers how much commission we've earned for 10 years now, nobody has been bothered. Never got anyone to sign confirming though. Just one question, how did you manage to do that entire video without knocking your mug over??!!

[@jasonbudd2950Jag]

Fingers crossed the Lenders pull their fingers out asap. All the best with your new house fella.

[@geoffbester4919]

Spot on Rob

[@danielthomas9259]

Loving the channel keep up the good work!

[@andypalin3287]

There is a third reason Rob, I was really bored! 😜 Only joking of course. Excellent story as per! 🙃

[@paulmoore6345]

Interesting I thought it would all blow up with close brothers, so many adverts asking if you have bought cars on finance. Look forward to seeing your house by the way

[@Slave-Master01]

I always pay cash for my cars. If I can’t comfortably afford it with cash I don’t buy it.

[@DashDriver-z1r]

What about you get a car allowance and need to run a decent car?

[@midnightrider287]

Afternoon Rob. Looking forward to this one.

[@stuartd9741]

This is interesting as I'm about to make a claim for one of these misold finance deals on a purchase a number of years ago. At the time the interest rate was 2/3 times the base rate. .. From what! I hear on adverts, I may be able to claim "thousands" And if this is spread across many claims sure gonna add up. . I successfully claimed for misold payment protection insurance from a bank and received a substantial amount.. . But I did have a lot of the details. The bank reference numbers, name of the staff member assiting me, and the phone call they made to the manager to see if I could not pay for PP. Of course they said I - "had to have it" .. I understand people need to make a living, but surely can it be transparent & above board.. ... Interesting as always Rob. .. Good news on selling another car. .. Watched your "penny bar" video what a nightmare! Came out good in the end thou👍

[@bluefish2303]

Short and sweet. Dave Gott's Close Brothers finance got pulled ages ago though 🤷🏼‍♂️

[@johnfitton3716]

That just after he did a video praising them

[@royjennison3916]

it just makes sense and should help with the trust issues people have with small car dealers

[@evchargeandgo]

Well said Rob, hence why ive aways gone to banks for my car loans, Im current one with Tesco bank under writhen by RBS and now since july unwrighten by Barcley is 1%

[@paulbrolly5421]

Was looking at a car a few years back. I'd priced my own personal loan which came in £40/month less than the dealer for the same term. The dealer proceeded to tell me his finance was a better product, asked him straight out what extra value does your additional £40 bring me? Strangely he couldn't give me an answer.

[@paddydunne774]

Good evening

[@JamesHodgson-s1h]

Don't buy you car on finance it's very expensive In the long run. And you don't own the car. Just try and save up. You don't need an expensive one. Roads are all the same.

[@garymorris801]

Very interesting mate 😊

[@fredsmith1970]

HIGHLY interesting 🙂

[@dingbell5498]

If the rules are adhered to correctly, then what’s the problem? Or is it that attitudes have changed and now they want everything spelling out more clearly than before? In the same way as once upon a time, a boy was a male, and a girl a female, etc, but now they can be what they want including cats, dogs, of finance advisors? Years ago I was offered a deal, where if I took out the finance, they would give me an extra grand of a car, than if I paid cash, but informed me that I could pay off the finance within 30 days if I wished, so obviously commission is being paid. And that was many years ago.

[@acelectricalsecurity]

I have been looking for a car, I found one with a dealer, however his ad put me off, he stated that preference would be given to someone buying on finance over a person like me who is a cash buyer, which to me doesn't sound legal, but it was there in black and white.

[@Nick-vp7lp]

House definitely needs a new penny top bar!!!

[@aran7teen]

Long overdue indeed. I wonder if people will finally realise choosing to finance a car 90% of the time is an admission that you can’t actually afford it. It only makes sense if your money is invested and is outperforming the interest your paying the finance company. In general, financing a depreciating asset is bonkers 😂

[@andywakefield9826]

Mate there's people financing food with klarna. Its bonkers. some people finance absolutely everything

[@johnrogers6616]

How many times did you say, this was coming for a long time, too may for me.

[@mathewjones5520]

Number 3 the algorithm 🤣

[@stevenc5227]

Probably finance company going to try and pass the problems down to the dealers instead of having to deal with it themselves, cant be many people with enough spare money for car finance at the moment.

[@crozzy28]

Is it that dealerships are not explaining the exact cost of the commission or is it that the dealership isn’t offering the cheapest financing deal so they can make more commission or is this something different?

[@SuperMiloBass]

"we didn't tell people because we didn't have to" - kinda sums up the stereotypical second hand car rip-off merchant

[@KipKippax]

Good afternoon.....

[@johndawson8806]

just a thought but maybe all done for a reason ? shut down car sales as in petrol/diesel and then only push e.vs as lease options? just a thought anyway.

[@grahamwilson6401]

Apparently some dealers where increasing finance rates to enhance there commission and the lenders agreed to it. I dont think there will be many dealers coming out smelling of roses Did you get commision on finance deals rob?

[@p9rcy]

every dealer that offers finance receives commission for introducing you to the lender as they act as a broker, this is usually a small percentage of the lend but you don't pay anything extra, their commission is calculated in including Robs

[@KarmaCorner]

Keep banging that drum

[@Rupertbearjay]

Dj gotty

[@roystonvehicles9129]

A lot of interest free stocking loans are tied to the dealer selling their finance, so stocking loans might get pulled.

[@Reedosx30]

I agree people should have been told but if Customers were happy with the monthly payments what's the difference??

[@iconvlogs2110]

Financial adviser to car sales? Why the change? We are having a similar shake up with consumer duty. I agree with it though in the same way you agree with your scenario

[@zzhughesd]

Good Eleven'ths

[@royster3345]

Anything that makes buying something easier has a cost, PCP, HPI all of them come at a price, to you. You just have to figure out the best cost to you.

[@RJAH355]

If car dealer are getting paid from finance company’s on top of the money they make from selling the car. The customer is getting ripped off. The customers are paying the extra the dealer gets from the finance company. So the payments would be less if the dealers wasn’t getting a back hander from the finance company.

[@ic2433]

Tells you everything you need to know when you go in with cash (prearranged finance) and there is no deal to be done. Not meaning this to be a bad comment, just my experience when I got my last car.

[@recruitmentwebsites]

I just bought a BMW M3 Competition for £56950 five weeks ago; I looked at a few and got my finance at 8.9%. The finance broker shared with me they made a £1300 fee for getting the deal. The same car at other dealers asked for 11.9% to 13.9%, adding thousands of costs to the car over 48 months. BMW main agents were the worst and here is the kicker the same finance house BMW main gents use is the one giving me 8.9 via the broker. But the broker was no squeeky clean either. The dealer I bought my car from offered me 9.9 saying his broker gave the best rates, until I explained to the dealer the same broker approved me on another car at another dealership at 8.9. I rejected the other car as it had been tuned to 700 bhp and I wanted a stock car. So in this case even the dealer was initially getting screwed by being told he could offer 9.9 when the broker was offering 8.9 to a competitor.

[@CarlosFandango1975]

Who ends up paying the customer? Is it the finance company or the dealer that brokered the finance

[@Theimpracticalsmoker]

It’s about getting rid of private car ownership this way takes down the whole thing bigger picture

[@steffydog]

Not trying to be picky here, but I’m not 100% sure what you’re saying. Are you talking about the commission that’s paid to the dealer from the lender for selling chargeable credit, the higher the % and longer the term, the higher the commission, (as it’s always been?) Or are you saying that a finance charge has been added to the customers agreement and the client pays interest on top of the finance charge, over the term?

[@hughjanus7354]

Do I get this right, the problem here is that a car dealer can sell a 300 product for 800 and doesn't disclose it to the customer (and that's a rip off)? The same dealer can sell a trade in they bought for 300 and sell it for 3000 and they also don't disclose it. Obviously either both are wrong or neither is wrong.

[@watchanything-c7r]

in my life i would never get car on finance i rather just drive a car under 2k and i could get a 4-5k car but there's a lot more drivers without insurance or license and don't fancy contacting my insurance to have my policy to increase a big lot even if it wasn't my fault

[@carforumwanker]

Always paid cash for a car . If it is written off .... I buy another one for cash . Only Fools get into finance

[@Joolz777]

👍👍👍👍👍😎😎😎😎😎

[@brianuk4430]

[@rjdavies1982]

I bought a used porsche cayman from porsche cardiff a few years ago - have submitted my claim - couple of grand would be nice!

[@OldCarsNewVan]

I guess it's a mindset - I would never buy a car that i couldn't pay for myself without finance. If that meant driving a £1000 banger then fair enough - anything than being in debt on a depreciating item. But that's just me and I respect others will feel differently and that's ok too.

[@Nobodie99]

Warned u

[@GeekOfShaves]

Funny I sent a message to Joe at shifting metal about this when the news broke and said it would make a good video. Looks like you beat him to it. Many banks have had their stock hit as well, who did lending. This, along with the budget makes me think demand will drop and therefore so will prices on vehicles.

[@dazpain7652]

Shitting myself around the budget

[@MKHNitro]

Dodgy car dealer whines and whinges - nothing new then

[@THELOGBOOKUK]

Why change the habit of a lifetime!

[@DrivenToDeal]

You’re my hero rob 🦸🏻