Member Since: 07 Aug 2006
Location: Somerset
Posts: 169
Land Rover Finance
I am due to take delivery of my disco early Sept & i wasn't going to use finanace, however given the offer of a deposit contribution of £1000 from LR finance i may now consider this.
Does anybody know if it is possible to just finance a small amount (say 5k) with them & still claim the £1000 deposit contribution. This would then make it 0% finance on the 5k i borrowed?
Any thoughts would be appreciated
22nd Aug 2006 7:07 am
retired
Member Since: 18 Feb 2006
Location: Surrey
Posts: 158
You can make about £500 out of this offer by financing the minimum amount which, although I can't remember how much, is a lot more than you suggest. I think it might be 40% of the price.You then have to make one monthly payment, and thus pay one months interest, and then close the arrangement. The various fees plus the interest come to about £500. So you make about £500. At least thats what my salesman told me.
I would be careful though. I found that while they are offering this £1,000 discount, it still didn't bring the overall finance cost down to what other finance companies were offering. The LR finance rates were higher than I could find elsewhere. This could well be different if you're only financing a small amount.
In my case, it still worked out considerably more to use LR finance. The dealer ended up matching my best offer by financing through their own finance dept. (Hartwell finance), so I took this as it was easier to let them sort out the finance as it made the car collection go smoothly.Matt
22nd Aug 2006 8:05 am
cheddarwards
Member Since: 07 Aug 2006
Location: Somerset
Posts: 169
I actually work for a finance company, so sourcing a competitive finance deal would be fairly straightforward. However on this occasion i am not using finance for the purchase, and if i can make the deposit contribution work in my favour & thus save me some money, i've got to try it.
If i borrow say 5k at their advertised rate of 9.95 APR it would cost me at most extra £282.6 (plus their doc fee & OTP) against the best finance deal i could do. Thus the additional £1000 from LR easily outweighs this & also covers the total interest charges in the deal & so effectively makes the deal 0% finance.
My only concern is whether LR stipulate a maximum deposit (i intend putting in 34k against a 39k car) the size of the deposit may cause them issues.
The only way to find out is to ring them, so i'll do that now & let you know how i get on.
22nd Aug 2006 8:25 am
cheddarwards
Member Since: 07 Aug 2006
Location: Somerset
Posts: 169
Dealer confirmed that you can save approx £500 by taking out an agreement & then settle it in month 2.
The £500 saving could buy me lots of accessories?
Good news, but I think you might have to switch 'lots' to 'a couple of', unless you're just thinking along the lines of mud flaps and rubber mats.Time flies like an arrow; fruit flies like a banana
Member Since: 07 Aug 2006
Location: Somerset
Posts: 169
Just a quick update on this post.
I have had the quote through in writing from the dealer today. Well worth checking the small print!! The £500 I was quoted as saving is actually closer to £100. They forgot to mention the front & back end fees for the privilege of taking their finance agreement!
The other thing to consider is that the offer is only available on PCP and this is obviously means more interest because the the GFV. The resultant interest in the deal worries me from a settlement point of view (circa 6k on a 2 year deal). I have grave concerns on the actual settlement penalty, the dealer quotes 1 months interest as the penalty, but cannot confirm it in writing & has nothing from Land Rover to confirm this either.
The moral of the story is "if it looks too good to be true then it probably is". That is unless you actually need the PCP product & you are willing to pay the 12% APR they quote.
24th Aug 2006 5:17 pm
retired
Member Since: 18 Feb 2006
Location: Surrey
Posts: 158
I thought about doing this but couldn't get a copy of the Ts and Cs to check the veracity of what I was being told. So didn't bother.
I was informed I'd get a copy when I signed up!
A bit like LR insurance, we'll give you a policy wording when you accept the quote. Was told no one had ever asked to see policy wording befre signing up.
Apologies to anyone working in the finanacial services sector, but I wouldn;t thrust most finanacial services organisation farther than I could throw them.
Apologies to anyone working in the finanacial services sector, but I wouldn;t thrust most finanacial services organisation farther than I could throw them.
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