Car Giant....is this legal?

[Frankieola 22]

I'm arranging finance for a friend of mine who wants to buy a Mercedes CLA from Car Giant (I know, I know, I did try to find him one myself to sell but they seem to have them for cheaper than I can get them trade)

Anyway, I'm doing him a favour and saving him money on the 8% flat they have quoted but they have said if he organises finance externally and not through them then they will charge an extra £200!!!!

It's sharp practice I know but is it legal??

[Phil H 124]

it's only legal if it's £200 cheaper due to them giving him a £200 finance deposit allowance just like the manufactures do on new but this has to be clearly stated in the advert with a full written quotation. I suspect that they are making the money out of the finance and not the metal and that's why they can advertise it so cheap.

[jimreidvehicle 255]

Phil is 100% right.

unless it's a deposit allowance and alredays rates like that on the quote then they are not allowed to treat cash and credit customers differently.

the fact that your friend has selected another finance provider means they become a cash customer.

 

[trade vet 702]

3 hours ago, Frankieola said:

I'm arranging finance for a friend of mine who wants to buy a Mercedes CLA from Car Giant (I know, I know, I did try to find him one myself to sell but they seem to have them for cheaper than I can get them trade)

Anyway, I'm doing him a favour and saving him money on the 8% flat they have quoted but they have said if he organises finance externally and not through them then they will charge an extra £200!!!!

It's sharp practice I know but is it legal??

 

3 hours ago, Frankieola said:

I'm arranging finance for a friend of mine who wants to buy a Mercedes CLA from Car Giant (I know, I know, I did try to find him one myself to sell but they seem to have them for cheaper than I can get them trade)

Anyway, I'm doing him a favour and saving him money on the 8% flat they have quoted but they have said if he organises finance externally and not through them then they will charge an extra £200!!!!

It's sharp practice I know but is it legal??

I would like to know how this favour is going to work.I would say,you will need to buy the Merc from Car Giant,then sell it to your friend through your finance company.However,you are then going to need a profit margin otherwise the VAT inspector will suspect  something untoward ! Is that what you are doing.

[justina3 518]

And what happens if he stops paying 8 months down the line, who do the finance company go back to ?

Sounds messy to me, one of my major rules is family and friends stay that as i do not do business with them.

 

 

 

[BHM 994]

They all want favours as long as they're benefiting financially. See how friendly your friends & family get if you tried to benefit yourself to the tune of a few hundred quid. Let them sort out their own finances, it's a social minefield.

[Tom 164]

As above let them get on with it themselves! 

[metcars 397]

Agree with the above. I am always being asked to keep an eye out for a 1.8 whatever but only in blue/black/red and with less than 20k and 1 owner and full history, and has to be cheap. I just nod and say yeah sure and do nothing.