Approved used car warranty only available with finance

[tuonopepper]

In the position to spend £20k on a 2nd car and sensible side of me says get manufacturer approved with 2 years warranty etc etc, however all these 'offers' seem.to be tied to their finance.

I'm thinking there are 2 options here....

Buy on PCP and immediately cancel the finance, hoping the wareanty/service package stick.

Tell them they need to discount the car enough so they can sell me the equivalent package or I walk.

I've typically bought on PCP in the past so not encountered this issue before.

I will also look at buying from non franchise and adding manaufacturer package but feel the most robust route is approved used.

[davek_964]

At least with BMW, you couldn't immediately cancel the finance. The extra few years warranty was on condition that the finance remained for at least 6 months - and on the car I was looking at, had to be for at least £13k.
As far as I could tell, it meant that the 'free' extended warranty would have cost me about £1k in interest (their finance rate was about 13%)

[tuonopepper]

Hmm, thats going to be the issue i suspect with all T&Cs being similar.

The only option may be the discount it route, not sure how succesful that will be.

Alternatively skew my thinking to those manufacturers who offer the 2 year pack anyway, not limited to finance.

[griffter]

If there’s nothing contrary in the T and Cs - there wasn’t when I bought a Renault a few years ago - just pay the finance down to £100 and enjoy a cheap warranty.

[Jamescrs]

tuonopepper said:

Hmm, thats going to be the issue i suspect with all T&Cs being similar.

The only option may be the discount it route, not sure how succesful that will be.

Alternatively skew my thinking to those manufacturers who offer the 2 year pack anyway, not limited to finance.

You may struggle with that one unfortunately unless it's a car which has been sitting for sometime and is difficult to sell, they make more money on the PCP than they do the car itself

[tuonopepper]

griffter said:

If there s nothing contrary in the T and Cs - there wasn t when I bought a Renault a few years ago - just pay the finance down to £100 and enjoy a cheap warranty.

I think this is plan A right now.

[tuonopepper]

Jamescrs said:

tuonopepper said:

Hmm, thats going to be the issue i suspect with all T&Cs being similar.

The only option may be the discount it route, not sure how succesful that will be.

Alternatively skew my thinking to those manufacturers who offer the 2 year pack anyway, not limited to finance.

You may struggle with that one unfortunately unless it's a car which has been sitting for sometime and is difficult to sell, they make more money on the PCP than they do the car itself

Yes, the kickback from the finance is the issue. Can only ask i guess......

[Trevor555]

davek_964 said:

At least with BMW, you couldn't immediately cancel the finance. The extra few years warranty was on condition that the finance remained for at least 6 months

Out of interest, is that written into the finance terms & conditions?

[davek_964]

Trevor555 said:

davek_964 said:

At least with BMW, you couldn't immediately cancel the finance. The extra few years warranty was on condition that the finance remained for at least 6 months

Out of interest, is that written into the finance terms & conditions?

It was the BMW terms of getting the extension to the warranty.
I didn't read the actual finance T&C's because I didn't like the car enough to want to buy it - but personally, I doubt I would have used their finance and would simply have settled for the standard 1 year warranty

[Trevor555]

davek_964 said:

Trevor555 said:

davek_964 said:

At least with BMW, you couldn't immediately cancel the finance. The extra few years warranty was on condition that the finance remained for at least 6 months

Out of interest, is that written into the finance terms & conditions?

It was the BMW terms of getting the extension to the warranty.
I didn't read the actual finance T&C's because I didn't like the car enough to want to buy it - but personally, I doubt I would have used their finance and would simply have settled for the standard 1 year warranty

If Bmw's terms don't align with the finance terms that's not right.

Maybe someone on here can have a read of their T&C's.

Penalising someone for decisions on their finance doesn't sound right to me.

If someone decides they don't want the finance with in the cooling off period, should they be penalised?

Edited by Trevor555 on Wednesday 16th July 09:16

[davek_964]

Trevor555 said:

davek_964 said:

Trevor555 said:

davek_964 said:

At least with BMW, you couldn't immediately cancel the finance. The extra few years warranty was on condition that the finance remained for at least 6 months

Out of interest, is that written into the finance terms & conditions?

It was the BMW terms of getting the extension to the warranty.
I didn't read the actual finance T&C's because I didn't like the car enough to want to buy it - but personally, I doubt I would have used their finance and would simply have settled for the standard 1 year warranty

If Bmw's terms don't align with the finance terms that's not right.

Maybe someone on here can have a read of their T&C's.

Penalising someone for decisions on their finance doesn't sound right to me.

Maybe I've misquoted. I think the warranty extension said that the loan had to be for a period of at least 6 months, and at least £13k - but maybe that doesn't actually stop you from taking out a 6 month loan and paying it off immediately after all?
It's not the impression I got - and I have a colleague who bought a used BMW about 2 months ago, and got suckered into the same deal - and his understanding is that he has to keep the loan for 6 months before he can pay it off.

[Trevor555]

davek_964 said:

Maybe I've misquoted. I think the warranty extension said that the loan had to be for a period of at least 6 months, and at least £13k - but maybe that doesn't actually stop you from taking out a 6 month loan and paying it off immediately after all?
It's not the impression I got - and I have a colleague who bought a used BMW about 2 months ago, and got suckered into the same deal - and his understanding is that he has to keep the loan for 6 months before he can pay it off.

I got told similar by VW a few years back relating to their £2000 deposit contribution.

Maybe your friend could have a read up for us?

I wonder if it's simply because finance commision can be clawed back if the agreement is cancelled within 6 months?

If that is the case, and sales people are introducing this term, and it's not in line with finance terms, then that's naughty.

And can a Bmw dealer actually remove the warranty on a car post sale?

Edited by Trevor555 on Wednesday 16th July 09:25

Edited by Trevor555 on Wednesday 16th July 09:41

[alscar]

Given all the current issues on car financing ( of which BMW ( Alphera ) are heavily involved ) , I’m a little surprised that Finance is being tied into Warranties ?
Surely they are 2 distinctly different purchases and as such shouldn’t be tied together ?

[davek_964]

alscar said:

Given all the current issues on car financing ( of which BMW ( Alphera ) are heavily involved ) , I m a little surprised that Finance is being tied into Warranties ?
Surely they are 2 distinctly different purchases and as such shouldn t be tied together ?

But the warranty isn't a "purchase".

"Buy approved used, and get a standard 1 year warranty. But take out our finance - for at least <this> amount, and at least <this> period - and we'll be so grateful that will give you an extra 2 years extended warranty for free. How nice are we eh?????"

(I would not be surprised if this does legally bite the dealers at some point in the future)

[alscar]

davek_964 said:

alscar said:

Given all the current issues on car financing ( of which BMW ( Alphera ) are heavily involved ) , I m a little surprised that Finance is being tied into Warranties ?
Surely they are 2 distinctly different purchases and as such shouldn t be tied together ?

But the warranty isn't a "purchase".

"Buy approved used, and get a standard 1 year warranty. But take out our finance - for at least <this> amount, and at least <this> period - and we'll be so grateful that will give you an extra 2 years extended warranty for free. How nice are we eh?????"

(I would not be surprised if this does legally bite the dealers at some point in the future)

Fair point - I expressed it badly - I should have said 2 different transactions but it’s still “ tied selling “ - I don’t know if in the UK that’s “allowed” or not but my point was I wouldn’t just be accepting the Dealers word as gospel.

[Richard-390a0]

Sounds odd to me as I purchased an AUC VW last year with a warranty pack but no finance as I did a bank transfer for the full value.

[tuonopepper]

Depends on the manufacturer as im finding out, Polestar for example, 2 years regardless, Mercedes seems the same. Ultimately ill just buy a brand that doesn't tie AUC to finance, or use that as leverage to force the issue at any dealer who does.

[skeeterm5]

Can you not buy a car with one year AUC and then simply extend it? Or are you saying you want a two year deal as part of the car price?

[tuonopepper]

Yes, there's some doing 1 Yr, some doing 2yr, depends on the brand. Just have to factor whichever into the man calculations and go from there.

[Miocene]

Richard-390a0 said:

Sounds odd to me as I purchased an AUC VW last year with a warranty pack but no finance as I did a bank transfer for the full value.

I don't know if they've changed it, but a few months back they were giving 2 years warranty when you took out their finance package, but you could instantly pay off the balance and maintain the warranty.