Car finance representative APR experiences
Discussion
Representative APR means that whenever the rate is advertised 51% of customers must receive that rate or better. The other 49% can receive higher rates, due to poor credit scores, low equity etc. (many of whom feel obliged to accept the higher cost for fear of damaging their credit score)
How does a car dealer or credit provider actually track the proportion of customers receiving the advertised rate?
The FCA has stated its general supervisory approach is never to make any independent checks that lenders are complying with APR rules. With no policing, the industry is wide open to abuse from unrestrained bad actors.
What are the PH lived experiences of APRs received on car finance?
How does a car dealer or credit provider actually track the proportion of customers receiving the advertised rate?
The FCA has stated its general supervisory approach is never to make any independent checks that lenders are complying with APR rules. With no policing, the industry is wide open to abuse from unrestrained bad actors.
What are the PH lived experiences of APRs received on car finance?
HocusPocus said:
Representative APR means that whenever the rate is advertised 51% of customers must receive that rate or better. The other 49% can receive higher rates, due to poor credit scores, low equity etc. (many of whom feel obliged to accept the higher cost for fear of damaging their credit score)
How does a car dealer or credit provider actually track the proportion of customers receiving the advertised rate?
The FCA has stated its general supervisory approach is never to make any independent checks that lenders are complying with APR rules. With no policing, the industry is wide open to abuse from unrestrained bad actors.
What are the PH lived experiences of APRs received on car finance?
Since the new rules have come into place we offer all our customers the same rate on used cars 8.9% that doesnt up or down depending on the customer.How does a car dealer or credit provider actually track the proportion of customers receiving the advertised rate?
The FCA has stated its general supervisory approach is never to make any independent checks that lenders are complying with APR rules. With no policing, the industry is wide open to abuse from unrestrained bad actors.
What are the PH lived experiences of APRs received on car finance?
Usually each month we submit our data to the FCA / ITC compliance and they do their checks
I went to PCP a BMW a few weeks ago, they offered 10.5%, and I told them to sod off.
I financed it another way, but screw paying that.
It seems that they have been told by the FCA to offer everyone the same rate, so they've chosen the highest. I queried it a lot, and was told, "don't worry about that, can you afford the monthlies?" Yes I can, but I'm buggered if I'm going to!
I financed it another way, but screw paying that.
It seems that they have been told by the FCA to offer everyone the same rate, so they've chosen the highest. I queried it a lot, and was told, "don't worry about that, can you afford the monthlies?" Yes I can, but I'm buggered if I'm going to!
Gassing Station | Car Buying | Top of Page | What's New | My Stuff