MB Used Car Finance Offer

[jayaonline]

Hi,

MB are doing a finance offer where you can get a dealer contribution towards a used car if you take out finance.

"From the 1st January until 30th April 2015, see our great offers available on selected models:
A-Class, B-Class, C-Class and E-Class offer
9.9% APR Representative with £750 deposit contribution available on C-Class and E-Class and £500 deposit contribution available on A-Class and B-Class"

Would it be possible to accept the finance offer to get the dealer contribution, then pay the finance off straight away within the 2 week cooling off period.

Would I still be able to keep the dealer contribution if I done this?

 

[wemorgan]

£500-750 discount and 9.9% doesn't sound like a 'great offer'

Your bank will have better APR and online brokers likely have larger discounts.

IMHO.

 

[stumpy1]

9.9 is very high. Sounds like a poor deal to me.

 

[jayaonline]

Thank you for your responses.

I'm aware the 9.9% isn't great. My intentions would be to get the £750 dealer contribution and then pay off the amount borrowed within the 2 week cooling off period.

Is that possible?

 

[Charles Morgan]

Would it be possible to accept the finance offer to get the dealer contribution, then pay the finance off straight away within the 2 week cooling off period.

Would I still be able to keep the dealer contribution if I done this?

What do the terms say? You can cancel with no problems but if they're half sensible the contribution might become repayable.

 

[Deleted member 6183]

I would imagine that you could negotiate at least £500 to £750 off a used car without taking the finance.

 

[wemorgan]

For info. Drive the deal on a C220 Bluetec SE 4dr

Discount £5650
Discounted Price £24129

The quoted prices include a £2,111 discount which is conditional upon you taking out PCP finance at 4.9% APR Representative over 12-48 months with a minimum deposit of 5 %. The dealer that we put you in touch with will arrange the finance if required. Subject to Status. Written quote available on request. If you do not wish to take out this finance then you will need to add £2,111 to the prices that we quote.

 

[jayaonline]

The only T&C's I can see is:

"* Participating Retailers only. 9.9% APR Representative and £500.00 finance deposit contribution available on all Approved Used A-Class and B-Class models and £750.00 finance deposit contribution on C-Class and E-Class models over 90 days old. Based on a fixed rate of 8.80%. Guarantees may be required. Representative APR based on a 36 month Agility agreement with an average balance financed of £20,193. Minimum balance financed £7,500. Finance approvals between 01.01.2015 – 30.04.2015 and activations by 8.05.2015. Credit subject to status by Mercedes-Benz Financial Services UK Ltd, MK15 8BA.
† Participating Retailers only. 0% APR Representative and £500 finance deposit contribution available on all Approved Used SLK models over 90 days old on Hire Purchase. Minimum deposit 40%. Maximum term of 48 months. Guarantees may be required. Finance approvals between 01.01.2015 – 30.04.2015 and activations by 8.05.2015. Credit subject to status by Mercedes-Benz Financial Services UK Ltd, MK15 8BA."

There is no mention of cancellation fees or repayment of the dealer contribution if the finance is terminated.

 

[wemorgan]

sorry, I hadn't read your first post correctly and now see you're after a used car.

 

[jayaonline]

sorry, I hadn't read your first post correctly and now see you're after a used car.

No worries!

 

[Borotew]

When the used E Class offer was on the dealer tried to get me to take up the finance offer and give me cash back on my p/ex. I just wanted to pay price to change in cash and after looking at figures decided against as I was told it was 6 months before I could clear the balance so I went elsewhere.

 

[c_200k]

I've spoken to a few dealers who are willing to give the 750 or 500 off without taking the finance.

Even then I'd be pushing for more. They NEED to sell the cars you don't HAVE to buy.

 

[def90cars]

I asked the dealer about this at Christmas.
In principle nothing to stop you, but check the costs for settling early. Might be a fee payable.

 

[cliveyboy8]

Would it be possible to accept the finance offer to get the dealer contribution, then pay the finance off straight away within the 2 week cooling off period.

There is no "cooling off" period when you take finance from a dealer. You would have to pay a settlement figure and you would certainly be out of pocket.

 

[Deleted member 6183]

There is no "cooling off" period when you take finance from a dealer. You would have to pay a settlement figure and you would certainly be out of pocket.

Sounds very knowledgeable, is the settlement 'rule of 78' or based on interest over a set period of time?

 

[jayaonline]

**UPDATE I accepted the finance, then paid the finance off within 2 weeks of accepting it. I still got the dealer contribution.

 

[gIzzE]

There is no "cooling off" period when you take finance from a dealer. You would have to pay a settlement figure and you would certainly be out of pocket.

That is not true.
On a regulated agreement on personal finance you can pay it off whenever you want, they can only charge the interest already incurred.

 

[gIzzE]

When the used E Class offer was on the dealer tried to get me to take up the finance offer and give me cash back on my p/ex. I just wanted to pay price to change in cash and after looking at figures decided against as I was told it was 6 months before I could clear the balance so I went elsewhere.

I think you might find that is the dealer simply lying to you.

I know with many dealers if the customer cancels the finance within 6 months they can loose all commission.
Often the target figures is only hit if the sales man sells at least finance, gap or paint protection. So if the only thing taken was finance and then it is cancelled that car may not count towards his target any longer.

 

[Deleted member 6183]

That is not true.
On a regulated agreement on personal finance you can pay it off whenever you want, they can only charge the interest already incurred.

Plus 1 month I believe.

It's been a long time since I was involved in motor finance but 1 month penalty interest seems to be the formula since the old 'rule of 78' days'

 

[st13phil]

I know with many dealers if the customer cancels the finance within 6 months they can loose all commission.
Often the target figures is only hit if the sales man sells at least finance, gap or paint protection.

I was told exactly this when discussing my recent purchase with the salesman. When I asked if there was any further discount available if I took a finance product his first question was "Will you pay it off straight away? If you do, there's a claw back which means we lose on the deal". I'm not sure whether "we" in the context of the conversation was "him" or "the dealership", but ultimately it was moot anyway.