Advice over caravan finance
Hi All, I am in the process of buying a new caravan. The dealer has recommended paying at least sum of the cost with Finance from Black Horse. The reason being is that if there's a fault on the caravan Black Horse will deal with the maker (Eldis). The dealer says that after a short time the finance can be paid off with minimal interest due. Does anyone have any experience of doing this? Black Horse have many bad reviews on Trustpilot
Answers
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The dealer is referring to Section 75 and he is correct. See -
Remember though that the finance arranger (dealer) will get commission for arranging the finance so his motives are not entirely altruistic.
As for personal experience or Black Horse themselves, I’m afraid I can’t help you there.
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I believe you would get the same or similar protection if you paid some, more than £100?, with a credit card. As Tinwheeler says, the dealer will get commission or a fee if you use Black Horse, no experience of them myself.
I think it's really said that a dealer offers this advice on purchasing new caravans. They should be built to a good standard, sadly we hear so many tales that they aren't. Remember someone might fight for you but you might not be able to use your expensive caravan if it isn't fit for purpose, regardless of who's standing up to the manufacturer.
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@NEILMCK I had always thought that the protection offered by buying on finance only applied to buying something of what used to be called Hire Purchase, the reasoning being is that the customer does not technically own the goods until fully paid off. I don't think it would apply if it were some sort of Personal Loan? Therefore the finance company has a vested interest in the value of the item purchased. Whether it was worthwhile might depend on what the minimum finance was? If it was fairly low it might be worth it but if its a sizeable figure that will be a lot of extra interest depending on how you originally decided to pay. Two things strike me are that A the dealer seems to be reneging on his responsibility by trying to push the responsibility for getting work done elsewhere and B perhaps also looking to earn some commission from the Finance Company. Call me cynical if you must!
David
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More info from MSE -
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Black Horse were one of the worst companies for the PPI scams. Dealer will be getting commission and you'll have arrangement fee and interest rolled into what you pay. You'll be penalised for paying off sooner or at very least pay the full term interest. That's what I got from DFS, despite not really wanting finance and paying off quickly. This behaviour from a dealer would put me off - I wouldn't trust him if that's how he's trying to manipulate you.
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Finance from a dealer will normally be HP and the protection would apply. As said earlier provided you paid £100 or more as a deposit on a credit card, but not a debit card, then you get similar protection though so the finance may not be worthwhile. I would only take the finance if you need to if you have used a credit card for part of the purchase.
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