Finance Woes
After 12 months of using our small day/camper van (Mercedes Vito V230 conversion), my wife and I decided we'd like something bigger. After several trips to our local "Camping & Caravanning Approved Dealer" we decided on a brand new Auto Trail V-Line 635SE.
We spent ages looking over the van before deciding this was the van for us. Thrilled at the prospect of the comfort and space, the dealer went away and came back with a "rough" finance repayment figure of £450 per month. Expensive - but after some discussion and thought, my Wife and I decided we would be able to afford this repayment. The dealer said he considered the van sold and we shook hands on the deal.
Another trip to the dealer some four weeks later was arranged to "sign on the dotted line" for the finance agreement. The salesman greeted us and stated that he had "good news" in that he'd managed to get the monthly finance repayment figure down to £448 per month. We even arranged a collection date in September.
Sitting down at his desk, and after frantically typing into his computer for what seemed like ages, he looked up, and stated that the finance figure would actually be £520 per month - an increase of £72 per month.
This bowled us over! £72 extra per month might not sound a lot to some, but to us - it meant that when taking other commitments into consideration (extra money needed for a servicing plan, alarm fitting, increased insurance costs, more frequent trips away etc), this meant that our dreams were shattered and we wouldn't be able to afford it.
We'd spent a month planning, dreaming and talking about what it would be like to camp in it, talking about where we would go and both of us were so excited at getting our new vehicle and going away for a long weekend at the end of September which we'd booked.
Now it's all in ruins! We're gutted and astonished at how a salesman can quote figures and be totally wrong. No apology for misleading us. Our dreams have been shattered, and we've lost all confidence and respect for what seemed like a reputable dealer (we purchased our Vito 230 conversion from the same dealer).
I guess the saying "buyer beware" really does apply here!
Comments
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Nothing about caravan/MH dealers surprises me.
Perhaps you should have got a formal contract in place earlier.
Look on the bright side. £500 p/m is an awful lot to fork out on a holiday van but now you can save it towards another van or enjoy spending it.
Chalk it up to experience.
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What a sad tale. The brighter side is you still have your smaller van and can use it, plus no heavy finance to curtail your trips 😉 so it could well be a winning situation once you get over the disappointment.
Personally I would hate that level of finance for several years and would prefer to choose something I could afford without worrying about job loss etc. But each to their own.
On a positive note a smaller van is easy to drive about on smaller roads and certainly easier to park 😆 which is a huge consideration in this country. Think about how to use the van you have, with a sun canopy, drive away awning, pup tent etc to give you a little more room.
There are plenty on here that can offer tips on all elements of our great hobby. So allow yourselves to be sad for a little while and then dust yourselves off and enjoy the van you have. You can even eat out, buy fuel etc 😲 without that large outgoing on a monthly basis 😉
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Salespeople are there to sell....the ploy of 'It's only £? per month' then it's higher at the signing is fairly normal.
In that situation most would sign so it's a trick that does work and their commission rates allow for a few refusals.
I must suggest that if you enter such a large purchase you should at least have a good idea of the cost beforehand....the salesperson doesn't care about you...only your money!
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If you have got your heart set on that van I would have a look around on-line for a bank loan. There are some fantastic deals around the 3% apr rate at the moment on some loans depending obviously on how much you want to borrow and your credit status etc....
I have rarely failed to beat a dealers finance offers....
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I agree with TT. If you really want this van, there are a few things that can be done:
- Renegotiate the changeover price. At this time of year, there should be substantial discounts on a new 2017 van as 2018 models will be in shortly.
- Ask about a deposit contribution from the dealer. They can often do that and offset it against the commission they receive from the finance company.
- Shop around for a better finance deal. It's usually pretty easy to get a better deal elsewhere.
- Checkout a different dealer. Now you know the van you want, just find another dealer with the same vehicle.
I assume that you didn't get the original finance quote in writing?
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As TT says have a look at online bank deals, I saved around £40 a month with my new van by going online for the extra finance I needed. The only worry was how quick and easy it was to suddenly have x thousand pounds sitting in my account😂
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Why not bank 500 per month for 2 or 3 months, then borrow 1000 or 1500 less. Look at a loan from your bank at a lower interest rate. You will get the vehicle you want for less than the dealer offered. A little patience and a little homework will pay off.
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