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My ex wife went into Citroen yesterday to buy a used car. After negotiation dealer quoted £350 deposit, £231pm on 4 year pcp at 8.9% apr.
Today they say Citroen finance have maxed the advance and so the deposit needs to be £2995 total. That’s fine I’ll do that. But the payment only dropped by £31pm. When I questioned it I got a lot of bluster about the finance company increasing the rate to 13.1% apr something about the dealer paying a subsidy at 8.9% which they were no longer willing to pay and no real answer.
Can they do this? Surely lending less money based on affordability but then increasing the rate would be counter intuitive. They could have kept the rate the same and asked for an extra £1300 or so to achieve the same payment. Is the dealer pulling a fast one?
Today they say Citroen finance have maxed the advance and so the deposit needs to be £2995 total. That’s fine I’ll do that. But the payment only dropped by £31pm. When I questioned it I got a lot of bluster about the finance company increasing the rate to 13.1% apr something about the dealer paying a subsidy at 8.9% which they were no longer willing to pay and no real answer.
Can they do this? Surely lending less money based on affordability but then increasing the rate would be counter intuitive. They could have kept the rate the same and asked for an extra £1300 or so to achieve the same payment. Is the dealer pulling a fast one?
