Unbelievable Credit Agreement

[romywomy]

I wasn't too sure where to put this but felt compelled to share with you.

 

I've been looking at buying a car on finance and had a good interest rate with a finance company but at the final hour they pulled out as my employer is currently in administration. I provided proof I wouldn't be made redundant but regardless, they pulled out.

 

So I was recommended another finance company and gave them a call. The call lasted 37 minutes with the advisor talking so fast I could barely even hear what was being said. I asked her to send all the details through on a credit agreement.

 

When I got the agreement I could do nothing but laugh. The car I want to buy is £5000 and the total i'd be paying back over 4 years was.... £14,000 !

 

This price included 4 different types of insurance and breakdown cover but I would still have to have my own fully comp insurance too. The 4 additions came to a total of £2200 and then they added interest on to total £4300 just for those services alone!

 

I laughed thinking the woman would think she was on to a good commission with this sale but it's sad that some people would be so desperate to actually sign up for something like this!

[steampowered]

Its really common. I've encountered so many people who end up paying 2/3/4/5/6 times the value of the car with car finance agreements. Car finance always seems to be incredibly expensive, I honestly wonder how companies like this stay in business.

 

Personally I bought a £1000 banger and saved up until I could afford something better, its got to be better than wasting £1000s on extortionate interest rates!!!

Edited March 2, 2013 by steampowered

[Conniff]

I can never understand how they work out that someone who might be a bit risky should be charged extremely high interest rates, that makes it even more likely they will default.

I thnk it's a form of discrimination.

[BRIGADIER2JCS]

Which finance company is this??