Lapsed Finance From Delays Resulting in APR & Cost Increase

[Cocijo]

quite, thinking of ending this Missed Guidance (MG - sorry wrong thread) and moving on.

How long have you been waiting? Do you have the deal fixed and in writing?

 

[AdeMcG]

How long have you been waiting? Do you have the deal fixed and in writing?

Hey Cocijo, I placed my order following the test drive on Saturday 01st October, placed a £250 deposit and signed all the paperwork including the PCP finance, locked %.
I was told 12 to 14 weeks, "but most likely take delivery prior to Christmas".

It will be 16 weeks next Saturday (21st Jan) that is my end date.

I am currently scanning Autotrader for an alternative.

 

[Deleted member 10041]

Is that the time limit you have put on it

 

[AdeMcG]

Is that the time limit you have put on it

Yes, exactly that

 

[ASB]

Funnily enough today I phoned our dealer on a works phone and enquired about new MG4 SE LRs. Random new salesperson said “oh MG are giving a 16 week delivery time, but we’re seeing them come in around 12 to 14 weeks, all of our customers have had them early…” “…If you put down an order today you should have it by early March…” and “better to do it sooner rather than later before the cost goes up”. My long pauses may have given my game away!

Surely there has to be some sort of comeback on dealers and MG for all this - I don’t see how they can get away with this…?

 

[Deleted member 10041]

Funnily enough today I phoned our dealer on a works phone and enquired about new MG4 SE LRs. Random new salesperson said “oh MG are giving a 16 week delivery time, but we’re seeing them come in around 12 to 14 weeks, all of our customers have had them early…” “…If you put down an order today you should have it by early March…” and “better to do it sooner rather than later before the cost goes up”. My long pauses may have given my game away!

Surely there has to be some sort of comeback on dealers and MG for all this - I don’t see how they can get away with this…?

Not just an MG issue

 

[Ayoull]

Funnily enough today I phoned our dealer on a works phone and enquired about new MG4 SE LRs. Random new salesperson said “oh MG are giving a 16 week delivery time, but we’re seeing them come in around 12 to 14 weeks, all of our customers have had them early…” “…If you put down an order today you should have it by early March…” and “better to do it sooner rather than later before the cost goes up”. My long pauses may have given my game away!

Surely there has to be some sort of comeback on dealers and MG for all this - I don’t see how they can get away with this…?

It's all in the small print that these are just guideline timescales and these may increase

 

[Pauli363]

It's not the dealers fault. They have little control over the finance company raising rates. All finance companies align closely with movements in the Bank of England base rate. There have been numerous increases over the last 12-14 months, and most if not all finance companies have been forced to increase their rates as well as it costs them more to buy their money on the money markets.
90 days acceptance on a finance proposal is industry standard. If the agreement is not signed before that, the acceptance is retracted. Again the finance company cannot be expected to stand over an offer forever. To suggest it's a big conspiracy by the dealer to string a customer along just to get a higher APR on an agreement is patent nonsense.
Also after 90 days, the customers credit score and therefore credit worthiness could have changed in that time so the finance company need to rescore the application.
The fault lies with the long delivery times from the manufacturer. It is their fault and their fault alone. Dealers do not set up to sell cars they cannot get. The whole motor industry is in a state of flux currently with most vehicles having very long waiting times. Add the success of the MG offerings and the issues globally with semi conductor shortages and you have a perfect storm.
The unfortunate thing is, we may get used to it. The days of retail car showrooms overflowing with stock ready to roll is gone forever. Manufacturer's are essentially making sold orders which suits them all day long. The downside is, you will wait a long time unless you touch lucky.

 

[Pauli363]

I wonder how some dealers are saying they will honour the Apr rate and others aren't, surely the same for everyone as Santander run it

They can't say that. A dealer has no control over when the finance company will move the rate. If MG finance decide to honour an interest rate, then that's an entirely different thing.

 

[Deleted member 10041]

MG Finance is Santander, that's why I questiones the different approach from dealers. MG have no real control over Santander I would imagine

 

[Cocijo]

It's not the dealers fault. They have little control over the finance company raising rates. All finance companies align closely with movements in the Bank of England base rate. There have been numerous increases over the last 12-14 months, and most if not all finance companies have been forced to increase their rates as well as it costs them more to buy their money on the money markets.
90 days acceptance on a finance proposal is industry standard. If the agreement is not signed before that, the acceptance is retracted. Again the finance company cannot be expected to stand over an offer forever. To suggest it's a big conspiracy by the dealer to string a customer along just to get a higher APR on an agreement is patent nonsense.
Also after 90 days, the customers credit score and therefore credit worthiness could have changed in that time so the finance company need to rescore the application.
The fault lies with the long delivery times from the manufacturer. It is their fault and their fault alone. Dealers do not set up to sell cars they cannot get. The whole motor industry is in a state of flux currently with most vehicles having very long waiting times. Add the success of the MG offerings and the issues globally with semi conductor shortages and you have a perfect storm.
The unfortunate thing is, we may get used to it. The days of retail car showrooms overflowing with stock ready to roll is gone forever. Manufacturer's are essentially making sold orders which suits them all day long. The downside is, you will wait a long time unless you touch lucky.

Good points. I would also say though that dealerships represent the manufacturer and also act as broker for finance deals. They have, like the customer considerable skin in the game.
They should not try to offload responsibility and blame the finance house and manufacture when things get tricky.
Yes, some things are beyond their control but most dealers should and could manage their customers much more effectively, proactively and professionally.

 

[Pauli363]

Good points. I would also say though that dealerships represent the manufacturer and also act as broker for finance deals. They have, like the customer considerable skin in the game.
They should not try to offload responsibility and blame the finance house and manufacture when things get tricky.
Yes, some things are beyond their control but most dealers should and could manage their customers much more effectively, proactively and professionally.

I agree about managing customers expectations better. They really don't though have huge sway over the finance company. With Santander as the appointed finance provider, they must under FCA guidelines treat all of their MG dealers and indeed customers the same. The fact that MG can't get cars out quickly enough to customers is not the fault of the finance company. They have their own parameters to work to which do not always align with the manufacturer.
Again, it's the manufacturer at fault here. If anything, finance companies have done everything they can to make the supply of finance quick and efficient. The opposite of your vehicle delivery.
You can in theory apply for credit, be approved and have the agreement live and activated in an hour if the dealer had the car ready to go. We got our ZS in May. Very fortunate that the dealer was prepared to sell us his demo that had just arrived. But for now, I'm out of the new market until things change. It's pretty much the only purchase you will make now with absolutely no guarantees. Your trade in value, finance deal, delivery date and even price and spec of the vehicle you thought you were buying are all not guaranteed until the car is in front of you. Far Too much hassle.

 

[Pauli363]

MG Finance is Santander, that's why I questiones the different approach from dealers. MG have no real control over Santander I would imagine

No they don't. MG will have agreed a package with Santander based on assumed volume over a period. However, the finance company will ensure they have room to adjust when they have to, as like now because of the increasing cost of money globally. MG either go with it, or take up with another finance provider, but all finance companies are in the same boat. Of course, a finance company could decide to honour an APR for a while, but I couldn't see this being the case for say 12 months to cope with a long delivery time on a car. As I said earlier, it's not great, but it's the manufacturers fault and no one else.

 

[Cocijo]

I agree about managing customers expectations better. They really don't though have huge sway over the finance company. With Santander as the appointed finance provider, they must under FCA guidelines treat all of their MG dealers and indeed customers the same. The fact that MG can't get cars out quickly enough to customers is not the fault of the finance company. They have their own parameters to work to which do not always align with the manufacturer.
Again, it's the manufacturer at fault here. If anything, finance companies have done everything they can to make the supply of finance quick and efficient. The opposite of your vehicle delivery.
You can in theory apply for credit, be approved and have the agreement live and activated in an hour if the dealer had the car ready to go. We got our ZS in May. Very fortunate that the dealer was prepared to sell us his demo that had just arrived. But for now, I'm out of the new market until things change. It's pretty much the only purchase you will make now with absolutely no guarantees. Your trade in value, finance deal, delivery date and even price and spec of the vehicle you thought you were buying are all not guaranteed until the car is in front of you. Far Too much hassle.

Yes - l won’t entertain long waiting times. I would rather look at alternatives or let the market settle.