Did you fully understand your finance options and deal?
Did you understand your finance options before signing on the dotted line, or have you got an agreement for an asset you are not fully sure about? asks Simon Gray, managing director of Credo Asset Finance.
Many buyers paying for vehicles on finance apparently don’t understand all the options open to them before they sign on the dotted line, accordingly to recent research by the RAC.
And it was also reported that a quarter of drivers who paid for their car on finance didn’t fully understand the agreement, while seven in 10 buyers accepted the first finance product a dealer put to them.
While I should be shocked at this, seeing as I work in the finance industry, I am not overly surprised by the results.
When I speak to customers for the first time I am often greeted by the phrases “What are your rates?” and “What’s the best APR you can give me?” before we even start to talk about the asset they are purchasing and even what their circumstances are.
Most buyers are on the lookout for a good deal and will do a significant amount of research on the asset, whether it is for a new car or a piece of machinery, but rarely do their homework when it comes to actually financing it. Perhaps, understandably, this is because a majority of them do not have the confidence to challenge a dealer or a finance company?
Apparently, the research by the RAC found that a third of buyers surveyed said they felt they had little or no control over deciding how much deposit to put down, the size of their monthly payments and the scale of their optional final payment – with the dealer or finance company pushing them in a particular direction.
Here at Credo, call us ‘old fashioned’ if you like, but we like to talk to our customers and, before giving them all the financial jargon, we ask them what they are purchasing, where from and how much they are budgeting for.
We realise that finance is a complex subject, and needs more consideration, so this is why we have a dedicated sales team. They are experts in their field who will always discuss the different financial options open to the customer, in depth, until the customer decides which one best suits their circumstances.
We never ask you to sign on the dotted line until you have read the paperwork thoroughly and are happy that you understand it.
So, I ask you, are you one of the above who didn’t understand your options, or have a finance agreement for an asset that you are not fully sure about? If you are, then please contact us and we would be happy to explain it for you.
Article sponsored by Credo Asset Finance, 85 Yarmouth Road, Norwich, NR7 0HF.
Phone 01603 703180.