Be aware – rant coming on about consumer financing
And yet again we see more consumers being ripped off by car dealers but why aren’t we governed by same law?
As brokers we are governed by the ASIC’s rules and regulations, when it comes to consumer financing. We have to disclose fees, rates etc. and have to a have a minimum qualification to be able to offer consumer finance, that being car loans, mortgage’s and if you noticed your credit card statements are a little different these days too.
But for some strange reason motor dealers were exempt from this ruling, something about point of sale exemption, but time and time again we are seeing dealers or financiers who help dealers being fined by ASIC by doing the wrong thing -
Car loan provider to repay more than $400k to consumers https://www.smeadviser.com.au/news/56-car-loan-provider-to-repay-more-than-400-000-to-consumers?utm_source=SME%20Adviser&utm_campaign=24_02_17&utm_medium=email&utm_content=2
BMW Australia Finance to repay millions to customers after ASIC finds it breached responsible lending provisions
What I don’t understand is why it has been allowed in the first place – if we are all selling consumer financing products, shouldn’t we be all governed by the same rules and regulations? I get so annoyed when a client tells me that the dealers don’t make them sign the same paperwork too....so how do you know what you are getting yourself into.
To stop yourself being a statistic and being ripped off, under the consumer laws, start asking the following questions:
- Ask for a quote from the dealer and go away and think about it. If the dealer is pressuring you to make the sale, get the figures, and come back and do the deal – there will always be another car.
- What is my rate,
- What fees are included in this rate?
- What term and residual are they offering the financing at.
- GET ANOTHER FINANCING QUOTE, there are plenty of people
- GET ANOTHER OPINION is buying the extra warranty actually worth it, and if you didn’t have it, what difference will it make to the financing quote?
All I ask is please just do your homework, and make sure you are getting a good deal, whether it be through a dealer or through us.