6.9% finance rate jumped to 10.9%!!

[jahall333]

Hello all...
I placed my order for a RWD with really nice set of options last June.. signed the paperwork, interest rate of 6.9% and blah blah..
Had an email a couple of weeks ago, car gone up circa £2,000 and interest rate now 10.9%... over 4 years this all adds £14,000 to the total price!!
Sticking with it, but just gutted, feel ripped off.. sales advisor said "you can have your deposit back and walk away of you want.."
That's not what I've been waiting for for 40 years since I was a kid !
Ranting I realise.. everyone else in the same boat..?

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[007]

That does suck, big time. You have my sympathy.

 

[Jasper4S]

I'm not sure how it works. But you did sign the paperwork before the interest rate change right? Are they in their right to change it afterwards? 14k pounds is a lot. Really something to reconsider.

 

[jahall333]

I'm not sure how it works. But you did sign the paperwork before the interest rate change right? Are they in their right to change it afterwards? 14k pounds is a lot. Really something to reconsider.

Apparently the small print basically says, "you're signing up, but we can change anything we want...".
Talked to a Toyota dealer, he said they honour all signed documents, but Porsche don't..

 

[Jasper4S]

Damn that is cold from them.. I would try really hard to let them honour the 6.9%, and maybe settle on a 7k discount to meet you half way. Do you have other options than Porsche finance? If you could finance it somewhere else with a better or similar to the 6.9% rate it is their loss.

 

[jahall333]

Damn that is cold from them.. I would try really hard to let them honour the 6.9%, and maybe settle on a 7k discount to meet you half way. Do you have other options than Porsche finance? If you could finance it somewhere else with a better or similar to the 6.9% rate it is their loss.

I talked to the rep, he was sorry, but said "it is what it is, take it or leave it"..
I looked at getting finance elsewhere, but through my small business it's really a non-starter...
I'll wait until I get some idea off them regarding delivery, then see if I can put some pressure on regarding reducing the rate.. but it's VW finance, and I think I'm stuffed.. and knowing my luck it will be fixed for 4 years and the underlying base rate will come down throughout and I'll be gutted again!

 

[mcr21]

10.9% sounds like extortion. I am sure you can find UK lenders willing to offer around 7/8%.

I would check with your primary bank's Asset Finance team, they are typically competitive in particular if your business has a long relationship with them.

 

[Rob********]

Go elsewhere for finance. Lots out there now at or around 7.5%

 

[kort]

Go elsewhere for finance. Lots out there now at or around 7.5%

I would seek other lenders

 

[minstril]

I dunno if things are different in the UK, but I’ve never heard of a loan offer locking its rate for 9 months. Expecting anyone to honor an interest rate from last June seems crazy with how rates have been changing. Usually 60 days is the max.

Is cash an option? I feel like growing your money at a rate above 10.9% is hard to do at present.

In the US, credit unions are usually far better than dealer financing. Not sure if you have similar options, my local CU got me a rate that was half of the best Porsche would offer.

 

[Moonstone]

Exactly the same boat as you. Original rate quoted was 7.9 and this went up to 10.9 from the end of this month. Two cars delayed and going through the business. Thankfully I took a cancelled order before the deadline.

The rate is controlled by VW Finance. The dealer has no power (or no desire) to change it. With the order books so big, they'll simply refund a customer and sell the car to someone else.

 

[TheSauce]

I’d walk and get something else if you can’t pay cash,, unless you really want this car so bad that tossing 10% away is worth it. That is crazy. I financed my x7 at 1.9% a year and a half ago, these rates are prohibitive

 

[TAYC4S]

Hello all...
I placed my order for a RWD with really nice set of options last June.. signed the paperwork, interest rate of 6.9% and blah blah..
Had an email a couple of weeks ago, car gone up circa £2,000 and interest rate now 10.9%... over 4 years this all adds £14,000 to the total price!!
Sticking with it, but just gutted, feel ripped off.. sales advisor said "you can have your deposit back and walk away of you want.."
That's not what I've been waiting for for 40 years since I was a kid !
Ranting I realise.. everyone else in the same boat..?

Prices have gone up today a lot more - so £2k increase sounds palatable. The Turbo's are up something like £6k today on price (I think). The interest rate is a sucker though. Maybe worth considering a shorter term initially so that when the rates fall - as predicted to do so end of the year, you can perhaps finance at a lower rate.

 

[jahall333]

There's a thought!

 

[Moonstone]

I’d walk and get something else if you can’t pay cash,, unless you really want this car so bad that tossing 10% away is worth it. That is crazy. I financed my x7 at 1.9% a year and a half ago, these rates are prohibitive

To be fair though, you are in a completely different financial market with so many variables that are different, so your own experience in the states bears little resemblance to ours and vice versa.

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