According to Which? Car, franchised car dealers are taking male and female customers to the cleaners by not being clear about how much interest they’ll pay when they arrange car finance.

One assumes these dealerships aren’t FOXY Choice subscribers who have signed the female friendly FOXY Promise to ‘never overcharge, patronise or sell women services they don’t need or want?’.

But who are they Which?

We look forward to reading which Audi, Citroen, Fiat, Peugeot and Vauxhall dealerships failed the Which? Car undercover investigation in January… and I predict that women fared worse than men, given a fair gender comparison.

Overall, the details of car finance deals weren’t properly explained to the potential buyers and on some occasions interest rates weren’t even mentioned!

Not one of the sales staff at the 15 dealerships verbally told researchers ie potential customers the total cost of the interest on a finance agreement. Two thirds failed to mention the APR and a third didn’t include it on their written quote, which contravenes the Consumer Credit Act, by the way.

How else can you work out how much interest you’ll be paying on a finance deal?

One salesman even refused to give a written quote at all, wrongly claiming that to do so would break the law. Was his name Tim I wonder?

On a typical car such as a £13k Fiat Bravo hatchback 1.4T Jet 120 Active 5 dr the quote was for a £300-£350 monthly repayment, and an initial deposit of £1,000. At that time a bank loan would cost a customer £15,319 whereas hire purchase with payment protection insurance would cost them £18,433 – a staggering difference of more than £3,000.

Peter Vicary-Smith, Chief Executive, Which?, says:
“When you take out a mortgage, the bank or building society has to clearly state APR rates up front, and explain terms and conditions fully. We think car finance deals should be conducted in the same way. We urge car buyers to avoid showroom finance deals if they think dealers haven’t given them all the necessary information.”

FOXY wholeheartedly agrees but wishes we could name and shame in these situations – even if only within FOXY Lady Drivers Club.

Having reported its findings to the OFT, the response was that ‘it was disappointed some dealers didn’t appear to be aware of their obligations, or are simply refusing to comply’. However the OFT promised to take enforcement action where necessary.

Yes, it’s necessary.

Members of FOXY Lady Drivers Club can ask us for a second opinion when shopping for car finance deals – here’s a simple bit of foxy advice for all women drivers for starters; don’t imagine that the car salesman has quoted the best car finance deal out there. Sad but true.

FOXY

For advice about buying and negotiating a new car deal, including car finance, women drivers can read FOXY’s Top Ten Tips about buying a new car…

BE ON YOUR GUARD.