Maree wanted to save money if possible, however she believed she had already negotiated a strong deal. She wanted to purchase a vehicle as soon as possible.
After meeting with Maree, we quickly made inquiries and gave her quotes from multiple lenders who could beat the dealership finance and advised her to go back to the dealer to negotiate.
The dealer came back with an extremely competitive interest rate as well as a low repayment amount. It took us a brief amount of time to identify how the dealer had been able to offer such a competitive interest rate and repayment amount. They had used these two figures to distract Maree from the loan term which they had stretched over seven years to accumulate more interest from her. There was also an end-term balloon payment which contributed to the low repayment amount. When considered, these two factors left the finance offer less than competitive.
We offered her an alternative finance solution that had a five-year term, a nil end-term balloon and an interest rate that matched the dealers’. The draw-back of our offer was that due to the shorter term it had a higher repayment amount. This however, would ultimately mean she would pay less interest and it wouldn’t leave her with a large lump sum payment at the end of the loan term that she couldn’t afford.
We also offered her ongoing guidance if she wished to go back to the dealership and negotiate further.
Maree decided to avoid the dealer’s finance department after we identified the pitfalls in their finance offer. We intervened on her behalf and contacted them directly to arrange her finance solution. Within a day her finance was put in place and the purchase was concluded.
Our financial guidance provided Maree with three major benefits:
- An extremely competitive lending solution that was structured to benefit her not the dealer’s bottom line.
- Long-term interest savings.
- A transparent and honest perspective on her finance.
