Some major truck dealerships often have in house finance consultants, called ‘Business Managers’ that provide a small number of finance options to customers buying trucks through the dealership. In the past month we’ve seen an alarming rise in unscrupulous business practices from these so called Business Managers where customers have been quoted a low interest rate however the repayments offered to the client worked out to have a much higher interest rate.
The worst case was a new vehicle dealer in Melbourne quoting the customer a rate of 7%, however when we analysed the repayments the real interest rate worked out to be over 15%! We find this sort of behaviour extremely unethical.
Dealerships are able to offer finance through unqualified and poorly trained staff through what’s known as the ‘Point of Sale Exemption’. These staff do not have to undertake the rigorous training, compliance and ongoing education that we as brokers do, nor do they commit to an industry code of ethics such as the one from the Commercial Asset Finance Brokers Association that we operate under. The lack of training and compliance can lead to unethical behaviour which has the danger of costing customers thousands across the life of the loan.
Here are some tips for anyone buying from a dealer and looking to avoid getting ripped off:
1. Get a quote in writing which states exactly what the interest rate is.
2. If there is any variation in the price of the equipment get a new quote for the finance.
3. Take the quote with you when you go to sign the finance documents to make sure what you were quoted is what you are paying.
4. Sign the finance documents as early as you can. That way you won’t be pressured into signing. If something dodgy is going on, you have enough time to find an alternative option.
5. Finally, ALWAYS call us for a second opinion.
It doesn’t cost you a cent for us to double check a finance quote to make sure it’s correct. We’re always happy to work in the best interests of our customers to make sure they’re getting the best deal. Give us a call on 1800 334 345.
If you need some small business advice, want to discuss your finance options or want to know more about Chevron Equipment Finance, please call us on 1800 334 345 or email firstname.lastname@example.org