I EXPOSED THE CAR FINANCE SCAM

if you have ever financed the car before it's more than likely that you've been scammed system of Finance is set up for maximum profits which means you lose money was the dealership's pocket the cash in 2024 a huge Finance scam has been exposed millions of drivers could be owed thousands of PS you could be owed some serious serious money this is £2,000 taxfree cash and most of you watching now are going to be entitled to it this corrupt system is just one of many ways that dealerships have profited from their customers and in this video we find out just how bad that is and hopefully from what we learn in this video today I'll be had to buy Jane her dream car a Mercedes G Wagon a G wagon a staggering 91% of new cars are purchased with Finance so in 2022 2.2 million cars were bought through borrowing money this is my 488 p is on finance my M2 g87 and I finance my car yeah finance my car yeah I finan my car yes I finan my car it's clear as a nation we love to buy nice things and if you haven't got the cash sat in the bank then Finance is the fast track way to get them it allows us to buy newer safer and more Reliable Motors even with no balance in your bank account because of this for decades dealerships and finance houses have been working together a way of hiding a very lucrative profit system praying on the consumers who have limited Financial knowledge or emotionally attached to the car of their dreams and this is where the source of the problem Lies when a customer buys a car on finance it's usually through a finance company or a bank the dealers are simply a broker a middleman the finance house offers a dealership a specific rate and then the dealership offers an inflated High rate to the customer that extra percentage is simply extra profit on top of making money on the sale of the actual car this was called discretionary commission Arrangement and it went on between 2007 to 2021 a 14-year period even worse though they were discriminating changing the rate depending on who was walking through that door and I'm sure we can all guess what type of person was getting the higher rate this was fueled by greed the higher percentage they charged the more the commission they made it was Limitless but this cost us me and you the consumers after January 2021 until this day there was a lot more rules and regulations they now have to be totally transparent when selling the finance and the big change is they are fixed on their rates so no matter who walks into that showroom young or old male or female everyone gets the same offer but my God that was not always the way now I'm going to show you how to beat back the system when buying your next car and also if you have had some past agreements how are you likely to be owed some money back but first let's explore the scam which has changed car financing forever so I to see my friend Aid now he was in car sales for about 20 years but luckily for us he's now left the industry he's going to expose every detail about this Scandal what was the score with the finance rates okay Finance rates um we had a guy come in he didn't really want Finance he said I'm not sure if I going thr on the finance and unfortunately as soon as a business manager hears that it's like that right we'll get him through get it accepted at say 6.9 and then sell it to him at 14.9 he could earn 3,00 commission and get 10 to 20% commission for himself in his back pocket obviously the more you sell it for the dealer earns more commission so that customer was struggling to get accepted for finance anywhere else now because of that the dealer knew he had them over a barrel they could just crank up the interest percentage but the way they would trick people into the higher interest rates is crazy most people walk through the door if they're going to do Finance they got to figure the mind they want to spend it on so if you get within their parameters say 425 a month everyone's happy it's the figure people people aren't really bothered about percentages it's that monthly figure it's what's going to come out their bang every mon so because they didn't have to declare the finance rates they could get away with sweetening up the customer by hiding behind the monthly figure to get the monthly payment lower they were length the term by adding on another year this would bring the monthly payment lower so that left the dealership room to crank up the interest even more than before they could even manipulate the deposit and change the end balloon payment giving them even more room to high the percentage again and they were juggling the numbers sometimes making it look like that you had a better deal whilst in reality overall you were paying more and the people weren't finding out until it was way too late you might have to me pH 3 months later I've just been looking at my Finance stocks and I'm paying 12.9% for this car you never told me that you never asked yeah happens then you didn't have to declare it yes now you have to declare Finance R but why are the dealers doing this surely there's enough profit in the cars was there any need to to scam the customers with a high interest rate there's limited profit in the metal so all money are made really were your Finance your addon product and that was the way it was for many many years Selling Cars For Less profit but the profit was actually in the finance add-ons but if the customer wasn't committed to the finance Deals they had even more tricks up their sleeves but they do the best say look take the finance they might say okay we'll throw you in a pure guard apply pure guard is just one of the products which is upselling on the whole deal another product to sell to make even more money they were making the customer think they were getting thousands of pounds of extra products but in reality that was only costing them a few hundred quid the product cost £70 they were selling for like 600 Quid so there's no limit no there's no limit the scar was the limit and was the treatment always being done it should be like a 3 4 Hour process do it properly and they could do it in half an hour so that answers the question really it it wasn't applied properly how did some of those sales guys how did they decide who they could get away with more I suppose I suppose you vulnerable person is probably the wrong thing the dealer wanted to make profit you know we're all in business to make profit yeah of course but there's making profit and there's going over and above you get offered at 6.9 from from your lender and then you get on charge to be 15.9 that's not TCF that's not treating a customer fairly is it and was it that extreme sometimes it was back in the early days but this was not just the dodgy garage on the corner this was the big Brands the massive manufacturers we all just had no idea my name's Helen Kelly I'm the founder and owner of Lilian Stanley Financial Services I used to work for Prestige main dealer groups from 2005 to 2018 so this is right in our window yeah yeah there's many special edition cars where people are in the fortunate position that they that they can pay outright for these cars they've worked very very hard and they've got the capital to to pay for them um but in order to get access to them they do have to fund to have that invitation for that special car so they've got the money they don't want Finance but the dangling carrot is you pay the finance pay more money you get the better more desirable car yes yeah but what I really wanted to know is why were the salespeople doing these crazy deals there was certainly a lot of pressure um that we just had to retain as much profit as possible um and that was forever increasing yeah yeah every every year you couldn't you couldn't live on your basic from most main dealerships so you you have to make that profit to to earn your money and so there was huge pressure to raise a percentage rate and sell all the bull add-ons because without the performance bonuses they didn't have enough wages to live on remember this is one of the most luxurious car brands in the whole world so after these events Helen thought it was unfair on the customers and she wasn't happy morally with the world she was in so she quit a job moved to the other team and set out a business trying to help people get cheaper Finance so this Finance scam went on for 14 years until 2021 when there was a forced change the financial conduct Authority also known as the FCA is a governing body which protects us the consumer against companies doing unfair Financial practices including Car Finance so when the FCA realized that these practices were taking place they introduced a rule that dealerships had to fix their interest rates which means they couldn't chop and change it for the different people who walked through that door the FCA has now protected us from being victims of these bad practices but there is an issue ever since the state of the economy after you know what the cost of Finance has gone through the roof with the interest rates as high as 14 % so even though the price of some cars are dropping Finance right now is extremely expensive making it almost unaffordable for anybody to buy a car as I mentioned earlier I'm in the market for a G wagon Jane has wanted one of these for years mommy's get a G wagon uh no it's a GTS a G wagon uh better than that one of the reasons we haven't got one is because of the High Finance the rate I was offered was ridiculous so I think we found Jane a car G 63 in matte black the reason I'm going to finance this car is it is going to lose money I want to keep my svj so it's going to be really tight to afford the RTO but both of those cars are going to increase in money in theory they're going to make more money than this is going to cost but it depends on this Finance deal before we go any further the first thing we need to check is does this car have any bad history as you can see it checks out it's never been crashed never been stolen the mileage hasn't been rolled back but as you can see the finance might need to be settled before I buy it that is something I need to check out but other than that the car is pretty clean the next thing I need to check is does Jane actually like it Jane think I found you a car love it that black big gangster oh it's beautiful yeah look look at that squareness how beautiful like it though I love it okay right let's ring him up love love love love love it as suspected Jane loves it but if the car vertical had come back looking like this I could see that the mileage had been rolled back and the vehicle had been in an accident so then no matter how much Jane likes this it would have been a bad buy and final check does Sena like it what's that is you who wants one of them me and Mommy yeah what day is it today s's birthday wow how old are you today five wow now we have a clean car vertical check and everybody is on board so if you want to check out your car a friend's car or maybe a shoe box you're looking to buy the link is in the description below and you can use my code Mark for some extra discount thank you carore for sponsoring this video so now the moment of truth let's see how bad the finance is on this car more Dynamic more comfortable and safer than ever okay I really hope the salesman sounds like that morning Market master from Mercedes mg the monthly payment on that car is £ 25186 putting £10,000 of a deposit you get a £500 finance contribution with that as well perfect what what is your sort of interest rates on a used car 13.9% AP R so how much am I paying in interest 6761 wow so that's £60,000 in interest yeah okay thanks a lot for your time she ain't going to be happy £60,000 in interest G wagon works out £60,000 interest extra so it's just mad especially your um your choice of cars which L money this is guttin as I know Jane really wants a gagon she's proper disappointed but I think we have a solution to save money on financing a car and it works no matter what car you are buying which we will get on to later in the meantime I wanted to learn about what the FCA are doing about the 2007 to 2021 underhand deals and how we can all look at getting this compensation now the financial conduct Authority FCA have been looking into the selling of contracts to launched an investigation in investigate investigation into this the fca's investigation is estimated to end in September 2024 and if the dealers and finance houses are found guilty of bad unfair practice then myself and you could be owed thousands of pounds but there is some great news what the FCA only usually do investigations when they know they're going to find something but if you still have any doubts the lender Lloyds have just submitted their end ofe accounts and they have set aside £450 Million ready to start paying the compensations some of that money will hopefully become in your way but to put this into perspective it's estimated to be even bigger than the PPI Scandal which was A40 billion payout which is a lot of money so if you want to slice that cake later on the video I'm going to show you exactly what to do I think I speak for all of us when I say how frustrated we are to how the dealers were treating us but I have a master plan and we're going to use this Finance system to our advantage ready yep as we saw early in the video dealers make big profits from that finance and that is what we're going to use to our advantage when you viewing the car make sure it's clear that you are going to be taking out the finance yeah hang on there slick now I see your game and that is going to give you lots of bargaining power because now they can afford to do a discount on the car because they're going to make the money back on the finance commission so even better is that some dealers give you finance contribution when you partex your old car so again we can use the fact that we're having the finance to lower the total price of the car so this is where we use the master plan you buy the car through the Dealer's finance and that is likely to be a high percentage here is where I have an ace up my sleeve there are lots of companies out there who do their Finance independently and they can be a much lower rate so let's say we have bought a car with the Dealer's finance and that has give us a lower price on the car as soon as you take the finance you legally have 14 days to cancel the calling off period so when you have delivery of that car in theory you could go go to the lower rate Independence and get them to refinance the deal at of course a lower rate so now we have a discounted car at the Independent Finance lower rate so now I'm going to put this Theory to the test and see how much money we can save what was that transition do your editing so we're going to test this on this beautiful BMW X5 at my local dealer it's a great family car and it's up for a very reasonable £51,000 so let's see what kind of Finance rates we get offered so in a 4year PCP 10,000 m a year with £2,000 deposit you'd be looking at a monthly payment of 91028 £910 a month sounds okay for a £51,000 car as long as you can afford it but it's really important to know what makes up that monthly payment so what's percentage 13.9 you right in the back there yeah I can see exactly why they're so Keen to sell the finance £20,000 in interest charges it's only a 50 Grand car it's now time to see if we can use our master plan to lessen that Finance cost so we have our deal on the table at 13.9% if you remember we spoke to Helen earlier she worked in a highend car dealership but after seeing all the terrible things that went on she is now going to try and help us and save some money hello again here's our deal you can have a look for it please and see if you can save us any money yeah let me have a look at it I'll uh run the numbers and let you know what we can do thank [Music] [Music] you I have your figures for you good news the BMW agreement was 13.9% and Helen's rate 9.9 which is £80 a month cheaper but where it really is crazy is the BMW Finance you pay and extra £20,000 in interest over 4 years with Helen it's down to 14 Grand £6,000 cheaper and that process took under an hour now our system doesn't just work when you're buying a new car if you've had that car for a while you can still refinance it nice Morgan this is Morgan's beautiful Lotus mirror it looks very much Super Carry ree cut that out we get sued he bought this car for £64,000 when I looked at all the p work the interest is really high about 13 or 14% I raised it with them and they knocked off about £4,000 so Morgan used the high rate of interest to barter a better deal £4,000 off the list price but then he refinanced the car like we just showed and the saving it saved me about £6,000 um straight away within a week with £4,000 discount and 6,000 Less in interest to pay Morgan is 10 grand better off we saw earlier James was really disappointed that we couldn't get the G wagon because of the high interest rates so let's go back to our master plan and see if we can bring the interest down and make the g a bit more affordable and make Jane's dream come true and let's face it she deserves it for what she puts up [Music] with you smash my AR I can smell the motor for Mia hi Helen hello you're right yeah you you're right yeah good I really want to get Jane this car so if I can send this over to you if you can just have a look and see if you can beat it please yeah we'll be able to beat it no problem par show 26th of August bank holiday Monday get involed there we go here we go thanks for ringing us back that's okay I have two lots of good news for you um first of all APR 8.9 wow okay second of all the total charging for the exact same length of time exact same borrowing um under 40,000 so that's 20 grand cheaper yeah wow okay that's brilliant I think Jane's going to have a new car she's you're going to be crazy in the space of just one phone call Helen has saved us over 21 Grand this is the car we are having the saving on but I do know Jane prefers a different interior so I called my friend KL Harley to make sure the car was the right money hello so what do you think to that car look it's a nice car but the option that I can get you is a lot better it's a year newer than that car you sent me yeah the spec is different different class all together different class all together and because it's you and I love you so much I'll I'll match that price wow okay Mega okay brilliant you're a star okay so that's a curveball Happy Days Jane's going to get a G wagon and I know this has got the inside interior which he likes it's a split black and white and we Sav a load of money on the finance right let's go to Tom at what are we getting gwag we're getting a G wagon so the time is here Jane is going to get her dream G wagon and it's all thanks to you guys for watching us and if you have any crazy stories drop us a comment or an email here it is exciting The Shoe [Music] Box oh my [Music] God inter [Music] I how's it feel I love it I can't wa to drive it so car did a great deal with the price and we got that fantastic Finance deal so we're in happy wife happy life we got we got to go one up on whistling diesel you've got to at least jump it race shut up don't just don't C the wheels that sounds meaty is it all proper G oh it drives amazing I love it proper gangster it like a pee inside it though you don't fit so Jane's loving a car and I'm happy I got a good deal on the finance now back to the important bit I mentioned at the start this video because of this FCA investigation you might be entitled to thousands of pounds of compens ation so how can you get your hands on that money the criteria you need to tick is having historic finance agreement which was taken out between 2007 and 2021 if so you could be in for some money there is a link in the description below for a form there's going to be no decisions made till September but get it in there now and get to the top of the list from what we've been told this could be between 1,500 and 2,000 but if you change your car regularly that's a 14-year period so you could could be owed tens of thousands of pounds and that includes myself and Jane which will hopefully be a few grand to pay towards this amazing Finance deal now got something really exciting you're not going to need Finance for this you can win my beautiful Italian sports cup it's English is it it's made in norfol they make cars in norfol yep no wonder it's only 79 this Sunday the 7th of April 7 Days performance the link is in the bio

Channel: Mark McCann

Views: 357,694

Keywords: car finance, g wagon, I exposed, exposing, investigated, investigation, finance, fca, refund, compensation, mercedes, I brought my wife, dream car, mark mccann, mark mcan, mark macan, marc Mccann, mccann, macan

Id: 5NRn2MIjLJg

Length: 22min 57sec (1377 seconds)

Published: Tue Apr 02 2024