# Motorhome Finance Beware



## 109250 (Jan 15, 2008)

Does this sound right, I purchased a new motorhome almost three years ago with the intention of keeping it six months to winter In Spain, see the grandkids and then sell in the summer if I didn't like it. I was going to pay for the van cash when I purchased it but was told by the salesman that Blackhorse had cheap finance at the time and I would be better off leaving my money in the bank. Here are the figures.

Price of Motorhome 56,000 less discount, large deposit paid.

amount borrowed over ten years £35,000
interest over ten years £17,825
Total £62,825

Firstly when we picked the van up and signed it was not Black Horse it was another company, anyway you look at the interest and think oops, but you also think thats over ten years and I might sell in six months(couple of grand interest tops) how wrong.
After almost three years and £15,000 in monthly payments the settlement figure was £36,000 , I was told this is normal and the full interest £17,825 would have been added if I had settled the first week. Is this normal in the motorhome finance game ?, its certainly not in the bank industry and I call them crooks.

Also what is more frightening, if it had been wrote off day one even with a hefty deposit there would have been a serious shortfall from the insurance company, you cant make the price of the van £17,825 more.

Anyway buyers beware and does this seem right. Thanks


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## mickyc (Jan 20, 2006)

Does sound a bit steep, but bearing in mind that you were always intending to settle the finance early, surely you checked the early redemption fee's.



Didn't you?


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## JohnsCrossMotorHomes (Jul 21, 2007)

Unfortunately three years ago finance agreements over £25000-00 were not covered under the Consumer Credit Act and lenders could demand interest in full even after six months.

Recently, April this year all new finance agreements now come under the Act and lenders must use the Rule of 78 in giving rebates on interest.

Peter


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## JohnsCrossMotorHomes (Jul 21, 2007)

geoff4444 said:


> Does this sound right, I purchased a new motorhome almost three years ago with the intention of keeping it six months to winter In Spain, see the grandkids and then sell in the summer if I didn't like it. I was going to pay for the van cash when I purchased it but was told by the salesman that Blackhorse had cheap finance at the time and I would be better off leaving my money in the bank. Here are the figures.


If you can prove that statement you could go to the Office of Fair Trading and get the agreement cancelled as it was missold.

The salesman had a vested interest in selling that agreement as there would have been a very LARGE commission paid to the dealership and him no doubt.

Peter


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## 109250 (Jan 15, 2008)

Been in business over 40 years in the House building so you do think you have asked all the right questions especially when it is a large motorhome dealer. I specifically asked the salesman about settling in six months and he said this finance company paragon would be even better. He didn't say for who though, my mistake.

you live and learn eh, just wondered if this was the norm and that others are not captured.
Thanks Geoff


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## 109250 (Jan 15, 2008)

Thanks for your reply Peter, not contacted anyone yet only the finance company and I am still getting over the shock. My Grandad used to say theres one born every minute, he was always right.

Anyway goodnight to everyone for now and thanks for the help, Geoff


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## SNandJA (Aug 22, 2008)

Sorry to hear of your plight but given the thought of preventing others falling in the same trap.... I think I recall from the dim and distant past that it is possible to take some kind of cover for the eventuality of a total write off in the early life of a brand new vehicle. Digging deeper I think it was backed by the RAC?? Perhaps other users could shed light on this?
Steve


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## cabby (May 14, 2005)

I am insured with the NFU, they will replace the vehicle if written off within the first year.Hope I read this right. :roll: :roll: Another point to remember that when you have finance on a vehicle it remains the property of the finance company until final payment is made or settled.

cabby


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## GerryD (Sep 20, 2007)

Sounds like a normal hire purchase agreement. There are always high charges if you settle early. Safest bet if you intend to settle early is a personal loan, but the dealers do not earn from that. 
Three years ago many finance houses were offering such lowinterest charges that it sometimes was better to leave your money in the bank.
If you had taken GAP insurance you would have been covered for any extra charge if the vehicle had been stolen or written off.
BTW, your figures are £10000 out.
Gerry


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## Mick757 (Nov 16, 2009)

As we were showing some half-interest in a couple of vans last week, the salesman took it upon himself to go away and come back with some 'figures'. He was quoting Black Horse at seven per cent. which left an interest charge of almost 4.k on a 15k balance in just four years. Anyone know how this stands in the scheme of van finance?
He aslo said as long as we didnt try to settle within 6 months we wouldnt be penalised.

ps. we'd likely try the bank first, before we signed any finance agreements.


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## 106573 (Aug 20, 2007)

So if the interest hit is so big for an early settlement, would the O P be as well to carry on the payments for the the full finance term now?
Tin


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## JohnsCrossMotorHomes (Jul 21, 2007)

geoff4444 said:


> Been in business over 40 years in the House building so you do think you have asked all the right questions especially when it is a large motorhome dealer.* I specifically asked the salesman about settling in six months and he said this finance company paragon would be even better*. He didn't say for who though, my mistake.
> 
> you live and learn eh, just wondered if this was the norm and that others are not captured.
> Thanks Geoff


Hi Geoff,

Under these circumstances you were missold the finance agreement, there would have been no difference between that finance company and any other at the time as regards early settlement.

Agreements over £25000-00 settlements were all the same, go see your local Citizens Advice Bureau for a start.

As to Micks post about rates, at 7% the salesman would be on a good commission, we offer around 5.5%.

Don't be tricked into PPI, payment protection insurance, very expensive, not worth having and highly profitable for the dealer commission wise.

Providing you can get a Bank Loan, banks are always the cheapest option.

Peter


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## Ian_n_Suzy (Feb 15, 2009)

Tinhuttraveler said:


> So if the interest hit is so big for an early settlement, would the O P be as well to carry on the payments for the the full finance term now?
> Tin


Hi,

He wouldn't be able to sell it though as it would show on HPI as being on finance.


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## JohnsCrossMotorHomes (Jul 21, 2007)

Tinhuttraveler said:


> So if the interest hit is so big for an early settlement, would the O P be as well to carry on the payments for the the full finance term now?
> Tin


Yes he would as he has no option, although in my opinion he was missold, he shoudl contact the FSA, Financial Service Authourity but he must keep up the payments while he does that until it is sorted out.

http://www.moneymadeclear.fsa.gov.uk/about_the_fsa/contact/contact_us.html

Peter


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## erneboy (Feb 8, 2007)

Sorry to hear that story. I cannot help except to reiterate what has already been said, try the misselling route. 

I see the OP has been in business for many years, as was I. I always regarded finance as a commodity (just like any other), and when considering borrowing I always shopped round and let them all know I was doing so, that keeps them on their toes. 

It is best not to complete an actual proposal when shopping round as multiple applications for credit may damage your credit rating, Alan.


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## 109250 (Jan 15, 2008)

Thanks to everyone for the replies, I was going to put it down to another lesson in life. So although I am one of the lucky ones who can square it off. I will take it further and at least next time they will be less greedy with other customers hopefully. Once again thanks to everyone. Geoff


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## 109250 (Jan 15, 2008)

Just a quick one, I would like to thank Peter of John Cross Motorhomes for all his help with this question. Cheers Geoff.


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## Pudsey_Bear (Sep 25, 2008)

geoff4444 said:


> Just a quick one, I would like to thank Peter of John Cross Motorhomes for all his help with this question. Cheers Geoff.


I wonder what happened, lots of good advice, then nothing as usual, at least he did thank Peter though.

Kev.


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## DTPCHEMICALS (Jul 24, 2006)

Thats pretty usual Kev, non subscriber comes on, makes a complaint then bu99ers off.  
Do they expect sympathy or advice?

Dave p


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## autostratus (May 9, 2005)

Kev_n_Liz said:


> geoff4444 said:
> 
> 
> > Just a quick one, I would like to thank Peter of John Cross Motorhomes for all his help with this question. Cheers Geoff.
> ...


Last Visited: 30-11-09, 18:02:54
Total posts: 5

Says it all really :roll:


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