0% Apr Deal

SJB27 · October 30, 2011

I have not been able to find a post about this, probably as it may not be restricted to just Lexus.

Anyway, my query regards a specific offer run by two Lexus dealers - Oxford and Liverpool.

The deal was sent to me via e-mail and indicated that they were offering 0% APR up to 5 years on a used Lexus. Great deal I thought. However, when I looked at their worked example (sent in the e-mail) it became apparent (it was not stated explicitly) that the 5 years APR only applied on 50% of the vehicle value. Still undeterred, as this deal brought the value of the particular vehicle within budget (initial outlay at least), and gave me 5 years to pay off the rest, I made an enquiry, went down to the show room for a test drive. Following the test drive the sales assistant went through deal and told me that I could only get 24 months APR!! This was despite the e-mail I received having a worked example on exactly the model/year/colour I was looking at, and at roughly the same price (less £500).

I was just wondering if anyone had had any experience with this sort of thing, either from these two dealerships or in general? It is quite frustrating because it means my monthly payments are more than double what I had anticipated and as my initial outlay is almost my total budget, the high monthly payments now make a very attractive offer practically worthless.

I am wondering if they are allowed to do this as surely this could fall under trade descriptions. Can I insist on the 5year 0% APR from the dealer as they advertised it in their e-mail?

Cheers

SJB

steve2006 · October 30, 2011

I would think this type of thing is governed by the Consumer Credit Act so perhap your local Citizens Advice centre or County Council Trading Standards would be the place to make your initial enquiries as to the legality of the offer.

There will probably be some small print somewhere saying the offer can be varied or withdrawn at any time it would seem however to be misleading but does an email offer constitute a breach under ASA regulations?

Have a read here

http://www.fsa.gov.uk/pages/Doing/Regulated/Promo/Report/index.shtml

Steve, not bad with cars but a rubbish legal advisor.

andy m w · October 30, 2011

reminds me of a personal loan offer i received from sainsbury's bank a few years back ,

£15000 at 5.75% , for nectar customers ,apply now by phone or online

spent 15mins on phone jumping through hoops , "great news , you have been approved" she said for our personal loan rate of >>>>>>>> 13.9% whhooooaaaaaa i said , ,what about the 5.75% ? sorry , ,the underwriters decide which rate a customer get,s , , , yeah , , i told em to F O ! & haven't used a nectar card since

dave1 · November 1, 2011

Doesn't really surprise me but if you could copy and paste the email (with your details deleted?) it might give a better insight if the exact wording was available to view.

SJB27 · November 5, 2011

Thanks for the posts but I reckon the small print "All offers & cars are subject to availability and change without further notice..." covers them not offering it, despite the e-mail offer detailing an identical deal. Dave1 - I can't paste the e-mail as it was all html and images etc.

They did come back with a revised offer. However this was less that 50% of the vehicle price, over 60months at 6.4% APR. This might not sound too bad, providing you are not comparing it against 50% of the vehicle cost over 60months at 0% APR.

I suppose this all comes down to the existing versus new customer issue. I am an existing Lexus customer - I have an IS 250 that has been in to this dealership for upgrades and services etc over the last 12 months. They clearly see me as a 'Lexus man' all the way, after all I am looking to buy my second Lexus in as many years. This unfortunately gives them the impression I will buy come-what may. Well this attitude lost Oxford Lexus a guaranteed sale and also my future custom; I'll not be using them for my services next year. I'm not paying anymore than was offered in the e-mail deal and I don't have the time or patience for these kind games. If they can't honour it then they shouldn't advertise it.

Steve

SJB27 · November 5, 2011

All,

I have had a quick look at trading standards regarding my issue with Lexus Oxford and came across this article:

http://www.gateshead.gov.uk/Council%20and%20Democracy/news/News%20Articles/Motor%20Trader%20Guilty%20of%20Misleading%20Customers.aspx

It is not identical to my situation but pretty close. I have pointed this out to the Lexus dealership.

Steve

steve2006 · November 6, 2011

Interesting article but there again perhaps Lexus vehicles could accurately be described as outstanding from a reliability and build quality standpoint!

I guess when my MD next tells me I've done an outstanding job I shouldn't look to smug