|
News Index
Next
Previous
Young consumers are being persuaded to sign credit agreements charging a high
rate of interest when buying a car, the Trading Standards Institute (TSI) has
warned.
As a result of poor credit scores, many are offered multiple credit agreements
to buy the car, pay a deposit or to fund extended warranties.
These are often uncompetitive, with no automatic cooling-off period for buyers.
Some dealers, especially independent car supermarkets, appeared to be exploiting
the eagerness of younger consumers to get behind the wheel of their first car, a
TSI spokesman said.
Peter Stratton, TSI lead officer on the motor industry, explained: "We are
particularly concerned when we hear about consumers who are taking out one loan
to cover the cost of the deposit and a second one to cover the remaining
balance.
"The interest rates for credit offered by most of the car supermarkets, and the
cost of some of the extras, are not usually very favourable.
"We are hearing from many motorists who are pretty shocked when they read
through their agreements later and realise exactly how much they will have to
pay back".
In one case, a motorist bought a car priced at £9,000 only to end up owing more
than £20,000 through credit agreements.
Source:
Getting Paid
|
