Rather than go down the grant application route I was wondering, is it a thing for some dealerships to offer payment plans for advance payments?
It is not generally ‘a thing’ albeit I have seen one or two dealerships offering this on fb groups of late.
What is not clear though, is the basis on which dealership’s are offering this. For example is the dealership acting as lender, or a broker or what? Also, what type of loan this actually is. It all seems rather opaque.
If the loan is regulated by the Financial Conduct Authority, then affordability and credit worthiness checks must be carried out by the lender. The dealerships seem to be offering these loans without such checks, or are at least not mentioning such checks.
Basically, who is underwriting the loan and what happens if the customer defaults?
I saw on fb that someone had queried a dealership making such an ‘AP loan’ offer and the dealership have so far declined to answer, which may speak volumes!
Not forgetting of course, that if the customer has not had the financial ability to save up for the AP in the first place, how on earth are they going to pay back this ‘AP loan’ in the future?