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Home > Orders (L494) > LR deposit contribution - can my dealer keep half?

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donny dog

Member Since: 23 Nov 2016
Location: yorkshire
Posts: 772

LR deposit contribution - can my dealer keep half?

Having read about LR deposit contributions on here, I decided to accept my dealer's offer of a LR loan (which I didn't need to pay for the car) just to receive a deposit contribution from LR. However, of the £3,000 deposit contribution, my dealer (Stratstone) tell me that they are entitled to keep half, meaning that, after interest, I benefit by less than £1,200. This doesn't seem fair - but is it correct? Is this within the 'rules' of the scheme?

Tue Feb 21 2017 6:38pm

Tim in Scotland

Member Since: 30 May 2005
Location: Driving along in my automobile
Posts: 17476

2013 Range Rover Sport SDV6 HSE Stornoway Grey

Try taking it up with LR Customer services 2020 Pangea Green 1st Edition D240 New Defender 110 is here and loving it
2018 Melting Silver Mini Countryman PHEV - soon to be replaced
2015MY Corris Grey SDv6 HSE Dynamic, the best car I have ever owned, totally reliable only a cou0le of rattles in 3 years, now no longer in my care
Also in my garage is a 1996 TDi300 Defender 90 County HT made into a fake CSW

Tue Feb 21 2017 6:57pm

wilf

Member Since: 08 Nov 2012
Location: on the naughty step
Posts: 939

I got the full figure.

So should you. MY2016 HSE D SDV6 - gone due to fuel dilution problems.

By the age of 50 you have the face you deserve - George Orwell.

Tue Feb 21 2017 8:22pm

crocs

Member Since: 22 Jan 2017
Location: Ayrshire
Posts: 115

2011 Range Rover Sport 3.0 TDV6 HSE Ipanema Sand

I know this has been aired well on here but is the deposit contribution not given only if the loan proceeds? Even if there's a loophole, is it morally correct to take it under false pretences?

Robert

Tue Feb 21 2017 8:58pm

Silty

Member Since: 01 Dec 2016
Location: Aberdeen
Posts: 59

I did something similar. I was about to pay in full when I read of the deposit contribution trick on this forum.

I didn't pay much attention to the forum post at the time so I wasn't certain on the contribution that might be available. I took out the minimum amount of finance (£10,000) and was offered £1,500 as a deposit contribution (This was finance of the HP variety so I don't know if that makes a significant difference). I cancelled the finance and cleared the loan three days later and had to pay around £4 in interest and no cancellation fee. Paying £4 and saving £1500 seemed a good enough deal. Maybe it could have been £3000 but I'm happy as is.

The Land Rover Finance lady was a delight when I called up to cancel and pay off the loan. An absolute sweetie and she didn't even ask why I wanted to cancel.

This is as close to free money as it can get so I can't figure out who is losing if we are winning. 2017 SDV6 Autobiography; Carpathian Grey, Ivory, Soft Close, Extended Grand Black.

Tue Feb 21 2017 9:00pm

RRSman

Member Since: 10 Feb 2015
Location: London
Posts: 1439

Re: LR deposit contribution - can my dealer keep half?

donny dog wrote:
Having read about LR deposit contributions on here, I decided to accept my dealer's offer of a LR loan (which I didn't need to pay for the car) just to receive a deposit contribution from LR. However, of the £3,000 deposit contribution, my dealer (Stratstone) tell me that they are entitled to keep half, meaning that, after interest, I benefit by less than £1,200. This doesn't seem fair - but is it correct? Is this within the 'rules' of the scheme?

Seems to me that you told your dealer you are taking the finance only to pay it off? Big mistake - should have kept quiet, taken it and paid it off...out of the "contribution" the dealer pays half and JLR pays half. So fir e.g. on an AB it's currently £3k - the dealer makes up £1500 of this and JLR the other £1500.

Tue Feb 21 2017 10:06pm

hafman

Member Since: 16 Oct 2016
Location: West Sussex
Posts: 92

When I bought my MY15 from a main dealer last October I originally negotiated a cash deal price. I then said that I might be interested in their JLR £1,000 (IIRC) finance contribution, which AIUI was funded jointly between the dealer and JLR. But when the finance salesman showed me the costs etc he only allocated me a £500 finance contribution, saying, coyly, that I had already benefitted with £500 from the dealer.

Because of this I declined the offer of finance...

Wed Feb 22 2017 6:57am

UK Guy

Member Since: 28 Nov 2010
Location: Staffs
Posts: 149

2013 Range Rover Sport SDV6 Autobiography Santorini Black

Me personally, I would walk away and find yourself another dealer.
They probs won't let you walk away for the sake of 1.5k they shouldnt have had anyway.
UK Guy RRS HSE with a few extras & a
2013 RRS Autobiography

Wed Feb 22 2017 8:52am

donny dog

Member Since: 23 Nov 2016
Location: yorkshire
Posts: 772

Re: LR deposit contribution - can my dealer keep half?

RRSman wrote:
donny dog wrote:
Having read about LR deposit contributions on here, I decided to accept my dealer's offer of a LR loan (which I didn't need to pay for the car) just to receive a deposit contribution from LR. However, of the £3,000 deposit contribution, my dealer (Stratstone) tell me that they are entitled to keep half, meaning that, after interest, I benefit by less than £1,200. This doesn't seem fair - but is it correct? Is this within the 'rules' of the scheme?

Seems to me that you told your dealer you are taking the finance only to pay it off? Big mistake - should have kept quiet, taken it and paid it off...out of the "contribution" the dealer pays half and JLR pays half. So fir e.g. on an AB it's currently £3k - the dealer makes up £1500 of this and JLR the other £1500.

I don't know how you surmise that(?). While it IS my intention to pay it off as soon as I can, far from telling the dealer that, HE actually suggested that I could if I wanted (presumably because he already knew that I am reluctant to ever borrow money).

Wed Feb 22 2017 10:07am

donny dog

Member Since: 23 Nov 2016
Location: yorkshire
Posts: 772

UK Guy wrote:
Me personally, I would walk away and find yourself another dealer.
They probs won't let you walk away for the sake of 1.5k they shouldnt have had anyway.
UK Guy

That's what my wife suggested, although I'd be cutting off my nose to spite my face to a large extent. Also, as the purchase forms a contract, I'd assume that the dealer has some right to recover any 'costs' at this stage as well as my deposit(?). Given it is such a heavily loaded car, such costs might include them having to sell it at a lower price than I'm paying - again, I'm only speculating. Does anyone know what the legal position actually is if you pull out of the deal when the car is already built and at the dealers?

Wed Feb 22 2017 10:10am

donny dog

Member Since: 23 Nov 2016
Location: yorkshire
Posts: 772

Re: LR deposit contribution - can my dealer keep half?

RRSman wrote:

So fir e.g. on an AB it's currently £3k - the dealer makes up £1500 of this and JLR the other £1500.

Again, I'm no expert so only speculating, but the enthusiasm of the sales manager to get me to take a loan suggested to me that the dealer was gaining out of the deal as well, so I inferred, possibly incorrectly, that LR was paying the whole £3,000. At some stage he definitely said words to the effect 'half each'. But maybe he was just excited about the commission?

Wed Feb 22 2017 10:17am

donny dog

Member Since: 23 Nov 2016
Location: yorkshire
Posts: 772

crocs wrote:
I know this has been aired well on here but is the deposit contribution not given only if the loan proceeds? Even if there's a loophole, is it morally correct to take it under false pretences?

Robert

The loan HAS to proceed to get the contribution. Paying it off early is a different matter, and not false pretences. According to the dealer, the main purpose of the deposit contribution is to get customers to upgrade model when they wouldn't otherwise have done, and mostly these customers will keep the loan. If this is the case, maybe the odd loan paid off early (which only costs them the interest they may have received) is not too serious an issue.

Wed Feb 22 2017 10:21am

donny dog

Member Since: 23 Nov 2016
Location: yorkshire
Posts: 772

Tim in Scotland wrote:
Try taking it up with LR Customer services

I've tried that. They say that this is a matter between the dealer and the customer. It's obvious that the dealer can keep back whatever he can get away with out of the £3,000 that's available and that I didn't negotiate very well! I did get 6% discount off the car so I suppose over all I haven't done too badly.

Wed Feb 22 2017 12:39pm

SVR575

Member Since: 16 Apr 2008
Location: uk & Europe
Posts: 1827

crocs wrote:
I know this has been aired well on here but is the deposit contribution not given only if the loan proceeds? Even if there's a loophole, is it morally correct to take it under false pretences?

Robert

Sure! I would not be able to sleep.
Glad you put lol at the end of that. SVR 2018 in Santorini Black.

Wed Feb 22 2017 12:43pm

UK Guy

Member Since: 28 Nov 2010
Location: Staffs
Posts: 149

Sounds like they think they have you over a barrel, as it's ordered, deposit taken and delivered to them.
Play hardball, they are not known as stealerships for nothing.
Legally I'm not sure where you stand but in principle you shouldn't let them get away with ripping you off without a fight.
Call their bluff, tell them you want out and expect your deposit back 100% and go from there. You have to do what you have to do, it's only £1500 but just knowing you have been ripped because they think they can get away with it is going to dampen what should be an exiting time collecting and enjoying your new toy.
Again my thoughts. You will have to make the final call on what you feel is best.
UK Guy RRS HSE with a few extras & a
2013 RRS Autobiography

Wed Feb 22 2017 5:27pm

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