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First-time car buyers… lambs to the slaughter they are!

Wendy Knowler, consumer journalist

Car dealerships are incentivised by banks to get consumers to favour them, says consumer journalist Wendy Knowler.

Knowler uncovered evidence of banks sending some dealer principles (and their wives in some cases!) on holidays abroad as a prize for hitting targets.

Consumers don’t know which dealership is signed with which bank.

This problematic as few people are savvy enough to source the best deal (lowest interest rates) for themselves, or to insist that the dealership show us all the quotes they got from the various banks.

Often, we end up with a deal which is best for the dealership rather than us.

(Also, read: Absa is the most complained about bank in South Africa - Wendy Knowler)

Knowler’s advice?

Approach financiers yourself to shop around for the lowest interest rate, but don’t apply to more than three banks as doing so may negatively affect your credit score.

The Money Show’s Bruce Whitfield interviewed Knowler.

Listen to the interview in the audio below (and scroll down for more quotes from it).

I went to the Big Four banks… they all denied the incentivisation was around the interest rate… Three out of four, however, admitted incentives included overseas trips… There is a clear conflict of interest…

Wendy Knowler, consumer journalist

Everything that spares you hassle… beware, it’s going to cost you…

Wendy Knowler, consumer journalist

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This article first appeared on 702 : [Exposed] Car dealerships, banks in cahoots; you’re not always getting best deal

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