Q&As

Where two types of discount for vehicle sales are being offered by a company (one being cash and one being finance), is the company able to offer different discount offers on the vehicle, depending on whether a customer pays cash or takes finance? Further, if different rates of discount are permitted, should the cash deal be lower than the finance option, and what information needs to be provided to the customers?

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Published on LexisPSL on 01/11/2019

The following Financial Services Q&A provides comprehensive and up to date legal information covering:

  • Where two types of discount for vehicle sales are being offered by a company (one being cash and one being finance), is the company able to offer different discount offers on the vehicle, depending on whether a customer pays cash or takes finance? Further, if different rates of discount are permitted, should the cash deal be lower than the finance option, and what information needs to be provided to the customers?

There cannot be a different price for goods dependent upon whether they are sold for cash or on credit. The origin of this rule goes back to the control orders days. These were economic provisions attempting to restrict the amount of consumer credit which was granted. One of the prohibitions was to require that a certain percentage of the price had to be paid as a deposit. In attempt to get around this,

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