Complaint re Yamaha Motor Finance and Pro Cycle Kawasaki.
In April I went to Pro Cycle Kawasaki in Lawrence Drive, Nerang. Qld to purchase a new Kawasaki KX450F. I was happy with the price and set about arranging finance. I did approach the Heritage Building Society and they gave me a good rate but Pro Cycle said they could do better.
The dealer has replied that they offered to supply me with finance through Honda at a lower rate, but they didn't, just signed me up with Yamaha. SO, if was correct, why would I proceed with Yamaha? Why accept what Pro Cycle signed me up at 17.95%? I only found out when the policy came out in the mail.
So Pro Cycle and Yamaha have said this is the standard rate, 17.95%. A big lie; check around, there are loans around for less then 10%. I know people who have Yamaha finance at 5%, so who set the rate, was it the dealer trying to rip me off or Yamaha?
The finance guy told me that I would get a good deal, right and this is what I got.
The finance person working on behalf of Pro Cycle and Yamaha signed me up at 17.95% but failed to disclose that small piece of information.
Then failed to tell me that he was charging me $550 to rip me off on the loan plus the set up cost from Yamaha of $295.
Then conned me into after market warranty for another $595 with his crap about things happening to the bike. But hang on that’s what manufacturers warranty is for.
Then conned me into loan protection cover for $434 This is a rip off anyway, read the policy wording, if you ever receive it, I'm still waiting for my documents.
Then conned me into Fire and Theft cover for another $559 Again a waste of money. The bike has to be bolted to floor and garaged at Fort Knox to be covered. It’s not covered whilst in transit or on the back of a Ute.
Then he added all these cost into the initial loan, which then attracts more interest on the loan.
The bottom line the loan totaled $12,140, but the interest charges on this over the period of time is $6,291.00 so I’m paying over 50% of the loan in interest. My dad has a car loan for $37,000 and his interest payable over the 5 years is only $6,900.
Now lets look at the facts, the finance guy fails to disclose most of the information, which only comes out on the Loan Document. Yamaha Finance have replied to my complaint saying the Finance guy has disclosed all the facts. They supplied me with a copy of the contract, and that’s good, but the signature is not on any page that shows fees or charges or interest rates but on a separate page, and this can provide problems such as changing document figures and charges after a signed contract. It is necessary to sign all pages to protect yourself.
He even went as far as saying that I need to have insurance so I will get the loan approved. What started out as a $10,000 deal turned into a nightmare because of these greedy parasites?
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