Car finance disaster

toonboy69 wrote: »

I didn't read the contract but yes it was all detailed.

Well there's your problem. If you signed a finance contract without reading it then I have no sympathy for you getting yoruself in debt.

gaz_jones wrote: »

I have no sympathy for you getting yoruself in £1800 pounds debt.

I think the debt is £4200 -£1800 = £2400

Actually reading over it, it looks as if: £3500 is original price of car. Minus £500 for the part ex of his, minus £1800 which it went for at auction which in my mind leaves £1200 left to be paid. Although as you say there's the APR on top of that aswell so god knows what he actually owes.

toonboy69 wrote: »

I am looking for some help & guidance. In September I bought a new car, valued at £3500.00 on finance through a local garage. The garage do their own finance through a company called Finance U. I put in my old car as part-ex £500 and financed the rest. The payments were 116.00 per month. When all details were sent through to me the payments had risen to £136.00. I queried this and they stated that it was over 3 years not 4 and it would be a hassle to change it. I agreed. The first payment was £236.00 which I didn't realise included a £100.00 admin fee. This was above what I could afford and the payment did not go. I fell another payment behind as I couldn't afford the extra payment and the car was reposed. I have since received a letter advising that the car was sold at auction for £1800.00 and I now owe them the outstanding finance minus £1800.00, this is £4200.00, for a car I do not have anymore. This certainly isn't fair. Can any one give me help? I am at a lost and they are now threatening to take me to court and tell my employers.

Thanks.

What appears to have happened here is that the Finance company would only accept the deal over a shorter period and it seems the car dealer was not honest enough to give you an opportunity to say no - also it appears the upfront fee was not explained properly.

Others are quite right in that you should have taken more care with what you were commiting to but the car dealer was not blameless in his greed to get the sale.

First thing to do is check the paperwork to see that the Finance company have complied with the CCA rules.

Were you sent a default notice?
What date was the default notice sent?
What date was it received?
What is the amount in arrears on the default notice?
What was the date the Default notice expired ( the date to pay by)?
What was the date of repossession?
Did you have any contact at all from the Finance company between the date you received the default notice and the date of expiry of the default notice and if so on what dates and what type of contact and what was the reason for the contact/what was discussed?

If CCA rules have not been followed there are things you can do.