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Car finance problem
Fooblemeister
Posts: 4 Newbie
in Loans
Hi
Wondering if anyone has any advice re a car finance plan I was sold by Evans Halshaw.
In 2010 I bought a brand new Corsa, on a PCP, with guaranteed future value and the option to exchange cars after 3 years. After 2 years EH rang and asked would I like to exchange early, which I agreed to as I wanted a bigger car.
I settled on an ex-demo Astra, and explained to the salesman that as the car was already a year old I would need to exchange prior to 3 years, as I did not want the car once it was out of warranty (the whole idea behind buying brand new being to avoid any worries with repairs etc, as I had a shed of a van to look after already)
He offered me an option of 'reduced payments' whereby I pay a set amount to the finance company, and EH then pay me £65 a month - this was set to run up until September this year, which is when the car turns 3. Again I made it very clear that a; I didn't want the car after it was 3, and b; even if I did I wouldn't be able to afford it once the payments increased in September. He reassured me that I would be able to exchange cars, and as such would not have to pay the increased monthly amounts.
I have now found out that as it stands I am in £2500 of negative equity on the car. So come September I have no choice but to make the increased monthly payments, which is not going to be easy for me. I cannot hand the car back on the 'halfs/thirds' rule until August 2014, and the only other option would be to absorb that negative equity into a new finance deal which obviously I don't want to do. If I'd realised that this situation was going to occur I wouldn't have bought the car and would have stuck with the Corsa - what I didn't obviously realise (and yes I know I should have read the paperwork, but salesman hovering saying 'sign here' etc...lesson learned) is that I was moved from the previous PCP deal to a straightforward HP agreement.
In addition I wasn't offered GAP insurance, as I was lead to believe that as with the Corsa, there was guaranteed future value, which there isn't.
I have spoken to the Salesman and business manager who were extremely dismissive, and when I asked did he agree that given I had explained the whole '3 year' issue, I should have been made aware that this negative equity could/would occur, and he just said 'no I don't'.
I have contacted the finance company who asked me to send details to them in writing but are pretty much unable to help.
So, do I have any grounds for complaint or do I have to suck up the fact that I should have read everything properly, and just not eat until next August in order to keep paying for the thing?
Wondering if anyone has any advice re a car finance plan I was sold by Evans Halshaw.
In 2010 I bought a brand new Corsa, on a PCP, with guaranteed future value and the option to exchange cars after 3 years. After 2 years EH rang and asked would I like to exchange early, which I agreed to as I wanted a bigger car.
I settled on an ex-demo Astra, and explained to the salesman that as the car was already a year old I would need to exchange prior to 3 years, as I did not want the car once it was out of warranty (the whole idea behind buying brand new being to avoid any worries with repairs etc, as I had a shed of a van to look after already)
He offered me an option of 'reduced payments' whereby I pay a set amount to the finance company, and EH then pay me £65 a month - this was set to run up until September this year, which is when the car turns 3. Again I made it very clear that a; I didn't want the car after it was 3, and b; even if I did I wouldn't be able to afford it once the payments increased in September. He reassured me that I would be able to exchange cars, and as such would not have to pay the increased monthly amounts.
I have now found out that as it stands I am in £2500 of negative equity on the car. So come September I have no choice but to make the increased monthly payments, which is not going to be easy for me. I cannot hand the car back on the 'halfs/thirds' rule until August 2014, and the only other option would be to absorb that negative equity into a new finance deal which obviously I don't want to do. If I'd realised that this situation was going to occur I wouldn't have bought the car and would have stuck with the Corsa - what I didn't obviously realise (and yes I know I should have read the paperwork, but salesman hovering saying 'sign here' etc...lesson learned) is that I was moved from the previous PCP deal to a straightforward HP agreement.
In addition I wasn't offered GAP insurance, as I was lead to believe that as with the Corsa, there was guaranteed future value, which there isn't.
I have spoken to the Salesman and business manager who were extremely dismissive, and when I asked did he agree that given I had explained the whole '3 year' issue, I should have been made aware that this negative equity could/would occur, and he just said 'no I don't'.
I have contacted the finance company who asked me to send details to them in writing but are pretty much unable to help.
So, do I have any grounds for complaint or do I have to suck up the fact that I should have read everything properly, and just not eat until next August in order to keep paying for the thing?
0
Comments
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Have you got anything in writing?
If not you have been totally stuffed.0 -
Nothing in writing about me needing the car returned by September no. I wish I'd recorded the salesman when I went in the other day as he acknowledged everything I was saying and basically said he wasn't bothered
0 -
Fooblemeister wrote: »
So, do I have any grounds for complaint or do I have to suck up the fact that I should have read everything properly, and just not eat until next August in order to keep paying for the thing?
I guess you have answered your own question there."There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock0 -
Was the car purchased on hire purchase or a personal loan?
This makes a big difference as if the car was financed on a regulated hire purchase agreement you will have the option to hand the car back once you have paid 50 %.
You need to first check if your policy is regulated, then find the section in you documents which talks about early termination. This will show an amount. Then call your finance company and ask for a settlement figure and also about early termination.
Early termination is nothing new and has been set up so that finance companies are more responsible in the amounts that they lend against the cost of a car.
It means that if you providing you have paid 50 % you can simply hand the car back. Yes there are terms and conditions for example both keys, it has to of been serviced , within fair wear and tear conditions etc.
But that said it could really help.
Please check and get back to us.
Good luckHappiness, Health and Wealth in that order please!:A0 -
Sorry please ignore me I have just read the rest of your post and you have already checked.
You could always try the Ombudsman but it would be a very week case and they will have your signature on just about everything. That said your finance company is jointing responsible for the car until you have made the last payment so it might be worth trying them first.Happiness, Health and Wealth in that order please!:A0 -
How much did you borrow for the new car, and how much are the payments?
I have a friend who complained that her £200 a month payments didn't buy her £9995 car outright after 3 years...0 -
nomoneytoday wrote: »
I have a friend who complained that her £200 a month payments didn't buy her £9995 car outright after 3 years...
:rotfl: did she get very far with her 'complaint'?ISA £1675
MiniMoohound savings £3685.86 :T Plus £3800 CTF 
'MrMoneyMuststache' my new hero, Martin Lewis my long time hero
Poacher turned Gamekeeper
Roadkill rebel No 52 Aug £1.34p Sept 24p Oct 5p Nov 5p Sealed pot Challenge No 403 £176.66(2014) :staradmin NOV NST No 200 -
Don't stand for it!
I have limited knowledge in this having never had a car on finance, but complain, complain, then complain again. However, keep paying, so you are the "good" party. Complain to managers, ombudsman and anyone else who'll listen. And if you loose, appeal.
Weak case or not, don't just give in and give them an easy ride, that's how they get away with it. It's just like standing up to the bully when you're 13. And you might end up stuck with it, but you can't half make life difficult for them in the process0
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