car finance - are they trying to ripp me off?

crism

Hi
I have signed an agreement for buying 08 reg car. Yesterday dealer called me and said that I need to drop in to sign finance agreement BEFORE they deliver a car. As soon as finance should be signed by me, they should bring the car to their garage so I can check if I like the delivery or not. Am I wrong saying that I should see the car first, and then if I like it, eventually sign any further paperwork like finance, delivery etc etc..? what to do? Ain't they trying to ripp me off?

Zapp_from_Planet_Zogg

Sign the finance agreement ONLY when you want to be bound by its terms.

I presume that the dealership have told you that you must sign the finance paperwork before they can buy the car in? Or is the car already at the dealership?

You say that you have already signed something - what is it?

It is possible to sign all paperwork involved with buying a car, away from the dealership, when the car is delivered to you.

crism

What I've been told originally; Pay in deposit, we will bring the car in, you can check it - accept it or not, from that point we are going further with the finance etc etc. Now they are telling me: Sign finance agreement so funds for the car will be cleared, we will bring the car in so you can check it and accept or not.
What I already signed was manual order form, where cars model and its reg no are stated, amount for part exchange, daposit payment, amount I am willing to pay in and amount of credit. Thats it.
I've been told what a car it is, but don't know what its mileage is (well it has not been confirmed on order - my bad) and condition of course. What they are saying now is basically: pay in all the money, we will bring you a car - quality of which we "guarantee" and *** off..

Zapp_from_Planet_Zogg

I wouldn't sign a finance agreement until the car was in front of me and I had checked that it is exaclty what I wanted to buy.

I can understand the dealer not bringing the car in without a deposit (as they will have to buy the car for you).

The bit about getting the finance money to clear before the deal can happen is rubbish. A payment from the finance company to the dealer doesn't take long and will not bounce!

Give them an ultimatum. You pay a deposit, they bring the car in, you like it, you sign for it. If they want you to sign the finance paperwork before you have seen the car, tell them you will get the car from elsewhere and walk away (they will sort it out before you get to the door!)

You may have some protection from the finance company if you did sign before seeing the car, but I would feel uncomfortable relying on that.

crism

zapp thanks for your advice. Thats what I was thinking to do, I need to see what I am buying especially that its not a 100 quid.
Thanks again and for everyone: DONT SIGN UP 4 ANYTHING BEFORE SEEING IT. That was my bad..

tictax

They won't let you take the car away prior to them getting the money from the finance company as if they do and then the finance house refuses to pay out eg if new info comes to light.

this is pretty much standard practice these days. You could arrange to see the vehicle to inspect it, sign the documents and then collect the next day.

Zapp_from_Planet_Zogg

Rubbish

once the offer of finance is in place it is open for 3 months. If signed in that period the finance company cannot stop the money transferring (they have already agreed to lend it!)

This is not the same as mortgages, where an agreement in principal is made and you can still be rejected at the point of signing.

Making someone sign for finance before they have seen the vehicle is not standard practice by a long way. You must only sign the finance documents when you collect the car to drive it away (or when it is delivered to you), and even then ONLY if it is in the correct condition that you agreed to buy it in.

montypython_3

Zogg what tictax is saying is actually correct not rubbish. The acceptance on car finance actually states the acceptance is valid for 90 days subject to satisfactory conditions being met eg, a valid driving licence satisfactory bank statements etc.

I have actually had a customer accepted on finance then the decision reversed on payout and deal declined due to the driving licence being in a different address and new information on the customer coming to light.

The acceptances actually state "do not release the vehicle until we have confirmed cleared funds"

However the customer should always be allowed to view the vehicle before signing the finance documents! he should then sign the documents if happy with the condition then drive the vehicle away once the finance company have confirmed payout.

Zapp_from_Planet_Zogg

I have never had to wait before recieving the car once the finance paperwork is signed. I have always signed then driven away - never sign, wait for confirmation of funds crossing, then drive away.

In fact, on the last 3 occasions, I signed the paperwork when the car was delivered to me.