New Car - New Problem...

johnsto34

I would love it if someone could advise me on this one please....

I bought a used car on finance last week from a dealer near where i live. I asked the APR and they said it was 6% base rate (first clue of sign of trouble).

I signed the documents and got the car but on inspection of the finance documents i got through the APR is actually 12.5%. What the dealer had told me (despite me asking for the APR) was actually infact the "base rate".

So ive started a £9800 finance deal over 48 months for 12.5% which is pretty rubbish. I need to know if i can get out of this now (is there a cooling off period?) or should i get a settlement fee now and get another loan from the bank with lesser apr (say 9.9%) to pay this one off outright now.

Please help as im new to all this.

tictax

Hi. As it was signed on trade premises there is no cooling off period.

All I can suggest you do is go back to the dealership and make a complaint.

Also, find out what the settlement figure is from the finance company as the first payment hasnt been made you may be not too bad off.

Again, it's a lesson in always reading something before you sign.

johnsto34

Thanks for getting back to me tictax. Ive already been to the dealer who wasnt very helpful really and kinda just said that they always state thier interests in base rate values and not APR.

I guess you are right and i kinda feel stupid for posting but yeah i should have read more clearly.

I'm thinking that depending on the settlement price would it be worth paying the settlement fee using another loan with lower interest or can you not do this (i.e have two loans for kinda the same reason) or would the finance company im with now match the 9.9% that i can get elsewhere.

anniecave

johnsto34 wrote: »

I'm thinking that depending on the settlement price would it be worth paying the settlement fee using another loan with lower interest or can you not do this (i.e have two loans for kinda the same reason) or would the finance company im with now match the 9.9% that i can get elsewhere.

If you mean would it be worth settling it off with a loan from somewhere else, then probably yes. Worth looking into anyway.

Galaxy863

I unfortunately had the same thing done to me. Bought a car a little over a week ago, asked what the APR would be and he said 7% flat. Once we signed the agreement we realised it was actually going to be 13.9%. I have since phoned the finance company to find out the settlement figure and they're only adding on a months interest to the loan amount ( around £100 ) so we are in the process of taking out a loan at 7.9% apr.

So definitely ring up and get a settlement fee and fingers crossed you can get a loan out to cover it at a much more reasonable rate!

iolanthe07

Car dealerships often pull this one. You need to read the T & C's very carefully before you sign anything.