Ripped off with Car finance

Rab86

Hi guys just on to share my experience and look for a bit of advice.

Went for a new car to arnold clark the other week and got sorted out with something newer.

ANyway...the salesman wrote down for me the payments would be £174 per month, 48 payments @ 6%. I didnt question or even stop for a minute to work it out...what an idiot.

Anyway, got the finance papers in the other day and its 14% interest...bloody rip-off. Just got a phonecall from the finance company to ensure everything is in order, i have the car blah blah and to let me know that the payments start on the 1/11/08.

I told her i wasnt happy about it and the story. SHe said in as nice a way as you can that if you have signed for it then its tough...i should have had the brains to read what i singed for and let it be a learning curve for me.

SO is this true i presume? Tough at the top? I asked if there was a cooling off period and apparently there isn't.

ANother thing is that they have made a mess of the finance papers. It says I'm paying back much more than i really will be (thousands out) althought the monthly payments are correct. This may be a loophole?

Sorry for the long post! I'm gutted i was so stupid. Lesson learned the hard way!

CLAPTON

presumably this is a personal loan and not HP?

how much did you borrow

at worst you could apply for a better loan elsewhere and use the money to repay this one

Rab86

What is HP?

I borrowed £6600 over 4 years. Phoned a few places and i was getting quoted about £10-£13 per month cheaper which isnt a great deal of money but its the principal of the whole thing that is getting to me!

mancini601

Rab86 wrote: »

Hi guys just on to share my experience and look for a bit of advice.

Went for a new car to arnold clark the other week and got sorted out with something newer.

ANyway...the salesman wrote down for me the payments would be £174 per month, 48 payments @ 6%. I didnt question or even stop for a minute to work it out...what an idiot.

Anyway, got the finance papers in the other day and its 14% interest...bloody rip-off. Just got a phonecall from the finance company to ensure everything is in order, i have the car blah blah and to let me know that the payments start on the 1/11/08.

I told her i wasnt happy about it and the story. SHe said in as nice a way as you can that if you have signed for it then its tough...i should have had the brains to read what i singed for and let it be a learning curve for me.

SO is this true i presume? Tough at the top? I asked if there was a cooling off period and apparently there isn't.

ANother thing is that they have made a mess of the finance papers. It says I'm paying back much more than i really will be (thousands out) althought the monthly payments are correct. This may be a loophole?

Sorry for the long post! I'm gutted i was so stupid. Lesson learned the hard way!

As far as I know, if you sign the Credit Agreement for HP on the dealer premises, then there is no cooling off period.

badboybill

Hi,

Whenever you sign a credit agreement you have 14 days to cancel.

Phone another loan company get the deal you want then Phone the other company to cancel provided you haven't done anything bad to the car.

Bill

tictax

badboybill wrote: »

Hi,

Whenever you sign a credit agreement you have 14 days to cancel.

Phone another loan company get the deal you want then Phone the other company to cancel provided you haven't done anything bad to the car.

Bill

If you sign on trade premises (ie the car dealer) there is no cancellation available.

I would contact the finance company and find out how much it will cost to settle before the first payment. This needs to be done immediately as otherwise the settlement will shoot up.

What I never understand is why you didnt read the agreement before you signed and why you are annoyed. You were happy with the quoted payments which forgive me if I'm wrong are the same ones that are on the agreement but not happy with the interest. This makes no sense to me.

badboybill

Hi,

Let me clarify. When you signed this agreement did it say you are covered under the Credit Consumer Act?

If Yes, then cancel it.

Why? A reputable furniture company fell foul to me to the tune of 4.5k at Bow County Court (East London). I signed the agreement on their premises. I didn't pay a penny and kept the goods. Its all on file.

Hope this helps

marshallka

A cooling off period is defined as the period of time you're allowed, after signing an agreement, to cancel it without incurring a financial penalty.
Legislation regarding cooling off periods is complex. Indeed, there are five main pieces of legislation consumers can call upon if they wish to back out of contracts they've entered into. It should be noted that cooling off periods may vary from 5 days to 30 days, depending on the type of product agreement reached and how the agreement was reached.
The best known protection for consumers is the Consumer Credit Act 1974. Here, regulated credit agreements may allow you to cancel the agreement should you change your mind. Worth pointing out is that there is a cooling off period in which you can change your mind. Assuming you signed the agreement anywhere other than on the premises of the trader or creditor; and you discussed the credit face-to-face with the trader or creditor before you signed the agreement, then you may cancel the agreement.

http://www.moneyextra.com/dictionary/cooling-off-period-004050.php

markelock

if you're paying the set amount over the set period, I shoudn't worry about the interest rate, whatever the rate was said to be, the final amount will remain the same.

assuming once you've finished there's no money outstanding?

Kavanne

markelock wrote: »

if you're paying the set amount over the set period, I shoudn't worry about the interest rate, whatever the rate was said to be, the final amount will remain the same.

Car company: 174 x 48 = 8352

Other places which are say, on average, £11 PM cheaper: 163 x 48 = 7824

Difference = £528

Might not sound like a lot to you, but it does to me!!

markelock

Kavanne wrote: »

Car company: 174 x 48 = 8352

Other places which are say, on average, £11 PM cheaper: 163 x 48 = 7824

Difference = £528

Might not sound like a lot to you, but it does to me!!

would it buy a pint of milk?

seriously though, if you know you're paying £174 a month over 48 months, then that's what you're paying. the interest rate is neither here nor there, because you've got the hard facts in front of you.

I'd suggest saying 6% was a misrepresentation, intentional or negligent. Is anything written down? Can a friend go in and emulate the conversation based on being a prospective purchaser?

now if you decide not to multiply those figures into a total...