Car on Finance - monthly payment is different....

oceanscape

I bought a new car on a 5-year 0% finance deal. When I purchased it at the dealer I signed a "new car" order form contract stating my monthly payment to be £149.76 x 60.

Today I received through the paperwork from the finance company. The monthly payment is detailed as £152.79 with the final payment at £309.00.

Are they allowed to do this? I spoke to them today and was told that "they can't control the exact final price because it depends on the finance company"?? I know it's only £3 extra but it's the principle that counts - I told the salesman flat out that £150/month was the absolute limit.

Do I have a leg to stand on? What should be my next move since they aren't listening to me? Send a letter/threaten legal action?

Thanks so much for any advice.

harveybobbles

rather than posting them a letter, you could just put it into your own bin, as 90% of finance companies have a higher final payment as thats when they stick their admin charges on. some put on an extra 50p per month to cover it so there is no nasty surprises on the final payment.

One tip I tell my customers when doing finance is to phone up one month before the finap payment is due and ask for a settlement figure. That usually gets around having to pay the extra...

oceanscape

harveybobbles wrote: »

90% of finance companies have a higher final payment as thats when they stick their admin charges on

So why didn't the dealer tell me about this?

My contract with the dealer states payments of £149.76 - why can they force me to pay £152.79 when this is NOT what I agreed to?

debsy42

Try Trading Standards, they were very good when I had a similar thing happen to me

harveybobbles

When I'm quoting customers I just use a calculator, rather than the computer program as it's easier and faster.

Therefor I might tell someone it's £200 p/month when it might actually be £194 or £209.

It all depends on which finace company I choose to use.

You'll have to see what figures you signed for on the finance agreement rather than the order form from the dealer.

eg

£8000 x 4% (flat rate) = 320 (this is the interest per year)

x number of years (4 for arguments sake) = 1280.

add that to the orginal 8000 = 9280.

then divide that by the number of months. 48...

So i'd be quoting a potential customer £193 p/month.

But until the papers arrive with me to get them signed up this figure could be £190 or £200.

Admin fee's get added either on the first paymen, the last or a little bit extra on each month.

loofer

Were you quoted £149.xx or did you actually sign a credit agreement to which the monthly payment would be £152.xx?

They should have also detailed any ad-hoc charges such as Admin/credit fee/loan reservation etc etc

These fees could be paid in advance but if they add them to the loan then you are paying interest on that amount too... though it would probably be negligible.

Your paperwork/written agreement is your best friend so have a good read through that.