Hire Purchase -What to do for the best!

bethuk1

Hello all,

I very rarely write just read but I have found myself in a really sticky situation. Saturday I took out a finance agreement for £9990 over 5 years at 17% APR. I signed all the forms off Tuesday but when I phoned the finance company they said nothing had been approved yet and they were waiting for the forms from the dealership so I phoned the dealership and asked them to cancel the finance I would purchase it anotherway. Ahah! I thought I might be able to get a better APR with a loan - bad news couldn't get the loan (much to my suprise!!).

So...tomorrow I'm going to ring the dealership and say tell them they need to continue with the finance agreement. However, I'm getting cold feet and like the idea of sticking with my old car (I know! typical woman) would I be within my rights to just pull of buying the car if it has yet to be approved. They have my £300 deposit .

Anyone been in this position, if so what did you do? I feel bad for messing people around but I need to do what's best for me.

Thanks for your help!

Beth

goldspanners

bethuk1 wrote: »

I very rarely write just read but I have found myself in a really sticky situation. Saturday I took out a finance agreement for £9990 over 5 years at 17% APR.

:eek::eek::eek::eek::eek::eek::eek:

is it motorpoint by any chance?

this is the crazy kind of interest rates they charge.

bethuk1

Hi Goldspanners

Nope this is from Santander, agree with the APR I've had one of those "what the hell am I doing" days and saw the opportunity to possibly get out of it before its too late

goldspanners

surely you could get a better rate than that.
what car are you buying?

bethuk1

Oh and another point I forgot to mention is, that between my application and now before it's been approved I've had my loan application rejected so this would show up and possibly even effect that finance agreement being approved..right?

goldspanners

do you have a bad credit score, is that why they are offering high interest rates to you?

bethuk1

A 2005 BMW 320D - I needed to change my car for better MPG as this can get around 50 MPG as I travel a lot for work.

bethuk1

No not particularly I haven't defaulted on any payments and Lloyds TSB have me down as a low risk customer (apparently)

goldspanners

bethuk1 wrote: »

No not particularly I haven't defaulted on any payments and Lloyds TSB have me down as a low risk customer (apparently)

have you tired to get a loan from them for the amount you need to buy the car? that might be a better option,but upon looking at thier headline offers 9.9% seems to be what they are offering on this kind of money.

harveybobbles

bethuk1 wrote: »

A 2005 BMW 320D - I needed to change my car for better MPG as this can get around 50 MPG as I travel a lot for work.

Unless i'm being thick, but you want to save money by getting a car that does 50MPg, buy you're signing a ten grand deal at 17%APR...

Lemonade_Pockets

You can pull out of the deal, but they will probably keep (or try and keep) your £300 for messing them around.