Car Finance, hand back where do I stand?

whodahell

I have had a car that I took out on finance in Jan 2007 (VW finance).

When in the showroom I specifically asked the question "at what point can we hand the car back and walk away?" (I asked because I have heard some perculiar things about car finance, not always good)

The reply was: "you can walk away at month 28 of the payment plan" I double checked, wrote this in my diary (which I still have with calculations in and notes of the conversation)

Anyway, its month 28 in July, so I have just called up the finance company who advised me that I can NOT hand the car back until I have paid a further £14,000+ .

I explained that If I were in a position to keep the car I would, but clearly the mortgage comes first, and asked why was I told 28 months, but now i'm being told that I CAN'T give the car back?

We put a £5K deposit down on the vehicle, and then had 35 monthly payments with a balloon payment. The lady on the help desk advises me that becuase my agreement is is headed up "unregulated" I have to pay 80% of the total value of the vehicle.

How come the sales manager told me something completely different, and I am feeling a little duped?

Can any help advise if I have any rights?

LinasPilibaitisisbatman

Read the paper contraact and that is what stands.

isplumm

LinasPilibaitisisbatman wrote: »

Read the paper contraact and that is what stands.

I agree ... ouch!!

Forget what the salesman stated, you need to read the paperwork & see what that says ....

Not sure but can you sell car .... after all it appears you owe about 7 months payment ... could you find the money to pay off the rest of the contract & then sell car to re-coup money .... look at http://www.wewillbuyyourcar.com/howitworks.aspx?gclid=CIGWnbfc_ZoCFWIB4wod0CA0tA

Mark

whodahell

I think that is the best option, if I make the next 7 payments that will be £5663 of further payments.

The small print on the back of the paperwork tells me that the car must be 80% paid for, But had the sales manager clearly not lied and made me aware of this then I would have seriously thought twice.

Needless to say that I will be in no great rush EVER to sign up to a finance deal. I think that VW are quite bad at this, I have been looking on google for such chats and it appears that I am one of a lot of people that have had this "sales trick" pulled on them, more fool me for taking the sales mans word for gospel. I'm guessing had I asked him to put it in writing then he would not have been able to, so highlighting the catch

Thanks Mark, going to have a look at that wewillbuyyourcar as an option.

Thanks for the feedback.

isplumm

Hi,

I am confused .... 28 payments of 35 payments in total is 80% .... so have you not now paid 80% of the loan?

My maths might be wrong .... but I get the following figures ...

£5000 deposit
35 £809 monthly payments = £28315 (worked out from the £5663 payments for 7 months)

Total cost of car = £33,315 ....

What car did you buy???

I suspect you made your 28th payment in May 09, so have 7 payments left?

My attitude is pay the car off ... they may not allow you to pay it all off at one go without some form of penalty ... did they not provide you with a table that shows you how much it would cost to pay off loan at certain point in the loan schedule?

Who are the loan company?

Mark

scotsgirl_3

I think you might have been given the default answer for hire purchase which is that you can hand it back when you pay half....IF it is an agreement regulated under the consumer credit act. Because of the value of the car, you are over this amount by the sound of it - if it's over £25k I think, then the agreement is automatically unregulated. Unfortunately you will have very little comeback I suspect - I've seen a few people caught out with this.

LinasPilibaitisisbatman

The final balloon payment seems to be whats preventing it going back.

sarahg1969

So on top of the £33k, there is a final payment too?

Crikey, I hope it's a very nice car for that kind of money!

maninthestreet

What is the APR for this contract?