Have i understood this car finance correctly?

motorguy

harveybobbles wrote: »

Suicide?

Failing that, buy a banger for 2-300 quid.

Have you actually been signed up for the deal?

Sounds like it - and i dont think you can pull out of a deal like that once its been signed....

motorguy

The more i read over this, the more frustrating it gets.

To the O/P, as someone who has a bad credit rating and are tryng to rebuild your credit rating, have you just put yourself into £19000 worth of debt, on a depreciating asset that is probably already only worth £5K at best?

marmitedog

If you can afford £71 per week, then why not save up for 2 months and get a basic car from eBAY or autotrader?

From the information you've given us, you cannot afford a £7k car.

matt1987

I seriously dont understand people that sign up for these type of finances. Its absolutely ridiculous, and these types of company should be banned. It is criminal, it really is.

OP, if you have signed up for it, then you have signed up for it and there is nothing you can do. I would advise you stop using the car temporarily, and go and seek advice with citizens advice and trading standards and just say you were told a different price to what is on the agreement, and that it wasnt explained properly.

You MAY be lucky, you MAY not be lucky, but whatever the outcome, you need to be more careful in the future.

I have a car on finance, and at the time I was 20. I was very nervous about signing up for the finance agreement, but mine is with a reputable car company ( ford finance ) and I am paying 7.9% APR! Total charge for credit over 2 years in which my finance was spread out is £360. I borrowed £4800, on a £6800 car and spread it over 2 years. I am in the final 6 months of the agreement now, and will be p/x the vehicle for a more expensive car when I own this vehicle outright in 6 months time.

hanes

Yes after working it all out last night my montly payments will be £311 while i can afford this, i know i've been given a lemon of a deal because of my credit profile.

Im hoping after three years the car will be worth at least 3-4k then i can p/x for something better with the lowest rate of APR known to man as my credit rating should be the strongest its ever likely to be.

In the meantime the car is in good condidtion and i get my worth out of it, but still i will see how and if i can get out of it, but since i've paid for a year upfront in insurance and road tax im pretty sure i wont recover much of this?

Thanks for the advice i know i've been sucker punched. im 22 years old this has been a harsh lesson

MoneySavingStudent_2

You're 22?! :eek: You should have joined this site a LONG time ago! Not a good way to start life. I'm 20 and thanks to this site am managing my student debts well. You really need to try get out of this car deal! x

snoopstah

hanes wrote: »

Yes after working it all out last night my montly payments will be £311 while i can afford this, i know i've been given a lemon of a deal because of my credit profile.

Im hoping after three years the car will be worth at least 3-4k then i can p/x for something better with the lowest rate of APR known to man as my credit rating should be the strongest its ever likely to be.

Even if it is worth 3-4k (and on a car that was bought for 7k from a dealer, to expect it to be worth 3-4k part-exchange in 3 years would be astonishingly good) you'll still owe the finance company about 8k, so you would need to sell the car for 4k, plus give them another 4k of your own money, just to be back to where you are now, i.e. with no car and no car debt.

As everyone else has said, if there is any possible way of getting out of it, do so.

nsmith1180

The only hope I think you have of getting out of this agreement is in 2.5 years time tbh.

On most car finance agreements there is a rule called Halves and Thirds. This means that once you have paid off half the total amount payable you can just hand the car back and walk away.

You need to make sure that the following is true:

:: The loan is Hire Purchase not PCP or Personal Loan.
:: The car has full service history. Does not have to be a main dealer, but it needs stamps from a VAT registered garage.
:: The car is free from body damage that can not be put down to wear and tear. Stone chips = ok, Bloomin great dent in the door = not ok.
:: You are not in arrears.
:: You have any other finance agreement in place and agreed before you do it.

They are not allowed to black mark your record for doing this, so other finance houses should take you on. But the finance company involved will never touch you again, which in this case does not look to be a loss to me.

One last thing, If the CAB cant help you, get on the blower to Watchdog. Christ I hate that show! but they do like taking on stories like this and may be able to help you or at least warn others off.

That is my thoughts on this. Good luck!

nsmith1180

PS. I am a new car salesman, so I am not just making this up, I do know a bit from advising customers.

Smi1er

hanes wrote: »

Yes after working it all out last night my montly payments will be £311 while i can afford this, i know i've been given a lemon of a deal because of my credit profile.

Im hoping after three years the car will be worth at least 3-4k then i can p/x for something better with the lowest rate of APR known to man as my credit rating should be the strongest its ever likely to be.

In the meantime the car is in good condidtion and i get my worth out of it, but still i will see how and if i can get out of it, but since i've paid for a year upfront in insurance and road tax im pretty sure i wont recover much of this?

Thanks for the advice i know i've been sucker punched. im 22 years old this has been a harsh lesson

Please tell me you haven't actually done this already.

Your £7K car is at best only worth £5K trade in

With your first payment of £311 go and buy a banger for this amount and try and get at least six months mot.

Then save all the other £311's..... after 23 months you would of saved £7,153. Now go and buy your £7K car, and continue to save your £311 towards your next car.

Paying interest on a car loan is ok, if it isn't too much.

hanes

I have signed the paperwork yes, so i cant go back on it. Yes i could of bought a car £500 but having it break down on me within a month and then shelling out for repairs or ultimately another £500 car didnt inspire me with much joy.

I know i've been mugged off big time, but after being qouted 26.09% i thought that would be all i was paying, i even questioned the guy asking if my payments would be what i stated in my budget and he told me yes, which is £71 weekly.

Im just holding out hope that in 2.5 years i can take it back and be down with it, not have a mark against my credit history and learn a valuable lesson.

Id advise anyone looking at this to steer clear of ACF finanace they dont know what they are doing, only in the respect of giving you a raw deal. Im not angry i know its my own fault, but i was blinded by the fact i would have a decent car to travel to work day in and out.

:rolleyes: