Ford Finance

petexa

Hi guys,
My first post and hope it’s in the right place,
Im writing for advice with my girlfriend’s problem.
Cut a long story short, we went to Fords Used Dealers on Saturday, seen a nice 3yr old focus, of course we was a lil naive and went straight for it. We agreed all the GAP and warranty cover and the part ex on her Peugeot 206 and it totalled £8495, we agreed payments of £245 a month over 5yrs and left a £150 deposit. The finance was not signed that day as they was closed till Monday.
After sitting down with her parents and working it out the details, she realised that she will be paying back near on £15000, at about 27% APR.
She has an appointment with them to sign the papers on Thursday and she wanted to know if she can change her mind, get a bank loan and if she could get her deposit back. Also she is not happy with the part ex valued he offered her.
I must confess we were a bit short sighted on all of this there was no mention of final costs or an APR percentage from the dealer. It fitted in her budget so she was happy.
Hope someone can help.
Pete

motorguy

I doubt you'll get the deposit back, but i'd be ringing the dealer today to say you wont be taking the car. theres too much wrong with the deal if you're paying out £14700 on a £8495 finance deal (though i suspect theres some very heavy insurance costs in there).

If you could give us the details of the focus and the peugeot, then we could perhaps estimate what she should be aiming for?

AdrianHi

£150 is a very small price to pay for escaping from this disastrous deal.
You can lease a brand new Ford Focus 1.8 TDCi style for £211 a month including 17.5% VAT, road tax and no GAP etc. to worry about. 3 months deposit 36 months 10,000 miles a year.
Sell the 206 privately.

petexa

Thanx for the advice guys, shes not climbing the walls anymore. Shes calling the dealer to cancel it all.
pgilc - she wants a focus or a fiesta about 3 years old with lowest milage possible. She has a peugeot 206 LX, it has a scuff on the rear bumber and a slight dent on the edge of the passenger door. Its on a W plate.
I must be the most usless bloke about cars :rotfl:
Back to the searches for the time being, and my girlfriend is gettin a loan from Natwest on a cheaper APR. So we can avoid the car finance hassle.

petexa

Update to this saga, my girlfriend has phoned fords today and said she wanted to cancel the order. The salesman said she couldn't as she already own the car.
All she signed was a breakdown of costs, she was not told at all that she couldnt cancel.
She has not signed any finance deals as of yet. Im just baffled why she cant simpy change her mind.
Im going with her tomorrow to mull it over with the manager, so i was looking for some advice.

AdrianHi

Stick to your guns, even if she did sign the credit agreement this *probably* applies in the car dealer is *probably* seen as a broker/intermediary in this situation:
From: http://whatconsumer.co.uk/cooling-off-and-cancellations/?gclid=CLSdi-bjvJ0CFVFf4wodp3gekg
Financial products and services

Financial products including banking, credit, insurance, personal pensions and investments, sold by distance means are subject to a 14 day cooling off period (this is 30 days in the case of life insurance and personal pensions). This includes renewals for insurance where the agreement has been sent by post. This 14 day cooling off period also covers situations where you bought a financial product from an intermediary or a broker, even if it was discussed and signed face to face. You must be sure to follow correct procedure for cancellation (see below). The insurer or broker must refund any monies paid by you within 30 days, although they have the right to deduct a reasonable admin charge, and a sum proportionate to the number of days cover you have had. If you have any related credit agreements, these will also be cancelled.


If she has not signed the credit agreement you could still take the car and get a loan elsewhere.

Premier_2

There once was a time when a handshake meant a deal was binding.

I am now beginning to understand why more & more dealers insist on a deposit nowdays.

AdrianHi

Premier wrote: »

There once was a time when a handshake meant a deal was binding.

I am now beginning to understand why more & more dealers insist on a deposit nowdays.

Ah the good old days back when car salesmen didn't try to flog you 27% APR loans, worthless warranties and GAP insurance that doesn't cover what you think it does....

Backing out on a decent respectable deal I'd frown upon too, but 27% APR is taking advantage of someone unless the rate is due to a poor credit history.

Pew_Pew_Pew_Lasers!

petexa wrote: »

Update to this saga, my girlfriend has phoned fords today and said she wanted to cancel the order. The salesman said she couldn't as she already own the car..

Ask him then to produce the invoice or order form signed by your girlfriend.

The most you're going to lose is the deposit. I wouldn't worry too much.

petexa

Thanx for the advice, feel a bit more positive now. Dont get me wrong Premier she is happy with the car, but she aint happy about the finance. But she now has a loan from Natwest that should sort that out.
Thanx again/
:beer:

Premier_2

As you haven't signed a credit agreement with the car dealer, the dealer can't hold you to the credit agreement. But the placing of the deposit is the reason the dealer is saying the car has been sold to you.

However, the price of the car may have been calculated including a partial 'kick back' because you were going to take the finance deal. Now the terms of the deal have changed, the dealer may wish to do the same to the price.

But I'm sure a compromise can be reached. Good luck!