Used car deposit

charley_177

Went to test drive a 1007 on Thursday afternoon at a local Pug dealer. Paid a deposit of £1000 as only two left, knocked off £800 compared to Glass' Guide, they are closing down due to relocation.

Car finance offered was "Passport" or HP. Took the option of 3 years at 4.9%APR. However, today I was told that I could only do the HP option over 5 years, probably higher APR.

Is it possible to "walk away" or get finance elsewhere, without losing the deposit I have paid?

TIA

Charley
http://www.gmroads.co.uk

scheming_gypsy

you can get your own finance, you've paid the deposit to ensure they reserve the car for you. Not to ensure you buy the car on their terms and finance package.

charley_177

This is what confused me!

Paying using PCP/HP he (and manager) mentioned better to use larger deposit = lower monthly payments. Gave written examples of using £1k or £2k deposits and the respective monthly payments.

I didn't realise they thought the £1000 was for reserving the car. If so, that means I need to find another deposit for the finance agreement?

Surely it doesn't make sense to take a deposit without agreeing to provide finance first? That would be like putting a deposit on a house, but not being able to afford/support a mortgage?!

If I end up having to buy it, going to get a loan from the bank, seems much easier.

plane_boy2000

You have paid a deposit to reserve the car. If you do not follow through thedealer is within his rights to keep the deposit and offer the car to someone else. If you took the dealer finance then the 1K you have paid would be the finance deposit, however dealer finance is not usually that cheep, and they addon things like arangement fees etc. Go and borrow the money via a loan and pay this way.