Car on HP with Blackhorse finance

DON_41D

Hi All,

I am after some advice regarding my options with what to do with the finance on my car.

At the end of January 2010, i bought a 2006 56 MG ZT CDTi from Arnold Clark in Glasgow for £6250. I paid £500 deposit, and the balance of £5750 was financed with an HP agreement that Arnold Clark arranged for me through Blackhorse finance.

I have encountered a few problems with the car, and have been fighting it out with both Arnold Clark and Blackhorse finance to sort out these issues, but i am not getting anywhere.

I have checked my finance agreement paperwork, and it says that i do not have any rights to cancel the agreement, unless i hand the car back and pay half the money to Blackhorse which obviously i do not want to do.

Even if i manage to get the faults sorted, i don't think i will want to keep the car, it has left a bad taste in my mouth

What are my options, can i try and sell the car and pay back the finance with the proceeds? Can i hand the car back and pay nothing extra? Afterall, i have paid the £500 deposit and 5 payments of £188.

Is there any other way i can settle early? The agreement is 3 years, i don't think i want to keep this car for another 2 and a half years!

Any help or advice greatly appreciated.

Donald

Apples2

Always surprises me when I read posts where people buying a car on finance believe the car comes with a Full Warranty whilst the finance is being repaid. Anyhoooo.. Can we assume the warranty has expired??

The chances of the car being sold for more than, or equal to, the outstanding finance are pretty much Nil. So if you did sell it, there would still be a deficit to make up. This is assuming they will let you sell it on, you would have to check with Blackhorse.

The Half way mark is becoming almost the norm when people commit to that Car of a Lifetime which they could never afford in the first place. It would be recorded as a VT, not necessarily going against you for loans, but maybe for future finance deals on cars.

DON_41D

Apples2 wrote: »

Always surprises me when I read posts where people buying a car on finance believe the car comes with a Full Warranty whilst the finance is being repaid. Anyhoooo.. Can we assume the warranty has expired??

The chances of the car being sold for more than, or equal to, the outstanding finance are pretty much Nil. So if you did sell it, there would still be a deficit to make up. This is assuming they will let you sell it on, you would have to check with Blackhorse.

The Half way mark is becoming almost the norm when people commit to that Car of a Lifetime which they could never afford in the first place. It would be recorded as a VT, not necessarily going against you for loans, but maybe for future finance deals on cars.

The car was sold to me with just a 30 day warranty apparantly, despite the fact i was sure i was given a 3 month warranty when i bought the car from Arnold Clark. In any case the warranty has now expired.

With regards the value of the car, it is probably saleable for between £5500 and £6000 due to the exceptionally low mileage of just 30,000 miles, and the fact that diesel versions of this car are highly sought after. However, with the charges for credit etc it probably still isn't going to cover the full settlement of the finance.

I wish i hadn't rushed into buying this car now, we live and learn and all that!:(

Common_Sense_2

first of all , are the 'few problems' you've had with the car down to the age / mileage or wear and tear or to be expected in a car that is (lets face it, a rover in a posh frock - not getting it down - I used to have one and liked it!) 4 years old. If they are, then you have to lump it really - sell the car and clear the finance or keep the car.

If it cannot be put down to fair wear and tear, then under section 75 of the CCA the finance company may be liable. Best thing to do is have a read of the guidance on the FOS website here:

http://www.financial-ombudsman.org.uk/publications/technical_notes/goods-and-services-bought-with-credit.html

paulmcerlean

didnt the ZT end on a 55 plate?

DON_41D

Common_Sense_2 wrote: »

first of all , are the 'few problems' you've had with the car down to the age / mileage or wear and tear or to be expected in a car that is (lets face it, a rover in a posh frock - not getting it down - I used to have one and liked it!) 4 years old. If they are, then you have to lump it really - sell the car and clear the finance or keep the car.

If it cannot be put down to fair wear and tear, then under section 75 of the CCA the finance company may be liable. Best thing to do is have a read of the guidance on the FOS website.

The problems i have had are:

1) Water leaking into the boot, as a result of the rear screen having been removed to replace the rear quarter panel after an accident by the looks of things. (This is the diagnosis given by my local bodyshop, who pointed out that the rear nearside quarter panel had been replaced).

2) Rust has started appearing on the spot-welds on the replacement rear quarter panel since i bought the car. The rear quarter will have to be treated to get rid of the rust and re-sprayed.

3) The paint finish started pealing off the alloy wheels after them apparantly being re-furbished just before i took delivery of the car. This started just 2 months after i collected the car.

These are the 3 faults i have an issue with. They are not wear and tear faults, and the car is only 3 and a half years old, was first registered in December 2006 on a 56 plate. I know mg/rover went bust in 2005, and my car was probably one of the last few made, but surely these faults should be sorted out by the finance company?

eschaton

DON_41D wrote: »

The problems i have had are:

1) Water leaking into the boot, as a result of the rear screen having been removed to replace the rear quarter panel after an accident by the looks of things. (This is the diagnosis given by my local bodyshop, who pointed out that the rear nearside quarter panel had been replaced).

2) Rust has started appearing on the spot-welds on the replacement rear quarter panel since i bought the car. The rear quarter will have to be treated to get rid of the rust and re-sprayed.

3) The paint finish started pealing off the alloy wheels after them apparantly being re-furbished just before i took delivery of the car. This started just 2 months after i collected the car.

These are the 3 faults i have an issue with. They are not wear and tear faults, and the car is only 3 and a half years old, was first registered in December 2006 on a 56 plate. I know mg/rover went bust in 2005, and my car was probably one of the last few made, but surely these faults should be sorted out by the finance company?

Looks like your car spent up to 21 months in a field before it was registered.

Forget the age and see the car as an 05 plate as this is what it really is.

Also bear in mind that MG quality control was cack before they went tits up. If your car was to be finished off while in administration then expect it to be even worse.

PNPSUKNET

DON_41D wrote: »

The problems i have had are:

1) Water leaking into the boot, as a result of the rear screen having been removed to replace the rear quarter panel after an accident by the looks of things. (This is the diagnosis given by my local bodyshop, who pointed out that the rear nearside quarter panel had been replaced).

2) Rust has started appearing on the spot-welds on the replacement rear quarter panel since i bought the car. The rear quarter will have to be treated to get rid of the rust and re-sprayed.

3) The paint finish started pealing off the alloy wheels after them apparantly being re-furbished just before i took delivery of the car. This started just 2 months after i collected the car.

These are the 3 faults i have an issue with. They are not wear and tear faults, and the car is only 3 and a half years old, was first registered in December 2006 on a 56 plate. I know mg/rover went bust in 2005, and my car was probably one of the last few made, but surely these faults should be sorted out by the finance company?

1. this is hard to prove as lots of cars get leaks, even new ones.
2. With the age of the car you can sometimes expect rust.
3. The wheels most probably were done by the previous owner.

I dont think you have any comeback, the car isnt a new car like I get the feeling you are comparing to.

stevo5678

:beer:

You may have a position legally under the sale of goods act, if the problems were serious enough so that the car was undrivable. If it is virtually cosmetic (inc rust) then I doubt the following will be applicable. However if the car is not in working condition please read.

Basically goods must be 'fit for purpose'. ie if advertised as a normal working car then it is reasonably expected that this car will perform its function.

I would research the sale of goods act if i was you and print off the statute and send a covering letter threatening to take the company to small claims court.

There is no legal representative required in a small claims case and if you make your threat seriously I imagine they will cave in as they will want to avoid bad publicity.

You have stronger grounds if the final proce WAS NOT DISCOUNTED. IE they initially wanted £6000 and accepted 5500.

Hope this helps!!

ILW

Your argument is with the seller, not the finance company. To be honest though the faults seem to be what you would expect in a 4 year old Rover.

Common_Sense_2

The problems you have are (while not nice) kind of expected in a 5 year old rover built at the end of the company's life.

sorry