Car Finance Catastrophe!

Beware_of_Sharks

Hi all

This is my first post so please forgive me if it's in the wrong place but I would really appreciate some advice if anyone can help.

My partner and I bought a new car (in his name) in March 2008 form a Fiat dealer on finance for £8500. I remember at the time they were offering 0% interest which is why we decided to go for it. We were hurried through all the paper work and I do remember questioning the figures on the page that stated there would be interest charged but the dealer said to ignore them as they were for illustrative purposes or something or other.

We have not looked at this paper work since that day nor have we received any statements either. We have just been paying the monthly direct debit and hadn't thought any more about it until recently when we have thought about selling the car as we no longer need it we decided to find out how much we still owe and were shocked with the response we recieved.

The paperwork they sent us (from FGA Capital) said that the current outstanding balance is £8,807. It shows an opening balance at the time of purchase as £13,283 - I could hardly believe my two eyes. It means that they have been charging interest all this time.

I feel as if we have been really stupid and the dealer has duped us as we believed what he had verbally said without questioning what we were signing for. Maybe he thought we were young and naive - he was probably right!

I'm really not sure what, if anything, we can do about it. I really just wish we could give it back to them and forget all about it but I'm sure its not that easy. Any advice would be greatly appreciated.

Many thanks

Kat

fozmcfc

You need to look at the original agreement.

It is possible it was 0% for a certain amount of time. Say buy now pay in 12 months. Most deals, require at least a deposit and also a finance set up charge, even if it is £50.

I really cannot believe that any company would off an £8500 car absolutely interest free and I don't even drive.

You need to look at the original agreement and post up exactly what it says.

opinions4u

Most 0% deals require a significant personal deposit. Most deals where you have no personal deposit have a much higher rate of interest.

At the end of the day, the agreement you signed is the one that will be upheld if you had to go to court over anything. What APR does it say you're paying?

The £13,283 may include some form of PPI insurance. Were you aware you were being sold this if it does? There may be the possibility of reclaiming this - take a look at the Reclaim part of the forum for help on that.

I feel as if we have been really stupid and the dealer has duped us as we believed what he had verbally said without questioning what we were signing for.

This will turn out to be an experience that saves you £thousands in the future. You have been exceptionally naive. But life is about learning and improving.

Beware_of_Sharks

Hello and thanks for the posts!

On the agreement it is rather ambiguous to see whats what but it does state that they have charged £1300 for insurance/warranty (what might this be for?). Can't see anything about PPI.

From what I can see on the agreement the car loan is £8521 and they've charged us £3850 for a cash loan? The interest rate states 8.2% and the APR 16.5%. I'm so confused I don't even undertsand what this means.

We did pay about £170 on the day but not sure what that was for either.

I understand now that the agreement we signed is the one that will stand. Almost makes me want to cry as we really can't afford to keep the car and probably can't sell it as it as we still have credit on it. Is there any point in contesting that we were misled into signing the agrement or will it not be upheld in a court?

Common_Sense_2

Beware_of_Sharks wrote: »

Hello and thanks for the posts!

On the agreement it is rather ambiguous to see whats what but it does state that they have charged £1300 for insurance/warranty (what might this be for?). Can't see anything about PPI.

This could be PPI, but without seeing the actual agreement it's difficult to say - can you scan it and post it up - obviously removing any personal details!

From what I can see on the agreement the car loan is £8521 and they've charged us £3850 for a cash loan? The interest rate states 8.2% and the APR 16.5%. I'm so confused I don't even undertsand what this means.

8.2 is probably the 'flat rate' which is how they calculate the monthly payments and interest. APR is the overall cost of the loan for comparing it with others.

We did pay about £170 on the day but not sure what that was for either.

Could have been for anything - what does it say on your invoice (might be worthwile posting that too)

I understand now that the agreement we signed is the one that will stand. Almost makes me want to cry as we really can't afford to keep the car and probably can't sell it as it as we still have credit on it. Is there any point in contesting that we were misled into signing the agrement or will it not be upheld in a court?

At the end of the day - you (your hubbie) signed the agreement. I know it's difficult being in teh showroom and just itching to get your hands on teh keys to the shiny new car, but if it is clearly stated on teh documents, then there is not much you can do, except let all your friends know not to go back to that dealership!

You should be able to sell it - as long as you pay the settlement figure straightaway (most companies allow you 5 days to pay)