Car Finance Problem - Misold?

brendonx

Two years ago I took out finance to purchase a new car. I am now at the point where I want to trade in the car and get a new one as it is proving to be very costly to run.

Today I visited several garages to look at new cars only to learn that I still have over £8000 left to pay on a car that is worth around £2000. In the VW garage it was explained that I was being charged vast amounts of interest (around £4000) in total.

If at the time I had been aware that I would have to pay this much I would have never taken out the finance deal and would have instead either taken a loan from the bank or looked at getting a different car with a different company.

The finance agreement was taken out through Peugeout with whoever they choose to deal with, interestingly, the finance person in the VW garage had never heard of the company the finance is with.

I simply cannot afford to repay the £8000 and feel completely trapped as I feel I have been trapped into a deal that I did not want to be in.

My girlfriends mother advised me to post on this forum and see if anyone had any solutions or had had similar problems. If I had the money I would pay it off and get out of the agreement but this is an option that is simply not available to me.

Thank you in advance for your help,

Brendon

KingElvis

Was this an HP or loan agreement? what's the company who financed this deal called?

BugsyBrowne

brendonx wrote: »

Two years ago I took out finance to purchase a new car. I am now at the point where I want to trade in the car and get a new one as it is proving to be very costly to run.

Today I visited several garages to look at new cars only to learn that I still have over £8000 left to pay on a car that is worth around £2000. In the VW garage it was explained that I was being charged vast amounts of interest (around £4000) in total.

If at the time I had been aware that I would have to pay this much I would have never taken out the finance deal and would have instead either taken a loan from the bank or looked at getting a different car with a different company.

The finance agreement was taken out through Peugeout with whoever they choose to deal with, interestingly, the finance person in the VW garage had never heard of the company the finance is with.

I simply cannot afford to repay the £8000 and feel completely trapped as I feel I have been trapped into a deal that I did not want to be in.

My girlfriends mother advised me to post on this forum and see if anyone had any solutions or had had similar problems. If I had the money I would pay it off and get out of the agreement but this is an option that is simply not available to me.

Thank you in advance for your help,

Brendon

Everything was in the T&C's when you signed up to this agreement..

CHR15

Sounds like a cast iron case of mis-selling!

Anyway, coming back down to Earth. Surely you had some kind of idea what you were repaying "Total amount for credit" etc written on the agreement, something about the amount borrowed and the Interest being applied??

Simply put, you can't claim something is mis-sold because you signed without reading the form.

I would hazard a guess you have fallen for a Flat Rate as opposed to APR (a typical used car salesman tactic), the APR is around double the flat rate, which is why they spout it to punters.

chalkie99

Any post which contains in the title the word "Mis-sold" or any variation on that spelling, is invariably from someone clutching at straws.

You clearly have been paying instalments since purchase and you must know how long you have to pay them for.

How is it that you have only just realised how much the car is going to cost you?

What was the purchase price of the car?

The current value is irrelevant as, surprisingly, cars do actually lose value over time.

epsilondraconis

KingElvis wrote: »

Was this an HP or loan agreement? what's the company who financed this deal called?

OP, you need to answer the questions posed by KingElvis. Your options vary depending upon whether your loan is an HP agreement or personal loan.

BugsyBrowne

CHR15 wrote: »

Sounds like a cast iron case of mis-selling!

Anyway, coming back down to Earth. Surely you had some kind of idea what you were repaying "Total amount for credit" etc written on the agreement, something about the amount borrowed and the Interest being applied??

Simply put, you can't claim something is mis-sold because you signed without reading the form.

I would hazard a guess you have fallen for a Flat Rate as opposed to APR (a typical used car salesman tactic), the APR is around double the flat rate, which is why they spout it to punters.

Yeah agree the top motor finance companies normally quote a flat rate around 4.5-5.5% which is around 10% which is still a lot cheaper than what these car supermarkets like carshaft want..

nomoneytoday

The Key Facts Document has all the numbers in it.
That being said, if it's on HP then have a look at the rules of thirds and halves before making a decision

brendonx

It's not a HP agreement. I'm not at home so I don't have the documents on hand so will have to go check when I get home