Car finance. What happens next?

BugsyBrowne

kopite248 wrote: »

Its only done 40K and got ford service history. The fault with steering is a common fault which I didnt know untill I bought it.

Sorry to put a damper on things but the steering column won't be your only fault.

Apples2

kopite248 wrote: »

they said that if i withdrew from the finance Arnold Clark would pay them. But do AC have a choice to pay?

That's why if you pull out you will have to go in and pay for the car.

This is between you and AC, nothing to do with the finance company, they gave you money in good faith, you then gave it to AC

If you cancel, then AC will have to return the money back to the Finance company... guess what will happen then once AC are out of pocket???

lawrie28

Apples2 wrote: »

That's why if you pull out you will have to go in and pay for the car.

This is between you and AC, nothing to do with the finance company, they gave you money in good faith, you then gave it to AC

If you cancel, then AC will have to return the money back to the Finance company... guess what will happen then once AC are out of pocket???

Except it has eveything to do with the finance company, as they actually own the car. WIth HP they have taken a charge over the vehicle so they car very much that it is in a working condition and has been sold to them as a working car.

They may even offer you some help from their legal team to sort this. If you have to spend money fixing the car, it is less money you have to pay the finance......

Speak to Arnold clark and see what they say. If they agree to take the car back, you can cancel the finance and then Arnold clarke will owe you the £3,400 you put into the deal.

WHat they will probably want you to do is to put these funds towards another vehicle from them, s they still get the sale. If you are happy to do this, then pick a good un!!

AC may not want to take the car back, or may want to fix it and you still keep it. Although I think you have fair grounds for not wanting it back. At least with a big dealer you stand a chance if you make enough noise of this happening.

GOod luck!

kopite248

I hope so. Wanted to get some info before confronting them. I like the car but after the two month warranty runs out im worried i'll be left with more problems. Thanks for everyones help. I'll keep add to tbe post when I speak to them.

Apples2

lawrie28 wrote: »

Except it has eveything to do with the finance company, as they actually own the car.!

I understand what you are saying but the OP is talking about cancelling the finance agreement within the 14 days cooling off period (we haven't even discussed if there is one).

The situation will be that there is no finance on the car - the OP will have possession of it - Arnold Clarke will be out of pocket by the amount of the original finance.

If the finance is cancelled, the finance company won't give a hoot about the car, they will simply claw their money back from the dealer - who will then chase the OP.

CHR15

Apples2 wrote: »

I understand what you are saying but the OP is talking about cancelling the finance agreement within the 14 days cooling off period (we haven't even discussed if there is one).

That's a fair point, before you go wading in waving a cancellation form, are you sure you are entitled to cancel within 14 days?

Where did you sign this form?
If you signed on the premises, you may be right out of luck

kev.s

http://www.ehow.com/how_6514721_return-car-finance-company.html?ref=Track2

http://answers.yahoo.com/question/index?qid=20080422013112AASrimT

http://whatconsumer.co.uk/cooling-off-and-cancellations/

try those, dunno if they will help, failing that try trading standards or CAB for advice.

i would NEVER buy car from AC, mostly all ex hire or lease cars.

~Brock~

Can I just make it clear that the above links are all out of date and not relevant to this case.

It is wrong to describe this 14 day period as a 'cooling off' period. That is a term that used to describe the period where a consumer could decide not to go ahead with an agreement that had been signed in their own home, maybe under a bit of pressure - hence the term 'cooling off'. That is all now history.

The European Consumer Credit Directive (effective from 1 Feb 2011) has introduced the 'Right of Withdrawal' for all unsecured credit agreements and this replaces the old cooling off regime.

The right of withdrawal is a right to reconsider whether to carry on with a credit agreement that has been entered into in the last 14 days. It is designed to allow the borrower to take a better offer if there is one available. All monies advanced must be repaid to the lender within 30 days of notification. If this is not done then the lender can persue debt as a statutory debt - there is no longer a credit agreement giving any protection to the borrower.

The important bit: The right of withdrawal applies to the credit agreement only. It does not give an associated right to withdraw from the contract to purchase whatever goods were bought on credit. If the goods are unsatisfactory then the Sale of Goods Act 1979 and the Sale & Supply of Goods to Consumers Regulations 2002 gives the appropriate protection to consumers. In the case of Hire Purchase, you can make your complaint about the goods directly to the HP company, but not if you withdraw from the credit agreement because then there is no longer an agreement in place and you simply have to repay the money, and you could still be stuck with the car.

There is not much advice about yet on this matter and I fear that many people are going to get caught out by following outdated assumptions.

nelly12

kopite248 wrote: »

Hello I recently bought a car last Sunday (6/02/2011) from Arnold Clark. I originally had a car with finance which I traded in. They payed my finance off with left me with roughly £3400 to put towards a new car. On getting the new car ive had lots of problems.

My question is on my agreement I have 14 days from when i signed my contract to cancel. But because I give a car with had finance how does it work if I do cancel?

Thanks
Chris

Hi, just a word of warning re some of the posts. BROCK IS CORRECT. You must not get confused on your cancellation rights. The position you are in is as follows.

You have a right under the European Consumer Credit Directive to withdraw from the finance part of this deal. In that scenario you must advise the finance company that you wish to do this within 14 days of signing the agreement. It is then your responsibility to pay the finance company not AC's responsibility. It does not allow you to withdraw from the whole deal.

Your issues are with the vehicle and AC must be given a reasonable opportunity to put the vehicle right. If they fail to do this then advise the finance company and talk to trading standards. If your claims are valid they will both fight on your behalf which should get your issues resolved.

Hope this helps you.

nelly12

star-fire wrote: »

I have never read so much bullsh*t in my life,you don't know what your talking about nelly:mad::mad:

Going by your other posts you are obviously drunk or dillusional tonight.

I quoted the law that all unsecured lending now falls under as of 1st February 2011. I have previous motor trade experience and work for a major finance house so I'll leave anyone else reading this to decide if it's bull or if there's a small chance that I might have half an idea what I am talking about.