Already bought a car want to change loans

jmg123_2

I have bought a car form a dealer, (pick it in a couple of days). I agreed to finance from the dealership thinking it was 8.7% interest, but I didn't realise it was 17.9% apr until the day after I had signed all the loans documents. I know I should have realised before but the damage is done. This is the first time I have ever had a loan for anything you see (mortgage excepted). It said I have a 14 day cooling off period on the santander loan once I get the documents through.

If I get a sainsburys loan at 6.9% the repayments will be £21 a month cheaper, which would be very handy, though I can afford the original loan repayments if neccessary. If I take delivery of the car , and then phone santander within the 14 days will I just be able to use the sainsburys loan to pay the santander loan off in full (plus their daily interest charges). Do HP cars go onto a register of some sort? and does it come off this register if I paid the loan off in full within the 14 days?

Once I have delivery of the car, and everything has gone through after a few days, am I right in thinking the dealership are fully paid, and any outstanding finance arrangements is solely mine and santanders buisness?

I don't want to cancel the deal before I get the car incase the dealership then say they won't sell it to me. can they do this?

billymadbiker

No,
You will need to use the '14-day cooling' before you take the car away.
You can do it after (within the 14 days) but you would then have to take the car back. Most dealers will keep your deposit for that though.

Best bet is tell the dealer you have been offered a loan at half the apr of what they have offered and you wish to cancle the finance you have taken with them and purchase the car with 'cash'.

Other option is to take the car then get a 'settlement' figure on the first loan/finance. This may attract a large intrest fee plus arrangements fees etc though.

Saints2011

jmg123 wrote: »

I have bought a car form a dealer, (pick it in a couple of days). I agreed to finance from the dealership thinking it was 8.7% interest, but I didn't realise it was 17.9% apr until the day after I had signed all the loans documents. I know I should have realised before but the damage is done. This is the first time I have ever had a loan for anything you see (mortgage excepted). It said I have a 14 day cooling off period on the santander loan once I get the documents through.

If I get a sainsburys loan at 6.9% the repayments will be £21 a month cheaper, which would be very handy, though I can afford the original loan repayments if neccessary. If I take delivery of the car , and then phone santander within the 14 days will I just be able to use the sainsburys loan to pay the santander loan off in full (plus their daily interest charges). Do HP cars go onto a register of some sort? and does it come off this register if I paid the loan off in full within the 14 days?

Once I have delivery of the car, and everything has gone through after a few days, am I right in thinking the dealership are fully paid, and any outstanding finance arrangements is solely mine and santanders buisness?

I don't want to cancel the deal before I get the car incase the dealership then say they won't sell it to me. can they do this?

Also worth considering are you likely to get the Sainsburys loan, have you checked your credit reports? Just because youve been accepted with dealers apr loan, doesnt mean you will definantly get accepted for Sainsburys but certainly worth trying for £252.00 cheaper per year. Food for thought thats all..

What car you getting

standupguy

billymadbiker wrote: »

No,
You will need to use the '14-day cooling' before you take the car away.
You can do it after (within the 14 days) but you would then have to take the car back. Most dealers will keep your deposit for that though.

Best bet is tell the dealer you have been offered a loan at half the apr of what they have offered and you wish to cancle the finance you have taken with them and purchase the car with 'cash'.

Other option is to take the car then get a 'settlement' figure on the first loan/finance. This may attract a large intrest fee plus arrangements fees etc though.

This is not correct - there are new rules which have recently been introduced under the consumer credit act.

Collect the car and settle the Finance within 14 days - as you say the matter is between you and the Finance company as the dealer will have already been paid by them.

But, as KB says, make sure you have the finance in place from Sainsburys or you will be stuck with the Santander deal.

lawrie28

Even if you settle, chances are you won't get back any fees etc.

I would get the sainsburys loan in place asap, ring santander, find out if they have paid out, and if not, ask them not to. Then pay with sainsburys loan.