Car finance cancellation?

Flyboy152

bigheadtodd wrote: »

Quick update.

The Ts and Cs clearly said if I pay off the remaining balance anytime during the contract (outside the 14-day cooling off period), I'm liable for the entire interest. Not quite what I was told earlier. When I asked them about this discrepancy, they said well the contract is a bit loosely worded but I would only be liable for borrowed amount + a couple of months' interest i.e. they were sticking with their original story.

I firmly said I would not sign anything which did not explicitly state repayment penalties and terms, and at this stage, would only want to go ahead with the deal at the reduced price, paid upfront.

A couple of days later, I got a call back agreeing to this, and I picked my car up yesterday!

Thanks for your advice, all.

It doesn't sound as though he is explaining it as clearly as he should. He is correct in saying that you will only be liable for a limited amount of interest, it typically works out as two to three months interest. There is a prescribed formula based on OFT rules.

iolanthe07

Or take the finance, drive the car away and cancel straightaway. You will be in the fourteen day cooling off period, so therefore no interest penalty.


There is no cooling off period if you sign the agreement on the dealer's premises.

Meepster

iolanthe07 wrote: »

Or take the finance, drive the car away and cancel straightaway. You will be in the fourteen day cooling off period, so therefore no interest penalty.


There is no cooling off period if you sign the agreement on the dealer's premises.

There didn't used to be a cooling off period, but since the Consumer Lending Regulations were ammended in February, you now have a 14 day cooling off period, no matter where the agreement was signed...

bigheadtodd

Meepster wrote: »

There didn't used to be a cooling off period, but since the Consumer Lending Regulations were ammended in February, you now have a 14 day cooling off period, no matter where the agreement was signed...

Yep, I think so too. The Ts and Cs clearly mentioned a cooling off period for the loan.

bigheadtodd

Flyboy152 wrote: »

It doesn't sound as though he is explaining it as clearly as he should. He is correct in saying that you will only be liable for a limited amount of interest, it typically works out as two to three months interest. There is a prescribed formula based on OFT rules.

You're probably right Flyboy152, but given the lack of clarity in what he was saying (vs the written word), I was very reluctant to sign up. If the Ts and Cs had said something to the effect of 'as per OFT rules, your maximum liability is restricted to xyz', then I would be more comfortable.

Of course, they may have a vested interest in not putting anything explicitly in the agreement...

bigjl

As Flyboy said, if you get the finance and pay it off straight away then you will only pay minimal financial penalties.

Though you have to consider if you will end up not better off than if he had been willing to negotiate some more.

Though don't forget if dealers make no money they will all close down and then where would that leave us all come warranty time.