miss sold car finance

shaunclewes

i brought a car 10 months ago on a finance deal because of bad credit history i never managed to get the best deal for a £6000 car i have to pay back just under £10.ooo over 5 years at £175 a month,

i said it was to much and left saying i needed to think about it, the finance dealer assured me that after 6- 12 months my credit rating would have gone down and he would be able to swap the finance for a cheaper deal dropping the payments to something more affordable, i left to think about it after about a week and several conversations with the dealer i decided to buy the car as i could change it after a year for a cheaper deal and it seemed a good way to improve my credit rating.

i have since been told this is impossible and he was lying, i have rang him he took my details but never rang bk when i rang him back he said he couldnt do it but never gave a reason, i dont really know where i stand as it was just what he said to me and nothing was written down anywhere, if any1 can give me any advice i would be gratefull

forgotmyname

Any proof? You word against his?

Maybe he meant trade your car in 12 months time and you may get a better interest rate on the new loan?

Either way you will end up paying through the nose for it. Depreciation and charges.

dazzadub

if car was worth 6 and you pay back 10, if you sold the car now youll prob get 4.5 for it.

i would say you havent paid 5.5 off in this time since having leaving you with the massive negative equity on the car which no finance company will touch.

put it this way if your were going to lend someone money for a car and only a car would you give them 10k for a car worth 5k.

no you wouldnt and is same thing with the finance company.

only way you guna get out of the agreement is to keep paying it until the amount you owe is same as car value.

or argue it with the dealer, but i cant see it getting anywhere as you agreed deal with the credit company.

auroan

dazzadub.... I don't think you quite understand how financing works. What the OP means is that if he/she goes the full term the total they would pay back on the entire deal is £10K (6k for the car and 4K in interest charges.)

If you settle an agreement early you do not pay back the full 10K. You pay pack a portion of the finance charge and what ever is owed on the car. This is worked out by using a FSA supplied formula that all finance companies must use. Usually though the interest charges are loaded towards the begining of a loan (very much like a capital repayment mortgage). But you will however still be paying down a small amount of capital.

shaunclewes. What APR are you paying at the moment ? And how long have you had the car in total. If it's a hp agreement, there are statuary clauses where you can hand back the car to the finance company at certain points of ownership

Indout96

Not sure which bit was miss-sold ?
as the price, monthly charge and total figure were given to you it was up to you to accept or not.
By the way £175 for 5 years is £10,500 not Just under £10,000.