£4k Hire Purchase Fee!

dan83_2

Good morning all,

In an attempt to get my finances in order I had a look at the Hire Purchase agreement on my car. I was frankly outraged to discover that I've been charged a £4k fee on top of a £9k cash price - this was conveniently not highlighted by the dealer - and that he also told me that I'd pay an 8% APR where I'm in fact paying 14.97%.

Now I know this is basically my fault for a) not reading it all properly and b) trusting a salesman. But I wondered if any one knew if there's a legitimate reason for a fee that increases the debt by nearly 50%? I assume that as I bought the car over a year ago there's not anything I can really do about it.

verityboo

Are you sure it wasn't a PCP instead of HP where to keep the monthly payments low there is a lump sum owing at the end. The idea is that the car should still be worth more than the lump sum. How does it describe the £4K on the agreement

dan83_2

Thanks for replying,

It's described as 'hire purchase charges' and it's attached to the agreement at the start so I am also paying interest on it

Bean_Counter

dan83 wrote: »

Thanks for replying,

It's described as 'hire purchase charges' and it's attached to the agreement at the start so I am also paying interest on it

Are the charges not actually the total of all the interest over the term of the loan? That is usually what they are termed as on most of the HPs I deal with.

anotherbaldrick

So, on the agreement what is the stated amount " Total Amount Payable " on your £9k purchase ? By law it has to be there

dan83_2

Possibly. However when I received a statement earlier in the year it had a very high figure still on it, over £10k, which led me to believe this charge was not simply the interest. I'll phone the finance company I think!

dan83_2

#5

The total amount payable is £13,307.20. Have I misread the form and got angry over my own stupidity....?

wba31

dan83 wrote: »

#5

The total amount payable is £13,307.20. Have I misread the form and got angry over my own stupidity....?

yes. im only joking, these things are confusing with legal jargon etc... if the total amount payable is that, then thats your £9k car plus the interest, which has been listed as this £4k figure...

dan83_2

Well that's cleared that up then, I'm a fool. Which is very appropriate. Thanks for your help!

Flyboy152

dan83 wrote: »

Good morning all,

In an attempt to get my finances in order I had a look at the Hire Purchase agreement on my car. I was frankly outraged to discover that I've been charged a £4k fee on top of a £9k cash price - this was conveniently not highlighted by the dealer - and that he also told me that I'd pay an 8% APR where I'm in fact paying 14.97%.

Now I know this is basically my fault for a) not reading it all properly and b) trusting a salesman. But I wondered if any one knew if there's a legitimate reason for a fee that increases the debt by nearly 50%? I assume that as I bought the car over a year ago there's not anything I can really do about it.

That depends on what you were told when you took out the finance in the first place and who you have as a witness.

blacksta

Another minus for car leasing. Majority dont know or understand what they are getting into. all they want is a brand new toy.