Help! I can't cancel a car service plan!

Scooby1978

Hello Moneysavers,

I need some advice here with regards to cancelling a car serviceplan.
In May I bought a used car from a main dealer. The car is a Subaru Impreza WRX, but the dealer was basically a Ford and Nissan dealer.

I was told I could take out a serviceplan with them for £17.50 a month for two years which included 2xservice and MOT's. I did so as it seemed ok so I signed for it.

Anyway there are a couple of reasons why I want to cancel.

The first is that I believe I was mis-sold finance on the car as I was told that I would only be paying around 8% APR. Turns out it wasn't 8% as this was not the APR figure I was given and the actual APR was 15.9%. Yes, I was silly signing and on this it is really my fault as I was carried away by wanting the car having been after one for several years. The salesperson insisted I wouldn't get a better deal with the bank. However I have and now cleared the finance with a bank loan paying about £1500 less interest over the course of the loan.

Secondly I would rather take the car to a Subaru specialist for servicing and also want to do some modifications on the cars engine which I will have done at a specialist.

Anwyay, I rang up the dealers who said there is no way I can cancel this and have basically signed to take out an interest free loan for the serviceplan over 24 months equalling £420. They said its up to me where I take the car but I will owe them the rest of the money for the serviceplan even though I have not used it and the car has not even been looked at by them. They basically said I have no right to cancel.

I had something similar with Ford and cancelled when I sold the car and there was no problem whatsoever, I even received a cheque back for money i'd pad for a service which never got done.

I realise I shouldn't have signed but it seems to be a case of having to pay the money whatever. I'm not asking for the 4 installments I have paid back, just not to pay any more as I will not be having my car serviced there.

The guy on the phone said if I was not happy its basically tough, but I could email head office. I did and have had no response.

Does anyone know legally where I stand with this as I am getting to the stage now where I think I will just have to carry on paying for somehting I will never use.

Any advice will be appreciated. Thanks!!!!!!!!!!!!!

arcon5

He's right, you don't have the right to cancel.

When they ran a credit search on you then they probably couldn't offer the advertised 8% (which most likely says 'from' or something similar), so they offered you credit at a higher rate -- you could take it or leave it and you signed the contract and now bound by it.

This is the problem with getting carried away. Its an expensive lesson now learnt.

|EDIT: |Buyers Remorse

somethingcorporate

Sounds like you were quoted 8% flat rate not APR (double the flat rate to get the APR). Why would a car salesman be expected to know what financial product you could get from an company in a different sector? I wouldn't take mortgage advice from my butcher.

Unfortunately I don't think there is much here you can do with regard to getting your money back / cancelling the contract.

upsadaisy

Maybe the above posters are correct, but I would have thought there would be a cooling off period. What if you had to move out of the area, what would happen then?

halibut2209

No cooling off period would cover from May to August

peachyprice

upsadaisy wrote: »

What if you had to move out of the area, what would happen then?

What if you moved put of the area 11 months into a 12 month contract, would you expect that to be covered by a 'cooling off' period too?

If you move out of the area, tough, you either travel back to have the car serviced or lose out on the pre-paid plan.

somethingcorporate

upsadaisy wrote: »

Maybe the above posters are correct, but I would have thought there would be a cooling off period. What if you had to move out of the area, what would happen then?

Why should you get extra rights if you decide to move out of the area?

upsadaisy

If you were to move out of the area, some contracts do refund you the difference was my point.

Biketrials08

Do you have a copy of any terms and conditions, have a good read if you do, they will state if there is any right to cancel?