personal loan for car finance

paladine

hi all

i purchased a car in feburary from a local used car dealer( 3rd car from then in 2 years), ive just tried to buy a new car from a main dealer using my car as part-ex even though ive only had it 7 months.

the main dealer HPI'd my car and found no outstanding finance on it and suggested that its been done as a personal loan!!

i had no idea this is what had been done, nothing was mentioned to me at the point of signing, i just assumed that barclays were providing car finance.

the problem now is i have to sell the car myself to get the money to pay the loan that will probably be in negative equity leaving a shortfall that cant be added to any future loan or finance agreement.

should i of been informed when signing that it was a personal loan?

is the dealer at fault for not explaining this ?

worst of all the wife is scared that it has been secured on the house and we have not been told about it..

Ghostrider

If I were you, the first place i'd be looking is the original loan agreement that you signed and associated paperwork, you should also receive some form of statement at least yearly...have you done this?

Have a read of these, it will be quite clear if its a personal loan or secured agreement (be it on your property or your car).

Hammyman

I can't see why it matters.

the problem now is i have to sell the car myself to get the money to pay the loan that will probably be in negative equity leaving a shortfall that cant be added to any future loan or finance agreement.

Where did you get the idea that you can do that anyway? You are actually in a better position than if it had been secured on the car.