Cancel car loan - no car supplied

Vegit8_2

Hi
My daughter signed an agreement to purchase a new VW Polo from the local VW dealer, on Finance.

The car was not ordered in from VW it was already on the forecourt, along with a number of other unregistered vehicles.

Between her signing the order form and the delivery of the vehicle the dealer went into administration.

She was informed that her car was no longer going to be available for collection as it was now an asset held by the receivers.

The salesman dealing with the purchase had got wind of the impending situation and had not collected her deposit.

The dealership has been sold to another company who are trying to get her car (and others) released so that they can be sold on.

This was her first purchase and she was very upset to be told that she could not take delivery, she has now got cold feet and wants to cancel the order.

Can someone confirm that she can cancel order - this was a contract with a Company that no longer exists.

Can she cancel the credit agreement, she has not been given any HP agreement to date and less than 14 days has elapsed since signing.

The deposit has not been paid, and one assumes that the money for the car has not been drawn down from the lender.

The car has not been regsitered with the DVLA

Regards - Geoff Webber

molerat

She will have 14 days cooling off (or one day after being supplied with the executed agreement if longer than 14 days) to cancel the credit agreement. The contract with the dealer may still stand but as they probably did not hold title to the car, it will either belong to VW or a finance company which is why it has disappeared, it is not theirs to sell and I very much doubt that the administrators or new owners would push the contract.

jonesMUFCforever

My understanding is that if the dealership was a Limited company then the contract ended when that company went into administration.
She is under no liability to enter into a new contract with a new dealership (even though in practise it will probably be the same people as she dealt with before).

I am not a legal expert and please get legal advice before proceeding one way or another.

rtho782

Firstly, don't worry, this will be fine.

If you are within 14 days, you can cancel it, as has been discussed.

If not, buying a car on finance is similar to buying an item on a credit card in that you have section 75 protection.

Speak to the loan company (black horse?). Explain that the car has not been released to you. They can either provide you a car or terminate the agreement.

This would not apply if the supplier were also the creditor, but even if your finance agreement is with VW finance, then it would seem in this situation that the supplier is the dealer and not VW.

Read the below link:

http://www.moneysavingexpert.com/shopping/section75-protect-your-purchases