Car Hire Purchase Agreement - Help Needed

Jinky_UK

Hi All,

We took out an extortionate 54 month HP agreement on a car with a well known "dark equine" finance company back in October 2008. this was a HIRE PURCHASE AGREEMENT REGULATED BY THE CONSUMER CREDIT ACT 1974.

Payments and everything have never been a problem, but now we need a bigger car the one we have isn't worth what we owe so we were going to VT.

Now I've looked at the agreement the figures don't stack up. We paid £8995 for the car, no deposit, no part exchange and assumed that this was what we borrowed. The agreement says we paid £8995 but paid a £1451.10 deposit, borrowing £7543.90. I'm assuming that this may have been done to make it look better on the credit checks? We never received a sales invoice, which I'll be requesting on Monday

Is this legal?

Jinky_UK

Looking further into this, we received pre-contract information and customer copy of agreement when we collected the car, as well as the demands and needs statement.

Finance company then followed this up with customers 2nd copy of the agreement. Both copies have 2 blank boxes with no indication of what they're for. I assume they're signature boxes but neither copy has a signature from us, the dealer or the finance company.

Jinky_UK

That's correct

Jinky_UK

My problem is the legality of the agreement, I can see where this is heading.

I came for advice on financial agreements, had I wanted moral guidance I'd have went to church.:)

payless

HP agreement...

yes rate was likely very high and paid the dealer commission.

Car might have been overpriced ( the dealer's name might give us a clue)

The dealer then paid your deposit- either from the commision earned or by overstating the value ( fraud ??? .. but gues the finance co rep was fully aware )

what in particular are you concerned by ?

Jinky_UK

tomjonesrules wrote: »

The agreement is legal, you signalled your intention to enter into a legally binding contract by your actions. Time to stop dodging your debts and pay what you owe!

You and i both know that the laws of this country do not work like that.

The point is, according to my contract, I owe nothing if I give them the car which is also worth nothing! This assumes that I take reasonable care of the goods, which I have done. There are a couple of things they will probably pick on, which are things I have been fighting them over since day 1 (a faulty boot switch, parking sensors and wheel speed sensor).

From reading similar posts they will try and come back for £000s so that they end up getting their money. I need something in my arsenal.

My question was originally regarding the [fraud] but the signature thing also raised questions.

Jinky_UK

By your referral to a "VT figure" you obviously don't.

Perhaps someone with the requisite knowledge will be more helpful.

highadmiral

It is or certainly was common practice for dealers to build in a non existant deposit into car finance agreements by effectively upping the price of the vehicle on the agreement.
I would think it has little to do with the credit check and more to do with the finance company requiring 10 or 15 % deposit as part of their terms.It may have been done since alternative finance with zero deposit would have been at an even higher rate.

I doubt it makes your agreement invalid,but you could take it up with the dealer if you feel that they acted fraudulently.

From your opening post it would seem the car was advertised at £8995 and you assumed that is what you borrowed,in which case having only borrowed £7543 that looks like a bonus to me !
Usually when this is done the car is advertised at the price you finance,they just add XXX amount to the value of the car and make it look like a deposit has been paid on the agreement.

Jinky_UK

Settlement figure is more like it and yes I have.

If you refer back to the OP, even the most rudimentary maths would suggest that I'd paid more than 50% without taking into account their help with the fictional 'deposit'.

Jinky_UK

By paying you're not terminating, you're settling or completing the contract.

Advice was what I was after but an argument is what you want.

"I learned long ago, never to wrestle with a pig. You get dirty, and besides, the pig likes it."

Jinky_UK

@highadmiral - thanks, I'll be approaching the dealer on Monday for a copy of the sales invoice.