Car Hire Purchase Agreement - Help Needed

rs65

Jinky_UK wrote: »

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).

I wouldn't be overly concerned about these things. A colleague VT's his last car with two areas of damage. He had to pay £80 each for these which was certainly less than the repair would have cost.

If you are looking for a new car you don't have to VT. You could just trade it in. The new dealer will put a value on it and use this for the o/s finance. I'm doing this just now and the trade-in value is £2k short - the dealer is making this up as part of my deal.

I did it last week for my mother too. Her trade in was worth £6250 and her o/s finance was £4750. She has £1500 deposit for her new one.

Both of these were PCP deals. The good thing about trading in is the condition and mileage aren't as critical - they just affect the trade-in value rather than you having to write a cheque.

Jinky_UK

@rs65 - Thanks, the settlement figure is more than the cars worth. The new cars cash and the idea is the car goes back without handing over any money and with it goes one of our last forms of credit :j

mo786uk

With regards to signature - an agreement is not executed unless it has a signature - but I would be surprised if they didnt have a signed copy somewhere.

I believe you normally get - pre contract, 1st copy, 2nd copy

It is normally the first copy that has the signature i think, the 2nd copy you just get after the finance company has signed it so you know the agreement has been made.

If the 'amount of credit' is incorrect then it can invalidate the entire agreement.

presumably there is interest on the agreement so you end up paying 8995 (so it would be interest free to you) - or is the actual value of the car the 7543.90 which is what you would pay back with no interest?

Jinky_UK

@mo786uk - We have pre-contract, 1st copy and 2nd copy. All have no signatures, theirs or ours. Presumably they will have a copy with my signature on and they'll have signed that.

We bought a car for £8995, but they've altered the finance agreement to show we are borrowing £7543.90 and we've paid a deposit. I'm interested to see what the sales invoice says. As one of the above posts says, they've pulled the wool over the finance companies eyes to make it look like we've paid a deposit.

In effect they've sold us the car for that amount doing us a favour, as no cash was handed over. Actual payable is in excess of £14k.

highadmiral

Jinky_UK wrote: »

@mo786uk - We have pre-contract, 1st copy and 2nd copy. All have no signatures, theirs or ours. Presumably they will have a copy with my signature on and they'll have signed that.

We bought a car for £8995, but they've altered the finance agreement to show we are borrowing £7543.90 and we've paid a deposit. I'm interested to see what the sales invoice says. As one of the above posts says, they've pulled the wool over the finance companies eyes to make it look like we've paid a deposit.

In effect they've sold us the car for that amount doing us a favour, as no cash was handed over. Actual payable is in excess of £14k.

Its a stange one this...
Normally when a dealer does this this its a case of the car being advertised at say £4995.The lenders requires 10% deposit which the customer doesn't have.The salesman puts the value of the car on the agreement at £5495 and enters a fictional deposit of £500 financing the customer on the full forecourt price.

In your case it looks like they have built a fictional deposit into the advertised prices and effectively given a 15% discount without being asked.Its a weird way to do it and it cost them money,after all you thought you had paid £8995 and car dealers aren't known for charity !

Interest rate must be in the 50% range from your figures unless you had a large PPI payment on it too,presumeably one of these guaranteed finance type dealers?

Jinky_UK

APR is 20.6%, interest rate is 17.45% per annum over 4 1/2 years.

Total amount payable is actually £12747.50, but that includes the deposit. Actual charge for credit is £3752.50 including credit facility fees A and B at £150 and £130 respectively, and £10 purchase fee.

By the time it goes back there will also be 2 plate change fees at £30 each, which are served as a default(?) notice with no payment required until the end.

Like I said, I'm after some ammo for when they come back for money. Every month has been paid at £206.60 to date on time.

I'm hoping that the codged figures might give me this!

highadmiral

I just don't get why did it this way,its almost as though the saleman has gone to the sales manager and said they haven't a deposit and the sales manager has said work it into the agreement.Then the salesman has made a proper horlicks of the figures and done the company out of £1700.

Once you have the sales invoice things might be clearer..
The codged figures might give cause for complaint if they differ significantly from the sales invoice.The only trouble is it looks as if it was messed up in your favour;)

Jinky_UK

I can only assume that the sales invoice says £7543.90, otherwise how do you explain a missing £1400 to company directors/HMRC/Accountant? There must have been a fantastic margin in my car!

I understand that it's in my favour, but non-compliance remains just that, no matter whose favour it's in.

highadmiral

Jinky_UK wrote: »

I can only assume that the sales invoice says £7543.90, otherwise how do you explain a missing £1400 to company directors/HMRC/Accountant? There must have been a fantastic margin in my car!

I understand that it's in my favour, but non-compliance remains just that, no matter whose favour it's in.

Yes i agree,its suprising they didn't chase you for it once it was picked up if it was a salesmans error.
An error is an error thats quite true.

I used to work in the motor trade which is why i 'm so puzzled at the way they processed the sale.I have never seen the deposit built into a forecourt price in that way.What would they have done if someone had a deposit or trade in,they would have taken it and made another 15% on the deal i assume.Thats assuming they would have got any enquiries on a car that was priced 15% over to allow for fictional deposits.

The company i worked for was a main dealer also selling "approved used cars".The margin on used was around the 30% mark,far more than a new car.Still in this instance it looks like they gave half the margin away given a normal way of selling motors..

Jinky_UK

It was an 'approved' year old car at the time and the forecourt price was reasonable, hence we bought. I'm sure we purchased at the very end of the month, agreement was signed for the 2nd when we picked it up so maybe they were struggling to get the unit numbers through?