Hire Purchase!!

kenzie1111

Official MSE Insert March 16:

We've a fully researched Cheap Hire Purchase guide you may find helpful.

Back to kenzie1111's original post...

---

Hello, Please can somebody help me? In March last year I went to Ford with the intention of applying for a Lease Car agreement, as some friends of mine suggested that it was a good idea.
I have JUST (very bad of me I know, but you don't expect to be mis-informed) read through my paperwork and discovered I am in fact on a Hire Purchase agreement, NOT Lease agreement.
The Ford Fiesta Titanium car was brand new (I only had limited colour choice), and my monthly payments are a hefty £269:75, and if I wanted to buy at the end of the three year term I would have to pay an extra £4,834. The total being £15,555.
According to the agreement, I am fully responsible for the whole expense of maintaining the car, including tyres (I've had two punctures), services (must use Ford, nobody else), plus the tax.
Somebody please advise me on what benefits there are with Hire Purchase? As I don't see any at all!
Also, looking at the agreement this is how it reads:
(A) is £13,495 (cost of car + VAT)
(B) is total deposit (the £500 part exchange for my old car + £500 'Deposit Allowance' = £1,000)
(C) is total amount of credit (A minus B = £12,495)
(D) is credit charge (£2,050)
(F) is Purchase Fee (? £10:00).
(G) is Balance of Amount Payable (C+D+F = ££14,555).
(H) is Total Amount Payable (B+G = £15,555).

So is it me or did they actually ADD back on the deposit and part exchange that they minused off at the beginning? B= the £1,000?

I'm really angry that the clever Ford salesman completely took advantage of my lack of knowledge in these matters and probably took advantage of me being a woman too.
Also to terminate the agreement I would have to have paid £7,7777, which is approximately half of the total £15,555. With my current monthly payments of £270 I will have paid about £9,200 at the end of three years. I'm really not happy.. :mad:
Can anyone help me?

DCFC79

Why a car so expensive ?

chanz4

isnt that dear for a new car, my 207cc cost £18k

Apples2

kenzie1111 wrote: »

and probably took advantage of me being a woman too.
Can anyone help me?

You could TRY THIS

techsavvy_2

I love how the DFW boards are so nice and helpful yet the loans and credit card boards dont really take any prisoners......can you give new posters a bit more slack please???!!!

OP - if i get this right, the cost of the car is (A) £13,495. The total charge for credit (ie the interest you pay) is (D) £2,050. This makes the principal plus interest £15,555. You have effectively 'paid' £1,000 deposit so the total balance to pay is £14,555.

Not too sure on the lease v HP aspect of it however.

agrinnall

HP and Lease are completely different things, with HP you eventually own the car, with Lease at the end of the lease period you hand the car back. If you went in intending to take out a lease and walked out with HP without realising it then you probably have been taken advantage of by the salesman, but if it's then taken you another 10 months to discover it I'm doubtful if you have much of a case for changing the situation.

The benefit of HP is that you get a better car than you could afford to pay for at the start of the agreement. Benefits over leasing are subjective, it depends what you want to achieve.

Emmzi

kenzie1111 wrote: »

I'm really angry that the clever Ford salesman completely took advantage of my lack of knowledge in these matters and probably took advantage of me being a woman too.

He may have taken advantage of you being a bit slow on the uptake, but please don't imply all women are stupid.

DCFC79

techsavvy wrote: »

I love how the DFW boards are so nice and helpful yet the loans and credit card boards dont really take any prisoners......can you give new posters a bit more slack please???!!!

we do give them slack on here, i cant comment on the CC boards but over here its fine.

chalkie99

agrinnall wrote: »

HP and Lease are completely different things, with HP you eventually own the car, with Lease at the end of the lease period you hand the car back.

Not necessarily.

If you read the Ford website it will tell you that:

Hire purchase and PCP agreements will include an option to purchase fee, which is payable should you wish to own the vehicle.

So, they are pretty much the same thing with Ford. You make a monthly payment over a fixed term and have the choice of handing the car back or paying the option to purchase fee to keep it.

To the OP

Firstly, March 2011 to January 2012 is way too long to have thought about this but rather than blame the "clever Ford Salesman" who is there to sell his product the same as any other business, you might as well blame your friends for planting an idea into your head which they either did not understand themselves or, at least, did not explain it properly to you.

As for saying the salesman

probably took advantage of me being a woman

, well sorry, that is just insulting to the rest of your gender who consider themselves equal.

So is it me or did they actually ADD back on the deposit and part exchange that they minused off at the beginning? B= the £1,000?

No, can't see they have done that. (G) is the amount you owed after the part exchange/deposit and (H) is just confirmation of the total you will have paid including the deposit.

I went to Ford with the intention of applying for a Lease Car agreement

Well, that seems to be pretty much what you have got so not sure what the problem is? You seem to think it unfair that you have to maintain the car and pay for consumables like tyres (Shock! Horror!). do you actually realise you are paying less than £9 a day to drive around in a brand new car? Try getting some quotes from a car hire firm and see how that works out.

Incredibly you seem to have gone from an old banger to a car costing you 31 times more! That's quite a jump. try it again and you will probably find yourself in a McLaren.

It's the sort of lifestyle change which needs a lot more consideration than you seem to have given it but if you are looking for an escape route through some sort of mis-selling claim I don't think you have a chance.

BTW, if you read through it again you will probably find another clause which penalises you if the mileage exceeds a certain limit.

rs65

chalkie99 wrote: »

BTW, if you read through it again you will probably find another clause which penalises you if the mileage exceeds a certain limit.

As you would with a lease agreement.

OP, what make you think you are worse off with HP rather than a lease?

Emmzi

chalkie99 wrote: »

that is just insulting to the rest of your gender who consider themselves equal.
.

Who ARE equal. Not helping. Grrr.