Car higher purchase agreement

adbee83

Hi, I am just after a bit of advice over a bit of a predicament I have got myself into with buying a car.

I was offered £500 off a car if I took the finance, and they told me I would get two years free servicing if I take the finance and keep it for four months.

I had the money to buy the car outright, but thought this was a win win situation as I could pay the loan off after four months, and get the £500 off and the free servicing. I was told by the salesman that the interest was 4.9% flat rate.

So all agreed they wrote all the paperwork up for the car with no mention of the £500 deduction for finance, the price of the car on all documentation is simply the price after the £500 has been deducted.

So after going there a few times and signing bits and pieces, they ask us to pop in and sign the finance agreement, my girlfriend went after work on her own and signed it. She was quite nervous about being there on her own, but went and signed the agreement without really taking much in.

She phoned me on the way home a bit shocked about the rate of interest, but as we were paying off after four months I assured her it would be ok. The rate of interest is about 12% not 4.9%.

I look over the documentation when she gets home, and it turns out there is £149 acceptance fee, and a £149 closure fee. So this is essentially paying for the services and more. With the four months interest we are virtually saving nothing.

The documentation says we can cancel the loan without reason within 14 days if we pay it off in full. What I am asking is there anyway the garage can hunt us down for the £500 deduction they have made for us taking the finance, if we cancel the agreement and pay it off. We just feel really ripped off and let down.

Also when I collected the car they told me the second key and the service manual will be in the post from the main dealer. Are they allowed to keep these items if we upset them?

Thanks for reading. Appreciate any help.

adbee83

Anyone?

Thanks

Apples2

adbee83 wrote: »

I was told by the salesman that the interest was 4.9% flat rate.
The rate of interest is about 12% not 4.9%.

That is correct, you already mentioned you were told it was 4.9% FLAT RATE.
This is a common occurance only car dealers seem to exploit, Flat Rate is around half of the APR. He just hoodwinked you.

adbee83 wrote: »

The documentation says we can cancel the loan without reason within 14 days if we pay it off in full. What I am asking is there anyway the garage can hunt us down for the £500 deduction they have made for us taking the finance, if we cancel the agreement and pay it off. We just feel really ripped off and let down.

No, the agreed Sale price is all they can chase you for.
There is a clever scam people use to get their own back on these monkeys.

Barter a good deal promising to take their finance. They will knock loads off knowing they are going to get a nice tidy sum for selling the finance.
The day after it is accepted (within the cooling off period), cancel the finance and pay up the whole amount. You keep the revised selling price and he loses his Brucie Bonus.
It seems he was trying to get ahead of this by making you promise to keep it for a few months on the promise of free servicing (so that you will be tied in).

adbee83 wrote: »

Also when I collected the car they told me the second key and the service manual will be in the post from the main dealer. Are they allowed to keep these items if we upset them?

Absolutely not, once paid for, it is your car. Be wary though, this stinks to me, it sounds like there is no spare key or service book. There is no reason for a main dealer to hold them unless he is requesting duplicates.
Sounds to me like you may not have any record of previous service history (unless it was conducted by the same main dealer so they may update a new servce book).

adbee83

It has come from a Volkswagen main dealer. He just said when Volkswagen deliver them they only come with one key. The car is only a year old with 12000 miles.

Ok so all sorted can just pay the loan off at once. Thanks

27col

By the way OP. It's hire purchase not higher purchase.

chanz4

I have bought x2 vws new and 6 month old, both came with x2 keys.

silo24

Probably an ex Mini-Lease or Short Term hire car.

Key will get sent through from the agents later. If not, the dealer needs to spunk up the cash for another key for you.

Get the key NOW and then cancel your finance.

mo786uk

remember to cancel within 14 days too.

adbee83

27col wrote: »

By the way OP. It's hire purchase not higher purchase.

Haha of course it is.

I thought it was higher, as the interest is far higher than they originally told me lol

adbee83

silo24 wrote: »

Probably an ex Mini-Lease or Short Term hire car.

Key will get sent through from the agents later. If not, the dealer needs to spunk up the cash for another key for you.

Get the key NOW and then cancel your finance.

It is having a tail light replaced on Monday, so will nag them for it then.

chesky369

Cancel the finance as others have said - more important than the tail light or key.