Car Finance

Melissab91

Hi,

I have car finance on a Vauxhall Corsa Club 1.2. I purchased through carcraft in August 2010 and I took out finance with Blackhorse for £5500 and the remainder or the deposit was through a top-up loan from All In One Finance (which Carcraft owns) for £3500.
They said that Blackhorse were unable to give me the full amount of finanace I requested (for the total of the car) however I have been told by a sales executive at Vauxhall dealship that this is a completey illegal thing to do. As you are unable to have two loans on one car. Is this correct and do I have a leg to stand on to fight this.

Since reading up about all of this I have found that Carcraft have financed me for a total of £9000 rather that the car price of £8200 - so where the extra £800 went I do not know!!

Any help is great! Thanks.

[Deleted User]

Melissab91 wrote: »

As you are unable to have two loans on one car. Is this correct and do I have a leg to stand on to fight this.

What are you looking to fight? Not clear what your concern is?

Melissab91

I want to know me having two loans on one car as in Carcraft have set me up with Blackhorse and All In One Finance for money owing on the same car. This is apparently not right?
If that is what they have done - then I want to take action.
Sorry - not very good at explaining it.

[Deleted User]

But what action are you looking for? Are you looking for them to reverse the loan - ie you return the car tomorrow and call it quits? ie to put you in the position you would have been if they have not given you the loans. Or are you just after some compensation? If the latter, for what purpose? Knowing what the specific issue is will help you get better advice, rather than just focusing on a technical aspect of the contract.

I'm not an expert on car finance but would guess that there is not an issue with the total loan amount from from two different sources.

Melissab91

Yeah basically some sort of compensation. I am paying over the odds for a car which a year and half down the line is only worth 3200. I know vehicles depreciate, but I still have £12000 to pay back between both lenders. If Carcraft have done something dodgy by issuing two hire purchases on one car then this is not on. I feel like I have been cheated! Thanks.

Apples2

Surely you knew how much this car was going to cost you before you signed up for it.

Carcraft are affectionately known as Carshaft for a reason. They only take on people who don't have a cat in hells chance of borrowing at a sensible rate. They are bottom feeders charging laughable amounts for low value cars (as you now realise).

I don't know of the legalities of it, but I do know it is very common for this to happen so I can't see how you are going to come out of this smiling.

You wanted a car, they got you a car.

Best to rue your past mistakes and learn from it, as many many others have done (ALL of carshafts customers no doubt).

somethingcorporate

How have you been cheated? You had no deposit so would need to finance the lot - what would you have expected to happen?

I don't know on the legalities but all the rates and payments would have been on the paperwork you signed. Are they both HP or is the one for the deposit an unsecured load?

jumperjohn

Melissab91 wrote: »

Yeah basically some sort of compensation. I am paying over the odds for a car which a year and half down the line is only worth 3200. I know vehicles depreciate, but I still have £12000 to pay back between both lenders. If Carcraft have done something dodgy by issuing two hire purchases on one car then this is not on. I feel like I have been cheated! Thanks.

Unfortunatly this happens a lot. A new car can make people wear blinkers and not think about the repayments, Apr, length of loan etc. Apr must have been huge, should have saved up the 5k. I know this doesn't help but it looks like you will have to pay for a car you're board with.

Melissab91

I understand I wanted a car and got one - I'm happy with the car and the agreement otherwise I wouldn't have signed. But with me been told that it is illegal and that was the way it was put then I wanted answers. If they have done wrong I want compensation; as I don't want to be involved in some sort of scam (if thats what it is). If not then I'm happy to go on paying. Yes over the odds but I was 19 taking out finance on this car -they obviously saw me coming. If its completely normal and not illegal then thank you every one for your imput and reassurance.

iolanthe07

Though risky and expensive, AFAIK it is not illegal to have two finance deals on the same car, but you might want to ask someone with expert knowledge (eg CAB). Carcraft have a very bad reputation on these boards; you might get a better response from the Motoring section of this site.

somethingcorporate

I wouldn't expect the salesman to be able to advise as to whether something was illegal or not. Go and see a solicitor if you want some confirmation and they will give you their informed opinion.

You signed all the forms so not sure you want to out yourself as party to something illegal and demanding compensation as a result seems OTT. You may be annoyed at your own naivety but you were an adult at the time and if you are paying over the odds only have one person to blame for that.