UK credit agreements right to withdraw

jimpelican

In the UK you have a right to withdraw from a credit agreement within 14 days. But what happens to the goods if you withdraw?

For example
Let's say you bought a car on finance, and put your old car in as part exchange, if 10 days later you decide this agreement is not right for you and exercise your right to withdraw, does the car dealer have to take back the goods and return your old car back to you?

Im sure the finance company will accept your termination of the agreement, but does the dealer have to? After all, the finance is a contract between you and the finance company, not the car dealer. Would the dealer have to hold your part exchange car for 14 days in case you withdraw?

Also, what would happen if you hadn't picked up the car yet? And then chose to withdraw from the agreement with the finance company?

I am concerned that the dealer is deliberately
giving me a pick up date that falls after the 14 day right to withdraw has expired
Thanks in advance

[Deleted User]

Basically, the car is still yours, and you have to pay for it.

iolanthe07

Yes - you can cancel the credit agreement, but you will have to source the money for the car from somewhere else.

jimpelican

Hi, what happens if you have not yet done the deal?
What if you still have your car and have not yet picked up the new one?

If you signed and been approved for the credit agreement 10 days ago but have not picked up the car?

I'm worried that the dealer is deliberately holding on to the car and not releasing it until after your consumer right to withdraw has expired?

Thanks

Tixy

Have you a signed an agreement to purchase a vehicle from the dealer as a seperate document to the finance applicantion?

If you did that will be legally binding - you do not have a right to withdraw from the purchase of the vehicle - unless the agreement you signed with the dealer says that you do.

If you signed your credit agreement 10days ago and want to cancel it then I would do so ASAP as described in the document, but you will still be required to purchase the car.

What makes you think the dealer is delibrately holding on to the car? - if you are contracted to purchase it then there is no reason for him to do so. Has the finance company confirmed that you have been accepted for the finance? perhaps he is just waiting to hear that your application has been accepted?

jimpelican

Hi tixy,

I signed a hire purchase agreement about 13 days ago. The finance has been approved. The document says that I can cancel this agreement within 15 days.

I also signed something called a pre contract credit information and regulatory requirements sheet.

I have not had a sales invoice or receipt. I suppose I will fill one of those out on the pick up day.

It's just that since the finance agreement was made there has been several causes of concern for me.

The full service history the car was advertised with turned out to be not stamped in the service book. When I pointed this out they suddenly changed the pick up date to one day after my consumer rights ran out.

This company is a premium dealer (stratstone) so I did not expect any bogus claims from a company of that size and reputation. There were also several other things that made me uncomfortable.

I have not yet picked up the car but I am thinking of canceling the credit agreement and walking away.

chanz4

they may be asking for the service history from where they sourced it. If they really wanted they could just stamp the book

iolanthe07

Sadly, you can buy stamped service books on line. What you really need is service receipts and invoices going back to when the car was new.

jimpelican

I have since seen a lot of reciepts for the car showing repairs and servicing, although the records still dont show a full history, only a part history.

Also, if this history is cotia (i think that is how it is spelt), then why didnt the garage stamp the book? takes two seconds, even if the service book was at home, its worth popping in to the garage to keep up the service record, there's even more incentive for the previous owner to keep the service record straight as according to the old bill of sale she paid a lot of money for it.

The original advert for the car was different to the actual information. I only found this out after signing the agreement. And i only discovered then because I asked for it, the information was not offered to me.

I feel very uncomfortable about picking up this car, I like to think a big main dealer will treat me fair but I am nervous because of my experience with them.

I may lose my deposit but at least I wont be lumbered for years paying off a dud car.

its confusing and giving me bad vibes now.

[Deleted User]

jimpelican wrote: »

Also, if this history is cotia (i think that is how it is spelt).

Close. It's kosher. But you got the 'o' bit right.

jimpelican wrote: »

then why didnt the garage stamp the book? takes two seconds, even if the service book was at home, its worth popping in to the garage to keep up the service record,

In my experience, very few people worry about the stamps these days. Garages rarely bother to stamp them and the invoices tell you a lot more than a stamp and a squiggle. I doubt I've had one in the last decade.

So I don't think this is reason to worry about the car.

Tixy

You could always call the garage and say you don't want the car anymore. They'll likely either say thats fine and you'll lose your deposit - or they'll tell you you are already contracted to buy the car and tell you which signed document demonstrates this.