Car Finance Rip Off

Hermit90

My brother-in-law has recently bought a second hand car through a reputable Ford Dealership. He opted to pay for the car through the recommended finance company and signed up for what he though was a 5 year deal at around 17% APR. He was told by the car salesman that he wouldn’t have to pay anything in the first month and then there would be a payment of £170 followed by monthly payments of £110 for the remaining term. He has since found out that his payments are going to be £170 per month for the full 5 years and that he had in fact signed up for a deal at 40% APR. Is this common and is there anything he can do about it other than getting a loan to repay the finance deal and incur a £400 fee?

Thanks For Your Help.

LewisC_2

Wow, that sounds pretty dodgy. What does it say on the contract he signed? If it says 40%, he's stuffed I'm afraid.

AMILLIONDOLLARS

Why a £400 fee? and has he taken delivery of the car?

AMD

LewisC_2

AMILLIONDOLLARS wrote: »

Why a £400 fee? and has he taken delivery of the car?

AMD

Early loan settlement fee I'd imagine.

pinkshoes

I had a similar-ish problem with Ford and their finance.

Bought a new KA, and took the finance deal coz it saved £1000 on car price, even though I had the cash. The Ford guy told me I could cancel after 3 payments and there was no cancellation cost (i verified this with him).

When i got the finance papers, i could cancel after 1 month, and there was a £275 charge! I was really mad, so wrote a letter to Ford (local dealership) demanding that this was investigated, otherwise I'd take it up to a higher level if I didn't receive a suitable response. A few days later I got an apology and a cheque for £275 from Ford :-)

(oh, and the finance company only charged me £175 for cancelling, so I made £100 profit!).

So put your anger to paper, and demand an explanation, and tell them if you don't receive a satisfactory reply, then you'll take it up at a higher level!

mike.k_4

i have just brought a car, took out a personal loan from my bank that was advertised at 8.1%. when i told then that if they couldn't better an offer from another bank then i would move my accounts i ended up with 5.9%.pays to use the power of taking your business elsewhere