Help! Am I committed to taking their finance?

L0rnaC

Hope someone can help.

I made a deal to buy a new car from Arnold Clark at the weekend. I pick it up tonight. I stupidly agreed to take their finance to cover around half the cost of the car, on the understanding that I could pay it off faster if I wished at no penalty (thereby saving on interest).

I have signed an order form agreeing to buy the car and to take their finance (I think) but have not seen or signed the actual finance documents, which apparently I will get tonight when I go to get the car.

I regret taking their finance and I also don't believe that their won't be any penalties for early repayment (although that's yet to be seen). Can I back out of their finance and just pay for the car on credit card (which I will then pay off with a much more sensible personal loan, or perhaps even transfer to a 0% card)???

Please help - yes, I was stupid to agree in the first place, but now I'm unsure of my rights and don't want to be bullied into taking their finance if I don't need to.

Thanks
E11e.

chalkie99

Sorry, I am not sure but be prepared for some hard sell due to the fact that the dealer will be making a commission out of selling you finance while taking a credit card instead will actually cost them money due to the card acceptance fees so they are losing money two ways.

Be prepared to put your foot down

Apples2

What you propose doing has been exploited many times in the past.

Dealer offers a lower price knowing he is getting a fat commision.

"Most" Finance deals come with a cooling off period (about 14 days). If your agreement has that cooling off period, just take the car as you are doing.

Tomorrow morning ring the finance company and inform them you are cancelling the finance.
You will have to pay up the amoutn financed (this MAY involve a balance transfer if you can;t pay on a Credit Card)

It all depends on the Finance deal.

Like Chalkie said though, the dealer will play hard ball. He may even try to revise the price upwards once he knows.
You have agreed a sale price....end of story.

iolanthe07

If you signed on the dealer's premises there is no cooling off period (unless the law has changed recently).

Apples2

iolanthe07 wrote: »

If you signed on the dealer's premises there is no cooling off period (unless the law has changed recently).

Not for the purchase of the car that's correct but not the finance deal.

DCFC79

Any news OP ?

Common_Sense_2

iolanthe07 wrote: »

If you signed on the dealer's premises there is no cooling off period (unless the law has changed recently).

Under the new CCD regs - there is no need for the docs to be signed on trade premises.

There is no 'cooling off period' unless the contract is a distance marketing contract (i.e. all teh negotiations took place over the phone or the web".

The new CCD regulations created the "Right of Withdrawal" within the first 14 days of the contract. This allows you to withdraw from the finance agreement but not any purchase associated with the agreement (so you still have to buy the car). This right is contained in all finance / loan agreements under £60,260 and you have to pay a daily rate of interest and must pay it back within 30 days of telling the finance company.

Although in this case - if the OP hasn't signed the documents, all he has to do is tell the dealer that he has decided to pay cash / credit card instead.