Handing back car on Personal Finance

josho1191

Hi there, been having a bit of a dilemma and just wondered if someone could shed some light on the situation. Now, my partner got a car on personal loan through a dealer with Santander. She previously had a car from them on finance for 11 months, then saw a convertible on the forecourt and decided she wanted that. So she handed back the mazda and got a 207CC on personal loan. It was on the forecourt for £9999. Now since 18th Aug 2012, its been in the garage having warrenty repairs 3 times already, twice for the same problem (roof leaking and staining seats) as they never cured the leak the first time. The service she has recieved from the dealers is poor. Customer relations are poor, bad attitude, being told the car was ready to be picked up, upon arrival the seats we're soaking wet still and seats we're not valeted as promised. She has filed a complaint to the dealerahip, saying she is not satisfied with the service recieved etc, only to be told they are looking into it. They are basically dragging thier heels over the situation. Not what you expect from the biggest dealership in the south west!

Now my partner and I are ready to move out in the new year, and see this car as a financial burden, and quite a risk to keep as its only under a years warranty. We dont want to be paying out for expensive repairs after the year is up. So basically we would like to get rid of this car or hand it back. So what i would like to know is where do we stand with handing the car back? As I said its on personal loan with Santander, over a 60 month period. The amount she will pay at the end is ridiculous.

Can we sell the car and pay off a chunk of the loan and repay the outstanding over a period of months? Can we hand the car back saying that its unsatisfactory for the money shes paying regarding the leaks?

Im really lost in the whole thing and would appreciate any advice that can be given!

phill99

Regardless of what you do with the car, the loan will still need to be repaid.

In terms of selling the car and using the sum to pay part of the loan, that would depend on the terms and conditions of the loan.

forgotmyname

If the loan is somehow linked to the car. Then any attempt to sell it could have the finance company asking for the FULL balance NOW..

If the dealer is repairing the car then you cant reject it because they fell short on their customer service. What is wrong with the car now?

I presume the cars worth a lot less than the finance also. So selling it will still leave you with the loan repayments.

Does sound like a change of mind and a change of circumstances. Which nobody will care about. Those of your issues not the garage or finance company.

This couls affect your credit rating for many years to come though. So dont make the wrong decision.

The loan needs to be repaid. There maybe a clause that if you miss a payment they can take they car.
But it will probably goto auction and sell for half of what you owe.

So no car and still left owing half the cars value with nothing to show for it at the end.

josho1191

Ok thanks for the replies guys. Since that post we decided to let it rest for the minute with xmas lingering etc. Anyway we went to open the roof yesterday as it was nice and mild, and what a suprise the roof failed to open yet again stating on the dash a roof malfunction. We have only had it back about 2 weeks and it still doesnt work!

So i decided to call up the financial ombudsman after reading on the website about similar cases. I explained the situation and he seemed to think thay i have a valid case. although he stated instead of going back to the dealer to complain, he said it should be santander we need to be complaining to, as they are the people who supplied the loan. He said if they fail to sort the complaint to our satisfaction, then that is where the ombudsman take on the complaint.

Now before i made this call, my partner took the car down to the dealer.to complaon again. They have agreed it is not on, yet they still wont accept rejextion of the vehicle. The options they gave her is to either keep the car and keep taking it down every time it plays up (!!!!!!?) or.they work out the figires of the car, value etc im guessing? So they will buy the car back off her then she gets a new car on lease? Doesnt seem to add up to me?

Now what action will santander take? Surely we have grounds because this car is not fulfilling its purpose as a convertable because the roof keeps screwing up? Section 75?

forgotmyname

You need to sort the issue with the dealer 1st. The finance will make a phone call to them to see what the problem is and the garage will say they told you to bring it back. Finance will tell you the same take it back for repair.

3 repairs in 5 months is not exactly the worst case i have heard.

You may need an unbiased report from another garage or engineer to say what the fault is and how you want it fixing. A proper fix, Not a bodged one.

Write to the garage expressing your displeasure and outlining that if the car is not fixed properly this time you will be taking the car to someone competant and will be claiming the costs.

Bravehearted_2

What he said.

And get it out of your head that you're going to entirely walk away from the financial obligation somehow - cant happen.

photome

Bravehearted wrote: »

What he said.

And get it out of your head that you're going to entirely walk away from the financial obligation somehow - cant happen.

Could be negated by getting the dealer to refund for the car as it is not fit for purpose, its a tough road to go down but can be done

motorguy

photome wrote: »

Could be negated by getting the dealer to refund for the car as it is not fit for purpose, its a tough road to go down but can be done

Extremely unlikely at this stage.

Plus the dealer would be entitled to not refund the full amount for the car but to make an allowance for the usage the O/P has got out of it.

jonahinoz

Hi,

If you have Hire Purchase, I think the agreement says that you can hand the car back once 50% of the purchase price has been paid. That includes the deposit and/or trade in. But payments must be up to date, and the car must be in good confition (but was it in good condition when you bought it).

But PERSONAL FINANCE probably means that the dealer arranged for you to borrow money, and semlessly used it to pay for the car he was selling you. You owe money, but can sell the car and keep the proceeds, but must kep making the repayments.

Returning the car to the dealer? If you traded in a car, that (I believe) counts as the dealer buying your car, then seperately selling you his car. Unless he can give you your car back, he still owes you whatever he allowed as a trade in. Take legal advice, first half hour with solcitor should be free. Or try Citizens Advice, AA, RAC, Legal Assistance on car or house insurance, Trading Standards, etc.

Good luck.

JW

motorguy

jonahinoz wrote: »

Hi,

If you have Hire Purchase, I think the agreement says that you can hand the car back once 50% of the purchase price has been paid. That includes the deposit and/or trade in. But payments must be up to date, and the car must be in good confition (but was it in good condition when you bought it).

The O/P stated in the first paragraph of their first post that its a personal loan.

jonahinoz wrote: »

Returning the car to the dealer? If you traded in a car, that (I believe) counts as the dealer buying your car, then seperately selling you his car. Unless he can give you your car back, he still owes you whatever he allowed as a trade in. Take legal advice, first half hour with solcitor should be free. Or try Citizens Advice, AA, RAC, Legal Assistance on car or house insurance, Trading Standards, etc.

Good luck.

JW

As has already been stated, its very unlikely that the O/P could make a refund 'stick' after this length of time.

Even IF the dealer accepted that they should refund - which they wont - then they are within their rights to make an adjustment to the refund value based on the use the O/P has had of the vehicle.

motorguy

josho1191 wrote: »

The amount she will pay at the end is ridiculous.

The loan rate would have been stated up front?

josho1191 wrote: »

Can we sell the car and pay off a chunk of the loan and repay the outstanding over a period of months?

You can sell the car however the full amount would still be payable over the term that was agreed. A way round that might be to talk to santander and see what they say - you could maybe clear the loan and take out a smaller personal loan for the difference.

It does sound like your personal circumstance have changed and this car doesnt suit your needs. If you think you are going to need a different car anyway, then you could approach the dealer and say based on the fact you have been having problems with the car, could they reach an accommodation with you regarding 'trading in', and try to swing a preferential deal?

Its worth noting that convertibles do leak. You may not EVER get it to stop leaking in some capacity, and if it ever got to court it could potentially be argued that its par for the course to have some sort of water ingress.

I had an mx5 earlier in the year - it leaked water, i'd a porsche boxster - it leaked water, i'd an MG TF - it leaked water. My wife has a brand new z4 convertible with a folding metal hard top that the alarm goes off every time it rains heavily - apparently according to the BMW dealer 'they all do that'.