New Car HP Agreement - dealership overcharged HP deposit with worse terms

GBX

Hello.

I bought a new Audi in 2010. Using a previous Audi as trade in.

Cash price of new car was £30,000 with trade in net value of £3,000 after the dealer settled finance. With other discounts and deposit from myself I wanted to go for a 37 month term. This required cash deposit of £9,800. Payment schedule 37 months at £300 with a final purchase payment of £8,000.

I was told by what I complained at the time I perceived to be a smoke and mirrors exercise on finance gymnastics by the salesman that it wouldn't be possible to achieve this £300 monthly payment. I questioned at the time, and the figures used were entirely different to those I signed on the order agreement. This agreement gave a cash price of £27,000, but the new illustration gave a higher cash price of £30,000 with additional discounts and 'loyalty contribution' massaging figures down to a lower 'balance to be financed'

The option I was told to minimise monthly payments would be a 48 month term at £350 per month with a lower final payment of £6,000.

Despite protests by myself, he somehow demonstrated figures to 'add up'. I complained to sales manager, and he did similar. All of which left me more than a little unhappy at not getting the 37 month at £300 term I signed the vehicle order form and laid £1000 deposit to do so. I took the car and told them I'd follow it up with Audi finance. This I did, and they assured all was in order.


Clearing out files yesterday, I came across the documents, and decided to look at them again with fresh eyes 2.5 years later. I discovered the discrepancy:

For the 48 month term at £350/month the HP agreement was for, I should have paid £6,500 deposit. In fact I was charged £9,800 as per the 37 month term I originally wanted but told was in 'error'. Because this was paid cash to dealership, Audi finance had their net finance figure correct. Which is why they assured the finance agreement was correct.

I've therefore overpaid £3,300 to the dealership. Putting it in writing to them, they're 'reviewing' my case. But the documents speak for themselves now I've discovered what they failed to notice and assured was correct.

What am I entitled to in this instance?

Getting a refund of the £3,300 overpayment is all very well - it's my money after all. But as a result I'm now 2.5 years into a 48 month agreement when for the same cash deposit I should in fact have been on a 37 month one. Looks like this has been 'error' of salesman - who is no longer with the dealership. In having 48 payments instead of 37 I COULD have had, I therefore have to retain the car another year- and will have a car that's worth less due to the extra year of depreciation, as well as extra service costs.

What is the legal position here? Only refunding the overpaid deposit, or changing the 48 month agreement be changed to the 37 month one I was actually set up to pay all along!

If I hadn't checked by chance yesterday, dealership would have got away with an extra £3,300 of my money they weren't entitled to. Made all the more galling by their flat denial there was any error in the finance figure when I complained at the time.

Sorry for long explanation. Hope it makes sense!

Thank you

Eonel

So you had two finance quotes. A 37 month quote with £9800 deposit. & a 48 month quote with a £6500 deposit.

You signed the 48 month contract, but paid the 37 month deposit. You are due a refund for the difference in deposits.

But once you receive the refund, you can't then argue that the dealer should honour the terms of the 37 month contract. You have been making the monthly payments of the 48 month contract.

Your option surely is not to pursue the refund, but instead get the finance company to agree to change the term to 37 months. You would have a balancing amount to pay for the difference in monthly payments.

chris-j

It is not clear how much the car was - Was it £30000 AFTER trade in or £27000 AFTER trade in.
If you add up your figures the contract you are on does seem potentially correct when you add in I interest.
Would need to know how much was car and exactly how much was your deposit (cash and trade in).
Based on 48 month figures you took you will pay £16300 (48 x £350) + £6000 (final payment) + £9800 (deposit) = £32,600.

If you look at pcpcal.co.uk website you can put in figures. Based on what you have put above, it really depends on car price, deposit and interest rate. If price AFTER trade in was £27000 and rate about 5% apr then £300 per month and £8000 final price achievable