Cooling Off Periods With HP - EU Directives

mickburkejnr

Hi,

This doesn't affect me, but it stemmed from a conversation regarding the purchase of a new car I was having with my girlfriend (who I'm moving in with Saturday). It's all theory and I've really no interest in doing this, but I thought it was an interesting idea all the same.

I have a car on the Just Add Fuel deal with Peugeot, and I haven't been happy with the deal because of an ongoing problem with the dealer misselling and misrepresenting the deal on the milleage. This is something I'm sorting out and spoken to a solicitor about etc.

Anyway, I've 6 months left on the car, and I went to a Peugeot dealer (different one) and they offered to get me out of my current deal for £1,000 (At the moment excess milleage costs for me are between £1,800 to £3,200 - hence the solicitor!). It seemed a good deal, the deal would cover me for high milleage on a Peugeot 208 for £333 a month. I told them I could be back depending on what happens with Peugeot.

I spoke to my Dad about it, and he isn't in great health and he advised me to just get rid of the car I have (I don't know how he thought I'd afford it tbh) and have his car. A Honda CR-V, a nice car. I checked on the insurance, and it'd cost me roughly £110 - £130 a month to insure, and would roughly cost £50 a month more to run than my current car or the new 208.

So for the maths, currently my Peugeot 107 costs £249 per month. The Peugeot 208 would cost £333, and the Honda CR-V would cost up to £130. I must also add that I've met the half way point with the HP deal, so I am well within my rights to hand the car back, but the excess milleage has killed me.

So, I spoke to my girlfriend about it and she wasn't best pleased. She likes the idea of her boyfriend driving a new car, whereas I want a comfortable car. But the subject changed to how I would get out of the current deal if Peugeot stick two fingers up to me and I have to pay the milleage costs. One thing that was suggested was to get the new car anyway but hand it back during the cooling off period. I'll be honest, I'm not overwhelmed by the 208 and probably wouldn't be happy driving it anyway. But me and the girlfriend were unsure about the cooling off period with something like this, as you'd be in the dealership signing the document so it doesn't really apply.

However, trawling through the internet I came across an EU Directive which came in to force in June/July 2010, which meant that this cooling off period could now be applied to finance agreements even though it would be signed on the premises. So really, if I bought the car from Peugeot I could still give it back during a cooling off period.

But what has confused me is that even though (as far as I know) this is just an EU directive, could this be enforceable in this country? So you'd be in a situation where that by UK law the dealership wouldn't allow me to have a cooling off period, but under the EU directive the same dealership would have to let me have one?

I wonder what thoughts you guys have of this?

System

EU directives need to be enacted in the countries laws before they can be used or there is an existing law that covers it (E.G. Directive 99/44/EC & SOGA).

You need to find out what the UK law implementing this directive is.

Where you may struggle is that you may be able to cancel the HP but you still own the car and they will want the full amount for the vehicle.

motorguy

mickburkejnr wrote: »

So really, if I bought the car from Peugeot I could still give it back during a cooling off period.

I wonder what thoughts you guys have of this?

I think it would be crazy to buy a new car on finance and then try to wriggle back out of it at some point down the line.

Do your homework first and then when you're sure of what to do, make a decision.

Is your 'just add fuel' deal finance or a lease? If its finance you 'should' be able to hand the car back once you've paid 50% of the total contract price?

mickburkejnr

!!!!!! wrote: »

EU directives need to be enacted in the countries laws before they can be used or there is an existing law that covers it (E.G. Directive 99/44/EC & SOGA).

You need to find out what the UK law implementing this directive is.

Where you may struggle is that you may be able to cancel the HP but you still own the car and they will want the full amount for the vehicle.

I'll have a look. But what you're saying is that the Directive must be part of UK law to be enforceable? Also, couldn't the dealer buy it off me or something.

!!!!!! wrote: »

Quote:
Originally Posted by mickburkejnr

So really, if I bought the car from Peugeot I could still give it back during a cooling off period.

I wonder what thoughts you guys have of this?
I think it would be crazy to buy a new car on finance and then try to wriggle back out of it at some point down the line.

Do your homework first and then when you're sure of what to do, make a decision.

Is your 'just add fuel' deal finance or a lease? If its finance you 'should' be able to hand the car back once you've paid 50% of the total contract price?

The Just Add Fuel deal is on Hire Purchase, so you can hand it back after 50% has been paid (which it has done). But as I said there's an ongoing situation with the dealer who missold it to me, which has left me with a massive excess mileage bill. I thought because the dealer is buying me out of the current deal, that would be the end of it. But if I am then stuck with the new car then it's not helping me out at all.

System

mickburkejnr wrote: »

I'll have a look. But what you're saying is that the Directive must be part of UK law to be enforceable? Also, couldn't the dealer buy it off me or something.

Correct. Its in the Consumer Credit Act 1974 and was brought in in Feb 2011.
The dealer could buy it back off you IF he wanted to BUT he would only be looking at it from a second hand price point of view. You will have a shortfall on the original agreed price and the price he would be willing to pay.

mickburkejnr

!!!!!! wrote: »

Correct. Its in the Consumer Credit Act 1974 and was brought in in Feb 2011.
The dealer could buy it back off you IF he wanted to BUT he would only be looking at it from a second hand price point of view. You will have a shortfall on the original agreed price and the price he would be willing to pay.

That makes sense. So in reality it would loose about £2,000/£3,000 as soon as it's driven off the forecourt. In reality unless I had £5,000 costs it wouldn't be worth it.

As I said, it was a thought. But hopefully this will help someone else in the future!

forgotmyname

So, I spoke to my girlfriend about it and she wasn't best pleased. She likes the idea of her boyfriend driving a new car

Sorry but that tickled me. So as soon as his car is no longer new will he be looking for somewhere else to live and a new girlfriend?

Her new love has a new car you see

Sorry.. But that comment really really tickled me..

mickburkejnr

forgotmyname wrote: »

Sorry but that tickled me. So as soon as his car is no longer new will he be looking for somewhere else to live and a new girlfriend?

Her new love has a new car you see

Sorry.. But that comment really really tickled me..

Haha no I've put her in a bad light. We've been together 4 1/2 years and I got the car shortly after our second anniversary. She just doesn't like the jeep my Dad's offering me because it's a Honda. Don't ask.

But I can see why it'd make you laugh. I read it back and it's made me chuckle too!

arcon5

What makes you think you can evade paying for excess mileague when you've used the extra service offered?

So you will enter in to a new deal, just to cancel within 14 days?

All very confusing.