0% apr Car finance offer

mustangu

I recently brought a new car on the 0% finance offer.
Its a 37month PCP agrement paying £186per month for 36 months and a final payment on the 37th month.
Phoned the finance company to find out what the 37th payment was and was told i was actually paying 6.9% interest.
is there a cooling of period for car finance, do i make a complaint to the garage, finance company, financialombudsman.

DCFC79

Does the agreement mention the 6.9 % ?

mustangu

DCFC79 wrote: »

Does the agreement mention the 6.9 % ?

Apr not on agreement, i suspect a page is missing. Asked the finance company three weeks ago for a copy of the agreement but still received nothing.

pheonixrising21

mustangu wrote: »

I recently brought a new car on the 0% finance offer.
Its a 37month PCP agrement paying £186per month for 36 months and a final payment on the 37th month.
Phoned the finance company to find out what the 37th payment was and was told i was actually paying 6.9% interest.
is there a cooling of period for car finance, do i make a complaint to the garage, finance company, financialombudsman.

When you bought the car and were told it was on 0%, were you quoted £186 per month? Were you happy to pay £186 per month and agreed the deal at that monthly payment? Are you paying £186 a month?

If you were quoted £186 and you're paying £186, what could have happened is that you were refused at 0% so the dealer used a bit of their margin to cover the interest you now have to pay. Only problem I see is that you could have got a better deal out of them as if they have done this, they clearly have margin to play with and/or were desparate for the sale...

mustangu

pheonixrising21 wrote: »

When you bought the car and were told it was on 0%, were you quoted £186 per month? Were you happy to pay £186 per month and agreed the deal at that monthly payment? Are you paying £186 a month?

If you were quoted £186 and you're paying £186, what could have happened is that you were refused at 0% so the dealer used a bit of their margin to cover the interest you now have to pay. Only problem I see is that you could have got a better deal out of them as if they have done this, they clearly have margin to play with and/or were desparate for the sale...

Yes £186 is the correct figure advertised and quoted for 0% finance. The problem is with the final 37th payment. It should be original loan less repayment. Its not, its 2k more.
Not sure if I have been tricked by the dealer, finance company or both.

somethingcorporate

What did you do with the copy of the agreement that you signed? Did you not check this before leaving?

pheonixrising21

mustangu wrote: »

Yes £186 is the correct figure advertised and quoted for 0% finance. The problem is with the final 37th payment. It should be original loan less repayment. Its not, its 2k more.
Not sure if I have been tricked by the dealer, finance company or both.

I have to say I'm still a bit confused.

What was the original loan? In PCP's the final payment is the GFV (Guaranteed Future Value), and so should remain constant unless the annual mileage figure or length of loan are changed.

What does your agreement say that the figures are? Original loan amount (invoice price of car minus deposit), monthly payment, GFV (final payment), annual mileage figure.

With PCP's, you can hand the car back at the end of the term if its worth less than the GFV, so if they have inflated the final payment, then they may end up shooting themselves in the foot. That is unless thay have reduced the annual mileage figure to a minimum and they stng you with excess mileage charges when you hand it back. Check that carefully, as you may have told them you do 12k miles per year, but they've reduced it to 5k to meet the monthly figure...

mustangu

somethingcorporate wrote: »

What did you do with the copy of the agreement that you signed? Did you not check this before leaving?

I was not given a copy of the finance agreement. I have asked the finance company for a copy but still not received it.
Had a read of the consumer credit act, it says i must be given a copy of the loan agreement within seven days of signing.

somethingcorporate

mustangu wrote: »

I was not given a copy of the finance agreement. I have asked the finance company for a copy but still not received it.
Had a read of the consumer credit act, it says i must be given a copy of the loan agreement within seven days of signing.

Personally, I'd not want to go anywhere near or deal with a company that does not give me a copy there and then.

It would severely limit your ability to cancel in a time limited situation if you are waiting for 7 days to find out what your cancellation terms are!