HP agreement settlement question?

Savedotmoney

Hi all, can I just run something by you to see if I have it right. It's not ethically right and it puts the dealer out of pocket but like most of us, do we actually care about the retailer.

I have recently come to an agreement with a car dealer where I part exchanged my car and started a new hire purchase agreement. I went from the old agreement into a new one carrying over a small amount of negative equity (about £1000).

I have just taken in my old car early because I can't come in before the date they wish to receive the car to settle the finance. I'm meant to be picking up my new car this following Friday. The salesman who sold me the car was not in today when I went to drop off the car so I have not signed a new finance agreement as of yet because none of the other salesman have the paperwork ready. I've simply dropped the car off with them and they are going to settle the finance first thing on Monday morning prior to any paperwork being signed for the new agreement.

That being said, am I right in assuming if they settle the finance tomorrow, my old finance agreement is now paid off and they have my old car. I haven't signed any new finance agreement so therefore could I by right refuse to sign a new one when they ask me to sign it on Friday and just walk away from the deal? Usually they would part exchange when I sign the new finance deal paperwork but they have taken my car early.

Can I do this because it would be an option to just walk away from everything?

Thrugelmir

Savedotmoney wrote: »

That being said, am I right in assuming if they settle the finance tomorrow, my old finance agreement is now paid off and they have my old car.

How can they settle your finance if there is a shortfall?

molerat

You legally will still owe them the £1K negative equity as per the verbal agreement you have with them.

antrobus

Savedotmoney wrote: »

...That being said, am I right in assuming if they settle the finance tomorrow, my old finance agreement is now paid off and they have my old car. I haven't signed any new finance agreement so therefore could I by right refuse to sign a new one when they ask me to sign it on Friday and just walk away from the deal? .

If you don't sign the new finance agreement, how are you planning to pay for the new car you've agreed to buy?

Savedotmoney

I don't quite think I've explained it well enough.

I'll show you some figures and try to explain it again.

Right...

Settlement figure on car is £26,140
Part-ex price is £24,140
Negative equity £2000
Deposit £500
Cash allowance on car is £500
Negative equity total £1000

That's being added to my new finance policy. The old one would be completely settled as dealer would be paying £26,140. End of that policy as they are settling finance.

New HP agreement is price of car + £1000.

What I'm saying is I haven't signed any paperwork for this new HP agreement + £1000 negative equity. They have taken my old car and will be paying the finance off before I even sign any new paperwork. This is because I needed to trade the car in today as the finance needs to be paid first thing tomorrow morning. I will sign the new paperwork when I pick up the car as I am unable to meet them prior due to work.

What I'm saying is they have paid off my old agreement and have my car for £26,140. I don't owe them any money because I haven't signed any new finance paperwork which you usually do when you part-ex a vehicle (unable to do this today as my dealer wasn't in).

I know there was a verbal agreement but what does that actually imply? There's no black and white record of it and I can plain refuse to sign this new agreement now. They can't give me the car back once it's been paid and it's in their ownership?

chanz4

what about the order form you signed

Thrugelmir

chanz4 wrote: »

what about the order form you signed

Contracted to buy it. How it's funded is a different matter.

Savedotmoney

I haven't signed an order form. I've signed nothing for the new finance agreement. I've placed a deposit on the new car but obviously deposit can be lost if I decide I don't want the car anymore.