Car loan - how does right of withdrawal work?

murmeltier

To update on this:


I took delivery of the car, and a few days later I phoned the finance company to exercise my right of withdrawal.


They were not happy, but in the end had no issues taking the full loan amount plus a few days interest over the phone.

iolanthe07

murmeltier wrote: »

To update on this:


I took delivery of the car, and a few days later I phoned the finance company to exercise my right of withdrawal.


They were not happy, but in the end had no issues taking the full loan amount plus a few days interest over the phone.

Excellent. It just shows that the consumer can win sometimes.

Clive_Woody

murmeltier wrote: »

To update on this:


I took delivery of the car, and a few days later I phoned the finance company to exercise my right of withdrawal.


They were not happy, but in the end had no issues taking the full loan amount plus a few days interest over the phone.

They would not have been happy because they missed out on 5 years worth of interest but tough, this is a money saving website and stories like this are great.

If car dealers insist on finance even when punters have cash to pay for the car then it really does serve them right. The dealer gets a nice big commission for selling finance and the punter finds themselves paying a lot more...unless they do as you did and invoke your right to cancel the finance in accordance with the contract.

:T

Gaz83

I see that it's Black Horse you used. I had a similar issue with them about eight years ago while buying a new guitar (for £800). I foolishly had went through to Glasgow to buy it but picked up the wrong bank card by mistake!

I didn't want to go all the way home just to come back so the chap at Sound Control explained that they could set me up with a finance deal with BH and as soon as I received the paperwork phone and pay the balance in full. BH weren't too amused (because they were missing out on interest) but there was nothing they could do.

rajys

Hi,

In Feb 2015. I bought a car through black horse finance and withdrew the finance agreement by settling the full amount with in 15 days as i did not want to pay the costs which were not explained to me by the car dealer.
Now my home mortgage is approved with an other lender but before they role out the formal offer letter they are asking for a written confirmation from black horse that the finance was closed. But Black horse are saying they can't provide a confirmation as the agreement was withdrawn. (Finance didn't exist)

Is there any other way for me to can get a written confirmation from them? I have tried explaining to the mortgage company by providing evidence of loan documents and the settlement amount going out to black horse from my bank statement, but they are still very keen on written confirmation from black horse.

Any suggestions please?

jonesMUFCforever

If you settled - it means funds had been lent to somebody.
Go back to BHF with reference number and insist on getting a copy of the closing statement.
Does your Experian report show it as settled.

rajys

Thank you Jones. I spoke to BHF yesterday. They are mailing me the statement on which outstanding amount will show as ZERO & I should receive it in next 3-5 days. Hope the mortgage lender will accept this as proof of closure and doesn't insist on a cancellation letter.

It doesn't show on experian report at all as the finance was withdrawn and not closed. But the lender is not accepting this proof and they are adamant on a letter from BHF

Jess040

Hi. I am currently in the exact same position. We pick our car up on Saturday morning. On our contract it says we have the right to withdraw within 15 days. Can I please ask advice on how you did this as it sounds a bit confusing on the contract. Do we pay back the amount of credit plus a daily interest fee, not the entire amount (the enormous 5k in interest over the 5 years!!) thank you in advance

[Deleted User]

You pay the amount borrowed and daily interest.

Jess040

That's brill thank you will give them a call. Hopefully they won't make it too difficult!