Can I Get Out of My New Car Purchase?

The_Nibbler

I'm in a stressful situation and would really appreciate advice on how to get out of a recent purchase of a new car. I've tried to call Citizen's Advice Bureau on numerous occasions but I'm finding it impossible to get through.

I recently signed a deal for a brand new car on finance through a dealership (i.e. I obtained finance through the dealership's separate financing arm to enable me to take a car off the dealership's hands). Unfortunately, in the short time between signing the paperwork and the car being available for me to drive away, my circumstances have unexpectedly changed and I need to cancel the whole deal.

I've explained this to the sales representative who (perhaps naturally) said there is nothing I can do as the finance arm have paid the dealership for the car, which has been registered and taxed in my name. He said all I can do now is to try and sell it privately to cover all (or most) of the finance arrangement.

I haven't taken the car from the dealership yet, so they're still in possession of it. I find it hard to believe that there is no 'cooling off period' like there is with the purchase of most things. Why can't I just not take the car and the dealership return the money to their financing arm? I am still within 14 days of signing the agreement.

Is there anyone out there who can help me with some advice, please? I have to accept some of the blame for this, of course, although I couldn't foresee the change in circumstances. Am I within my rights to insist that the whole arrangement is cancelled?

Thanks in advance.

DUTR

They cannot sell you the car without the means for the finance, as you have a copy of the finance agreement, then contact the finance company and see if they are willing to cancel the agreement, however the dealer may wish to charge you some money for re-advertising the vehicle, when you say it's new is it brand new?

spacey2012

You could inform the finance company of this change in circumstances to assist them mitigate any loss.

The_Nibbler

Thanks, Spacey. Mr Sales Rep told me that, even if I was able to cancel the agreement with the finance company, I'd still need to pay the dealership for the car. What if I don't take the car?

Mankysteve

You get 14 days cooling off period with a finance deal.

You would end up loosing a proportion of the deposit equal to there losses. Check your contact here may be full details of any cooling off period.

spiro

Whilst you get 14 days cooling off on the finance you still need to pay for the car as you have agreed to buy it. As the car has been registered in your name it is now second hand so will have lost value so even if the dealer let you cancel the order I suspect they would want you to pay for any losses.

poppasmurf_bewdley

As Spiro has said above, the car which you ordered from the dealer has been registered and taxed in your name. On your authority and order the car is now legally your car. Your problem is that you are now saddled with a second hand car which you are required to pay for.

It's not the dealers fault you cannot now fulfill your obligations to them. If you don't take delivery of it, the dealer will have to take the hit of several thousand pounds.

You are going to have to reach a suitably amicable settlement with the dealer, but I'm afraid it's you who is going to take the financial hit.

keith1950

. Why can't I just not take the car and the dealership return the money to their financing arm? I am still within 14 days of signing the agreement.

As Spiro has said above, the car which you ordered from the dealer has been registered and taxed in your name.

As explained the car is now basically a 'pre-registered' car and whoever gets it next would be the 2nd owner and as such there is a price drop on the car.

The best you can hope for, if they are willing to cancel the deal and cancel the finance, would be for you to cover any finance admin charges plus give them an amount.....possibly £1000-£1500 to cover the fact that the car has lost value because it is now secondhand.

Mark_Mark

keith1950 wrote: »

As explained the car is now basically a 'pre-registered' car and whoever gets it next would be the 2nd owner and as such there is a price drop on the car.

The best you can hope for, if they are willing to cancel the deal and cancel the finance, would be for you to cover any finance admin charges plus give them an amount.....possibly £1000-£1500 to cover the fact that the car has lost value because it is now secondhand.

I'd be talking percentages rather than pound notes as we don't know the value of the new car. 20% would be nearer the mark as that's the vat rate.

redcard

Mark_Mark wrote: »

I'd be talking percentages rather than pound notes as we don't know the value of the new car. 20% would be nearer the mark as that's the vat rate.

What's the VAT rate got to do with depreciation?

Mark_Mark

redcard wrote: »

What's the VAT rate got to do with depreciation?

It's now a second hand car. I wouldn't pay it if I bought it from the dealer as it's already been paid once.