Why is my daughter unable to get a car loan?

Money_maker

You might get more response huskypup if you post this as a separate thread.

My unqualified opinion runs along the lines of how does she expect to repay this if she has no income? Do mum and dad constantly bail her out? Why would she do this if she had any idea of how to run her finances? Why is it someone elses fault - isn't she 18 or over ie adult? I think the blame may lay closer to home.

leeroy2009

the little minx lol

RougeAce

huskypup wrote: »

Following on from this thread - this is not a happy house infact a very angry house - my daughter yesterday walked into a ford garage - and walked away with a brand new ford KA - ok now the bit that that has made my husband and I fuming at her and at the garage (though they have not done anything wrong - not sure how they have done it but hey ho)

1. It is going to cost her £164 a month
2. She still has two months to go at uni
3. She has no job
4. She has not had to supply pay slips
5. She has not had to supply bank statements
6. She has a £2500 student overdraft to pay off

We are fuming that she has managed to do this - her old car which cost us £500 failed its MOT last week and was going to cost £600 to repair - but rather than wait until this weekend to go look for a little run around - she does this

How has she managed to get credit for this amount - its on one of these option schemes where you pay each month then supposingly you can just hand the car back at the three year point - it cant be that simple.

Any suggestions on how she has managed to do this - she says she was honest and told the sales man that she wasnt working - she works part time and has been verbally promised some hours once uni has finished - I actually give up.

Presumably she did not take immediate possession of the car? I believe that she will legally have 14 days (cooling off period) to undo the agreement. Subject to reasonable costs.

Given the situation i would strongly suggest that if possible she cancel the agreement.

Gaz83

RougeAce wrote: »

Presumably she did not take immediate possession of the car? I believe that she will legally have 14 days (cooling off period) to undo the agreement. Subject to reasonable costs.

Given the situation i would strongly suggest that if possible she cancel the agreement.

Nope. This does not apply to agreements signed on the premises. From the Trading Standards website:

SIGNED ON TRADE PREMISES
You may have a very short window of opportunity to exercise an additional right to withdraw from the deal if the creditor has not yet signed their part of the agreement. In these circumstances, you should telephone the creditor immediately to establish whether the agreement has been signed. If not, inform them you wish to withdraw. Make a note of what was said and the name of the person you spoke to. You should then confirm your withdrawal in a letter. Send it by recorded delivery and keep a copy.

Once you have withdrawn, this will also cancel any agreement for the purchase of the goods or services and you are entitled to a refund of any deposit you have paid. You should be aware however that many retailers are entitled to sign credit agreements for, and on behalf of, the creditor and, therefore, you would not be able to withdraw as it would be binding when signed by the retailer. In this scenario you are still able to exercise your 14 day cooling off rights to cancel the credit agreement, but you will still be obliged to continue with the purchase of the goods or services and will have to make alternative arrangements for payment.

As the arrangement was yesterday it is very unlikely that the retailer will not have signed a credit agreement on behalf of the creditor. Therefore, the most that could happen at this stage is that the daughter withdraws from the credit agreement, but is still legally required to purchase the car from the retailer - and would have to find some other way of doing so.

Enterprise_1701C

I have seen both sides of this argument.

My son decided to buy a car on HP, brand new car. But he decided to spend his money on having a good time. It was only because he had managed to pay 2/3 off that they could not take it off him. Eventually he paid it off then sold it and bought another one. This time for cash.

In spite of our numerous warnings about trashing his credit record (replies of but I don't need credit in the next 6 years) he is now in a position of wanting a mortgage but having to deal with the fallout of a severe delay in paying off the car and deciding he wanted a new phone but was only half way through the previous contract (but I'm not paying for something I'm not going to use was his answer to that - I am amazed they never took him to court!!).

He can't get a contract phone, he can't get a credit card (thank god!!) and he can't get a mortgage, all because he couldn't be bothered to save up. He had disposable income of about £800 a month after expenses (included the rent he hated paying me!) and spent it all on games or going out.

The contrast is my daughter. She saved for her first car and paid for it cash. She now has a credit card (just for the credit record, uses it occasionally), a phone on a good contract, and her and her boyfriend are thinking about a mortgage in a couple of years time. She has never been refused anything she asked for in the line of credit.

27col

There's a lot of good advice in this thread OP. I suggest you get your daughter to read and digest it thoroughly.

BillJones

huskypup wrote: »

Any suggestions on how she has managed to do this.

There's no need for the garage to assess suitability, they can assume that people are sensible enough to know what they are doing.

It's no different from the garden centre selling a chain saw to a person with chronic clumsiness, or Wickes selling a stanley knife to someone who's suicidal.

Anyway, what you need to do now is to take her back down the garage, have her apologise profusely, and ask that the whole deal be torn up. There's no reason, prior to delivery on such a popular car as this, why they can't do so, as there's very little chance that anything material has started as a result of her decision (an extra car being built at the factory, delivered, refused to someone else etc.)

If she's not willing to do this, and as she's an adult, then I'd suggest letting her deal with her own decisions. Hard to do, I know, but she sounds as though she needs to learn.