Changing Car Finance

snit_girl

yesterday I got a car from Arnold Clark and took out their finance deal as they were able to match the staff rate I got from the bank I work for. However, on signing the document last night I noticed an extra £298 on the final installment which the guy said was the standard fees, I was told nothing of this on the phone when negotiating the deal or I would have of course taken it into account. My bank only charges a £20 fee at the end.

My question is how do I go about changing the finance from Arnold Clark to my bank? I'm still within the 14 day cooling off period but obviously I cannot pay the full amount, I'd just like to switch it to the bank. Do I call the finance company (GMAC UK plc) or would the bank? Or do I call Arnold Clark?

Sorry about the questions, I've never taken out finance on anything before.

Tixy

Your loan agreement will detail how to cancel the agreement in the cooling off period. It will be the finance company you need to contact.

You also need to contact the car dealer. As you will need to arrange to pay them for the car and will need to ensure new paperwork is issued for this to be a straight sale to you rather than the current arrangement.

Your bank won't be involved in the car transaction at all. All they will be involved in is the loan to yourself, which you will then use to pay for the car.

nelly12

if you work for a bank it's quite worrying that you didn't read the document before you signed it!

you have 14 days from inception of the finance agreement to withdraw and a then 30 days to pay back the money after that day. More than enough time to arrange your staff rate (which doesn't sound very good).

nelly12

Tixy wrote: »

Your loan agreement will detail how to cancel the agreement in the cooling off period. It will be the finance company you need to contact.

You also need to contact the car dealer. As you will need to arrange to pay them for the car and will need to ensure new paperwork is issued for this to be a straight sale to you rather than the current arrangement.

Your bank won't be involved in the car transaction at all. All they will be involved in is the loan to yourself, which you will then use to pay for the car.

if the op withdraws from the finance then there would be no need to contact the dealer at all!!!!

dealer has been paid by Gmac. Gmac need repaid = OP pays Gmac.

~Brock~

If the dealer has matched the APR offered by the bank then the calculation will also include the fee at the end of the term, which makes cancelling it pretty pointless IMO.