Mis-sold finance agreement but dealer sold company

gazfocus

I'll try to keep it brief.

In May 2013, my wife purchased a brand new car last year on a 3 year PCP agreement. She was told (with a witness) that after 18 months she can hand the car back and change it for a bigger car if she wanted.

In July 2014, my wife and her mum went to the dealer to see what options there are and the same salesman confirmed again that after the 18 month period, she could change the car.

After getting a quote from the dealer for over double what we were already paying, we have found a car elsewhere so contacted the dealer to arrange the return of the original car as we are now at the 18 month period.

The dealer then informed us that although we are at the 18 month period, we haven't paid 50% of the agreement so cannot return the car. This was never mentioned at either the outset or in July when we confirmed our intentions with them.

Now, I have challenged the dealership and have today been informed that when we took the agreement out, the dealership was called 'Company A', and in October 2013 'Company A' sold the dealership to 'Company B' and so they have no liability and advised us to take it up with the finance company.

I have 2 issues...

1) all the staff at the dealership (presumably with the exception of the management staff), are the same, so the staff giving the actual financial advice are the same. The guy that mis-sold my wife the finance deal still works there.

2) the staff member that gave the initial advice and who sold my wife the finance agreement confirmed in July 2014 that my wife could hand the car back after 18 months. This was after the company had changed hands.

What I would like to know is, when 'Company B' purchased the dealership off 'Company A', will they have also taken on the liabilities of 'Company A'? Therefore, as the staff member still works there, can we still make a complaint against 'Company B'?

Thanks

BrassicWoman

when you buy a company you buy all the assets and all the liabilities.

but what does the paperwork say? that'll trump word of mouth

SeanG79

Yes liability will transfer to "Company B".

However, did your wife not read the full T&C's BEFORE signing the agreement as it will clearly state termination and your rights, that will be the defence that both the dealer and the finance company will rely upon.

gazfocus

BrassicWoman wrote: »

when you buy a company you buy all the assets and all the liabilities.

but what does the paperwork say? that'll trump word of mouth

My wifes mum has the paperwork as the finance agreement is in her name so I can't check the details but there are a few inconsistencies and things that the salesman did wrong (the finance agreement says something about the registered keeper needing to be the person who took out the finance agreement, whereas the dealership registered my wife as the registered keeper and we live 30 miles apart).

I have been on the moneyadvice website and it says "the person who advises you to buy must recommend something suitable for your needs, and explain properly what it can and can’t do. They should make sure you know the risks". In mis-representing the ability to end the agreement after 18 months, I don't believe that they have 'made sure she knew the risks'.

gazfocus

SeanG79 wrote: »

Yes liability will transfer to "Company B".

However, did your wife not read the full T&C's BEFORE signing the agreement as it will clearly state termination and your rights, that will be the defence that both the dealer and the finance company will rely upon.

Thanks Sean. Unfortunately, not. The finance agreement is actually in her mums name and we all relied on the details that the salesman verbalized to us. I appreciate that it was a stupid thing to trust a car salesman but I still believe we would have a valid complaint.

All we want to do is hand the car back. We're not after compensation or anything, we just want them to honour what they promised on day 1.

SeanG79

Off topic, but your wife's mum cannot legally finance the agreement on a PCP for her daughter (she could via a personal loan), that is seen as fronting/accommodation and is in breach of the T&C's of the agreement. The finance company will be within their rights to terminate the agreement, repossess the vehicle and your wife's mum will remain liable for all payments under the agreement.

A PCP agreement assumes that the person obtaining the finance is the main driver and keeper of the vehicle.

SeanG79

With regard to early termination after 18 months, the dealer will say they said 50% of the agreement (whether they did or not) and the agreement that was signed will support this over the word of mouth claim.

Also I would resist highlighting to the finance company that the finance is in another persons name.

gazfocus

SeanG79 wrote: »

Off topic, but your wife's mum cannot legally finance the agreement on a PCP for her daughter (she could via a personal loan), that is seen as fronting/accommodation and is in breach of the T&C's of the agreement. The finance company will be within their rights to terminate the agreement, repossess the vehicle and your wife's mum will remain liable for all payments under the agreement.

A PCP agreement assumes that the person obtaining the finance is the main driver and keeper of the vehicle.

This is one of my points. The car dealer knew that my wifes mum was applying for the finance agreement on a car that was for my wife, so that's another aspect where the dealer sold my wife/her mum the wrong finance product.

Bantex_2

You say that they said she could hand teh car back and trade up to a bigger vehicle. That does not appear to be what she now wants.

Gaz83

gazfocus wrote: »

I still believe we would have a valid complaint.

Why? The finance is in someone else's name rather than who actually drives the car, which is usually a big no-no for finance (did your wife's mother make it clear that she would not be the driver?), and the signed paperwork will make it clear that it is 50% of repayments.

I'm sorry you feel hard done by, and I can quite believe that a car salesman might use dubious tactics to sell a car, but unless you can prove that (and all the signed paperwork will back up the dealer's word rather than your wife's), I don't think you have a case.

lynz68

It may well be they would have accommodated you if you were buying another car from them but you are not so they are probably sticking to the terms of the written agreement.


It is your responsibility to read the agreement in full before signing and not just take the word of an individual who is after all selling you an expensive product.