car hire purchase

popcorn8080

Hi,

I test drove a used car yesterday at Arnold Clark, paid a deposit and took out a hire purchase agreement. I'm due to pick up the car next Saturday. Arnold Clark text today to confirm the finance had been approved.

I've since talked to my patents and they have offered an interest free loan, which would save about £1000 over the course of the loan.

I'm looking for some advice on where I stand with respect to canceling the finance agreement? the loan value was £8200. I've looked at the paper work and can't see anything about cancelling the agreement or repaying it early.
Thanks

chanz4

you can repay, you need to tell them / finance company that you are withdrawing from the finance and want to pay by other means.

pvt

You have a Right of Withdrawal from the HP agreement, as provided by the Consumer Credit Directive section 66A, within 14 days.

To be clear, this is only the finance agreement that you can do this with, not the car purchase itself. You still have to fund the car purchase.

It'll be interesting to see the dealer's reaction - they would have almost certainly been getting a kickback from the finance company, and they won't be pleased they're losing that.

popcorn8080

do you know if I would be liable for any charges or interest? I don't actually have the car and will be able to get the funds from my parents before the weekend

chanz4

small amount of intrest from the loan been granted to pay back

poppasmurf_bewdley

popcorn8080 wrote: »

do you know if I would be liable for any charges or interest? I don't actually have the car and will be able to get the funds from my parents before the weekend

No charges should apply because it's doubtful the money has been handed over yet. As has been said, you have the right to withdraw for up to 14 days, even if the money had been handed over.