Finance problem caused by dealer mistake after picking up car

gearsgears1

Can anyone assist with this?

We went to a MINI dealership (a fully branded official one) and have bought a car. We didn't haggle on the price and swapped in an earlier Mini. We chose a PCP contract which was put into the MINI systems, approved and printed out for us. The finance on our previous car was cleared by the valuation figure. A week and a bit went by, we picked up the car, signed all the finance paperwork and off we went.

Several days have passed (4 days) and the manager has now called to say that they've basically had the finance deal refused by their Financial Services people "above". It seems that they made a mistake and the PCP deal can't be done because the car would be "too old" at the end of the term.

Basically, it's all their fault. They've offered a straight finance deal instead but this works out at a longer term and around £15 more per month. I'm currently trying to get a discount on the car as we didn't haggle on price and this has taken us by surprise. I don't know if we actually own the thing now - it's been on the drive and effectively the finance company hasn't paid for it, so I don't know who owns it as I have the V5 and all the other documents.

Any advice on what to do? We like the car but this really is a kick in the nuts.

colino

Push the dealer to match the original deal. When you have, "signed all the finance paperwork" and driven off, that is usually when the deal has been cleared for finance, not a trader sending off finance proposal forms. If it is a MINI dealer, sounds like they should swallow it and knock heads together behind the scenes.

Foxy-Stoat_3

How much extra will you be paying overall and would you not of bought it for the sake of £15 a month and extra term?

Did the PCP contract have a balloon payment at the end and does your new finance deal have the same?

Options;

Take the extra on the chin and away you go,
Get the dealer to reduce the purchase price so it won't effect you finanically, its their mess up afterall,
Get some free servicings to the value of their mistake,
Return the car and take your old one back and look elsewhere,
Can you get a bank loan for similar rates?

wiltsguy_2

i agree, it defo seems you have the slight upper hand in this case. The car is no longer new(assuming it was) and they can't sell it as so, i would use this to your advantage and push them for a discount to bring that payment down by a minimum 15%...

terric

I don't think the V5 is proof of ownership unfortunately, this really is a !!!! up isn't it! The car does still belong to the finance company (through the life of the PCP) I believe - but the fact that they've let you drive the car away... well surely that's acceptance by both parties that everything has been finalised?!

gearsgears1

Thanks all. The car wasn't new (it was a "MINI Cherished" vehicle) and I wouldn't have taken the deal if they'd come up with the higher figure. Brilliant advice though.

gearsgears1

The PCP isn't valid. They only emailed off the finance deal to the finance company after letting me drive home, and have then spent days "trying to come up with a resolution" between them (the dealership) and the finance company. It seems they can't, so I've driven around in a car which (a) hasn't been paid for (as the PCP agreement has been rejected by the finance company) and (b) is in my name on the V5 etc.

They have our old car, but the value of that just paid off the old PCP deal we had previously.

Basically I seem to have walked in, given no deposit, had all the paperwork and other details swapped into my name, (effectively) paid no further money and driven away.

Crazy. It's like I've had a free car, but I'm sure it won't be seen that way

They're now offering a good finance deal but I want to keep to our original payment structure as that was our absolute top-whack per month.

Foxy-Stoat_3

gearsgears1 wrote: »

They're now offering a good finance deal but I want to keep to our original payment structure as that was our absolute top-whack per month.

What was the original deal and what have they now offered, actual figures?

neilmcl

terric wrote: »

I don't think the V5 is proof of ownership unfortunately, this really is a !!!! up isn't it! The car does still belong to the finance company (through the life of the PCP) I believe - but the fact that they've let you drive the car away... well surely that's acceptance by both parties that everything has been finalised?!

The car doesn't belong to the finance co. as they've refused to finance it. As mentioned earlier, you have the upper hand here. Either get them to give you a discount to cover the extra finance costs and any inconvenience or take your own car or cash equivalent back.

IamNotAllowedToUseMyName

You need to be a little careful, as clearly it is not your car, so you cannot treat it as such, but if they took it back they would have the devaluation of another owner on the books. If they want to put things back to before then they can do that.

You have done nothing wrong - you were clearly given the impression that your finance had been cleared - you acted in good faith.

Go back to them and say what you have said here, get them to give you a finance deal that works out the same over the life of the car. If that means they have to take a reduction in price (and with compounding interest it should not be the same as your difference in payments) then they should.

You also could investigate arranging your own finance, and see what value you can get through your bank or other low cost loan options - it might be that with some looking around you can get a better rate than they are prepared to offer. Potentially you might be able to get them to meet you half way - you get a lower interest loan and they give you money off the face value of the car and you might be able to sort it out.

I'm guessing you want the car, so tell them either you want it but they will have to work with you to cover the gap or you will reluctantly have to return it as you are not prepared to pay the difference.

If you do end up returning the car, insist that you are not out of pocket (e.g. vehicle excise duty lost over the month).

harveybobbles

They could just report the car as stolen so it will flash up on every ANPR system until you give it back.

Ask them to pay the £15 extra each month. Or meet them half way if you have to.