Are fees reimbursed when withdrawing from car finance agreement?

JGal

I'm looking at purchasing a used car from a dealer and would prefer to pay cash but was wondering if I may get a better up front price if it was bought through their finance (HP/PCP). One salesman has told me that they are not allowed to offer a lower price for finance as opposed to cash, but wondered how true this is in practice.

If I buy on finance then subsequently exercise my statutory right to withdraw (cooling off period) and settle in cash, what charges, if any, will I be liable for? In the example below Acceptance and Option to purchase fees are mentioned, but I'd like to know the former would be refunded and the latter not applied.

Cornucopia

The Acceptance fee, probably not.

The Option to Purchase fee, maybe. You need to check the small print to see what it covers. I'm slightly surprised to see the fee on an HP agreement, anyway - perhaps it is a mistake?

£3k + £233 per month on a PCP is a fair chunk of cash (just over £14k or 36p per mile). Hope the car is something special for that kind of money.

Also 12.7% APR is way too high.

Nearlyold

Cornucopia wrote: »

The Acceptance fee, probably not.

The Option to Purchase fee, maybe. You need to check the small print to see what it covers. I'm slightly surprised to see the fee on an HP agreement, anyway - perhaps it is a mistake?

£3k + £233 per month on a PCP is a fair chunk of cash (just over £14k or 36p per mile). Hope the car is something special for that kind of money.

Also 12.7% APR is way too high.

The Option to Purchase Fee on an HP agreement is not a mistake, all HP agreements have an option to purchase fee though confusingly the fee can be nil. For the OP whether or not the finance offer is a good deal is not relevant as they intend to withdraw anyway. Interest will be payable for the period the loan is in place but as for other fees suggest OP Googles "European Credit Directive" for what can be charged as that is the legislation that introduced the right to withdraw

chanz4

If within 14 days nothing

JGal

Nearlyold wrote: »

The Option to Purchase Fee on an HP agreement is not a mistake, all HP agreements have an option to purchase fee though confusingly the fee can be nil. For the OP whether or not the finance offer is a good deal is not relevant as they intend to withdraw anyway. Interest will be payable for the period the loan is in place but as for other fees suggest OP Googles "European Credit Directive" for what can be charged as that is the legislation that introduced the right to withdraw

I've searched on ECD and Consumer Credit Directive and can't find anything addressing this point. The company in question charging acceptance fees is Harratts Group.

Nearlyold

Extract from the consumer credit regulation: guidance on the regulations implementing the Consumer Credit Directive updated for EU Commission Directive 2011/90/EU (effective 1 January 2013). on the Gov.uk website


The borrower is not liable to pay any other fees or charges (except any non-returnable charges paid by the creditor to any public administrative body) and the creditor cannot claim any compensation from the borrower (section 66A(9)(b)). If an administration or arrangement fee is due to be paid, the borrower will not have to pay this. If the borrower has already paid such a fee it must be refunded without delay, unless the borrower elects to deduct the fee from the amount he or she is repaying.