missold car / finance

ChumLee

gemmab1985 wrote: »

Like what? What am I looking for?

For staters something to support your allegation.

Start off at the end of year one, price the first car was traded for, cost of the new car. The finance on the new car and the remainder on the old one.

motorguy

gemmab1985 wrote: »

Hello I'm new to this and hoping deperatly that someone can help us.
We went to a car dealership almost 5 years ago to look at getting a new car as our old one was falling to bits. We found one we liked at a price we could afford with insurance and tax included. At this time we were informed by the seller that the term would be 5 years and the we should take the car back every year and they would upgrade the car. Whatever car we had at the end of the 5 year term was ours to keep... so that is what we have done, however when we took the car back the first time they have re-started the finance and added on the depreciation from the first car... payments went up but we were lead to believe it was a better model vehicle. We also at this point had to pay our insurance separately. The second time we took the car back it happened again.. we are now on our fourth car owing 3 times what the car is worth and struggling to meet the repayments. Had I realised what was happening I would have never taken the first car we had back. I really don't know what to do, please help us!

It sounds like you have been told if you keep the car five years then its paid off, however you could come back every year and change your car if you wanted (but with extra cost involved). Somewhere along the line this has been merged into "pay a five year agreement and every year we'll give you a brand new car".

Each year your partner must have been signing a new agreement and rolling the debt from the previous car in to the deal.

There is no way this was done without any paperwork or without an explaination of what was happening.

I would have a long hard chat with your partner to see what was happening each year when he went in - i cant believe he wasnt signing any paperwork and that either leaves him blindly signing paperwork and being bedazzled by the idea of a new car, OR outrightly lying to you.

motorguy

gemmab1985 wrote: »

Like what? What am I looking for?

gemma, you're really not helping yourself here, and i'm starting to think you're just a troll whos trying to get people to waste their time on a non-existent scenario.

As has been said, find the paperwork, see what was signed 5 years ago, and find something to back up this notion that you could change your car every year and at the end of year 5 you get to keep the newest car.

Also, find any paperwork that was subsequently signed.

Mercdriver

You need to find the credit agreements. There will be one for each transaction. If you can't find them, get in touch with the finance company/ies and ask for duplicates.

I think you and your partner have been naïve in the extreme. If there was such a deal where you could swap your car every year and keep the last one with no further payment, everyone would do it. It would be too good to be true, and as the saying goes, if its sounds to good to be true, then it probably is.

Thing is if they were misselling like this, you wouldn't be the only ones. Have you done any research to see of there are similar complaints by other customers?

gemmab1985

I'll do that it's not looking hopeful. Might have to speak to the finance company to see if they can extend the term and lower the payments so we can manage them. Thanks for ur help

ChumLee

gemmab1985 wrote: »

I'll do that it's not looking hopeful. Might have to speak to the finance company to see if they can extend the term and lower the payments so we can manage them. Thanks for ur help

Owing 20 grand you'd be better off going to a bank. I can't see them securing a new load against a 6 grand car.

colino

Believe it or not, I had a boss about thirty years ago who sincerely thought he had this magical finance roundabout that "allowed" him to change cars every two years on a five year plan. I was mystified then and mystified now as how someone would blame it on the paperwork, "the devils in the detail" on what obviously couldn't be true in the real world. When he eventually brought in the new paperwork, he had already changed his car once, it was now a seven year plan plus a bullet payment.
While most finance plans effectively end when the car is worth a fraction of the original loan, with these deals you are better getting a settlement figure and working out if you can refinance (before personal loans start going up again) and make sense of such a terrible deal.

bigjl

This thread certainly shows that there can sometimes be DARK forces in the used car world and it MATTERS a lot if you don't read the contract.

Brand new poster and a tale so tall a 747 has to avoid it.

ChumLee

bigjl wrote: »

This thread certainly shows that there can sometimes be DARK forces in the used car world and it MATTERS a lot if you don't read the contract.

Brand new poster and a tale so tall a 747 has to avoid it.

They'll have to go some to beat this guy.

http://forums.moneysavingexpert.com/search.php?searchid=163085635

colino

bigjl, you may be right, but the lack of model detail and no tedious specifics like the monthly payment to the penny and the date of payment aren't really his style.