New car purchase - cancel

MrZ01

In January we purchased a new car (factory order) and put down a £500 deposit with another £1000 to pay on delivery on a PCP contract. The initial lead time was 12 weeks so we expected to pick this up in April/May.

2 weeks ago we received notice that we would get a drop in income of about £500 a month. This coupled with a £300 monthly car payment would mean we would have £800 less disposable income than we do at current. Today I got an email that the car will be ready to pick up on 1st March (16 plate).

This is significantly earlier than expected and this car will now put strain on our future finances. The dealer has said that if the finance agreement is rejected we would get a refund. We will be left with only a couple hundred pounds each month after bills.

Due to the financial situation we really do not want the car as we rather have a bit more money to live on. Although I have signed a vehicle order form, I have not signed the financial paperwork. It is a factory standard vehicle with no extras.

I believe we do not have the legal right to cancel. Any advice please, I fear we will not enjoy the car because of this situation.

lee111s

You can most likely cancel but you'll probably lose your £500.

MrZ01

lee111s wrote: »

You can most likely cancel but you'll probably lose your £500.

Not according to the dealer but he obviously wants the sale to complete.

Worth me attending face to face to cancel? Don't mind losing the £500 if it saves financial stress.

andyfromotley

Obviously you can cancel the finance (or not sign). No idea if you can cancel the car. What does your paperwork say.

saverbuyer

Car and finance is separate. Depends on what the paperwork says but I'd say most likely you'll have to buy the car.

MrZ01

saverbuyer wrote: »

Car and finance is separate. Depends on what the paperwork says but I'd say most likely you'll have to buy the car.

I fear you are correct. There is no mention of cancellation rights nor any mention of cancelling at all (except for distance selling which doesn't apply here).

The only part of the T&C that I can see related to this situation is:

If the purchaser shall fail to take and pay for the goods within 14 days of notification that the goods have been completed for delivery, the Seller shall be at liberty to treat the contract as repudiated by the Purchaser and thereupon the deposit shall be forfeited without prejudice to the sellers right to recover from the Purchaser by way of damages any loss or expense which the Selller may suffer or incur by reason of the Purchaser's default.

However delivery doesn't complete until 1st March.

Brooker_Dave

Kiss goodbye to the deposit, surely you can expect to walk away without losing it?

MrZ01

Brooker_Dave wrote: »

Kiss goodbye to the deposit, surely you can expect to walk away without losing it?

As mentioned, I don't mind losing the deposit. it's whether I can walk away.

I think I will go to the dealer today to speak to the manager.

SeanG79

The dealer will probably tell you a lot but in reality they can only pursue you for their losses as a result of cancellation. If the vehicle has not been registered in your name yet, they can sell it on to someone else, so their actual losses will not be huge.

You will however lose the deposit.

Personally I would consider calling up the finance company to inform them of the reduction in income and change in circumstances, as a responsible lender they are likely to withdraw the finance offer before you sign documents.

Car dealers lose sales all the time, I am pretty sure they will settle for the £500 as much as they wont be happy about it.

MrZ01

Thanks for your advise SeanG79. Speaking to the lender makes sense as this would cause the finance to be rejected. However having looked at the paperwork there are 6 different lenders that the dealer uses. I have nothing to say which lender will be used.

I'm guessing I have the right to know which lender will be used, can anyone confirm this?

SeanG79

well then the finance isn't even in place, so what will happen if you are declined? The dealer couldn't then force you to purchase the car if you have no finance.

The finance agreement you need to sign will clearly state who the lender is.