Switching hire purchase finance prior to final purchase of car?

poguemahone87

Evening all,

I have just put down a deposit on a nearly new car from a dealership. Super happy with it and looking forward to getting the car next week!

We had previously organised a car loan in principal from Lloyds prior to finding the car we wanted, and we got a good deal on the loan in principal. However whilst we were purchasing the car in the dealership they offered their finance and we accepted it (dealer pressuring us with a "great deal" which, looking now, wasn't too great). Now comparing the dealer finance and Lloyds, Lloyds is clearly better.

I am going to ring the dealership tomorrow and see if we can cancel their finance and move over to the Lloyds. Has anyone has experience of this before? I assume it should be okay as the dealership finance says we can back out within 14 days of the agreement, and we have signed the purchase order and put down a deposit, so they cannot back out of selling the car to us.

Thanks for any advice, and apologies if this is the wrong forum for the question!

Quentin

Maybe the price agreed is conditional to you taking out the "dealer finance"?

poguemahone87

Looking at the agreement there is nothing about the price agreed being due to taking their finance. The price we are paying is what they were asking for, prior to us talking about finance. Hopefully they will let us change! Hopefully the dealer is in tomorrow...

marlot

If you look at the paperwork, there could be a manufacturer or dealer 'contribution'.

If not, you can cancel the finance within 14 days, giving you plenty of time to arrange an alternative.

poguemahone87

Thanks - no dealer contribution on the paperwork, so fingers crossed the dealer won't be difficult when I ring them!

poguemahone87

quick update: dealer was fine with us changing to Lloyds finance, no problem! Worrying about nothing!