Car finance can it be cancelled and cash paid

Disneyfan1

I accepted a car yesterday and sign up for finance. The payments were cheaper than expected and I have agreed to part ex my old car.

I didn't receive any paperwork as the printer wouldn't work.

When I got home and worked out the figures it looks as if the car trade in price was took off after the interest was calculated but I'm not 100% sure as I don't have any paperwork.

Anyway I now have the option of a family interest free loan for the finance amount so my question is can I cancel the car finance using the 'right of withdrawal' and pay the cash price minus my part exchange amount or do they have the right to refuse my part exchange now?

Thanks

Pixie5740

Yes you can cancel the finance but you might want to hold off until you've got the car. It's just that usually you get financial incentives for taking out finance that you wouldn't get paying cash. For example, I negotiated a couple of thousand off the last car I bought because I took the dealerships finance but paid it off in full after I got the car. Win win for me.

Nearlyold

When I got home and worked out the figures it looks as if the car trade in price was took off after the interest was calculated but I'm not 100% sure as I don't have any paperwork.

You pay interest only on what you borrow so what you suggest is impossible.
Pixie is right though, its usually best to continue with the finance deal till you've collected the car, this way you keep any discounts or incentives negotiated as part of taking finance, then notify the finance company you wish to withdraw (within 14 days) you will have 30 days to pay the finance company what you owe - there will be a small amount of interest to pay based on the time the loan has been "live".

dresdendave

Disneyfan1 wrote: »

I didn't receive any paperwork as the printer wouldn't work.

Hopefully this was a genuine situation but if I was signing up to pay thousands on a finance deal I would refuse to do so without copies of what I was signing up for.

vietnguyen605

This is a really good tip though:beer: