Car finance - please help!

elodieb9

Hello all,

Tried to make sense of a lot of other threads before starting this one, sorry!

12-hours ago I signed a finance form via email to enter into an agreement to purchase a car for £7,000. As of yet, i have not paid any deposit and the last i heard around 6pm the funds were not released to the car dealership from the finance company. The dealership themselves informed me of this.

I have not received a signed copy of the finance agreement from the lender either.

I've stayed awake all night long worrying about this now, thinking it was just a bad decision and i'd rather stick with my old banger - it gets me from a-b and i don't need anything flash. I was sure i wanted the car, but the overhanging repayment and looking at the total cost of repayment just panics me.

Is there a way of me cancelling this altogether so i do not have to take ownership of the car and with minimal (or nil) cost to me?

I have read about 14-day cooling off periods but i can't make much sense of it - it states i will have to repay the amount of credit £7000 and daily interest at around £5 per day.

Also, it was a high-APR loan which in itself has shook me and i made the mistake of signing the document.

Please help

forgotmyname

The purchasing of the car is one thing and the finance is another.

If you have agreed to purchase the car then its yours, pay for it by loan or other means. But you agreed to buy it.

Cancel the loan, how will you pay for the car you agreed to buy?

Nearlyold

As above, cancelling the finance does not cancel the car purchase you need to check the dealer's purchase contract for what happens if you want to cancel the car purchase. If it's only yesterday lunchtime you were at the dealers I wouldn't have thought they would have incurred much cost so if you talk to them nicely they'll probably let you cancel without too much difficulty - get in touch first thing this morning. Come back if you hit problems.

elodieb9

Nearlyold wrote: »

As above, cancelling the finance does not cancel the car purchase you need to check the dealer's purchase contract for what happens if you want to cancel the car purchase. If it's only yesterday lunchtime you were at the dealers I wouldn't have thought they would have incurred much cost so if you talk to them nicely they'll probably let you cancel without too much difficulty - get in touch first thing this morning. Come back if you hit problems.

Hello thanks for the reply and effort you made, same to poster above.

I have not been to the dealers. I saw the car passing a few times and liked it but I've not been to dealer to discuss.

poppasmurf_bewdley

If you have not paid a deposit to the dealer, then no contract has been formed. Just saying "Yes, I'll have it" doesn't form a contract.

You have 14 days to cancel the finance agreement.

Just tell the dealer and the finance company that you no longer wish to proceed with the purchase.

And next time, sleep on it before making a major decision like this. I've been in the same situation in the past, as have many others on this forum. Buyers Remorse is what it's called.

fwor

poppasmurf_bewdley wrote: »

If you have not paid a deposit to the dealer, then no contract has been formed. Just saying "Yes, I'll have it" doesn't form a contract.

Are you sure about this? I guess you noticed that the OP says they have ~signed~ something, and that it was returned to the dealer?

I know there's a degree of vagueness about exactly what was signed, but generally putting anything in writing (even via email) will have some contractual significance, won't it?

poppasmurf_bewdley

elodieb9 wrote: »

Hello all,

Tried to make sense of a lot of other threads before starting this one, sorry!

12-hours ago I signed a finance form via email to enter into an agreement to purchase a car for £7,000. As of yet, i have not paid any deposit and the last i heard around 6pm the funds were not released to the car dealership from the finance company. The dealership themselves informed me of this.

I have not received a signed copy of the finance agreement from the lender either.

I've stayed awake all night long worrying about this now, thinking it was just a bad decision and i'd rather stick with my old banger - it gets me from a-b and i don't need anything flash. I was sure i wanted the car, but the overhanging repayment and looking at the total cost of repayment just panics me.

Is there a way of me cancelling this altogether so i do not have to take ownership of the car and with minimal (or nil) cost to me?

I have read about 14-day cooling off periods but i can't make much sense of it - it states i will have to repay the amount of credit £7000 and daily interest at around £5 per day.

Also, it was a high-APR loan which in itself has shook me and i made the mistake of signing the document.

Please help

elodieb9 wrote: »

Hello thanks for the reply and effort you made, same to poster above.

I have not been to the dealers. I saw the car passing a few times and liked it but I've not been to dealer to discuss.

fwor wrote: »

Are you sure about this? I guess you noticed that the OP says they have ~signed~ something, and that it was returned to the dealer?

I know there's a degree of vagueness about exactly what was signed, but generally putting anything in writing (even via email) will have some contractual significance, won't it?

It doesn't look to me as though they have been anywhere near the dealership, and the OP hasn't apparently signed an order for the car. So no contract exists.

I guess it's pretty much like going into Tesco and filling a trolley with goods and presenting yourself at the checkout, only to find you've left your wallet at home. Has a contract been entered? I don't think so!

Or going into Currys and saying you'll have that 66'' HD TV. You ask if they've got it in stock and they say 'yes'. OK, you say, I'll have it. But on the way to the checkout, reality kicks in and you change your mind. Do you have a contract? No!

nelly12

Distance Selling Regulations anyone?

Nearlyold

nelly12 wrote: »

Distance Selling Regulations anyone?

They have been superseded by the consumer contract regulations however the car dealer would have to be set up as an organised distance seller for the regulations to apply - if the OP saw the car in the dealers window and then phoned up to buy it because he couldn't visit the dealership and the dealership did not ordinarily trade in this way then the regulations would not apply.

elodieb9

fwor wrote: »

Are you sure about this? I guess you noticed that the OP says they have ~signed~ something, and that it was returned to the dealer?

I know there's a degree of vagueness about exactly what was signed, but generally putting anything in writing (even via email) will have some contractual significance, won't it?

poppasmurf_bewdley wrote: »

It doesn't look to me as though they have been anywhere near the dealership, and the OP hasn't apparently signed an order for the car. So no contract exists.

I guess it's pretty much like going into Tesco and filling a trolley with goods and presenting yourself at the checkout, only to find you've left your wallet at home. Has a contract been entered? I don't think so!

Or going into Currys and saying you'll have that 66'' HD TV. You ask if they've got it in stock and they say 'yes'. OK, you say, I'll have it. But on the way to the checkout, reality kicks in and you change your mind. Do you have a contract? No!

Nearlyold wrote: »

They have been superseded by the consumer contract regulations however the car dealer would have to be set up as an organised distance seller for the regulations to apply - if the OP saw the car in the dealers window and then phoned up to buy it because he couldn't visit the dealership and the dealership did not ordinarily trade in this way then the regulations would not apply.

Thanks for the responses. I was having a meltdown about all of this.

I called the broker who acted for the car sale and they said that my finance was in "review" stage with the finance company so not fully approved for finance i presume that means, they immediately contacted the finance company and withdrew my application and said that would be the end of it.

The broker asked me to call the dealership and inform them, which i done so. The dealership had not received the funds from the finance company and understood my reasons for not wishing to go ahead.

The dealership didn't take the car off sale - they said it was fine to cancel. Both the broker and the car dealership said that would be the end of it all and they were actually very helpful.

I didn't sign an order form for the car.

I never physically visited the car dealership.

tidds

Sorted then! Glad it all worked out. Next time as others say, make sure you sleep on it.