Right of Withdrawal- Car Finanace. Help!!

Fernnzzz

Hi!

I was wondering if anyone would be able to help me...

I'm finding it very difficult to find a clear answer on how the right of withdrawal works? I have bought a car on hire purchase and I don't think I will be able to sustain monthly payments and fuel costs of the car. I'm only day 2 into 14 day cooling off period.

Do I get to hand the car back and walk away from the agreement? I'm reading there will be days of interest around £5 a day (which is fine) & I still need to pay all of the credit?

surely I can't hand the car back and still have to pay the full amount of the car too?

...as you can see I'm getting confused and don't know what to do! Any help would be greatly appreciated!!

Fat_Walt

Fernnzzz wrote: »

Hi!

I was wondering if anyone would be able to help me...

I'm finding it very difficult to find a clear answer on how the right of withdrawal works? I have bought a car on hire purchase and I don't think I will be able to sustain monthly payments and fuel costs of the car. I'm only day 2 into 14 day cooling off period.

Do I get to hand the car back and walk away from the agreement? I'm reading there will be days of interest around £5 a day (which is fine) & I still need to pay all of the credit?

surely I can't hand the car back and still have to pay the full amount of the car too?

...as you can see I'm getting confused and don't know what to do! Any help would be greatly appreciated!!

You can cancel the credit but you'll need to find another way of paying for the car. You can't simply hand it back and walk away without any penalties.

neilmcl

Fernnzzz wrote: »

Hi!

I was wondering if anyone would be able to help me...

I'm finding it very difficult to find a clear answer on how the right of withdrawal works? I have bought a car on hire purchase and I don't think I will be able to sustain monthly payments and fuel costs of the car. I'm only day 2 into 14 day cooling off period.

Do I get to hand the car back and walk away from the agreement? I'm reading there will be days of interest around £5 a day (which is fine) & I still need to pay all of the credit?

surely I can't hand the car back and still have to pay the full amount of the car too?

...as you can see I'm getting confused and don't know what to do! Any help would be greatly appreciated!!

The sale of the car and the finance are 2 separate things. Yes you have the right to cancel the finance but then you'll still owe the dealer the the amount you agreed to pay for the car. You can try and persuade them to buy back the car but you'll definitely lose out in terms of the price you paid and what they'll now offer to take it back.

The only other option is to try and sell the car privately then settle the finance.

Rain_Shadow

Hmmm. yet another OP in the dark on this matter?

neilmcl

Rain_Shadow wrote: »

Hmmm. yet another OP in the dark on this matter?

If you say so.

dannyrst

curlywurlytalktalk wrote: »

Didn't you think of the monthly cost and cost of fuel before you bought the car?

I'm sure that will help the OP with the issue they are in now. All for educating the OP, but honestly, at the prospect of being stuck with the car or losing £1,000's...I'm sure they learnt their lesson.

Le_Kirk

Rain_Shadow wrote: »

Hmmm. yet another OP in the dark on this matter?

Every new poster these days with a slightly off the wall question seems to be accused of being DM101 resurrected. Surely the forum rules (and the catching software) prohibit the same people from signing up under different names?

t45

I have just successfully exercised my Right of Withrawal from PCP - I was helped greatly by people eon this forum - the advice they offer and guidance was exceptional and I have successfully withdrawn from PCP.
You have a 14 day cooling off period - and I have a 30 day period from the date of withdrawal to pay the sum for the car.
I have also cancelled a number of added extra products that after purchasing the car I realized I did not require - again I was able to do this because of the good people eon this forum - motoring/car thread, who advised and offered guidance....

AnotherJoe

curlywurlytalktalk wrote: »

So are you handing back the car then or funding it by some other method?

\
"You have a 14 day cooling off period - and I have a 30 day period from the date of withdrawal to pay the sum for the car."

Which of course is not the OPs issue at all, he doesn't want the car, t45 merely didn't want the payment scheme for the car. Which I think to be fair you were pointing out.

OP I'd be amazed if you can just hand the car back. Its a second hand car now probably worth maybe 80% at best what you paid for it 2 days ago, why would the car dealer take such a loss on it when there is nothing wrong with it?

Mercdriver

Depends on how good their credit rating is. Some of the main dealers APRs are eye watering. BMW for example are around 10% APR, when you can get a personal loan at 3.9% if you have an excellent credit history. However, I'd wager that those that have these credit histories tend to be more organised and weigh things up better than the OP

AnotherJoe

curlywurlytalktalk wrote: »

The OP's story doesn't seem to stack up. If they can't afford the car, any other funding method isn't going to work either. Getting out of the credit agreement won't help as they will just need to find another way of funding the car which is going to be just as expensive.

They haven't understood, and are expecting to hand the car back as well

"surely I can't hand the car back and still have to pay the full amount of the car too? "

So, they obviously think the 14 days cooling off period applies to the car, and not only the finance.
Hence I suspect the silence from the OP.

Having said that, it's unclear to me, re-reading the OP's post:, if they actually have the car yet.

If they havent taken delivery, and only signed the finance, it's possible the dealer may let them cancel the whole thing. There's probably a deposit of £500 - £1000 they will lose unless the dealer relents or let's them put it towards a cheaper car.