Car Finance Company Error

jl01

Hi there

I've recently received a letter from my finance company admitting to an error on the conditional sale agreement for a car purchase.

In brief they have advised that when I purchased my new vehicle the existing finance on my part exchange (previous) vehicle was not taken into consideration and they now want to amend the termination and repossession value on the conditional sale agreement.

When i traded in my previous vehicle the dealership were aware of the outstanding finance and advised they would factor this into the sale price on the new vehicle.

Ive checked my contract and there is no clause for amendments due to errors. Do I have grounds to respond and request termination of the contract ? This error has only been raised a year after purchasing the vehicle.

Thanks

Ben8282

Who repaid the finance on the old vehicle?

PeacefulWaters

Are you up or down if things remain unchanged?

Oakdene

Check your paper work from the dealer to see if your PX was taken into account. In short it your order form should have looked something like this (using example figures):

New car price: £10000
Less Deposit: £(1000)
Less PX value: £(3000)
Add settlement on PX £2500
Total price: £8500

The £8500 should be your base price on your finance agreeement

~Brock~

jl01 wrote: »

Do I have grounds to respond and request termination of the contract ?

What would be the point in terminating the contract? Are you thinking that you might get a free car?

tykesi

~Brock~ wrote: »

What would be the point in terminating the contract? Are you thinking that you might get a free car?

Sounds like he's looking for an easy way of not fulfilling his contractual obligations or cutting his nose off to spite his face.

Herzlos

jl01 wrote: »

Do I have grounds to respond and request termination of the contract ?

They'll happily give you a settlement figure to terminate the contract.

Unless you're hoping that this error means you don't have to pay any more?

jl01

Well i wouldn't call it looking for an easy way out, if the contract has been done incorrectly and now they want to fix it because of their errors would you feel happy about it? I cant even tell if my original agreement was arranged correctly as this was based on incorrect information......

Nearlyold

When i traded in my previous vehicle the dealership were aware of the outstanding finance and advised they would factor this into the sale price on the new vehicle.

This is not a finance company error. I'd hazard a guess the dealership and the customer (OP) have colluded together to mislead the finance company as to the price of the new vehicle. They have added the negative equity to the price of the new vehicle and used the surplus to clear the old finance. The result is the finance company don't have the security in the new vehicle (because of the lower value) that they thought they had. The finance company will not be happy with either the dealer or the customer. The OP would be better to keep his/her head down.

jl01

its left me in the dark "nearlyold", when i took the part exchange car back to the dealership (as it was originally purchased there) they told me they will factor any negative equity left in the part exchange vehicle into the new car finance, basically it was worded along the lines of "we will sort out the outstanding finance" and will generate the new finance contract.

[Deleted User]

jl01 wrote: »

if the contract has been done incorrectly and now they want to fix it because of their errors would you feel happy about it?

Yes. I wouldn't want an incorrect contract.