Car Finance Company Error

Oakdene

Contact the dealer if you dont have your invoice, thier sales admin should be able to provide one.

Nearlyold

Oakdene wrote: »

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

Actually that would not be correct £8500 would be the "advance" on the finance agreement.

As the OP was in negative equity (say £3000 down) the invoice and finance agreement should have looked like this using your example figures

New car price: £10,000
Less Deposit: £(1,000)
Less PX value: £(3,000)
Add settlement on PX £6,000
Borrowing required £12,000
However the lender would probably not be prepared to lend this amount because it exceeds the value of the new car.

So the dealer "bumps" the price of the new car and the part exchange value thus:-
New car price: £12,000
Less Deposit: £(1,000)
Less PX value: £(5,000)
Add settlement on PX £6,000
Borrowing required £12,000

As the borrowing is now the same as the supposed value of the new car the loan is more likely to be granted. There could also be some additional sleight of hand whereby the invoice sent to the finance company to get payout is different to the one given to the customer.

molerat

Perhaps the finance co are trying to sort this out nicely before calling fraud !

jl01

if theres something fraudulent going on its definitely not something ive attempted as the dealership originally sold me the part ex car on a previous finance agreement and told me the negative equity would carry over into my new vehicle. I cant see how ive done something wrong here.

molerat

Do the figures on your finance agreement match all the values of the vehicles and remaining finance figures ?

rtho782

You need to tell us the existing and proposed figures for anyone to have any useful advice. A copy of the terms would also be helpful.