Leasing a new car - Finance "cooling off" period

vans74

Last week agreed to a personal lease deal on a new car. I've been informed by the dealership that the finance has been agreed & since last Thursday I've been awaiting confirmation of when I can collect the car. Car is in stock at the dealer & ready for collection.

This morning I get an email that says:

"It appears upon looking into the terms and conditions with this lease company there is a requirement from the Financial Conduct Authority that you have a 14 day "cooling off period" which means that unfortunately you won't be able to pick your new car up for another 10 days or so, this was only apparent from our side when we chased up with the lease company."

Does this sound right? I understand the concept of cooling off periods, but should this prevent me from collecting the car?

TadleyBaggie

I suspect they will not get paid by the finance until the cooling off period has expired. So if you were allowed to collect the car and then cancelled the finance, they would be out one car.

Quentin

If you can't wait contact the finance company and see if there's some way you can waive your right to cancel

Oakdene

Yes because if you take the car home then decide to cancel the dealer now has a used car to sell as opposed to a new one.

neilmcl

vans74 wrote: »

Last week agreed to a personal lease deal on a new car. I've been informed by the dealership that the finance has been agreed & since last Thursday I've been awaiting confirmation of when I can collect the car. Car is in stock at the dealer & ready for collection.

This morning I get an email that says:

"It appears upon looking into the terms and conditions with this lease company there is a requirement from the Financial Conduct Authority that you have a 14 day "cooling off period" which means that unfortunately you won't be able to pick your new car up for another 10 days or so, this was only apparent from our side when we chased up with the lease company."

Does this sound right? I understand the concept of cooling off periods, but should this prevent me from collecting the car?

They're playing a fast one, pretending they don't know about cooling off periods, yeah right. As mentioned they simply want to prevent your from collecting the car then cancelling the finance which may stop them getting their commission from the finance deal. FYI, it's 14 days from the day you sign the finance agreement so if you haven't signed yet, then sign when you collect the car.

Also, bear in mind you don;t have to cancel the agreement, if that's what you're planning, you can simply "settle" the agreement anytime and if you do this pretty much straight away, even after 14 days the amount of interest charged will be minimal.

neilmcl

Oakdene wrote: »

Yes because if you take the car home then decide to cancel the dealer now has a used car to sell as opposed to a new one.

No, if he takes the car home and cancels all the OP will be doing is cancelling the finance, they'll still have the car to pay for! What makes you think the dealer will be left with the car?

Oakdene

neilmcl wrote: »

No, if he takes the car home and cancels all the OP will be doing is cancelling the finance, they'll still have the car to pay for! What makes you think the dealer will be left with the car?

I meant if OP cancels the deal in terms of actually taking the car as oppposed to cancelling the finance. Sorry I dont think I have had enough coffee yet....

flashg67

I thought all personal (ie not business to business) lease/PCP transactions were covered by the FSA

bigadaj

flashg67 wrote: »

I thought all personal (ie not business to business) lease/PCP transactions were covered by the FSA

What the food standards agency?

The fsa changed to the fca nearly a decade ago now, ultimate punishment for any regulator or government department is to be forced into name change, like maff becoming defra after the foot and mouth outbreak.

Glover1862

what make of car is it? Bit naughty holding the car back waiting for the cooling off period to expire, it's meant to there for a reason. I retuned a Skoda, VW finance didn't make too much fuss, if it's PCH then it goes back to the manufacturer who normally sell it on via a public or closed auction.

takman

Glover1862 wrote: »

what make of car is it? Bit naughty holding the car back waiting for the cooling off period to expire, it's meant to there for a reason. I retuned a Skoda, VW finance didn't make too much fuss, if it's PCH then it goes back to the manufacturer who normally sell it on via a public or closed auction.

The cooling off period is for the fiance agreement so you have a chance to read through all the terms and conditions and make sure your 100% happy with it before committing, for people who don't do this before they sign.

The cooling off period is not to return the car if you don't like it so whether they have the car during the period or not really makes no difference.