Can I cancel an HP agreement

paulfully

Hi,

I was looking into buying a new car a few days ago on HP.

I have signed all the documentation saying that I intend to buy the car and I have signed the HP documentation.

However I have not paid any deposit to the dealership and the finance company has not actually released any funds yet as they require a document to prove that the car is insured. Also worth noting I have not actually picked the car up from the dealership or received keys yet.

After thinking about the deal a little more I have decided that if I can get out of the deal I would rather do so.

I called the dealership today and they told me that as they have made me the owner of the vehicle and my name is now on the V5c I can't cancel the agreement.

However looking at the documentation from the finance company it states I have a right to withdraw within 14 days.

If I phone the finance company and cancel the finance what does this mean as far as the dealership is concerned? Will I still owe them money?

Any help would be appreciated.

neilmcl

The contract to purchase the car and the finance agreement are two separate things. Whilst you do have the right to cancel/withdraw from the HP agreement within 14 days this does not cancel your contract with the dealership to buy the car.

Why have you changed your mind at such a late stage?

paulfully

Hi Neil,

Thank you for your quick reply. I received notice from work last night that I will no longer have a job in 1 months time.

With this being the case I am going to struggle to meet the monthly payments.

Herzlos

If you're not going to be in a position to afford it, you might be better calling the dealers bluff and asking them to ammend the V5 - they won't send it off until you've paid them.

You can always offer to reimburse them for some notional loss for the paperwork, which will be a lot cheaper than taking the car.

EssexExile

Or you could tell the dealer you'll be without a job in a month & you can't afford the car any more.

davidwood123

Herzlos wrote: »

If you're not going to be in a position to afford it, you might be better calling the dealers bluff and asking them to ammend the V5 - they won't send it off until you've paid them.

You can always offer to reimburse them for some notional loss for the paperwork, which will be a lot cheaper than taking the car.

That is the right thing to do. Be honest, admit you made a mistake and see what they can do for you.

Not a fan of the blame game/messer culture that seems to be rampant at the moment