HP Finance deal on Car.

MP3

Hi,

Having recently spent quite a lot of money fixing my old car in the last month I decided enough was enough when the clutch went as well.
I did the maths and worked out that the money had been spending on secondhand cars over the last 10 years also was a equivalent To paying a fixed sum each month on a virtually brand-new car.

I found a local Eden Vauxhall dealer and went and looked at a car that initially I wanted on 0% interest free over five years, they did the Credit search and told me that I wasn’t eligible however my partner may well be so Long story short my partner decided to put the car in her name.

I’d been told over the phone that the rate of interest for the car would be 5% which I initially said no to as I knew that I would be losing even more money when I would I drove it away. The dealer then told me that they were going to discount the original price of the vehicle from £9000 by £1600, which would in effect be the cost of the interest I would be paying so I wouldn’t be out of pocket.

The following day we went in to the dealership with my 1 1/2-year-old and my partner to sign the deal at the time my child was very hungry and the dealer had said that The car wouldn’t be ready for half an hour so I took my child over the road to get some food about 10 minutes later my partner phoned me and said it was all done and we could go. I collected the car and when I got home, looked at the paperwork Only to find that the 5% that the dealer talked about was actually what was known as a flat rate and in reality was 10.2% and Ive also been charged £2000 for the setting up of the credit agreement. So in effect instead of the discount applied covering the interest as he had said (so that I would be paying back £9000 in total), I’m now going to be paying back £10785.


I Immediately phoned the dealer and said that I was extremely unhappy with the agreement as it was more than we’d agreed on the phone and also that I wasn’t even there when it was signed and that he had been doing all the logistics of the deal with me and that my partner wasn’t in the loop at all, (as I had explained the deal to her as he explained it to me).

I’m still well within the 14 day period of right of termination. Can any one give me advice as to how to move forward with this?

Many thanks.


.

AnotherJoe

TL;DR version

Signed contract without reading it, when they later read it, realised it cost more than had been agreed.

Can cancel it.


So ...... why don’t you ?

MP3

Will the right to terminate within 14 day’s lead me to incur charges from the dealer though?

System

I did the maths and worked out that the money had been spending on secondhand cars over the last 10 years also was a equivalent To paying a fixed sum each month on a virtually brand-new car.

Nearly new and even new cars need to be serviced and have things done like brake pads and discs etc. The cost of running them is more than just the monthly repayment and you'll find that servicing a new/nearly new car to the warranty standards costs a lot more than it does on an older car so bear that in mind with the maths.

You're looking at one what 2/3 years old? Given that almost all dealer finance is done in a similar manner you're only going to get the same kind of deal elsewhere. Personally I'd be looking at an unsecured bank loan. It should be possible to get rates around 3.3% for a £9000 unsecured loan and over 4 years will be about £200 a month with around £600 in interest in total.

MP3

Yes the car is 2015. My question i guess largely boils down to this: given I’ve only had the car for three days in to agreement and the 14 day right to terminate, can I take take the car back to the dealership without incurring any loss financially, given that I what I was told was not what In the end what I was sold.

Nebulous2

MP3 wrote: »

Yes the car is 2015. My question i guess largely boils down to this: given I’ve only had the car for three days in to agreement and the 14 day right to terminate, can I take take the car back to the dealership without incurring any loss financially, given that I what I was told was not what In the end what I was sold.

There are two different agreements. You agreed with the dealer to buy the car. You agreed with the finance company to borrow the money to pay for it. Do they both have 14 day right to cancel?

You may well find you can cancel the finance but still need to buy the car by other means.

DCFC79

MP3 wrote: »

Yes the car is 2015. My question i guess largely boils down to this: given I’ve only had the car for three days in to agreement and the 14 day right to terminate, can I take take the car back to the dealership without incurring any loss financially, given that I what I was told was not what In the end what I was sold.

What does your contract say about this ?

Cancel it tomorrow.

MP3

I will have to check this aspect of the contract. I phoned them yesterday and asked them straight out what the options are they said most probably they would have to buy the car back of me at a lesser price than I bought it 2 days ago ��

consumers_revenge

Have a look at Halifax car finance.


Believe you don't have to be a member ( I am ) but what happens is they buy the car from the dealer then you pay them back in either HP or PCP type deal. The rate for me was 4.1% which was 1/3 price of dealers finance.

PaulJWood

In your case, I think you should not be rush. You said that you have already phoned them yesterday and they will give you the car with a much cheaper price right? Usually when they delay your phone and schedules, it is usually because they cannot find or deal with other buyers and dealer, so they will have to delay.
Overall, If they promise to give you a car with a much cheaper price, you can be sure that the car has already be yours, and they sale it just for you as an apologize for the delay.:beer::beer:

[Deleted User]

PaulJWood wrote: »

Japanese car home page spam

Reported.......