Car Finance - Cooling Off

Thunder_Bay

Hi everyone!

After some advice please...re HP

I was offered a new job and required a car asap. I test drove a few locally and found one for a great price about 50 miles from me.

Arranged car finance through a broker all via online. Was approved. 7.5K with a 1.5K deposit payable by me to the dealer when collected. This was 6 days ago.

New Job offer fell through yesterday, so I no longer require the car.
Havent collected it yet and havent paid deposit.

Contacted the finance company who say the funds were transferred to the dealer on Tuesday. They state I needed to contact the dealer directly to unwind the finance agreement so they return the funds to the finance house so the agreement can be cancelled.
I spoke to the dealer yesterday who was really lovely (its main dealer) and said it should be fine.
I want to know what my rights are under 14 day cooling off and distance selling
Should I sent notice of cancellation in writing to both finance and dealer??

Shame as its a lovely car and such a good deal but no longer required.

bengalknights

Did you receive the credit agreement?

If so best to send to both parties so that no one "forgets" to do there part

Thunder_Bay

Yes I have received a copy it was signed electronically

National_Debtline

Hi Thunder Bay


Was this a hire purchase agreement (HP) or a loan? HP means you don't own the car until you have finished paying for the credit agreement.


With either a loan or HP agreement (regulated by the CCA) you do have a 14 day cooling off period to change your mind. The difference with a HP agreement though is you will remain liable to pay for the car even after the finance is cancelled.


If it is HP and the car dealer says cancelling is not an issue that sounds positive. He may be willing to waive your liability to pay for the car. It is best to cancel in writing and send this by recorded delivery so you have proof you did it within the 14 days.


Susie
@natdebtline

Thunder_Bay

Hi there

It was HP, I have raised with the broker and the finance company and the dealer.
I have it in writing from the dealer to the broker that all he requires is the bank details from the broker to return the funds.

So I guess what I am thinking is that its all down to the dealer to return the funds?
As it was distance sold (online) and I have yet to pay the deposit and collect the vehicle that I have additional rights under distance selling to not proceed with the dealer?
TBF the dealer has been nothing but helpful.

Thunder_Bay

Also, if the finance company doesnt get the funds back from the dealer and I havent collected the car then my dispute would be with the dealer???

And if I purchased it over the phone via the broker am I protected by distance selling??
Im starting to panic here I am going to be out 7.5K to the finance company and not have a vehicle!!

bris

You have rights to cancel the finance but you have no distance selling rights with the car.


You test drove it so it was not sold over the phone, they can hold you liable for their losses.


As already mentioned, the finance and the car are two separate transactions, having the right to cancel one doesn't mean you can cancel the other.


The dealer may well just forget about it though so don't worry about what might never happen.

Thunder_Bay

Thanks for your response!

I actually haven!!!8217;t test driven it, I haven!!!8217;t even viewed it. The details were supplied to the broker who arranged finance even before the dealer had contacted me to arrange collection.

As I understand it I have rights as it was distance sold, I haven!!!8217;t signed a contract with the dealer and haven!!!8217;t paid a deposit?

I have acknowledgment now from the broker that it!!!8217;s being reviewed to be unwound so fingers crossed

takman

Thunder_Bay wrote: »

Thanks for your response!

I actually haven't test driven it, I haven't even viewed it. The details were supplied to the broker who arranged finance even before the dealer had contacted me to arrange collection.

As I understand it I have rights as it was distance sold, I haven't signed a contract with the dealer and haven't paid a deposit?

I have acknowledgment now from the broker that it's being reviewed to be unwound so fingers crossed

You were buying a used car for £7.5k without even viewing the car or test driving it :eek: .

You have had a lucky escape by not buying this car, you have no idea what problems the car could have had and it could have caused you a massive headache over a long period of time trying to sort it out.