Car finance trap

galaxy999

So I rang the finance company and they told me over the phone that I have to speak to the dealer if I want to cancel the finance. Seems like !!!!!!!! to me as its up to the finance company to withdraw the funds. So how is it? Are they lying to me?

BrassicWoman

galaxy999 wrote: »

So I rang the finance company and they told me over the phone that I have to speak to the dealer if I want to cancel the finance. Seems like !!!!!!!! to me as its up to the finance company to withdraw the funds. So how is it? Are they lying to me?

If they withdraw the funds you then have the car AND don't owe the money.

Sell the car; take the loss and pay it off via a personal loan. That's what would happen with your fancy asset if you went bankrupt anyway.

Expensive lesson but there you go.

[Deleted User]

galaxy999 wrote: »

Also my bank can only borrow me

Sounds fair enough. They may have the space to keep you in any case.

Nearlyold

galaxy999 wrote: »

So I rang the finance company and they told me over the phone that I have to speak to the dealer if I want to cancel the finance. Seems like !!!!!!!! to me as its up to the finance company to withdraw the funds. So how is it? Are they lying to me?

No they are not lying, when you use the right to cancel (the legislation calls it a right to withdraw) a finance agreement within 14 days, it is YOU that has to repay the amount borrowed and do so within 30 days, the finance company DO NOT recover the money from the dealer. That is why the finance company are telling you to talk to the dealer to see if the dealer would be willing to unwind the deal, however the dealer has already told you they are not willing to do this.

Please ignore Poppsmurf's well meaning advice, it won't work. The likely out come would be the dealership sending you a letter asking you to remove your car or they will charge you storage, you would also of course have to find £15000 to repay the loan having cancelled the finance agreement.

poppasmurf_bewdley

Nearlyold wrote: »

No they are not lying, when you use the right to cancel (the legislation calls it a right to withdraw) a finance agreement within 14 days, it is YOU that has to repay the amount borrowed and do so within 30 days, the finance company DO NOT recover the money from the dealer. That is why the finance company are telling you to talk to the dealer to see if the dealer would be willing to unwind the deal, however the dealer has already told you they are not willing to do this.

Please ignore Poppsmurf's well meaning advice, it won't work. The likely out come would be the dealership sending you a letter asking you to remove your car or they will charge you storage, you would also of course have to find £15000 to repay the loan having cancelled the finance agreement.

The 14 day cooling-off period runs from the day the agreement is concluded or if later, from when you receive a copy of the agreement or, notification of the credit limit on a credit card.

While you can withdraw from the credit agreement, the contract for the item or service itself won't be affected.

So if you use credit to finance the purchase of a car, for example, you can withdraw from the credit agreement but you would still need to pay for the car because you have entered into a contract with the car dealer to purchase a car.

The fact that you have withdrawn from the finance agreement means two things: Firstly, the finance company knows they are not going to get paid. Secondly, this will probably encourage them to talk to the dealer and get something sorted out.

You will still be out of pocket, probably to a larger than lesser extent, but better that than being £25k in debt for a car you don't want.

Nearlyold

The fact that you have withdrawn from the finance agreement means two things: Firstly, the finance company knows they are not going to get paid. Secondly, this will probably encourage them to talk to the dealer and get something sorted out.

Giving notice that you wish to withdraw from a finance agreement doesn't necessarily indicate (to the Finance Company) that the customer is not going to pay them, in the ordinary course of events many customers giving notice do so because they have the means to repay the amount borrowed and have found a better finance deal or only took finance in the first place to get an incentive.

In this case it depends on what the OP has actually said to the finance company.

The OP is going to have to rely on the goodwill of the dealer, the finance company will not have much leverage over the dealer as they will still want future business from them

elsien

You must have thought you could afford the monthly payments when you signed up to the deal. So what's changed?
Or is it a case of buyers remorse when you worked out how much interest you were paying?
If you can afford to keep paying for now while you look at selling on (or whatever) then bankruptcy would be a ridiculous route to go down.

So forget about how much it's costing you overall, for now. Can you afford the current monthly payments?

galaxy999

Yes I can afford the payments
And you are right when I think about how much interest I have to pay I feel like jumping off a bridge

Clive_Woody

galaxy999 wrote: »

I rang the dealership and they told me I can't return the car under any circumstances so as expected.
Also my bank can only borrow me 11.500 which is not enough to pay off the finance at once.
Also my bank can only lend that amount for over 60 months time and I would have to give back almost 19.000

Or bankrupcy as I don't see other options but if my annual salary is 19.000 won't I be forced to keep paying for 3 years anyway?

Please advise this huge idiot.

Have you joined the MSE credit club as this will give an indication of the lender most likely to lend you the amount you need (i.e. it doesn't have to be your own bank)?

jonesMUFCforever

OP I think you should seek urgent medical assistance - you seem very fragile to me.
Is there anybody you can talk to face to face?