Car finance ... Mislead into accommodation deal?

DandA9092

We've needed a new car for ages and sadly due to my ex running up my CC's before doing a runner I have bad credit. We decided to look for a car on finance that my partner would pay for so went to one of those well known used car dealership chains. We both said multiple times that the car would be mine but my partner would pay for it, we even spent ages looking at colours where she proceeded to say "It'll be your car so you pick"

She got accepted for finance, read all the terms and there was no mention of who the main driver must be. Signed it, sent proof of ID etc and they were fine. They then asked for proof of fully comp car insurance in her name .... A bit odd since we clearly stated that I would be the main driver to the sales advisor at the dealership. Turns out the advisor told the finance company that the car was for my partner with NO mention of me.

I've since done a bit of digging and ftom looking online, it turns out that this is something called an "accommodation deal" (even if my partner will be paying for it herself and not relying on me paying her back) and is considered fraudulent. I've discovered that the only two LEGAL ways I can drive the car is as a named driver. The issue is my partner only has a provisional license and I do 20K miles a year. It won't take a brain surgeon to know a learner couldn't possibly be driving that many miles a year so that option is out! The other way is to have the policy in her name BUT put me on as a named and the main driver but under both of these I earn no NCB!

We honestly did not know that this would be an issue and feel the sales advisor should have immediately said that what we were trying to do wasn't possible.

Should we try to talk to the finance company and explain how we were mislead and see if they can make it a joint application (if I'm eligible) or should we just pull out of the agreement under the 14 days grace period we get?

Pixie5740

DandA9092 wrote: »

We've needed a new car for ages and sadly due to my ex running up my CC's before doing a runner I have bad credit. We decided to look for a car on finance that my partner would pay for so went to one of those well known used car dealership chains. We both said multiple times that the car would be mine but my partner would pay for it, we even spent ages looking at colours where she proceeded to say "It'll be your car so you pick"

She got accepted for finance, read all the terms and there was no mention of who the main driver must be. Signed it, sent proof of ID etc and they were fine. They then asked for proof of fully comp car insurance in her name .... A bit odd since we clearly stated that I would be the main driver to the sales advisor at the dealership. Turns out the advisor told the finance company that the car was for my partner with NO mention of me.

I've since done a bit of digging and ftom looking online, it turns out that this is something called an "accommodation deal" (even if my partner will be paying for it herself and not relying on me paying her back) and is considered fraudulent. I've discovered that the only two LEGAL ways I can drive the car is as a named driver. The issue is my partner only has a provisional license and I do 20K miles a year. It won't take a brain surgeon to know a learner couldn't possibly be driving that many miles a year so that option is out! The other way is to have the policy in her name BUT put me on as a named and the main driver but under both of these I earn no NCB!

We honestly did not know that this would be an issue and feel the sales advisor should have immediately said that what we were trying to do wasn't possible.

Should we try to talk to the finance company and explain how we were mislead and see if they can make it a joint application (if I'm eligible) or should we just pull out of the agreement under the 14 days grace period we get?

You can cancel the finance agreement within 14 days but you'll still have the car meaning you will have to find an alternative way of paying for it.

I'm not really sure what you can do other than raise a complaint with the dealership and see what they come back with.

If that doesn't get you anywhere could your partner get a personal loan in her name, repay the dealership finance and then transfer ownership of the car to you?

DandA9092

We haven’t actually got the car yet, the dealer is still awaiting payment from the finance company who are supposed to be paying them first thing tomorrow. Not sure what happens if they pay it before we cancel it

bobbymotors

I smell buyers remorse here

DandA9092

bobbymotors wrote: »

I smell buyers remorse here

Well I suggest you visit your GP ASAP as you clearly have a problem with your nostrils! We don’t regret doing it at all, we are just pi**ed off that we will either have to cancel it or lose my NCB and we’re not sure which is the best option.

Pixie5740

DandA9092 wrote: »

We haven’t actually got the car yet, the dealer is still awaiting payment from the finance company who are supposed to be paying them first thing tomorrow. Not sure what happens if they pay it before we cancel it

Has the car been registered in your partner's name yet?

BoGoF

Does the finance company know that your partner only has a provisionsl license? Lenders don't usually give finance to those who hold a provisional. Speak to the finance company but if they are happy with the arrangement there is not much you can do.

Herzlos

Presumably the reason your partner is applying for it is because you can't do it yourself due to poor credit history?


Your only options at this stage would be to

* try and get the dealer to pull out of the entire deal, and get a car you can afford
* Try and secure finance not tied to the car, such as a personal loan, to pay for the car outright from the dealers perspective.


If you've been mislead by the dealer into finance on a car you can't afford (and it'll be your word against theirs), you've got a case for unwinding the whole thing - they knew you couldn't pay for it. Worst case you can cancel the finance and pay the dealer something depending on the loss. Is it a new unregistered car or has it already been registered to you or someone else?

System

DandA9092 wrote: »

The issue is my partner only has a provisional license and I do 20K miles a year. It won't take a brain surgeon to know a learner couldn't possibly be driving that many miles a year so that option is out! The other way is to have the policy in her name BUT put me on as a named and the main driver but under both of these I earn no NCB!

That is known as fronting and is insurance fraud. At best they cancel the insurance, at worst they refuse to pay out if you make a claim, sue you for the full cost of any pay out to a third party or call the police in.