Have I been missold a hire purchase?

meer53

You really should have taken the time to read the documents when you went to pick up the car, whether the salesman was rushing you or not. What do you expect to happen if you make a complaint ? You signed the documents, you were happy with the car and the figures, it will be a case of he said, I said. Going nowhere.

lanbe

He wasn’t exactly pushy. He’s just good at his job so he probably is a star employee. The best salesmen use manipulative tactics which is exactly what he did.

Mr.Generous

[/QUOTE] Huh? No, if the APR is 6.5% then it will remain at 6.5% if they keep up payments, it will not reduce. Whilst dealers have a history of being fans of the flat rate, this is being used less and less as it is considered misleading, the APR is mandatory and is often the only figure used now on the agreement.[/QUOTE]


Hmmm my understanding of APR v's interest rate is different from yours then. Presumably no other fees whatsoever and no charges arising if you don't pay a penny for 12 months? APR typically about 3% more than the actual interest rate, on a car loan my guess would be more like 4% higher - OP paperwork should tell us the actual figure but I know it will be considerably lower than 6.5%

lanbe

The total payments when you add it all up isn’t the same as the “balance to pay” which they gave me and said included all finance charges. That’s why I signed the purchase invoice there. So basically at that point I purchased something at a higher price than the price they advertised it to me.

lanbe

Essentially, they gave me the wrong price and sold me the car on the basis of the wrong price. I signed the purchase invoice for the car, in the knowledge that the balance to pay is the total remaining balance (including interest). The finance documents were signed on collection a week after but by this time you can’t back out of a purchase you already made. You can only back out of the finance agreement but you’d still have to find another way to fund the purchase of the car which you’ve already purchased.

bazzyb

lanbe wrote: »

Essentially, they gave me the wrong price and sold me the car on the basis of the wrong price. I signed the purchase invoice for the car, in the knowledge that the balance to pay is the total remaining balance (including interest).

From what you have posted, the price wasn't wrong and neither was the invoice. Balance to pay/balance to change is the amount due from the finance company and does not cover fees and interests, they will be detailed seperately on the finance agreement.

Again, it may help to clarify if you post details of the figures involved (full breakdown) but I have to say that it sounds like you have simply misunderstood rather than there being anything untoward going on.

lanbe

Figures below.
Price of car: £19000
Metallic Paint: £499
Service Plan: £649
Discount: £2500
Deposit Contribution: £1299
Deposit: £2000
Balance to pay: £14349

24 repayments of £637.99
36 repayments of £438.57
48 repayments of £339.06

There are other PCP options on the sheet too but I went for 48 month HP.

lanbe

Actually it says balance to change which is confusing.

bazzyb

lanbe wrote: »

Figures below.
Price of car: £19000
Metallic Paint: £499
Service Plan: £649
Discount: £2500
Deposit Contribution: £1299
Deposit: £2000
Balance to pay: £14349

24 repayments of £637.99
36 repayments of £438.57
48 repayments of £339.06

There are other PCP options on the sheet too but I went for 48 month HP.

If you add up all the numbers in blue, and take off the numbers in green, you're left with the figure in red. It is clear that there is no interest added to that. The finance is seperate to this. Where the monthly payments are quoted, it should show an interest rate but regardless of this you can see that 48 x £339 is over £16k so it should have been apparent this wasn't a 0% APR deal which you seem to think it was?

nick74

I used to audit a number of motor trade companies and have seen more vehicle invoices than I care to remember.. The way the figures have been presented to you is perfectly normal. The 'balance to pay' or 'balance to change' or 'balance to finance' figure should never include the interest. The monthly repayment figures should include the interest and I can see from your example that it does.