Mis-sold HP Car Finance

Haydriddett

I’m looking for someone to help me.

I believe I was completely Mis-sold HP finance. In December 2017 I walked into my local dealer, I had been paying for a Vauxhall Corsa WITH THEM monthly and had negative equity of about £2,000 left on it. The dealer see me eyeing up this Mercedes A Class which was up for £13,500, way out of my budget. And plus I already had finance on current car at the time. He offered me a test drive, I accepted, long story short we went into his office to talk options, he was pushy and direct sugar coating everything telling me my negative equity would be wiped away completely and settled and paid for by the dealership. I was happy to continue.

We spoke about PCP finance in which I knew I’d be able to trade the car in within 3 years and not have to own it. He told me he’d get it done for me at £240 per month, considering the car had 55k miles on clock.

Next day came and he rung me explaining there had been a bit of a problem, he didn’t tell me what he just invited me in and said it’s mostly good news. He sat me down a few hours later smiling away telling me PCP wasn’t available due to my age and credit/negative equity. So he basically said this; “No need to worry tho we do have a 2nd option, only the agreement is for 7 years but you can STILL trade it in and get a new one in a couple years no worries! It will just be £255 per month and the cars yours today!” So I believed what he said although it went too quickly. He didn’t explain the risks or the options I’d have, he trapped me in a corner and just wanted one of his Too Range cars gone and sold to a 20 year old, me! My idea is that I didn’t want to make an investment, except pay for the car whilst I used it for that time and change when it was suitable.

It’s now been 1 year and 8 months and the car is now currently at 81,000miles, has all sorts of issues, only worth £7,000 trade in value and my settlement fee is £11,800!!! considering I bought the car at £13,500!! I have paid £4,800 already and I STILL have OVER 5 years left on the agreement and have been told numerous times SINCE I am not allowed to hand car back or trade it in as he promised I could, simply because the negative equity is roughly £4,800 also. What are my rights as a consumer as I believe I have been completely mis-sold and tied into a 7 year agreement on a car that has nearly 100,000 miles on the clock and is depreciating quicker than my settlement fee AND I pay a total of £21,000 at the end of the agreement. I can not afford to keep the car any longer and am in financial worry for the next couple of years.

He didn’t give me any rights or break downs of interest at the POS and it was only until a week later I received it from BLUEmotor Finance. I phoned them up STRAIGHT away and explained I do not want to be held into a 7 year agreement because if anything went wrong I’d be paying £21,000 in total for a car that at that point will only be worth under £7,000, they explained I couldn’t do much, I liked the car and got on with it as I had believed the dealer and trusted his brilliant sugar coating. “ No risk what so ever”. The longer I keep the car, the bigger hole I am digging myself.

Can someone please advice me on what I should do. Thanks!

forgotmyname

You can trade it in at any time you just need to settle the finance or roll the negative equity onto the next car the same as you did for the current one.

What was the original trip to the dealer for, to look at a newer more expensive car?

100,000 miles is nothing for a modern car. I start looking at cars with around 5 years/130,000 miles and keep them for another 5 years.

Hasbeen

Haydriddett wrote: »

I’m looking for someone to help me.

I believe I was completely Mis-sold HP finance. In December 2017 I walked into my local dealer, I had been paying for a Vauxhall Corsa WITH THEM monthly and had negative equity of about £2,000 left on it. The dealer see me eyeing up this Mercedes A Class which was up for £13,500, way out of my budget. And plus I already had finance on current car at the time. He offered me a test drive, I accepted, long story short we went into his office to talk options, he was pushy and direct sugar coating everything telling me my negative equity would be wiped away completely and settled and paid for by the dealership. I was happy to continue.

We spoke about PCP finance in which I knew I’d be able to trade the car in within 3 years and not have to own it. He told me he’d get it done for me at £240 per month, considering the car had 55k miles on clock.

Next day came and he rung me explaining there had been a bit of a problem, he didn’t tell me what he just invited me in and said it’s mostly good news. He sat me down a few hours later smiling away telling me PCP wasn’t available due to my age and credit/negative equity. So he basically said this; “No need to worry tho we do have a 2nd option, only the agreement is for 7 years but you can STILL trade it in and get a new one in a couple years no worries! It will just be £255 per month and the cars yours today!” So I believed what he said although it went too quickly. He didn’t explain the risks or the options I’d have, he trapped me in a corner and just wanted one of his Too Range cars gone and sold to a 20 year old, me! My idea is that I didn’t want to make an investment, except pay for the car whilst I used it for that time and change when it was suitable.

It’s now been 1 year and 8 months and the car is now currently at 81,000miles, has all sorts of issues, only worth £7,000 trade in value and my settlement fee is £11,800!!! considering I bought the car at £13,500!! I have paid £4,800 already and I STILL have OVER 5 years left on the agreement and have been told numerous times SINCE I am not allowed to hand car back or trade it in as he promised I could, simply because the negative equity is roughly £4,800 also. What are my rights as a consumer as I believe I have been completely mis-sold and tied into a 7 year agreement on a car that has nearly 100,000 miles on the clock and is depreciating quicker than my settlement fee AND I pay a total of £21,000 at the end of the agreement. I can not afford to keep the car any longer and am in financial worry for the next couple of years.

He didn’t give me any rights or break downs of interest at the POS and it was only until a week later I received it from BLUEmotor Finance. I phoned them up STRAIGHT away and explained I do not want to be held into a 7 year agreement because if anything went wrong I’d be paying £21,000 in total for a car that at that point will only be worth under £7,000, they explained I couldn’t do much, I liked the car and got on with it as I had believed the dealer and trusted his brilliant sugar coating. “ No risk what so ever”. The longer I keep the car, the bigger hole I am digging myself.

Can someone please advice me on what I should do. Thanks!

Sorry you decided. It was not mis-sold but miss-bought.:(

csgohan4

Mis bought, the dealer did not force you to sign it or hand over your money did they?


You got tempted by a flashy car and bought it.


Why do people do this when clearly they can't afford them beats me. No shame in an old banger. Drove a 15 year old Rover for years.


Any car will depreciate after you drive it off the court, new or old.




You also failed to mention your paying interest on your finance deal, which is why your paying more than originally bought it for.


Read the T+C's OP and only buy what you need not what you want

DCFC79

Why not ask questions ?

You should always say you will go away and think about.

Its a huge leap going from a Corsa to an A class but you got lured in, you were only eyeing it up, did at any point you think to yourself "is this a big mistake" ?



If you feel its been mis sold then put it in letter form but I fear you wont get a response your wanting.

flashg67

I made the same mistake in my youth but lived to tell the tale. Too late now, but a lesson for next time maybe - take someone with you, and if still unsure, walk away and take time to check the deal and think about it.
Still not sure why you went into a dealer with 2k negative equity eyeing up a 13k car..... you must have thought it was strange the dealer would magically make this disappear!
Every time I've bought a car on finance, all the costs, payments, interest etc have been laid out on the document at the point of signing - if this wasn't done, you may have a very small chance of some comeback.
But even a basic understanding of finance would be able to work out you'd be paying £255 x84 months
Harsh lesson as know to my cost from many years ago, but you will get past it

parking_question_chap

You voluntarily looked at the A Class
You voluntarily test drove the A Class
You voluntarily agreed and signed a finance deal for the A class

"He didn’t give me any rights or break downs of interest at the POS and it was only until a week later I received it from BLUEmotor Finance".
Did it not cross your mind to ask for this!!??

Its the car dealers job to sell cars.
Its you job to buy a car you can afford.

He achieved his objective and you failed yours. Perhaps next time dont test drive cars that are out of your budget.

worried_jim

When I worked in sales we were told that if a customer could leave the showroom after signing an order and afford to cross the car park to buy their family a Burger King then we hadn't done our job properly.

All credit to that sales guy- they got the job done and they sold.

poppasmurf_bewdley

It is amazing how the thoughts of a new, super-duper, shiny, gleaming, leather trimmed Merc will override all your common sense when you are sitting in the car dealers office.

Unless you were locked in a cell, or the salesman used thumbscrews, then the car and finance weren't mis-sold, they were mis-bought!

sourcrates

When I was 20, I went into my local ford dealership, didnt really know what I wanted to buy, so was having a good look around, salesman came over, started his spiel, 3 hours later he was still talking, kept wandering off and coming back with different monthly payments, on various cars, cars he wanted to sell me, not what I wanted to buy.

I eventually got fed up and walked out, saying I`d think about it, never went back, salespeople are paid to sell, and if you are not happy, you should just walk away.

There is nearly always a cooling off period, which you chose not to invoke, so any mis-selling claim is unlikley to be successful.

molerat

sourcrates wrote: »

There is nearly always a cooling off period

For the finance but not for the car which would have left OP in a deeper hole than they are in now.