I think I’ve been ripped off by a HP car dealer

J_John96

Hi guys

Need help..

In January 2019 I saw a car dealer about a car on fianance (£151 per month £0 deposit originally) he basically ripped my credit score to shreds applying for finance for myself for the amount of £10,000 for the car. It eventually came back that the “only company” willing to lend me money was wanting to take it out at £13,500. I’m now paying £200 a month for a car and feel I’ve been ripped off and MAYBE missold? I want rid of the car and the expensive car bill every month as it’s not worth it at all! Anyone know how I can get help?

[Deleted User]

Don't worry. You can put the shreds of your credit score in the bin, as it's not a thing.

You don't sound mis sold but perhaps a little impetuous and high risk. You could have walked away and either saved up or tried for cheaper finance if that was even an option for you.

But it sounds as if your risk profile was too high for other lenders.

vacheron

Over how many years was the loan?

£200 per month over 3 years repaying £13,500 would be about 23% APR, which is high but nowhere near "Amigo Loans" etc. high.

£200 per month over 5 years repaying £13,500 would be about 13% which is hardly low, but is at least a bit more reasonable.

ndf9876

From what you have posted, I don't think you have been either mis-sold or "ripped off". What I think (emphasis on think) happened is this :

- You saw a car that you really liked. You were quoted "headline rates" for the finance, subject to status.
- Once the dealer performed the credit application, the only finance you could get was much higher interest (presumably because you are higher risk).
- At this point, instead of walking away, you accepted.
- A year later, you've perhaps realised you can't afford it, or no longer want the car, and here we are.

You can give the keys back once you've paid 50% of the loan (I believe this is what's called "Voluntary Termination"). If it's the case that you are struggling to repay the debt, maybe the Debt-Free Wannabe board would be more helpful.

For what it's worth I had a similar thing happen to me about 14 years ago, but in that case I took a bank loan after about a year with a much lower rate and repaid the car finance as I wanted to keep the car - is than an option for you?

DCFC79

J_John96 wrote: »

Hi guys

Need help..

In January 2019 I saw a car dealer about a car on fianance (£151 per month £0 deposit originally) he basically ripped my credit score to shreds applying for finance for myself for the amount of £10,000 for the car. It eventually came back that the “only company” willing to lend me money was wanting to take it out at £13,500. I’m now paying £200 a month for a car and feel I’ve been ripped off and MAYBE missold? I want rid of the car and the expensive car bill every month as it’s not worth it at all! Anyone know how I can get help?

Why did you not back out ?


I cant see how it was missold, a mistake on your part yes.

foxy-stoat

You bought a car 10 months ago and only now are you complaining about the interest rate you agreed to. Stand in the corner and have a strong word with yourself.

The guy running the credit application wouldn't shred your meaningless score anyway so you have bigger problems on your credit file.

Gycraig

Get a different loan and pay it back ?

J_John96

Didn’t think of getting another loan and paying it off. Perhaps I could offer a settlement fee to the finance company less than what I actually owe. I was very naive at the time and had never been in this situation before so just assumed the guy selling the car to me was being helpful. There’s more to the story but I know for a fact he saw a naive young lad and took advantage but I’ll learn from it.

[Deleted User]

They won't accept a settlement fee while they could just take the car back and pursue you for the difference.

And if your credit is already poor, then a default will make matters much worse.

jtwn

J_John96 wrote: »

Didn’t think of getting another loan and paying it off. Perhaps I could offer a settlement fee to the finance company less than what I actually owe. I was very naive at the time and had never been in this situation before so just assumed the guy selling the car to me was being helpful. There’s more to the story but I know for a fact he saw a naive young lad and took advantage but I’ll learn from it.

Many of us will have been there when we were younger. And I can tell you, finance people at car places are trained to see the younger man as a target as a whole new world of opportunity is opening for them...including finance £££.

Don't be hard on yourself. Try and extract yourself from the situation (find alternative cheaper finance to pay it off / buy yourself out of the contract) but most importantly just learn from it and get on with the rest of your life. It will be paid off in time. all the best mate

[Deleted User]

jtwn wrote: »

Many of us will have been there when we were younger. And I can tell you, finance people at car places are trained to see the younger man as a target as a whole new world of opportunity is opening for them...including finance £££.

Don't be hard on yourself. Try and extract yourself from the situation (find alternative cheaper finance to pay it off / buy yourself out of the contract) but most importantly just learn from it and get on with the rest of your life. It will be paid off in time. all the best mate

Not exclusively !
…… younger man, older man, younger woman, older woman.....

Car sales places employ hard-sell sales people and we all are targeted, the psychology of sales/selling is horrible.