Faulty car return agreed but finance company offer is really bad

Grumpy_chap

As I understand it, the OP purchased a (second-hand) car at £20.5k and owned the car for 10 months plus XXX miles.

The OP wants the car gone and willing to accept a deduction against the purchase price to reflect the 10-months' beneficial use of the car.

The finance company have offered £15.5 k

The OP thinks the car is worth £18k

If the OP would accept the £18k and that is what the OP can sell the car for, then the OP can either argue with the finance company about the amount to be paid back to the OP, or sell the car at £18.5k and clear the finance.

Sandtree

Grumpy_chap said:

If the OP would accept the £18k and that is what the OP can sell the car for, then the OP can either argue with the finance company about the amount to be paid back to the OP, or sell the car at £18.5k and clear the finance.

I suspect the OP thinks that what a dealership could sell the car for if it wasn't a lemon but it is. They want the Finance company to pay what they believe the A1 price is for a lemon and at dealership rather than private sale prices

Money_Grabber13579

Sandtree said:

Grumpy_chap said:

If the OP would accept the £18k and that is what the OP can sell the car for, then the OP can either argue with the finance company about the amount to be paid back to the OP, or sell the car at £18.5k and clear the finance.

I suspect the OP thinks that what a dealership could sell the car for if it wasn't a lemon but it is. They want the Finance company to pay what they believe the A1 price is for a lemon and at dealership rather than private sale prices

Is that not what the finance company should be doing? Given that the OP paid a full working order price for the lemon in the first place? If the finance company is only going to pay lemon prices, then what is the point of exercising the consumer rights, as the OP is then taking the hit for the cost of the fault.

Sandtree

Money_Grabber13579 said:

Sandtree said:

Grumpy_chap said:

If the OP would accept the £18k and that is what the OP can sell the car for, then the OP can either argue with the finance company about the amount to be paid back to the OP, or sell the car at £18.5k and clear the finance.

I suspect the OP thinks that what a dealership could sell the car for if it wasn't a lemon but it is. They want the Finance company to pay what they believe the A1 price is for a lemon and at dealership rather than private sale prices

Is that not what the finance company should be doing? Given that the OP paid a full working order price for the lemon in the first place? If the finance company is only going to pay lemon prices, then what is the point of exercising the consumer rights, as the OP is then taking the hit for the cost of the fault.

Absolutely, but the reply was to someone who thought the private sale value of the lemon was £18k

The reality is that CCA duplicates your rights to the finance company to give you a second option of who to pursue, a mechanism that can be useful if the seller is overseas or insolvent. In practice many seem to think the finance company is likely to be an easier target than the merchant but that is not often the case, especially if they are a specialist finance company.

flashg67

Any deposit paid initially? Would this be part of the finance company's calculations?

Kenyanscott1

Believe it or not, this doesn't come down to what the car is worth.

After 10 months under the Consumer rights Act - you have essentially started the process of what is called the final right to reject. youve been able to prove this was an issue at point of sale and after attempts to repair the repair has not held.

Normally the finance company will ask how many miles the vehicle has done, and also take into consideration how many payments have been made.

As part of the settlement of the finance for the agreement as part of the final right to reject, then an amount needs to be agreed for the mileage completed.

Based on The motor Ombudsman and also the Financial ombudsman service - this can be anywhere from 15p to £1 per mile depending on the age of the vehicle.

so for example, if you paid £2k this is reflected in the settlement figure, and then there is a deduction for the usage of the vehicle - this is also set out in the consumer rights act. So from the settlement, there might be a deduction of £2k made up of the miles v the charge.

you do also have a right to claim for damages but this might not be too much

i would go back and ask how the deductions are being calculated and what offer is being made for the mileage completed on the car since you had it in your ownership.
If you cant come to a fair conclusion then an approach to the FOS might be worthwhile.

artschool2

I am able to go back to the main dealer via the motor ombudsman as the finance company are being ridiculous, I will also be going to the Financial Ombudsman regarding their letters.

thanks for all the feedback/help but in a nutshell circa £400 pcm for a low milage A class is not warranted. essentially both the garage and the finance company would be making plenty of money selling a car with a fault. 

MattMattMattUK

artschool2 said:

I am able to go back to the main dealer via the motor ombudsman as the finance company are being ridiculous, I will also be going to the Financial Ombudsman regarding their letters.

You are entirely within your rights to do this, but remember that to make any complaint stick you need a valid legal basis, not just "I don't like it".

artschool2 said:

thanks for all the feedback/help but in a nutshell circa £400 pcm for a low milage A class is not warranted.

The issue there is that whilst you might feel it is not warranted, that is of no relevance and it entirely depends what is in the contract and the relevant law.

artschool2 said:

essentially both the garage and the finance company would be making plenty of money selling a car with a fault. 

What they make afterwards is irrelevant, the amount to be paid is set out via legislation and contract.

visidigi

artschool2 said:

I am able to go back to the main dealer via the motor ombudsman as the finance company are being ridiculous, I will also be going to the Financial Ombudsman regarding their letters.

thanks for all the feedback/help but in a nutshell circa £400 pcm for a low milage A class is not warranted. essentially both the garage and the finance company would be making plenty of money selling a car with a fault. 

The problem is - depreciation is not linear. 

Whats the trade in value/webuyanycar value of the car with everything declared out? (not the lemon bit bit the mileage and any damage)

That's your guide value. Not an Autotrader search of a comparable car on sale (and remember, current values are abnormally high - so your value is to be based on what you paid originally)...

artschool2

MattMattMattUK said:

artschool2 said:

I am able to go back to the main dealer via the motor ombudsman as the finance company are being ridiculous, I will also be going to the Financial Ombudsman regarding their letters.

You are entirely within your rights to do this, but remember that to make any complaint stick you need a valid legal basis, not just "I don't like it".

artschool2 said:

thanks for all the feedback/help but in a nutshell circa £400 pcm for a low milage A class is not warranted.

The issue there is that whilst you might feel it is not warranted, that is of no relevance and it entirely depends what is in the contract and the relevant law.

artschool2 said:

essentially both the garage and the finance company would be making plenty of money selling a car with a fault. 

What they make afterwards is irrelevant, the amount to be paid is set out via legislation and contract.

the car has a fault that has been back 6 times to get fixed from within two weeks of ownership.Your other comments about no relevance is incorrect and I dont think you understand the legal issues.