Car dealership input wrong (higher) price on HP agreement 3 years ago, can I still dispute this?

cnrft

England 

In October 2018, I financed a Ford Focus 2015 as a 19 year old much more naive man than I am now. The agreement had several errors, main one being the price.

The price of the car was £9295+£99.99 admin fee and fuel = £9414.99. They input £9700 into the finance documents. The APR was 15.9% and the Interest rate was 8.5 p.a 

I questioned this instantly, he gave me a speech about how he’s sorry, that it would be logistically difficult to fix this as this was my first ever “large” form of credit which I barely got accepted for and didn’t want to go back to the broker, and told me he’d issue me a cheque as cash back for the difference.

Me, being a imbecile yes-man, agreed, and he gave me a cheque two weeks later for £285.01.

Now, I’ve just randomly realised on my daily walk that the interest was not included in the cash back which I would’ve paid over the 5 years. Which I’ve worked out would’ve been at least £800. On top of this, the finance agreement and invoice say I paid a deposit of £262.99 (I didn’t) which puts the total cost price of the car was £9962.99 to the finance company, which is completely utterly wrong

I have all the original documentation, so I want to know whether I would be able to go back to the dealer and claim back the extra amount with interest included as it has left me more significantly out of pocket than I even realised at the time.

I had a brief conversation today with an accounts clerk, who while understood my problem, told me that if I had issued that cheque myself straight to the finance company I wouldn’t of paid the interest on it. While man-to-man he should see what’s happened, I’ve been coerced and misled into an incorrect agreement, do I have any leg to stand on here? Has he got me?

It was never explained to me that I should pay the money to the finance company, it was described as “cashback” for their error

Any help would be appreciated

tacpot12

I don't think you have much of a leg to stand on. It is not a car dealer's job to explain how loans work. They refunded the difference in the capital, which would have corrected the error if you had appreciated that the correct thing to do with it was pay of some of the car loan, and not to spend the money.

I would treat it as part of the learning experience of buying a car on finance. You made a number of mistakes including financing the admin fee and the fuel.

motorguy

cnrft said:

England 

In October 2018, I financed a Ford Focus 2015 as a 19 year old much more naive man than I am now. The agreement had several errors, main one being the price.

The price of the car was £9295+£99.99 admin fee and fuel = £9414.99. They input £9700 into the finance documents. The APR was 15.9% and the Interest rate was 8.5 p.a 

I questioned this instantly, he gave me a speech about how he’s sorry, that it would be logistically difficult to fix this as this was my first ever “large” form of credit which I barely got accepted for and didn’t want to go back to the broker, and told me he’d issue me a cheque as cash back for the difference.

Me, being a imbecile yes-man, agreed, and he gave me a cheque two weeks later for £285.01.

Now, I’ve just randomly realised on my daily walk that the interest was not included in the cash back which I would’ve paid over the 5 years. Which I’ve worked out would’ve been at least £800. On top of this, the finance agreement and invoice say I paid a deposit of £262.99 (I didn’t) which puts the total cost price of the car was £9962.99 to the finance company, which is completely utterly wrong

I have all the original documentation, so I want to know whether I would be able to go back to the dealer and claim back the extra amount with interest included as it has left me more significantly out of pocket than I even realised at the time.

I had a brief conversation today with an accounts clerk, who while understood my problem, told me that if I had issued that cheque myself straight to the finance company I wouldn’t of paid the interest on it. While man-to-man he should see what’s happened, I’ve been coerced and misled into an incorrect agreement, do I have any leg to stand on here? Has he got me?

It was never explained to me that I should pay the money to the finance company, it was described as “cashback” for their error

Any help would be appreciated

Sorry, for the avoidance of doubt here - are you saying you've worked out that the interest (at 8.5% flat) on the £285 amounts to "at least £800"?

By my reckoning its £121.  Or £24 ish a year.  And on top of that you had the £285 in your hand as it were at the time to do with as you wish - put it in your savings account, spend it, etc.

Finally, doesnt matter a jot if they put in that you paid a deposit of £262.99 as it didnt otherwise change the amount borrowed of £9700.

facade

Basically, you took out a loan for too much money. The car price plus too much was paid to the dealer, so the dealer refunded you the too much part as cash, but you had still borrowed it, and have to pay it back to the finance company.

It can't possibly have cost £800 though, you simply have to repay the £285.01 you were given plus 5 years interest on £285.01 , which at 8.5% is £143.55

As above, chalk it upto experience, and triple check any numbers on a financial document before you sign.

(Also 8.5% for 5 years works out to 50% of the original sum, but you'd have seen this in the finance figures. What is important is the total amount you pay back, not the monthly amount.)

motorguy

facade said:

Basically, you took out a loan for too much money. The car price plus too much was paid to the dealer, so the dealer refunded you the too much part as cash, but you had still borrowed it, and have to pay it back to the finance company.

It can't possibly have cost £800 though, you simply have to repay the £285.01 you were given plus 5 years interest on £285.01 , which at 8.5% is £143.55

As above, chalk it upto experience, and triple check any numbers on a financial document before you sign.

(Also 8.5% for 5 years works out to 50% of the original sum, but you'd have seen this in the finance figures. What is important is the total amount you pay back, not the monthly amount.)

I'm making it (0.085 x 5) = 0.425, so £285.01 * 0.425 = £121.13

But either way, wayyyyyy short of £800

facade

motorguy said:

I'm making it (0.085 x 5) = 0.425, so £285.01 * 0.425 = £121.13

But either way, wayyyyyy short of £800

Maybe I don't get interest, but I used 1.085 ^ 5 , because the original amount increased by 8.5% then the whole lot increases by 8.5%

cnrft

facade said:

motorguy said:

I'm making it (0.085 x 5) = 0.425, so £285.01 * 0.425 = £121.13

But either way, wayyyyyy short of £800

Maybe I don't get interest, but I used 1.085 ^ 5 , because the original amount increased by 8.5% then the whole lot increases by 8.5%

It’s 15.9% APR, with 8.42% interest rate. Whatever that means 

cnrft

I’m new to this website and my comments aren’t posting

It’s 15.9% APR, with 8.42% p.a interest rate. I’m not quite sure how these are calculated together but that’s what the document says.

I got the figure from an APR calculator, either way though - I suppose you’re right that I should’ve paid it back, I was obviously unsure at the time and while ethically they’ve clearly taken advantage of a younger person not well versed in car finance, they do indeed have me on a technicality 

motorguy

facade said:

motorguy said:

I'm making it (0.085 x 5) = 0.425, so £285.01 * 0.425 = £121.13

But either way, wayyyyyy short of £800

Maybe I don't get interest, but I used 1.085 ^ 5 , because the original amount increased by 8.5% then the whole lot increases by 8.5%

With the flat rate you dont compound it you just multiply it out.

So the flat rate as a percentage, multiplied by the term, multiplied by the amount in question, gives you the interest charge.

motorguy

cnrft said:

I’m new to this website and my comments aren’t posting

It’s 15.9% APR, with 8.42% p.a interest rate. I’m not quite sure how these are calculated together but that’s what the document says.

I got the figure from an APR calculator, either way though - I suppose you’re right that I should’ve paid it back, I was obviously unsure at the time and while ethically they’ve clearly taken advantage of a younger person not well versed in car finance, they do indeed have me on a technicality 

How do you feel ethically they took advantage of a young person?

It sounds like a simple mistake on the paperwork that they tried their best to correct once spotted.  

Salesmen are not infallable.  They make mistakes and i dont see any mistake made her that would favour them.

5 years worth of interest on the £285 works out at roughly £2 a month give or take.  Not worth losing sleep over now or getting upset over and definitely not worth pushing them for now.  

What APR calculator did you use that showed the interest of £800 on £285?  If that was correct your Focus would have cost you around £30000 on finance.

cnrft

motorguy said:

cnrft said:

I’m new to this website and my comments aren’t posting

It’s 15.9% APR, with 8.42% p.a interest rate. I’m not quite sure how these are calculated together but that’s what the document says.

I got the figure from an APR calculator, either way though - I suppose you’re right that I should’ve paid it back, I was obviously unsure at the time and while ethically they’ve clearly taken advantage of a younger person not well versed in car finance, they do indeed have me on a technicality 

How do you feel ethically they took advantage of a young person?

It sounds like a simple mistake on the paperwork that they tried their best to correct once spotted.  

Salesmen are not infallable.  They make mistakes and i dont see any mistake made her that would favour them.

5 years worth of interest on the £285 works out at roughly £2 a month give or take.  Not worth losing sleep over now or getting upset over and definitely not worth pushing them for now.  

What APR calculator did you use that showed the interest of £800 on £285?  If that was correct your Focus would have cost you around £30000 on finance.

The total amount payable was £14000 something, I just done a top line google APR calculator for 9700 across 60 months and compared with 9200. It would be around 700-800 with 15.9% 

And in regards to the ethical side and the salesman, they were very pushy with me and rushed everything, I felt quite overwhelmed at the time and didn’t have any one with experience to help me but I needed a car ASAP. The credit controller even tried to make me feel bad for questioning the 9700 originally, like I would be making everyone’s lives harder by amending the amount and getting a new agreement. It took me two weeks even get the cheque after multiple phonecalls and pestering them. It’s just one of them it’s difficult to explain but I know they saw a young lad who didn’t know his !!!!!! from his elbow and just stuck him in a finance agreement. Even if I have no leg to stand on contesting it, there’s still errors all over the paperwork, who the hell “accidentally” adds on a 262 deposit?