Hire purchase cancel within 14 days

britainuser

Hi, I cannot find simple answer if hire purchase loan can be cancelled?

i took it yesterday (in person) and was told to pick the car on Monday.

i paid some deposit and the rest will be on collection.

however I now decided that I no longer want this car as it’s too much per month to pay.

is the 14 cooling period applicable for this? 

Will i loose the deposit i paid so far?

Nebulous2

If you have agreed to hire purchase, then you probably have two different contracts. One to buy the car and one which is a finance agreement. You should be able to cancel the finance agreement, but if you signed up at the garage you may be tied in to buying the car. 

You need to speak to them quickly and see if you can come to an agreement. 

DrEskimo

As above, the finance and the car are two separate things.

You won't need to cancel the finance as you haven't formally signed up for it yet. That happens when you collect the car tomorrow. You also haven't formally agreed to buy the car, so again you can't cancel it as you haven't formally bought it yet.

The only thing is whether the dealer will be willing to refund your holding deposit. Generally, most will, but they may deduct a small fee from it to reasonable recover anything they may have lost from agreeing to sell it to you. Given it was only yesterday this seems unlikely....

britainuser

Thanks guys.

I did sign some papers but I haven’t pay the full deposit yet. 

They won’t be happy for me to cancel so I’ll definitely not be refunded the deposit £500 I paid so far. 

I’m afraid I’ll be stuck with this and learned a lesson for the future to be more careful with these dealers 

poppasmurf_bewdley

britainuser said:

Thanks guys.

I did sign some papers but I haven’t pay the full deposit yet. 

They won’t be happy for me to cancel so I’ll definitely not be refunded the deposit £500 I paid so far. 

I’m afraid I’ll be stuck with this and learned a lesson for the future to be more careful with these dealers 

A hard lesson in finance.

We've all got tangled up with the excitement of buying a new car at some time, and you are one of millions.  But please, in the future, when buying something like this, only pay £100 as a deposit, and pay that by credit card so you've got some kind of protection.