Need Advice on Car Finance / Update to Settlement Figure

StevenR1000

Hi everyone.

I want to ask some advice in regards to a car finance agreement that has been confirmed this is the following issue I'm having

My old Car was worth : £11,200
My old Settlement was : £10,090.37

New Finance was agreed after the settlement was covered & Deposit was put down on the new car etc etc etc. I have now recieved a call from the car dealership advising me that the settlement figure has now been reduced to the following

New Settlement Figure : £9897.31

This means that there is more equity on my car which I believe should go towards my new finance agreement to lower the costs etc. however the dealership has advised this is incorrect and I feel I'm being stung by the dealership and something is not adding up.

Could someone explain why the dealership say they aren't doing me out of pocket or are able to adjust my finance agreement to lower the payments? As the difference has now worked in my favour?

Nearlyold

Presumably the Settlement Figure has reduced because you've made a further scheduled monthly payment circa £193?

If the Dealer can't/won't amend the finance agreement then surely they must be refunding you £193.06?

It may be genuine that they can't amend the finance agreement eg. They'd have to re prop you and the finance deal you've arranged is no longer available or the equity plus whatever deposit you've agreed is already the maximum permissible on a PCP

In any event provided they are going to refund you the difference you can just put this towards a partial repayment once the loan is up & running which will save you more or less the same amount as it would if it was added to the deposit

StevenR1000

Thanks for the advice Nearlyold.

I will bring this up to the management team from the dealership when I speak to them as I was under the impression I am entitled to the adjustment of around the same figure : £193.06

Just needed someone else's thoughts on this.

DrEskimo

Yea if you had settled the agreement yourself, you would have received the additional payment back as a refund (I had this happen on an agreement I settled).

As the car dealership settled the finance, they are the ones getting that refund, which you can instruct to either pass on to you directly, or to add to your deposit on the new finance arrangement.

It might be easier to just request it directly to save drawing up new finance documents (depending on where you are on the new arrangement), as you can always just make an overpayment after it's active.

EDIT: Just read Nearlyold's post in full and realised I just repeated it...sorry!

Grumpy_chap

StevenR1000 said:

Hi everyone.

I want to ask some advice in regards to a car finance agreement that has been confirmed this is the following issue I'm having

My old Car was worth : £11,200
My old Settlement was : £10,090.37

New Finance was agreed after the settlement was covered & Deposit was put down on the new car etc etc etc. I have now recieved a call from the car dealership advising me that the settlement figure has now been reduced to the following

New Settlement Figure : £9897.31

This means that there is more equity on my car which I believe should go towards my new finance agreement to lower the costs etc. however the dealership has advised this is incorrect and I feel I'm being stung by the dealership and something is not adding up.

Could someone explain why the dealership say they aren't doing me out of pocket or are able to adjust my finance agreement to lower the payments? As the difference has now worked in my favour?

I have never experienced this first hand, but there have been previous threads where something similar has been reported.

Deal arranged based on settlement figure £10,090.
Another finance payment is made £193 before car change happens.
Dealer pays the original settlement to the finance company 
Finance company have then been overpaid and later refund the extra month back to the individual

It might be worth establishing whether this is what will happen in your case.
A roundabout route, but it would achieve the correct result.