Hire Purchase

stevecol

Hi Guys,
I bought a car on finance from an online dealer who offers a 7 day money back guarantee. I notified them on day 5 that i no longer want the car due to various mechanical faults. They told me that the 'returns team' will contact me but there is a big backlog of customers returning cars so there will be a delay. This was 9 days ago and i phone them daily and get the same response. My first payment to the finance provider is due shortly and my question is, do i cancel the direct debit? or do i make the payments until the car is collected and the refund processed? and if so, will i get those payments back?
Thanks

Flight3287462

Why not go round and drop it off?

stevecol

The nearest depot is an hours drive away and the car has a faulty gearbox and coolant leak. Flight3287462 said:

Why not go round and drop it off?

HillStreetBlues

stevecol said:

Hi Guys,
I bought a car on finance from an online dealer who offers a 7 day money back guarantee. I notified them on day 5 that i no longer want the car due to various mechanical faults. They told me that the 'returns team' will contact me but there is a big backlog of customers returning cars so there will be a delay. This was 9 days ago and i phone them daily and get the same response. My first payment to the finance provider is due shortly and my question is, do i cancel the direct debit? or do i make the payments until the car is collected and the refund processed? and if so, will i get those payments back?
Thanks

If you return under their 7 day money back guarantee their could be costs involved. (need to know their T&Cs)

If the car if faulty then  you can reject it and claim a full refund.

DullGreyGuy

Have you spoken to the finance company and gotten their advices? Really you would have done that within their 14 day cooling off period.

Almost certainly a non-payment would be recorded as such on your credit record with the CRAs and may incur additional costs. The costs may be arguable to be backed out but dont see a lender updating the CRAs. Once missed payment isnt the end of the world but obviously not great if you are apply for a new mortgage soon or such.

You should get the monies back in time if you make the first payment but it may take some time. The lender may have other options like suspending the payment if you talk to them

pinkshoes

stevecol said:

The nearest depot is an hours drive away and the car has a faulty gearbox and coolant leak.

In which case you need to reject it under the Consumer Rights Act rather than return it under their own money back guarantee. 

Notify them IMMEDIATELY in WRITING that you are rejecting the car as it is faulty, and ask them to arrange to collect it. You can email the rejection, but follow it up with a letter in the post.

I'd then send a copy of the letter to the finance company and phone them up to let them know that the car has been rejected and therefore you no longer require the finance on it. Follow it up with an email as evidence of the conversation.

DullGreyGuy

pinkshoes said:

stevecol said:

The nearest depot is an hours drive away and the car has a faulty gearbox and coolant leak.

In which case you need to reject it under the Consumer Rights Act rather than return it under their own money back guarantee. 

Remember that under the CRA they are entitled to reduce the refund for a motor vehicle from day 1, they are the exemption from the normal full refund in the first 6 months rule. In this case the full money back guarantee from the retailer may be better than the statutory rights

born_again

Do not cancel DD unless finance co tell you to...

Was the car delivered to you or did you pick it up?

Manxman_in_exile

DullGreyGuy said:

pinkshoes said:

stevecol said:

The nearest depot is an hours drive away and the car has a faulty gearbox and coolant leak.

In which case you need to reject it under the Consumer Rights Act rather than return it under their own money back guarantee. 

Remember that under the CRA they are entitled to reduce the refund for a motor vehicle from day 1, they are the exemption from the normal full refund in the first 6 months rule. In this case the full money back guarantee from the retailer may be better than the statutory rights

Wouldn't the OP be rejecting the car under the short-term right to reject?  Can the trader still make a deduction for use when the consumer exercises the short-term right?

DullGreyGuy

Manxman_in_exile said:

DullGreyGuy said:

pinkshoes said:

stevecol said:

The nearest depot is an hours drive away and the car has a faulty gearbox and coolant leak.

In which case you need to reject it under the Consumer Rights Act rather than return it under their own money back guarantee. 

Remember that under the CRA they are entitled to reduce the refund for a motor vehicle from day 1, they are the exemption from the normal full refund in the first 6 months rule. In this case the full money back guarantee from the retailer may be better than the statutory rights

Wouldn't the OP be rejecting the car under the short-term right to reject?  Can the trader still make a deduction for use when the consumer exercises the short-term right?

Yes, and almost only for motor vehicles:

No deduction may be made if the right to reject is exercised in the first 6 months (see subsection (11)), unless—

(a) the goods consist of a motor vehicle, or

(b) the goods are of a description specified by order made by the Secretary of State by statutory instrument.

Exceptionally few vehicles are perfect when delivered, there are always some tiny marks somewhere. In theory you could keep your brand new motor 29 days then complain there is a scuff on the back of one of the seats and get a full refund then rinse & repeat. 

Similar to why Steve Jobs SL never had any registration plates on, in California you have 6 months to put plates on a new car, so he just kept each one for 5 months and then exchanged it for another identical car. 

HillStreetBlues

DullGreyGuy said:

Yes, and almost only for motor vehicles:

No deduction may be made if the right to reject is exercised in the first 6 months (see subsection (11)), unless—

(a) the goods consist of a motor vehicle, or

(b) the goods are of a description specified by order made by the Secretary of State by statutory instrument.

Exceptionally few vehicles are perfect when delivered, there are always some tiny marks somewhere. In theory you could keep your brand new motor 29 days then complain there is a scuff on the back of one of the seats and get a full refund then rinse & repeat.

From where is that passage taken from?  

As the closest I can see it

Section 24

10)No deduction may be made if the final right to reject is exercised in the first 6 months (see subsection (11)), unless—

(a)the goods consist of a motor vehicle, or

(b)the goods are of a description specified by order made by the Secretary of State by statutory instrument.


But in your quote the word "final" is missing.


Section 22  is what covers short term right to reject.



So if returning a product  under CRA 2015  it is under section 20  that  you return it

20 Right to reject

(1)The short-term right to reject is subject to section 22.

(2)The final right to reject is subject to section 24.


So section 20 states that a short term right to reject is covered by section 22  that has no deduction for use.


It is only if it's returned under final right to reject (section 24) that allows a deduction.