Car finance

corby123

I got finance for a work van from zuto, everything went through until picking the van up from the dealer. They kept fobbing me off saying the van needs this doing or that needs doing, so I phoned them to see when I could pick the van up and then again kept happening so I cancelled the finance with moneybarn. I've never seen the van or drove the van and I've been to the dealership and they are no longer at the address they was at. Now moneybarn the finance company are saying I am liable to still pay the balance. I had a email from the finance company saying the van was ready to be picked up but the dealership has gone. What can I do or what should I do.
Thanks

elsien

The finance agreement is separate to your agreement with the business selling the car.

When you say you cancelled the finance agreement did you do so in accordance with their terms and conditions before any money has been paid? Because if they had already handed the money over you are probably still liable whether you have the van or not. 

What is the dealership and have you checked to see if you can track them down elsewhere?

MrFrugalFever

If you have exercised your right to withdraw (14 day cooling off period) then MoneyBarn are legally obliged to cancel your agreement in full. In doing this, there may be some small charges imposed in the form of daily interest (this would have been outlined in the credit agreement).

As they have (presumably) transferred the money to the dealership, one would assume that they would request the funds be returned to them from the dealership, which, if no longer trading may throw a bit of a spanner in the works.

Can you confirm if the funds where transferred to you or the dealership?

[Deleted User]

Being familiar with Zuto and Moneybarn and as this is a Hire Purchase agreement. 

I would advise Zuto and Moneybarn that you've never taken delivery of the vehicle, therefore as far as you're concerned you have no agreement.

If the dealership is no longer trading, I'm sure Moneybarn and Zuto will be aware of this and may well have this same problem with a number of other customers.

Moneybarn and Zuto need to speak to each other. They will need to chase the dealership for the return of funds, the dealer may well have done a bunk with a load of finance companies money.

I would advise raising the complaint and getting the deal unwound as soon as possible so it in no way impacts your credit rating in the future. I'd also check with your bank to see if the direct debit mandate has been set up, if so, you may want to cancel it.

elsien

Cancelling a  direct debit does not cancel the agreement it is set up to pay. 

corby123

Thanks for the advice people and yes the money was payed to the dealer and I've tried finding the dealer but no luck.
I cancelled the finance within the 14 day cooling off period but moneybarn are saying they are investigating the issue but still want me to pay.

elsien

They want to check that you’re not trying to pull a fast one on them.
in the circumstances, I might consider cancelling the direct debit while they do their investigations, and asking them in a traceable fashion the direct question as to why they want you to pay when you did cancel in line with their terms and conditions.

corby123

Thank you elsien, I've cancelled the direct debit but do you thunk I should pay the overdue payments.

Wonka_2

corby123 said:

Thank you elsien, I've cancelled the direct debit but do you thunk I should pay the overdue payments.

Unless you've given them any reason to believe you've taken delivery of the vehicle then no, you shouldn't be paying anything.

But just to check on that basis you didn't go to the dealer, sign the papers to say you'd received the vehicle and then they mysteriously found a fault and said they needed to keep it and sort the fault out ??

elsien

How are there overdue payments if you cancelled within the 14 days? How long ago did this happen?

corby123

I cancelled the finance within the 14 cooling off period and cancelled the direct debit then moneybarn and I thought nothing of it then a letter came through the door saying I've got missed payments.
This was June this year.