Car finance

ema81

Hi i recently purchased a car on finance through moneybarn from a garage, I didn't go and see the car and signed the contracts through moneybarn online, they handed the garage the money and I collected the car. Within 14 days I have now changed my mind and realised the finance is just a bit too much for me. I phoned moneybarn who have raised a complaint I then spoke to the garage who where really unhelpful and there was nothing they could do. I assumed I had the 14 day cooling off period if I changed my mind but both companies are apparently saying.no. I feel I'm being fobbed off any help please thanks 

Cloth_of_Gold

ema81 said:

Hi i recently purchased a car on finance through moneybarn from a garage, I didn't go and see the car and signed the contracts through moneybarn online, they handed the garage the money and I collected the car. Within 14 days I have now changed my mind and realised the finance is just a bit too much for me. I phoned moneybarn who have raised a complaint I then spoke to the garage who where really unhelpful and there was nothing they could do. I assumed I had the 14 day cooling off period if I changed my mind but both companies are apparently saying.no. I feel I'm being fobbed off any help please thanks 

I"m sure the experts will be along soon with good advice but this article suggests you can cancel within 14 days.

https://www.which.co.uk/consumer-rights/advice/can-i-cancel-a-financial-product-bought-online-aA7Fu1j5Gay1

angrycrow

If this were a true distance sale conducted without you ever attending the garage you would have a 14 day right to return the car for any reason. It appears you collected the car in person suggesting this was not a true distance sale in which case you have no right of return on the car.

You still have your 14 day cooling off period to unwind the finance but this still leaves you needing to pay for the car by alternative means. 

born_again

You do have 14 days to back out of the finance. If they say no, raise a complaint. If it's not resolved in 8 weeks or you get a deadlock letter then you can go to FOS.

Moneybarn Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702781)

Moneybarn No. 1 Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702780)

But that still leaves you to pay for the car. As it is a change of mind, then retailer does not have to take it back.

ema81

Thanks, they have come back to me today and said basically because there is nothing wrong with the car they won't let me return it to them (the finance company) and that I need to contact the garage and see if they would do an exchange which I don't want but when I spoke to the garage they weren't willing to help anyway, or I need to contact them again and see if I can get an exit plan but there exit plans all involve me giving them the car back and paying thousands on top too to cover the interest. I haven't even made a payment yet for the car and as said I raised the initial query within what I thought was a 14 day cooling off period. Have I actually got a let to stand on here and should I take this further? Thanks

Ectophile

I thing you're a bit short of legs to stand on.  If you had had the car delivered, then it would have been a distance sale, giving a 14 day right to change your mind.  But you collected the car in person, so it's not a distance sale.

You can cancel the finance within 14 days, if you wish.  But that then leaves you with the problem of how you will pay for your new car.  The money would be immediately payable in full to the fiance company.

jimjames

ema81 said:

 Have I actually got a let to stand on here and should I take this further? Thanks

Not sure what you're thinking in terms of "take it further" but it was your choice to take out the finance so it's unfortunately one of those things if you change your mind later. You could pay the finance off and sell the car but other than that I think you're pretty much stuck with it. At least clearing the finance means you won't be paying into the future but selling it you are likely to have a hit to the value which might be £1000 or so depending on the car. Have a look on Autotrader to get an idea what private sale ones go for. If you're lucky and know a local garage they might sell it for you. It might save the hassle of selling privately but probably won't net more money but could mean you get the finance settled directly with the company.

Nearlyold

ema81 said:

Thanks, they have come back to me today and said basically because there is nothing wrong with the car they won't let me return it to them (the finance company) and that I need to contact the garage and see if they would do an exchange which I don't want but when I spoke to the garage they weren't willing to help anyway, or I need to contact them again and see if I can get an exit plan but there exit plans all involve me giving them the car back and paying thousands on top too to cover the interest. I haven't even made a payment yet for the car and as said I raised the initial query within what I thought was a 14 day cooling off period. Have I actually got a let to stand on here and should I take this further? Thanks

Unfortunately you've misunderstood how the 14 day cooling off period works in respect of finance agreements  (the legislation actually calls it a "right of withdrawal" ).

It DOES NOT allow you to cancel the associated purchase (in this case a car).

If you exercise your right to withdraw from the finance you then have 30 days to pay back the amount you borrowed plus any interest that has accrued for the period the loan has been in force. NB. the lender cannot  charge any additional early settlement charges.

DullGreyGuy

Ectophile said:

I thing you're a bit short of legs to stand on.  If you had had the car delivered, then it would have been a distance sale, giving a 14 day right to change your mind.  But you collected the car in person, so it's not a distance sale.

You can cancel the finance within 14 days, if you wish.  But that then leaves you with the problem of how you will pay for your new car.  The money would be immediately payable in full to the fiance company.

That's not true... CCR depends on when the contract was completed. If you buy "click and collect" then you have full CCR rights because the contract has been entered into online and payment made before the goods were available for inspection. The fact you first handled the goods in your home, the courier's depot or the shop its all post purchase so irrelevant

If you "reserve online" but payment is made on collection then you have an inspection opportunity and there are no rights under the CCR

 There is insufficient information to know which of the two models it effectively was, certainly I successfully rejected a vehicle when the transaction was done 100% remote (though it was rejected on the day and I never took receipt of it after seeing the thick white plastic piping on the black leather seats, door cards and consul/dash. )

Absolutely right on the second part though, cancelling the finance agreement just means you must pay for the car in full now, it doesn't rescind the full contract. 

ontheroad1970

OP - Where did you sign the contract?

GadgetGuru

Your best bet is to sell the car privately, using the funds from the sale to clear the finance (hopefully it'll cover it)