I think I was ripped off by car dealer and my car finance company

Mummyof4_

Hello

I am looking for some advice on my situation, if anyone can be so kind to offer any.

Just over 2 years ago I took my old car in for a service and MOT at the garage I purchased it from (I had it just 12 month). During its service/ MOT they informed me that there was major problems with. the engine and the cost to repair would be too much/not worth it. I was told I would need to get a new car (from them). At the time, my personal circumstances, I was caring for my sick mother who had just been diagnosed with terminal cancer, so I needed a car to be able to care for her and my children and to take her to her hospital appointments at clatterbridge, do her shopping etc.

They told me the only car that would be 'in my budget' and 'suitable' was the one I have now. I felt a little bullied in to this but didnt have the mental capacity to question or dispute it at the time.

Being in a state of desperation as couldn't go another day without a car I agreed. 

They told me the cost of the car was £9240. and my monthly repayments £324.44 per month, again in my unfocused mindset I just agreed and took it. 

12 months after then my mum passed away and I was mentally unwell for a while. I have been struggling with may things and the car is one of them.

I am starting to get myself back on my feet after a long state of depression. 

and after receiving a statement from the car finance company and renewal of my car insurance I could see everything laid out in front of me. 

Firstly, according to my insurance company and after further research, my car is only worth £5500 but i paid £9240 and furthermore the car finance company has charged me £9,901.96 in interest on top of the loan. I also paid a deposit with the car but cant remember how much exactly.

The total amount payable is £19,141.96 for a car valued at £5500

I feel I have been taken advantage of and when I have spoken with the finance company they where rude and unhelpful.

Can I ask:

Does this look fair and just in terms of circumstances and charges?

and Is their a way of leaving this contract?

This is causing me such distress.

any advice and help would be greatly appreciated. 

DE_612183

Need for info on the cost of car, and the finance ( payments and term ), whilst it could be viewed as unfair - if you signed the paperwork it's hard to go back from there unless you can provide documented proof as to your state of mind.

The insurance value of the car also may be a lower value - can you advise what car it was, model, age , mileage etc?

Also did you get any part-exchange for the old car?

You need to get a copy of the finance agreement - if you haven't got one - the finance company must provide it - who is the finance company?

fatbelly

Those figures are not that unusual. You ask if there is a way of leaving the contract but don't say what sort of contract it is.

Is it hire purchase?

Is it a loan?

What does your agreement say?

Mummyof4_

fatbelly said:

Those figures are not that unusual. You ask if there is a way of leaving the contract but don't say what sort of contract it is.

Is it hire purchase?

Is it a loan?

What does your agreement say?

thank you for your response, It is finance from Moneybarn Vehicle finance.  

Mummyof4_

DE_612183 said:

Need for info on the cost of car, and the finance ( payments and term ), whilst it could be viewed as unfair - if you signed the paperwork it's hard to go back from there unless you can provide documented proof as to your state of mind.

The insurance value of the car also may be a lower value - can you advise what car it was, model, age , mileage etc?

Also did you get any part-exchange for the old car?

You need to get a copy of the finance agreement - if you haven't got one - the finance company must provide it - who is the finance company?

thank you for your response, It is finance from Moneybarn Vehicle finance.  

it is a Dacia stepway 2017 about 40,000 miles. they did take my old car and paid off previous car finance with that i think.  

DE_612183

you need access to the paperwork - it could be that part of your finance was to pay off the old car - for instance if the outstanding finance was £5,000 and they only gave you £4,000 for the old car - then you'd have to have £1,000 added to the finance. 

I suspect the finance you have is partly for the old car and all of the new car - hence the large amount - check the paperwork.

Go back to the dealer and ask them

fatbelly

Mummyof4_ said:

fatbelly said:

Those figures are not that unusual. You ask if there is a way of leaving the contract but don't say what sort of contract it is.

Is it hire purchase?

Is it a loan?

What does your agreement say?

thank you for your response, It is finance from Moneybarn Vehicle finance.  

Anyone know what sort of finance that is?

Grumpy_chap

Mummyof4_ said:

It is finance from Moneybarn Vehicle finance.  
 

I have only heard of Moneybarn in the context of sub-prime lending.  That means higher interest rates.

molerat

Grumpy_chap said:

Mummyof4_ said:

It is finance from Moneybarn Vehicle finance.  
 

I have only heard of Moneybarn in the context of sub-prime lending.  That means higher interest rates.

From Google

Moneybarn: Bad Credit Car, Van & Motorbike Finance Loans

Moneybarn

https://www.moneybarn.com

At Moneybarn, we help people who have bad credit get vehicle finance. Looking for vehicle finance but have bad credit? We could help!

They seem to lend in the 30% to 50% range.

Edi81

fatbelly said:

Mummyof4_ said:

fatbelly said:

Those figures are not that unusual. You ask if there is a way of leaving the contract but don't say what sort of contract it is.

Is it hire purchase?

Is it a loan?

What does your agreement say?

thank you for your response, It is finance from Moneybarn Vehicle finance.  

Anyone know what sort of finance that is?

No idea. We can’t see the actual agreement. 

At the time of purchase did you have any credit issues as moneybarn are a sub prime lender. 

sparks_2023

Moneybarn darkened my door for a while - but I needed to use them at the time to get an emergency zero deposit car. I still have 20 or so missed payment markers from them on my credit reports

Check out the info in the following link. It mostly deals with unaffordable loans - and I don't know if you think your loan is unaffordable or if you regard it as just unreasonable. I recommend you post your situation in the comments below the article anyway.

https://debtcamel.co.uk/unaffordable-car-finance/