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

Rajix

You need to check the terms of the agreement but here will be a section on voluntary termination. Most agreements stipulate that once 50 to 60% of the agreement is repaid you can terminate the agreement and return the goods to them. You can obviously terminate the agreement whenever you want but the car will only be valued at auction price and you'll be liable for the remainder. My advice would be to reach out to the finance provider, explain your financial concern and see what options are available. 

Nasqueron

Rajix said:

You need to check the terms of the agreement but here will be a section on voluntary termination. Most agreements stipulate that once 50 to 60% of the agreement is repaid you can terminate the agreement and return the goods to them. You can obviously terminate the agreement whenever you want but the car will only be valued at auction price and you'll be liable for the remainder. My advice would be to reach out to the finance provider, explain your financial concern and see what options are available. 

VT is a legal right at 50% but that's 50% of the total finance deal including interest so on PCP it's normally towards the end, particularly with a high income low credit rating lender

Mummyof4_

DE_612183 said:

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

Thanks for your response. It is all for this car. and not my old car. 

Mummyof4_

Edi81 said:

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. 

Edi81 said:

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. 

Edi81 said:

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. 

I actually had a CCJ on my file at that time i didn't know about, it was not my debt (CCJ) Which the court later removed from my file.

molerat

A 5 year finance deal ?

34% APR ?

Buying a used car on a 5 year finance deal is never a wise move especially with that sort of interest rate, after 2 years you are still paying around £200 a month in interest.  Paying £9240 for the car and now 2 years later having a value of £5500 is probably about right, used car prices started dropping rapidly a while back once the market started getting back on its feet after the pandemic - you probably bought at peak price, around then I could have sold my 3 year old car for a lot more than I paid for it.  I can't see this actually being a rip off unfortunately, just down to timing and your eligibility for finance at the time.

fatbelly

Have we established that this is a Conditional Sale agreement under the Consumer Credit Act?

You have the right under that Act to Voluntarily Terminate the agreement and your liability is limited to 50% of the Total Amount Payable

https://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

https://legalbeagles.info/forums/forum/legal-forums/motoring-parking/vehicle-finance-and-issues/77730-a-guide-to-voluntary-termination-your-rights?77612-How-to-Voluntary-Terminate-a-HP-Agreement-*UPDATED*=