Car dealership refusing to help cancel car finance with the finance company!

Bandmartian65 · 8 February at 4:26PM

I’m seeking advice on next steps regarding a dispute with a car dealership and finance company.

In January, my partner agreed to part-exchange his Audi Q3 for an Audi Q5. The Q3 was still on finance and in negative equity, which the dealership agreed to roll into a new finance agreement. My partner paid a £500 deposit and signed a finance agreement with Blue Motor Finance. The remaining deposit was due on collection of the Q5, when the Q3 would be handed over.

The following day, my partner decided not to proceed. He contacted Blue Motor Finance, who said the dealership would need to cancel the agreement. He then contacted the dealership, who said he would lose his £500 deposit (this was not stated as non-refundable at the time). He agreed, and the dealership said they would cancel the finance.

A week later, my partner received a welcome letter from Blue Motor Finance confirming payment dates and direct debit details. On contacting them, he was told the agreement was still active and that no cancellation request had been received from the dealership. We contacted the dealership again, who claimed they had cancelled it but said the process takes two weeks. Blue Motor Finance confirmed this was untrue, stating cancellations are immediate and that they had received no communication at all from the dealership. They advised us to submit a complaint, which we did.

My partner then formally emailed both the dealership and Blue Motor Finance withdrawing from the finance agreement and cancelling the sale.

Blue Motor Finance later rejected the complaint, stating my partner remains liable for the credit and must repay the funds paid to the dealership. They advised the agreement could only be cancelled if the dealership confirmed cancellation of the sale in writing.

My partner repeatedly contacted the dealership by phone and email requesting this confirmation. One staff member acknowledged seeing the emails and said the manager would respond, but no confirmation has been provided.

Citizens Advice advised us to obtain written confirmation of cancellation from the dealership or follow up further.

We believe the dealership is refusing to provide this because no cancellation was ever processed and because Blue Motor Finance has confirmed the funds were paid to the dealership and may already have been spent. The first payment is due next week and the situation is becoming overwhelming.

For clarity:

• My partner never took possession of the Q5

• No keys were handed over

• The only driving was a test drive

• The Q5 remains listed on the dealership’s website, Autotrader and AA

Blue Motor Finance is refusing to assist further and is directing all responsibility to the dealership. The dealership will not communicate via email at all, they confirm things over the phone (such as the cancellation of the sale of the car, the fact that the car was never handed over etc).

Any advice on how to proceed would be greatly appreciated.

Bandmartian65 · 8 February at 4:23PM