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

Bandmartian65

https://forums.moneysavingexpert.com/discussion/comment/81876002#Comment_81876002

sorry it wouldn’t let me reply to your message before but what I was saying was that ultimately the company will not give the confirmation that the finance need which is over email or in written form even if we were to go there. I also don’t think it would stay polite because of the situation and I don’t want to give them the excuse of feeling bullied or that my partner was being abrasive and aggressive which is the angle I think will be spun

eskbanker

What's led to the expectation of hostility, i.e. what do you believe the dealership's side of the story to be?

In terms of the paperwork your partner signed to commit to the purchase, is there a cancellation policy and if so, what does it entail beyond forfeiting the deposit?

paul_c123

You need to find out if the dealer has received money from the finance company.

Bandmartian65

https://forums.moneysavingexpert.com/discussion/comment/81876031#Comment_81876031

I mainly think this because every time my partner has phoned them they’ve agreed that the sale didn’t go through, but won’t email across anything. Even when we speak to the manager he’s saying that he doesn’t understand why we keep calling, they’ve done all they can do etc and even now hasn’t been taking our calls and is “conveniently” not in.

The cancellation policy says in the HP agreement says “You have a right to withdraw from this Credit Agreement under Section 66A of the Consumer Credit Act 1974, without giving reason on the day after the date we inform you in writing that we have executed the Agreement and will end 14 days after that day.

If you withdraw from this Agreement after the credit has been provided, we will keep any advance payment you have paid and you must pay £19,795.00 (theamount of credit) plus the interest at £10.00 per day which has accrued from the date the credit was provided up to, and including, the date you pay the amount of credit. You must pay these sums to the finance company at the above address without undue delay and no later than the end of the period of 30 calendar days beginning with the day after the day on which your notice of withdrawal was given. Please give your Agreement number as the payment reference. For the purpose of calculating the number of days' interest, if paying by cheque sent by prepaid first class post or recorded delivery you will be deemed to pay the credit on the second day (excluding Sundays) after posting or, if paying by bank transfer, on the day your payment leaves your account (in each case providing your payment clears).

We will remain the owner of the Vehicle until you pay us the credit and interest specified above. If you do not pay us the credit and interest within the 30 day period specified above, we will be entitled to recover the Vehicle and sell it to someone else (and you will lose all rights in relation to the Vehicle). We willI deduct the sale proceeds we obtain for the Vehicle (less our reasonable vehicle recovery and sale costs) from the credit and interest and you must pay us any shortfall. If the sale proceeds (less our reasonable costs of sale) exceed the credit and interest, we will pay the surplus to you. You must retain possession of the Vehicle, keep it insured and take reasonable care of it until you become the owner or we recover it from you.”

*Just for reference they’ve put the contact details etc in the agreement I’ve just taken them out*

Bandmartian65

https://forums.moneysavingexpert.com/discussion/comment/81876041#Comment_81876041

the finance company has told us that they’ve received the money, it was sent over the day the agreement went live

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81876080#Comment_81876080

I was thinking more of the terms of the purchase itself from the dealership, rather than the (separate) terms of the finance agreement - the latter entails cancellation provisions by virtue of being regulated, but the former is less likely to have a cooling-off period.

paul_c123

"the finance company has told us that they’ve received the money, it was sent over the day the agreement went live"

"If you withdraw from this Agreement after the credit has been provided, we will keep any advance payment you have paid and you must pay £19,795.00 (theamount of credit) plus the interest at £10.00 per day which has accrued from the date the credit was provided up to, and including, the date you pay the amount of credit."

I think you have fundamentally misunderstood what a cancellation looks like, because its a 3 party agreement:

1. Finance company has purchased car from dealer
2. Finance company then provides you with the car, in return for regular payments

You have the legal right to reverse out (2), but there is no obligation for the dealer to reverse out of 1. Because the finance company have sent the money, the cancellation means you must pay in full (plus a bit more for interest etc) to the finance firm in return for full ownership of the car.

(All the above assumes we're not talking about a Distance Selling Agreement, or a faulty car you're rejecting under consumer rights, which is a different matter entirely - and can't be used for convenience unless the car is sold at distance; or is faulty)

Bandmartian65

https://forums.moneysavingexpert.com/discussion/comment/81876138#Comment_81876138

so that’s it then my partner has to pay the £19,795? So why would the finance company say they just need confirmation from the dealer that the sale was cancelled and then they’ll stop the payments? Sorry if I’m being dumb it’s just this is all so confusing

Bandmartian65

https://forums.moneysavingexpert.com/discussion/comment/81876095#Comment_81876095

in terms of the dealership, there’s no paperwork that has come from them or anything. Just the amount of the finance and how much of the deposit has been paid

Altior

It's a bit random but if the trade in vehicle was in negative equity there must have been an outstanding finance agreement. Who was that with, and has it been settled? Obviously if it has been settled it proves that at least some of the funds have been moved.

I'm speaking from the perspective of someone who has ran a finance team. If the accounts are particularly busy, lots of incoming/outgoing, the accounts clerks could possibly be looking for the incorrect amount of money. ie, net of the original finance settlement, less the deposit (if it was a different lender).