Car loan

gr7ace

I am currently in the process of buying a car. I applied for a loan with Barclaycard, however they turned me down for no apparent reason. I then checked my credit rating using one of the sneaky tips on this site and it seems all good.

I then applied for a loan to Tesco, which I have just had the letter back saying yes. However there is a snag.

This morning I went out and looked at the car I wanted, no set up or anything while I was talking to the salesman after the test drive etc someone else wanted the car (not a set up). So I put down a £450 deposit and went through the finance details. I ended up getting it on hire purchase. It would be far far cheaper for me to get the personal loan than this agreement.

I was wondering what I should do? I still want the car but not with their finance. I am picking the car up on the 13th of March and want to know if I should wait for the Tesco loan or just get it on the finance and then pay back £13k with the tesco loan?

Please help.

Oh the credit check for the hire purchase has not gone through yet and I do not have a signed agreement from them, only my £450 deposit and my sig.

Balls_Of_Steel

gr7ace wrote: »

I am currently in the process of buying a car. I applied for a loan with Barclaycard, however they turned me down for no apparent reason. I then checked my credit rating using one of the sneaky tips on this site and it seems all good.

I then applied for a loan to Tesco, which I have just had the letter back saying yes. However there is a snag.

This morning I went out and looked at the car I wanted, no set up or anything while I was talking to the salesman after the test drive etc someone else wanted the car (not a set up). So I put down a £450 deposit and went through the finance details. I ended up getting it on hire purchase. It would be far far cheaper for me to get the personal loan than this agreement.

I was wondering what I should do? I still want the car but not with their finance. I am picking the car up on the 13th of March and want to know if I should wait for the Tesco loan or just get it on the finance and then pay back £13k with the tesco loan?

Please help.

Oh the credit check for the hire purchase has not gone through yet and I do not have a signed agreement from them, only my £450 deposit and my sig.

What is the Tesco APR?
What is the car HP firms APR?
That's what matters. You should have a cooling off period with the HP.

gr7ace

Balls_Of_Steel wrote: »

What is the Tesco APR?
What is the car HP firms APR?
That's what matters. You should have a cooling off period with the HP.

The Tesco APR is 6.8, the HP is about 10%. I have not seen any paperwork for the HP yet, as I will see that when I pick up the car. I am hoping that I will have the tesco money in my bank by then so I can then just pay with that.

Failing that take the HP and pay most of it off with the Tesco loan.

gr7ace

Having just got woken up at 3am by the gf (she was on a night out). I decided to look around on the internet.

Here is where I am at;

• I have not signed a HP agreement yet, all I have done is asked them to set one up for me.

• I have applied for a unsec loan with tesco (they have approved it and done a credit search)

• The paper I have signed has no mention of a HP agreement, it is only a used car order form.

Having looked around on the net it seems that if I do sign a credit agreement on their premises then I will not be entitled to a cooling of period. I phoned them earlier today to ask if they would delay setting up the credit agreement, but they said that it had already been done. They also said that I could pay off as much as I like and not get charged (so can I pay most of the HP off then leave a small amount on it?) and they also said that if I was to repay early I would be charged on months interest. If the HP was for £14k and I payed of £13k straight away would I still have to make large monthly payments for the whole term or would I just pay for what is left?

I am a bit confused.

I can understand them not wanting to stop it as they will be on commission.

I believe that " it is your right under the Consumer Credit Act 1974 to terminate any credit agreement at any time". So can anyone confirm this and advise me what I should do? I still want the car but I don't want to be stuck with the HP.

I can see a few thing happening,

1. I go to pick up the car and cancel the Hp and pay on my debit card (with tesco loan)
2. I try to cancel the HP but cant and get stuck with it, pay of most of it with the tesco loan.
3. I walk away and lose my £450 deposit.

Please help.

CLAPTON

There can be no question of cancelling the HP agreement as you haven't signed anything so there is no agreement to cancel.

At this stage either you or they can decide not to proceed.

Simply say you don't want credit.

And be very very careful what you sign on the premises... make sure it only relates to the car and not credit agreement.

gr7ace

Thanks for the heads up, I need to word things better in the future. I can imagine that they will be very !!!!ed at not getting their commission. I think I will take someone in with me when I get down there.

I would hate for them to give me my deposit back and tell me to !!!!!! off, but hey they will be losing out.