Cancelling a car loan agreement??

lucycan

Hi there 1st post so be gentle!!
Does anyone know of my rights before l ring the car dealership and make a t*t of myself. We saw a car we liked at the weekend, salesman said the finance they offered was 6% - thought thats good :rolleyes: and a reasonable monthly payment over 5 years. My husband signed the hire purchase agreement today & showed me it - the APR is 14.7%! Had l read the section on MSE on car loans l would have realised that but.... The agreement is not very clear - can we cancel this now and arrange our own finance? I rang the dealership earlier and another guy told me he had already posted the signed agreement off - and was putting me off cancelling it. Can anyone help!!?

Thanks

mightymouse

Hi

Where was the agreement signed?

Tomorrow send a recorded delivery letter to the lender (keep the receipt!) cancelling your application before they have chance to accept it.

This may work if you signed on garage premises otherwise there will be a cooling off period.

lucycan

Yes my hubby signed it in the garage - now l know why they wouldn't post the agreement out! - as l think we would have had better options to read through properly and cancelled if we wished..:mad: rather than a salesman breathing down your neck!

Freebyman

I believe you have a seven day cooling off period. Also try ringing the credit company the car is financed with and tell them.

mightymouse

Hi

Can you cancel your credit agreement?

• Signed on trade premises
  Credit agreements signed at the trader's premises are not cancellable once both you and the finance company have signed the documents. At this stage, they become legally binding on both parties.

You may, however, have a very short window of opportunity to withdraw from the deal if the creditor has not yet signed their part of the agreement. In these circumstances, you should telephone the creditor immediately to establish whether the agreement has been signed. If not, inform the lender you wish to withdraw. Make a note of what was said and the name of the person you spoke to. You should then confirm your withdrawal in a letter. Send it by recorded delivery and keep a copy. Once you have withdrawn, you are entitled to a refund of any deposit you have paid. You should be aware that many retailers are entitled to sign credit agreements for, and on behalf of, the creditor and, therefore, you would not be able to withdraw as it would be binding when signed by the retailer.

Hope this helps....

standupguy

I would contact the finance company by phone - if they have not signed their copy then the agreement is not in force anyway.

Inform them you have been mis-sold.

You were told a rate applied of 6% under the impression that this was the apr - but the actual APR is now well in excess of that.
You were given a flat rate rather than an APR.

Tell the finance company you wish to make a formal complaint about this unless they unravel the agreement

They have to take your complaint very seriously under FSA rules.

I am sure all will be resolved

good luck!