Car Rejection with Negative equity
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Because they admitted that it was refurbished using their partner BCA which is supposed to be to as new standard. They have already admitted its unacceptable and not the approved used standard the problem ive had is trying to get them to swap the car which they don't want to do but will give me a full refund now the dealership are the third party in this. The manufacturer owned the car and the dealership was just used as a place for the car to be received checked and finance arranged. now when the dealership completes the full refund its then the negative equity will become an issue as they declared the invoice price of the car to b £2000 more than the list price to cover that which will be paid back to the finance company0
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I think you need to provide some exact numbers for people to help you.
I think what you are saying is (just using amounts as an example):
New car is £15000 discounted but worth more if you didn't have employer scheme
Finance is arranged for £17000 to cover your negative equity, which is fine for loan company as that is still a realistic price for the car
Manufacturer want to refund £15000 as that is what you are buying the car for. They don't know you took finance out for £17000.
Therefore, you will owe the finance company £2000.
If you can't have your old car back and reverse the deal, I don't see any way out other than paying the £2000. It's not the manufacturers fault you took out finance over and above the original price. It's not the dealers fault either.0 -
Problem is they have to refund the full invoice price of the car so the finance company will be fully paid off. I will owe the dealership then.
I’m willing to do a deal with them for the negative equity but I still feel like I’m going to end up worse off because they didn’t uphold there side of the agreement0 -
I appreciate your situation is difficult but I don't see how you are worse off. You owed £2000 on your previous car and you still owe that money, just now to the dealership. Surely you can find another car through the scheme and they just put the £2000 into that one?0
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:cool:Not at all I just feel like the figure of the negative equity is made up from them valuing my previous car with the intention of making a profit on which is fine except they broke the new agreement selling me a car not of suficient quality which they agreed. Now they are denying me a replacement and want to reverse the finance deal which in turn would leave me worse off than I was before I entered the agreement as I wouldn’t have my old car and I would owe
Your aim is to get a new car. So whatever anyone says will be secondary.
You were offered a refund because you wouldn’t accept a repaint, they have offered to repair the paint job (which can be done at a time that suits you), they can’t swap for a different car because the negotiations would be different. You didn’t buy the car outright.
Why don’t you accept a repaint. What’s he issue if it’s been repainted three times?0 -
On a car less than 12 months old, it must of had some serious damage done to it to warrant a full repaint, sounds to me like its been rolled.
I have yet to see an even reasonable repaint job done on any normal road vehicle, our works van went in for panel work, and some paint, had a lovely thumb print left half way down one side of it, over-spray everywhere, terrible job, even thinking back to an old capri i had repainted, that was an awful job as well, runs, blotches, over-spray, both main dealer too.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
That!!!8217;s my issue, I know how bad body shops can be and for it to require such paintwork in the first place and then not telling me the history of the car brings up alarm bells so how can I trust them to repair the damage done.
I did offer them the chance to let me choose a different car from the scheme that!!!8217;s what I wanted to do but they keep saying no so I!!!8217;m not after a free ride but at the same time I won!!!8217;t be able to turn up to the dealership and hand over a lump sum of cash0 -
I agree, I wouldn't accept a car that needed a full respray. Be very intrigued to see how they handle the negative equity aspect...
I imagine it will be down to how the negative equity was stipulated in the sale of the new car and the finance contract they drew up. If they merely added the negative equity on as additional deposit contribution, or more likely, additional discount on the car, then the finance company are obliged to refund you the total cost of the car. Therefore, in effect, the negative equity would be cleared.
However, if they included the negative equity as a separate part to the finance, which you took additional finance on to cover (along with potentially an increased deposit contribution and discount on the used car you bought), then they have no obligation to refund beyond the used car they sold you.
You agreed a sale price of the car to the dealer and that was £2k short of the settlement figure you had on it. This is separate from the rejection of the used car IMO.
As a general rule, rolling negative equity into another car finance agreement is never wise. iMO I think the whole idea that they somehow give you a better deal than someone who has no negative equity to roll in is fantasy....they are there to make money from you, not a charity..
The whole reason you had negative equity in your last car was presumably because you didn't keep it for the duration of the term you agreed (i.e. you hadn't paid off enough of the debt you agreed to take on)? By rolling negative equity into this deal, you just risk compounding the issue further. If you want to get out of this deal earlier (for 101 reasons, circumstances very often change during a 3/4year period), you will just have the negative equity from this car, plus the negative equity from the last car.
My advice is to clear the debt in full first, then start a new car finance fresh. If you weren't able to do that, then you should have just kept the car for duration of the agreed contract, or looked at other ways to increase the return on your last car so that the finance could have been cleared in full, such as looking at other dealers, sale or return, or private sale.0 -
I agree, I wouldn't accept a car that needed a full respray. Be very intrigued to see how they handle the negative equity aspect...
I imagine it will be down to how the negative equity was stipulated in the sale of the new car and the finance contract they drew up. If they merely added the negative equity on as additional deposit contribution, or more likely, additional discount on the car, then the finance company are obliged to refund you the total cost of the car. Therefore, in effect, the negative equity would be cleared.
However, if they included the negative equity as a separate part to the finance, which you took additional finance on to cover (along with potentially an increased deposit contribution and discount on the used car you bought), then they have no obligation to refund beyond the used car they sold you.
You agreed a sale price of the car to the dealer and that was £2k short of the settlement figure you had on it. This is separate from the rejection of the used car IMO.
As a general rule, rolling negative equity into another car finance agreement is never wise. iMO I think the whole idea that they somehow give you a better deal than someone who has no negative equity to roll in is fantasy....they are there to make money from you, not a charity..
The whole reason you had negative equity in your last car was presumably because you didn't keep it for the duration of the term you agreed (i.e. you hadn't paid off enough of the debt you agreed to take on)? By rolling negative equity into this deal, you just risk compounding the issue further. If you want to get out of this deal earlier (for 101 reasons, circumstances very often change during a 3/4year period), you will just have the negative equity from this car, plus the negative equity from the last car.
My advice is to clear the debt in full first, then start a new car finance fresh. If you weren't able to do that, then you should have just kept the car for duration of the agreed contract, or looked at other ways to increase the return on your last car so that the finance could have been cleared in full, such as looking at other dealers, sale or return, or private sale.
Thanks for the reply,So the price of the car was £23k i got £2k deposit contributuin meaning the cost of the car was £21k, then add my £2k negative equity onto the deal and the invoice for the finance was £23k no mention of negative equity just them selling me a car for £23k, they will have to pay the finance company that full amount back and from there on im unsure what will happen.
The reason i went for the deal is because it was an employee scheme whereby you get access to management cars and you pay the price the dealers would get them for so for example the car i got the cheapest equivilent to my spec is around £26k from the dealership i collected it from.0 -
sourcrates wrote: »On a car less than 12 months old, it must of had some serious damage done to it to warrant a full repaint, sounds to me like its been rolled.
I have yet to see an even reasonable repaint job done on any normal road vehicle, our works van went in for panel work, and some paint, had a lovely thumb print left half way down one side of it, over-spray everywhere, terrible job, even thinking back to an old capri i had repainted, that was an awful job as well, runs, blotches, over-spray, both main dealer too.
I’ve had major label work done to one car and patch work done to another side. Both came back good on a car that was 15 years old....0
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