Car finance trap

galaxy999
galaxy999 Posts: 7 Forumite
in Loans
Hello everyone.
My entire life I never had any loans or debts and I always paid my phones on time.
Few days ago I decided to take a very expensive car on finance with motonova.
Now that I realised how terrible of a mistake it was is there a way for me to get out of the agreement? I want to return the car and be free of the car finance. What is the 14 days cooling off period? Maybe personal bankrupcy? Please help as I'm terribly worried my own stupidity got me in trouble.
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Comments

  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    Bankruptcy to get out of a car loan? Bit severe, like cutting off your head because you have a headache.

    In regards to the finance you have a cooling off period of 14 days to cancel the finance however that may still leave you ending up having to pay for the car another way.

    If you bought the car online you can return the vehicle within 14 days under distance selling rules.

    If you bought in a dealership you are at the mercy of their returns policy.
  • galaxy999
    galaxy999 Posts: 7 Forumite
    edited 22 April 2018 at 10:04AM
    I did buy the car at the dealership and I also signed the finance at the dealership.
    The thing is finance is very unfavourable but that's my fault.
    Should I call the dealership and ask them if I can return the car?
    Or maybe I should call finance company and since there's a cooling off period ask them to cancel the finance and go to my own bank for a loan that would be much easier to pay?
  • Dan83
    Dan83 Posts: 672 Forumite
    First Post Combo Breaker First Anniversary
    Go to the dealership and have a word with someone there.

    When I last bought a new car (about 7 years ago) someone explained various ways to get out.

    The only problem you might have is, because they have already had your money they might not want to spend the time with you.
  • pmartin86
    pmartin86 Posts: 756 Forumite
    First Anniversary Name Dropper First Post
    I thought the school holidays were last week...
  • dealer_wins
    dealer_wins Posts: 7,334 Forumite
    The car will have lost about 20% of its value the moment you drove it out of the showroom, which you will have to take into account and take a loss on when negotiating return of the vehicle.
  • poppasmurf_bewdley
    poppasmurf_bewdley Posts: 5,909 Forumite
    Name Dropper First Post First Anniversary
    edited 22 April 2018 at 11:01AM
    Regarding the finance, you will in all probability have 14 days to cancel the deal.

    The car, however, is an entirely different proposition. If you had ordered online, you would have had a 14 day period of grace, but as you signed up on the dealer's premises, you have no such getout.

    In the first instance, you need to be truthful to the dealer. Tell them you have made a terrible mistake and cannot afford the car, and ask them to take it back.

    If they are awkward, then you have one or two alternatives.

    If nothing else, you can cancel the finance even though it will have been paid out. Then return the car to the dealer, complete with all the keys and documentation, and walk away.

    There may be repercussions. There may not be. At the end of the day, it's in your hands for what is probably your most stupid decision in years.
    "There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock
  • galaxy999
    galaxy999 Posts: 7 Forumite
    It's the dumbest decision in my entire life. The main problem here is finance. I can still pay for the car but with the loan from my bank. So even if I signed the finance at the dealership premises is there still a 14 days cooling off period? If there is I will cancel the finance and go to my bank for the loan. That way it will be affordable for me.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    First Anniversary Name Dropper First Post Photogenic
    You dont even need to cancel the finance you can settle it. eg you pay it off, in your case with a different loan. And there's no time pressure even if you went past teh 14 days it doesn't matter you can settle at any point.

    What interest rate is the car loan? Often you get better deals from a car dealership than high street loans.
  • poppasmurf_bewdley
    poppasmurf_bewdley Posts: 5,909 Forumite
    Name Dropper First Post First Anniversary
    Even though you signed the finance deal on the dealers premises, you still have 14 days to cancel.
    https://www.which.co.uk/consumer-rights/advice/i-want-to-cancel-a-loan-ive-taken-out-what-do-i-need-to-know
    The dealer may not like this as they will have received commission from the finance deal, but they will have to lump it.
    "There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Name Dropper First Post First Anniversary
    From going bankrupt to wanting to be free of the car finance to being able to get a bank loan (which is finance or debt) in 3 posts?
    Contact the finance company - ask them for a settlement figure - get a bank loan - pay off finance company with bank loan - come back here next month made a big mistake with terrible bank loan - help what can I do?
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