my brother went to a garage and bought a 04 plate vauxhall corsa. The car was up for £4500, he has got £550 px for his. MY brother signed a credit agreement for 30%apr. He no longer wants it (he is young and stupid for signing up inthe first place) He has not collected the car yet (ment to be today) and has not given in his car yet. We have rang the garage and the finance company and they are saying tuff , you have to take the car and the finance.
Where do we stand? please help
Edited by Dynamic Dave on 24/05/2008 at 16:38
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by the way, the car is not being purchased from vauxhall, its a local used car place
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How many days ago did he sign the finance forms ? I am sure that crediits agreements have a statutory "cooling off" period, whithin which you can cancel them, possibly 10 or 14 days.
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I think that is only if signed away from the point of sale.
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I'm afraid there is no cooling off period if you visit a dealer, and sign a contract. It only applies where someone gets you to sign something at home, for example, not at the trader's premises. My son in law was caught out like this when the CarShop refused to allow him to cancel a deal.
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Stay away from the phone and the dealer, and visit a solicitor on Tuesday morning. The finance co. may try to sue him, but legal advice is vital.
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All has now been sorted.We rang the dealer and finance company. finance company said only the dealer could cancel it. Dealer was not very happy but in the end he cancelled it. My brother had paid £60 to them already for something so said for them to keep it. Just glad now, for his sake that he didnt buy it with the huge APR rate.
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I'm happy you got this sorted out. It is easily done when you are young and get a bit carried away, especially with something emotive like car buying.
I had a call from our bank (well-known high street bank) this week offering a loan. I asked for a quote and then asked what the APR was. They said, 6% flat-rate. I said, "No, not the flat rate......the APR". The answer was - 13%. Totally uncompetitive and very sneaky trying to pass the flat-rate off as the APR. I suspect this is what may have happened to your brother.
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I know there will be a chorus of 'buyer beware', but the garage should be ashamed of themselves for trying to tuck up someone into a 30 per cent APR agreement.
No one minds anyone making a profit, but this is profiteering.
Hopefully, the hassle the garage has had for very little reward - £60 - might teach them something.
Edited by ifithelps on 24/05/2008 at 21:45
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This is true, you always get a cooling off period when signing for any finance/insurance etc. Although the dealer is a 'representative' of the finance company, your contract is with the finance co and therefore are entitled to pull out of the deal. The FSA regulations stipulate that 7 days minimum is given - most give 10-14 days as part of their TCF (treating customers fairly) policy.
I have worked in compliance for a well known auto finance company and these were our terms and conditions.
I wouldnt have told them to keep the £60 however I see the point that it is a lot of money saved in the long term. All APR should be very cleary pointed out to the customer, with a breakdown of credit costs, interests and any additional products such as payment protection insurance as separate entities so the customer can make an informed choice.
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im happy and i think my brother is too. I think he feels a bit of a fool for going through with it in the first place. but we are all happy, but i am just glad the dealer has not made him go through with the deal -because i believe he was well within his right to make him have the car.
Now my brother is the proud owner of a 52 plate Renault clio DCI courtesy of my other half!!
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