Want to cancel finance & pay outright - What are my rights?

[Mrk]

Hi guys

Can you help please?


When I ordered my car, the deal that the dealer and I struck was I thought a fairly good one. We used another quote I had received from a lease company as a goal for them to reach, which they nearly did, so I ordered the car.

I rang them in the week to let them know that I wouldn’t need the finance that we had spoken about at the time of ordering, thinking that I have the legal right to pay by anything method that I want to, as things have turned around enough this year with work for me to pay for the car outright.

They said that the deal for the car was with their finance, and that they wouldn’t have given me such a good deal (£1500 off, not as good as some on here) if they had known I wanted to pay outright. So I am now waiting for them to decide what to do, and of course they are taking their royal time.


QUESTION: where do I stand with regards to the deal I struck with the car and cancelling the finance?



NOTE: This was the first time that I have ever looked at getting finance, so knew nothing about it; at no time did they say that the deal was only finance related; I only received the finance quotation on the 10th Feb after much pestering them for it (car ordered in November); and I have no finance contract in the bumph they gave me at the time. All I have is the invoice, which does have a figure for the finance company to pay.


Any advice greatly appreciated

[trix]

hmmm, it most likely depends on the finance company. had a friend in the same situation, abeit not a new car, then cira 2 months after taking it out got a big inheritance so paid it off in full I think she had a small admin fee that had to be paid to close it agreement early.

but additionally I'm not sure they can really enforce that the deal agreed is only open to you when paying via finance, there must be some legal point that scuppers them there.

S

[Mrk]

Hi Trix, cheers

I thought you weren't allowed out of a car finance, pcp, hire purchase contract etc until 50% of the finance was paid? Interesting.

[trix]

i'm not sure exactly how she paid for hers, thinking about it it may have been a personal loan
speak to the finance company & ask them? flutter your eyelashes

S

[chani1312]

hi mark......have u got your car?????? if you have then you have signed the legal documents to say you agree with finance??????

if you have not and hav e jus placed an order the 500deposit you put dwn is just for the car to me built and delivered!

Salesman i am dealing with i went to see him few weeks back, he said i can either keep finance option i have gone for or IF i want i can just pay it out right.......also the discount off the car he has given me is £1600

so i dont see why you cant pay out right.

and yes if u start the finance signed for ti accepted it taken car out of showroom then you are liable to pay 50% as thats what i was advised by the dealers also!

i dont know if this helps, hope it does.

[Ibanez33]

If it was VW themselves they had said to me when trying to get me to go for the finance (as if they weren't getting enough money from me), that not only could I terminate the loan early without a penalty should I want to pay outright they would also refund the intrest, but would have been on fixed rate finance.

[Mrk]

Thankyou guys

Chani I do not have the car yet. Only paid the £500deposit. Car is imminent.

On the order for the car it does have VWFS as the invoice name, was that the same as yours? I am down as the registration addresse.

Cheers

[ABN1C]

You are absolutely not obliged to take the finance and can pay in full, so don't let the dealer tell you any different as they will just be looking for their commission on the finance.

The 50% thing mentioned above relates to your rights to hand a car back after you've paid more than half the total payable under the agreement, which us possible in some deals but isn't relevant here. Anyone who has started a finance agreement can settle it early subject to the finance company calculating what is owing and rebating the total interest payable, but they'll typically factor in an extra couple of months interest.

[lancs_lad]

The 50% thing mentioned above relates to your rights to hand a car back after you've paid more than half the total payable under the agreement, which us possible in some deals but isn't relevant here. Anyone who has started a finance agreement can settle it early subject to the finance company calculating what is owing and rebating the total interest payable, but they'll typically factor in an extra couple of months interest.

That's correct. I looked at VW finance before I bought mine and I'm pretty certain that the early resettlement was 2 months interest. As others have pointed out though you do not have to take the finance.

[chani1312]

mark dont let them force you into taking the finance, you are not bound to do so. its just another way for the dealers to make more money out of the car as it would be on a pcp and interest based. i havent got my car yet either and my salesman still offers me the choice of finance or paying full. i have only paid £500 deposit too.

[Mrk]

Awesome, thankyou guys

[Mrk]

The Finance Manager called me last week, contradicted himself over the fact that he said the deal was for the car, not a bundle of the car & finance, then said they wouldn't have given such a large discount (there biggest ever on a Roc apparently) if I wasn't using the finance I think my discount is fairly average.

Then said he would have to call me back after he had spoken the the sales manager. Of course he hasn't called back, 5days and counting.

I found a Clause in the T&C's attached to the sales order, saying that I can arrange any form of payment, if notified within seven days of me being told the car was ready. So I sent a letter of intent to my sales guy yesterday saying that I will pay for the car in full. Of course no reply.

[trix]

good move Mark, make sure you wave that bit under their nose they won't have a leg to stand on. knew there should be something like that it was just the matter of finding it

S

[Mrk]

Hi Trix

My salesman has responded by saying that he thanks me for my letter, and will get back to me, after speaking to the sales manager, dum-de-dum-dee-duumm

At this point I really don't care if they say 'go jump Mr Mark', as I can get the same car for the same money from dealdrivers, I just have to wait a wee bit longer. Gives me a chance to save up for some more options I don't need

[Mrk]

Well, all sorted, even though after my letter and me pointing out that their level of communication was on the wrong side of poor, they still didn't get back to me when they said they would, and left it a further 24hours.

Thanks chaps for the help.

[Tallguy]

I would say to the dealer he either honours the deal at the discounted car price agreed or returns your deposit and you will buy elsewhere.

[Evil Derboy]

The dealer is only trying to put pressure on him to keep the finance in place because they are making so much money off of it. They are offsetting the discount they are giving on the car with the comission that they are being paid by the finance company. It's purely bluster at this stage as anyone has the right to cancel ANY finance agreement within either the first 7 or 14 days after the agreement starts (can't remember which). The dealer could have cancelled the discount deal on the car if it was signed up that this was provided on condition of the finance being taken out, but then they would risk losing the sale entirely.

It's just another case of dealers trying scare/bully/barra-boy tactics to get their own way.