HP car finance

[pcs]

Hi all, hoping someone has the answers to my problems.
Unnamed car dealership offered me a newer vehicle when I came in for a problem with my current vehicle. I had a HP agreement setup on the existing vehicle and had about 14 months left before I could hand it back through the 50% rule. The newer vehicle was 2 years younger and less than a third of the mileage. As I use the car for business i decided to take up the offer and it was only costing me an extra £20/week to change. The previous car had about £3,500 negative equity which they added to the new car and the dealership settled my old finance agreement. It would appear that the car dealership which is a national name, made a mistake with the new agreement and is now unable to gain the same HP finance deal I had before as no finance establishement will stand the negative equity on the new vehicle as I could still hand the new vehicle back after 30 months and walk away. I do about 35,000 a year so the car would not be worth mush anyway. The dealeship now want to offer the vehicle on a personel loan, even though I have had the vehicle for 6 weeks and have the new V5 in my name. The dealership said they will underight the new agreement to act similar to a HP agreement but not be an actual HP agreement. Basically my old car has been paid off and I am driving the new vehicle without any finance agreed upon it. Can I just hand the car back and walk away or do I have to sign up to the new agreement. Sorry for the long story, but as you might guess it is a bit long winded. Many thanks ALL!!!! My old car has been sold so they cannot even give it me back!!!!!!

[sequenci]

er. did you sign an agreement for the new car?

is the new car legally yours?

[pcs]

Signed a sale agreement, but the finance agreement has never been setup. So dealership are desperatly tring to get me to sign upto a personal loan, which I do not want to do. I can get personel finance but not HP due to the neg equity from the old car. I think the dealership finance people have made a mistake!!!

[sequenci]

I do too!

How on earth have you got the car? Who 'owns' it? Have you checked with the DVLA?

This is rather curious!

[PKea]

What did the Sale agreement say with regards to payment for the vehicle?

[pcs]

Car is legally mine I think?
In have the registration document in my name an its insured!!!

Sale of old car to dealership is complete, I have a reciept.

Invoice for new car is addressed to finance company who will not now authorise HP.

The thing is the dealership do not know what to do! I have offered them the car back and said I will take my old car back, but they have sold it. So I said i would have a car of equiv standard and mileage and reinstate my old agreement. They can not do this either. I want to hand the car back and walk away. They might just have to accept thier error and move on!!!

[pcs]

The sale agreement is invoiced to the finance company and not me.

I believe I have sold my car in good faith to the dealership, albeit at a vastley increased value to cover the HP neg equity.

The new car was costing £3,500 more than it true value. Think the dealership were trying to pull a fast one!!!!

[PKea]

The rgistration document just means that you are the registered keeper, not the owner

If the invoice is adressed to the finance company then they will own it, if they pay the garage.
As they have not (or aren't going to) pay the garage, then the garage will be expecting their car back.

with regard to your part ex car, your owed more that it was worth?

What does the receipt for your car show? ie payments, finance cleared etc

Hopefully someone with a bit more specific knowledge will be along soon

[sequenci]

I think a call to Trading Standards should be considered!

[pcs]

Might do, I will give hte garage to monday to sort it out to my satisfaction, I am a reasonable guy so would like to get it sorted.

thanks for your help!!!

[PKea]

Originally Posted by pcs

Might do, I will give hte garage to monday to sort it out to my satisfaction, I am a reasonable guy so would like to get it sorted.

thanks for your help!!!

I would get an proper advice from TS first, you may be entitled to more than the garage offer.

[ukaviator]

A personal loan maybe better for the Interest rate. Worth checking the rates and payments, but do check with TS first to see what your options are. I know years ago if a car had negative equity, the dealer would add this to the new car price, and give you a bit more on your old trade in. Just moving figures to get a sale.

[PKea]

Originally Posted by pcs

The sale agreement is invoiced to the finance company and not me.

I believe I have sold my car in good faith to the dealership, albeit at a vastley increased value to cover the HP neg equity.

The new car was costing £3,500 more than it true value. Think the dealership were trying to pull a fast one!!!!

Put 2 + 2 together

They just increase the cost of the car you are buying to cover their shortfall

[sequenci]

Now that they cannot sort the finance out they are scuppered.

[pcs]

Thats what they have done, but they cannot get finance as the new car is not worth that much and the HP company in reality are buying the car and renting it back to me. Thus they will not overpay for the car.