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Hi,
Firstly please accept my appology if this has been covered before, I have looked everywhere and cannot find it!!!
We bought a second hand car in aug 06 on a 60mth hire purchase agreement from a main dealer. We have just been reading the docs and also got a setlement figure as we are looking to change and the mileage on the signed finance agreement doesn't match the mileage on the car when we bought it, this is also backed up as we have the mot from the garage done on the same day! The car had done 91,000 miles (it was bought and paid for unseen as we live 100 miles away from the garage and as it is a main agent we trusted them!!!) anyway, we bought it with 87,000 miles and when it arrived it had done 91,000! Thats not the issue though - on the finance agreement it states that the car had only done 79,000 miles, looking closer into this the finance company wont accept cars with over 80,000 so its pretty obvious the salesman has lied to the finance company to get it passed through finance.
Just to add - we paid 500 deposit and the monthly payments are 200.
Question - can we end the agreement now?? Are we entitled to anything back?? Whats our best thing to do?
Thanks alot.
looking closer into this the finance company wont accept cars with over 80,000 so its pretty obvious the salesman has lied to the finance company to get it passed through finance.
I would contact the finance company direct and advise them what you have uncovered. Who was the finance provider?
I can't imagine you would be entitled to anything back yourself as you knew the correct mileage of the car from the outset. The matter is between the finance company and the dealer, but you should bring it to their attention.
Dealers are allowed to finance the amount they want to sell a car at subject to certain restrictions. One of these is that they can only charge a percentage of Glass' Guide Retail Value (normally 100% but sometimes more depending on the FinCo, credit score of the customer etc.) Same principle as a mortgage i.e. you can't get a 200k mortgage on a 150k house. You would need to find out what the Glass retail value was in that month and what criteria the FinCo you used sets in that regard. If you PM me the name of the FinCo I may be able to tell you. If the loan sought was significantly higher than that which would normally have been offered on that car with the incorrect mileage you may have a 'get out' citing fraud on the part of the dealer.
Dealers are allowed to finance the amount they want to sell a car at subject to certain restrictions. One of these is that they can only charge a percentage of Glass' Guide Retail Value (normally 100% but sometimes more depending on the FinCo, credit score of the customer etc.) Same principle as a mortgage i.e. you can't get a 200k mortgage on a 150k house. You would need to find out what the Glass retail value was in that month and what criteria the FinCo you used sets in that regard. If you PM me the name of the FinCo I may be able to tell you. If the loan sought was significantly higher than that which would normally have been offered on that car with the incorrect mileage you may have a 'get out' citing fraud on the part of the dealer.
The OP quoted the finance company as Blue Finance.
I appreciate what you are saying but somehow don't think this 'get out' would hold much weight.
1. Dealer's can sell cars for pretty much what they want, and it is up to the buyer to look out for anything that is overpriced. Generaly speaking the market in general looks after this. Glass's Guide is just a guide, and there is nothing illegal about selling above guide prices.
2. The OP knew the correct mileage and the correct selling price at the outset, and therefore cannot claim any form of damages on the basis of new information becoming available that has caused a loss.
The finance company may, however, have a case against the dealer but again this would only be really relevant in the case of default by the OP and an eventual loss upon repossessioin and sale.
you are right Ron in that dealers can sell a car for whatever someone is prepared to pay however I have spent the last 4 years as a sub prime business manager at a large car supermarket and have dealt extensively with Blue and they have very strict criteria about the LTV they will advance and the maximum mileage they will consider. Blue also act as brokers for a firm called BCT so I would need to know if the deal was done on Blue's own paper or BCT's.
Question to procare - are you looking for a way out of the agreement? You wiull be half way through your 60 month agreement in 6 months time and then will have the option of voluntary termination.
Regardless of the policy of the finance company regarding the mileage, they provided the finance on that vehicle and are not exactly in a position to change that now.
As to getting anything back, which was mentioned in the original post, I am unaware that an incorrectly stated mileage would invalidate the agreement in any way as it is not a prescribed term under the CCA, and I assume that the vehicle is otherwise correctly described, so that is unlikely to be a road worth going down.
Poss also a challenge via Sale of Goods as goods are not as described. Did the order form & invoice issued by the dealer agree with the HP agreement on the mileage?
Credit act - wrong mileage
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Originally Posted by steveoram1
