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Hi all, first post, have been an avid guest reader of the forums for sometime however!
Applied for car finance through carloan4u last december, I am a self employed musician living far beyond heis means, with a pretty horrific credit history, but was astounded by the 7k credit they were able to fine with welcome finance. (this was probably down to the misleading good bank statements I provided.. I had had an unsually prosperous 3 months prior you see, I timed the application specifically due to this )
So..found a very nicely suped up 2002 Mk4 VW Golf. GT TDi (150BHP) with 82k miles on the lock for £6900. I paid £2200 cash deposit therfore leaving £4700 to be financed @36%APR over 4 years. £100 option fee, and £195 acceptance fee.
Interesingly the car turned out to be an import (which was against the T&C's of carloan4u.. & welcome I think, not to mention my insurance company), and also turned out to be a 130BHP on leaving factory. (Due to the fact it is an import the reg number doesn't always come up with the right details I think)
All this worked in my favour of course as they saw the car as higher value than it was. (at stock at least anyway, as carloan4u said they couldn't take into account asthetic/performance modifications on value) Ther car is actually putting out a good 170bhp and an incredible 305lb/ft torque.. so I am not complaining, esp as the insurance went down when informed them it was a 130bhp stock! There is, and this was evident on viewing the vehicle however, something a bit wrong with the steering rack.
Still the vehicle was a steal, and I still love it on the whole..the finance agreement of course was not a steal, and Im annoyed with myself more and more each day for being oolish enough to go with such extortion just to get the toy I wanted... so I'm thinking of a get out.
my questions are as follows:
What is the correct interpretation of the following clause from the agreement I signned..?
''If you do not keep to your side of this agreement but you have paid at least one third of the total ammount payable under this agreement, that is £3474.61 the creditor may not take back the goods against your wishes unless he get s acourt order. I he does take the goods without your consent or a court order you have the right to get back any money that you have paid under this agreement.''
Does this mean if they take the car after a third payment I get all the money back (effectively hiring a car for free for xyz months?:grin or only if they do so OUTSIDE the legitmate means of a court order?
Also...I do not understand this 3rd of term figuer... (33.% * 48 months) * 171.33 / month = 2713.87 not the 3.5k stated??
One last thing, after checking my credit file with eqperium/equifax... I saw that welcome finance is not only listed twice(maybe due to new agreement after cancelling and recouping PPI), but at a value of 10.5k, the 'total ammount payable for goods that I think incudles the 2.2k I put into the car'... they loaned me £4700 not 10grand!!
One very very last thing... is there sucha thing as 'refinancing' your car.. are there people that specialise in this? Surely making a year of payments on time without fail would show a lender I could cope with lower payments due at their lower APR?
Does this mean if they take the car after a third payment I get all the money back (effectively hiring a car for free for xyz months?:grin or only if they do so OUTSIDE the legitmate means of a court order?
That would only apply if they didn't get a court order, and I doubt they would be dumb enough not to get a court order in that situation.
Originally Posted by vandall
Also...I do not understand this 3rd of term figuer... (33.% * 48 months) * 171.33 / month = 2713.87 not the 3.5k stated??
The total amount payable under the contract includes your initial deposit, which means that you had already paid £2200 towards the £3.5k on the day you drove your car away
Originally Posted by vandall
One very very last thing... is there sucha thing as 'refinancing' your car.. are there people that specialise in this? Surely making a year of payments on time without fail would show a lender I could cope with lower payments due at their lower APR?
In is unusual to find any lender willing to take an existing car as security for a loan unless you are talking about 'logbook loan' type companies, which I would avoid like the plague. You would need to look at an unsecured loan instead, but if your credit history is as bad as you say it is then in the current credit climate your chances may be slim.
What bearing would the fact the car is an import and was misadvertised as a the 150 BHP stock model have anyone? would this only serve to devalue the car and therefore possiby warrent a higher interest rate if they were made aware of this? I assume the resonsiblity for that slipping through the net lies with carloan4u...
If I were to ring welcome finance and tell them I could no longer afford the arrangement at the high interest rate, would they in anyones experience be prepared to negociate?
Is the double record of 10k loan on my credit file correct? It may be the so called 'total payable for the goods' but I didn't loan 10k from them, only £4700!! This just makes me look even more overcomitted to any potential lender
The early settlement figuers are insanely large... how are they allowed to charge 'future interest' as a penalty charge.. I dont have the url to hand right now but I found a cluse on the DTA website which seemed to indicate this was not allowed..?
With the car being 6 3/4 years old and now almost 100k on the clock I suppose there wouldn't be any car finance companies out there prepared to take it on, just silly why this is not possible now that I have complete a year with no payments missed as this would surely show I was responsible.
some thing not quite right on this 175 quid acceptance fee
welcome charge 75 as the norm on car finance
were you told that it was an import
you may find its ten grand to pay back
i bet they have front loaded PPI, even though you have said you reclaimed it
you need to contact welcome and ask them for a settlement figure
you can do this at any time with no commitment
knowing welcome like i do,
i smell a rat
Higher acceptance fee may well be part of carloan4u's commission... why I didn't just ask who the lender who has accepted me was... then just go to them direct, I dont know.. welcome only do private purchase through 3rd party brokers like this maybe though? Its 195 btw not 175 .. extortionate or what
Part of the T&C's with carloan4u was that it was not an import... I was not told on sale though no, I only realised afterwards
They give estimations for settlement at 1, 2 and 3 year intervals on the agreement....
I will post a scan of the agreement for peoples thoughts
Car HP - Welcome finance
)
or only if they do so OUTSIDE the legitmate means of a court order?
), but at a value of 10.5k, the 'total ammount payable for goods that I think incudles the 2.2k I put into the car'... they loaned me £4700 not 10grand!!
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Originally Posted by vandall
This just makes me look even more overcomitted to any potential lender
