Hire Purchase Agreement Confused?

[nova2005]

Sorry for posting again.

 

I am just looking over the finance agreement for my Astra that i should be picking up on Tuesday or Thursday.

 

The car is a 1.7 CDTi Estate that is in superb condition and the price on display was £4995. I managed to get him to go from £300 p/x to £695 p/x on my vectra 1.8 2000 X Reg. This meant the car was now £4300.

 

However on this breakdown of Finance Agreement it seems he has added it back on???

 

I will be honest i am pretty unsure how all this works and wordings etc as this is my first proper car i will have owned.

 

It reads at the top:

 

The total amount of Credit to be provided under the proposed credit agreementnt or the credit limit: £4300

 

It says £151.95 per month (2 months after the executuin of the dicuments and a final payment of £310.95.

 

However below that it says:

 

The total amount you will have to pay this means the amount you will have borrowed plus interest and other costs.

 

Made up of:

 

Deposit: £0.00

Part Exhange: £695

Total amount of credit: £4,300.00

Admin Fee: £199

Interest: £971.29

Optional Option to Purchase Fee: £159.00

 

Total to repay: £6324.20.

 

This to me shows that the £695 has been added back onto the finance part and so i get NOTHING for my car afterall?

 

Now the deal has said that he has to put that to the finance company as part of the deal because they need all the details and it does not mean that is added onto my overall bill. If this was the case then why does it only add upto a total of £6324.20 when the P/X IS added onto the other costs.....

 

This whole car thing baffles me....i should of stuck to busses!! Lol

 

 

Thanks.

Edited March 24, 2013 by nova2005

[nova2005]

Also on a side note - he asked me to leave the 6months TAX on the Vectra and he would put road tax on the Astra for me...i just noticed he said a 6 month road tax on the Astra and that is only £66 compared to the £100 value that will still be on my vectra....so it looks i am now down another £34......

 

ARGH! I love this car but i am confusing myself but dont want to confront him and blow the deal if i am wrong!

[sgtbush]

your right, it should say at the bottom

total to repay £5629.29

[nova2005]

I thought that but hes adament that i wont be charged the £695...

 

What can i do? It says when i sign all the forms that the finance company will pay £4300 to him on the same day which was Saturday 23 at 2pm following a nice test drive. It wasnt until last night i noticed and asked him but i keep going over it and it still looks like he is recouping the £695...

 

I think now the finance will have paid him and i cannot go back on the deal...not that i want too as i do love the car and its perfect. However at the same time i do not want to be out of pocket by another £695 and get nothing for my car....

 

why cant this whole thing be easy.

[dx100uk]

scan up the paperwork

 

set your default scan page size to A4 less than 300DPI [150 will do]

scan the required letters/agreements/sheets - as a picture[jpg] file

don't forget you can use a mobile phone or a digital camera too!!

'

BUT......

ENSURE: remove all pers info inc. barcodes etc using paint program

but leave all monetary figures and dates.

*********************************************************

{DO NOT USE A BIRO OR PEN OR USE SEE THRU TAPE OR LABELS]

try www.pdfescape.com TO BLANK STUFF,

*************************************************************

or

DO IT IN MSPAINT.EXE or any photo editing program

goto one of the many free online pdf converter websites ...

http://freejpgtopdf.com/

if you have multiple scans/pics

put them in a word doc FIRST and convert that to PDF

or use www.pdfmerge.com

convert existing PC files to PDF [office has an installable print to PDF option]

..

 

it would be better to upload a multipage pdf if

you have many images too rather than many single pdfs

.

or if you have PDF as an installed printer drive use that

or use word and save as pdf

try and logically name your file so people know what it is.

though dont use full bank names or CAG in the title

i'e Default notice dd-mm-yyyy TSB

.

open a new msg box here

hit go advanced below the msg box

hit manage attachments below that box

hit the add files button on the top right

hit select files, navigate to your file on your pc

hit upload files

.

dx

[nova2005]

This is the main page. I got another 2 of t&cs but no further mention of these details.

 

I am no computer whizzz so hope this is enough, if not then let me know.

 

Thank you.

[nova2005]

So is this enough info and am i right in thinking he has just re-added the £695 onto the balance via the finance?

 

Speak to him in the morning so it would be great if i could get a response by then because hes putting it in for an MOT & Service.

 

Goodnight everyone.

 

P.s. I keep thinking its just me not being good with finances etc because the guy is actually a genuienly nice person compared to a couple of other companys previously...!

[matt v atos]

Yep that don't sense

[crem]

The £695 has to be shown on that document because it is a statement of the TOTAL costs or fees you are paying. You say the car costs £4995 and the document shows you are borrowing £4300 so where do you think the difference of £695 is being paid for? It is being "paid" with your car trade in being valued at £695.

 

So, in absolute total, you are going to pay

 

35 x 151.95 = 5318.25

plus

1 x 310.95 = 310.95 (normal month payment plus the 199 fee)

plus

p/x 1x 695

 

Total £6324.20. In cash terms you are only paying from now the 36 x £151.95 plus the £199 finance fee

Edited March 25, 2013 by crem

[matt v atos]

It says total payable and includes £695

[crem]

yes of course it does, because it still classes as a "payment" which you hae already made by handing over your car. You car is "worth" £695 so by handing ove rthe keys you are making an initial "payment" (or deposit if you want to think of it like that) of £695 from the purchase price of £4995. Having "paid" this £695 you still need to borrow £4300 to purchase the new car.

[matt v atos]

English please

[matt v atos]

Cant you see why the OP is confused because I can

[matt v atos]

We are not as cleaver as you

Edited March 25, 2013 by matt v atos

[matt v atos]

And I think the OP was right to ask and didnt need your comments "yes of course it does, because it still classes as a "payment"

 

He was not sure and was right to ask .

[nova2005]

I am even more confused...

 

You said i will be paying the £695 p/x??

 

I was told this was taken OFF the £4995 to bring the price down to £4300 Total minus any finance fees etc....

 

So why do i still need to pay £695 p/x fee? I wouldnt pay anyone to take my car off me - its not that bad!

 

Aslong as i am not PAYING for my car as p/x of £695 being ADDED back on then i am happy. If i need to also PAY the £695 ontop of my £4300 Astra i am buying - isnt that paying for the both cars and him recouping his £695 discount?

 

This is soooooooo confusing.

 

Key points:

 

I trade in old vectra

£695 offered as p/x

That is used to discount the Astra down to £4300

Everything signed and agreed

I then notice the £695 is on the finance agreement as other costs

I panic and think hes added back on the discount elsewhere to recoup the so called GREAT offer

I do not know if i am confusing myself or if something is wrong

 

I just need to know 100% if i am being charged £695 on top of my £4300 so therefore paying for my p/x vectra and getting nothing for it....

 

Thank you.

[nova2005]

I read it again CREM and i think i get it...

 

Car £4995

P/X £695

 

Total: £4300

Finance: £4300

Interest

Admin Fee

OPF

P/X Fee

 

Total will be payed of the £6300 or so....

 

So i am not charge my car again?

 

I badly confused myself it seems lol.

 

Thank you.

[matt v atos]

Yeah ask Crem he knows all so he says

[Minibits]

As Crem has tried to show, the monthly payments add up to £5629.20.

This is the amount left to pay after your deposit (already paid) is taken off the total of £63240.20.

 

Hope that helps.

[crem]

Yeah ask Crem he knows all so he says

 

I have explained it as clearly as I can using example values and it would appear nova2005 is now managing to follow the mathematics. If he hadn't I would have attempted to explain the calculation in another fashion. The only person throwing in sarcastic comments appears to be you matt v atos which don't seem to be helping the nova2005 at all.

 

Please feel free to offer nova2005 any assistance and advice you think may be useful to his understanding, meanwhile I will continue to help him with the logic of the document.

[crem]

I am even more confused...

 

You said i will be paying the £695 p/x??

 

I was told this was taken OFF the £4995 to bring the price down to £4300 Total minus any finance fees etc....

 

So why do i still need to pay £695 p/x fee? I wouldnt pay anyone to take my car off me - its not that bad!

 

I think the line I have highlighted above is where you have given yourself the confusion. He was never going to reduce the cost of the new car from £4,995 All he is doing is "playing with the numbers" so to speak to get to where you think you are getting a good deal and he is making the right amount of profit too.

 

eg

In the back of his mind he knows he's making a profit if he sells at £4,500 but he adds £495 on as a bargaining value. I walk in with no p/x and cash in my pocket and "haggle" with him down to £4.600. I think I've done a cracking deal saving £395 and the dealer is laughing all the way to the bank coz he made £100 more than he expected.

 

same car now but you have a p/x that you think is worth about £500

car is priced at £4995 just the same as before and he offers £300 for you car (he knows he can sell it for £500 tomorrow)

You refuse and drive a hard bargain up to £695 which is more than it's worth really. He still knows he can sell it for £500 tomorrow so will lose £195 on that bit of the deal. However he doesn't offer any discount off the new car at £4,995 so he knows he had the "extra" £495 he addded to the ticket price to play with. So the £695 is as good as cash in your pocket and pays the first bit of the £4995 bringing the balance needed to £4,300 which comes from the finance company.

 

So in summary he is going to sell you a car for £4995 plus sell your car for £500 making his income £5,495 then give you £695 making his net income £4,800. He's just made £300 more money on the deal than he expected when he first thought of selling the Astra for anything over £4,500, but you both think you have won and are happy with the deal!

[matt v atos]

I have explained it as clearly as I can using example values and it would appear nova2005 is now managing to follow the mathematics. If he hadn't I would have attempted to explain the calculation in another fashion. The only person throwing in sarcastic comments appears to be you matt v atos which don't seem to be helping the nova2005 at all.

 

Please feel free to offer nova2005 any assistance and advice you think may be useful to his understanding, meanwhile I will continue to help him with the logic of the document.

 

Sorry! was thinking post was a bit what do you mean you don't understand ! sorry again glad you helped OP thanks again

[nova2005]

I get it all now and thanks again.

 

I just need to await the outcome of the MOT.

[ericsbrother]

Problem is the OP is being charged interest on the deposit as well, (ie his car px value) it should add up to £6254.29 for the loan and costs.

The garage makes good money out of the finance company for putting business their way. I would tell them to look at the figures again or you will get a loan elsewhere. That will cost them money in lost commission and they wont like that so are more likely to admit their errors and amend.

They probably did the finance sums first and took £695 off the total which is wrong

[crem]

Made up of:

 

Deposit: £0.00

Part Exhange: £695

Total amount of credit: £4,300.00

Admin Fee: £199

Interest: £971.29

Optional Option to Purchase Fee: £159.00

 

Total to repay: £6324.20.

 

 

Problem is the OP is being charged interest on the deposit as well, (ie his car px value) it should add up to £6254.29 for the loan and costs.

 

ericsbrother, how do you conclude that from the information given?