Deposit Included in Interest Charges for Car Payment

[David_ab]

Hi

 

Wonder if anybody could give advice.

 

 

In 2013 purchased a car on conditional sale agreement.

I returned the car recently

 

 

under the conditions of the agreement I was due to pay half the value of the credit agreement.

(In my case as I returned it earlier I need to pay the difference between what I had already paid and half the value)

 

However,

I do not agree with the figure given by the finance company.

 

 

When looking at the details of the credit agreement further

the deposit I paid and the value of my trade-in have not been deducted from the financed amount

but instead have been added to it.

 

 

Effectively I am paying my own deposit and trade-in value again but this time with interest!

 

Can anybody advise me where I stand with this?

 

Many Thanks

[mikeymack2002]

Can you tell us who the finance is with and some more details

[David_ab]

^^Edited^^

Hi Thanks,

 

The finance was from Pegeuot Financial Services.

 

The paper work suplied give a cash price. of 8784.

I made payment of 285.94 and this left amount to be financed of 8498

 

The total charge for credit was 3158

 

They should have added the total charge for credit and the amount to be financed

 

However they have added the cash price plus the charge for credit instead giving the wrong total

 

I just wondered where I actually stand with this if you could help it would be much appreciated

 

Thanks

Edited October 20, 2015 by David_ab

[dx100uk]

if true that make the agreement null and void

 

 

can you scan it up please in pdf

 

 

upload

 

 

dx

[obiter dictum]

You need to look at the other sections of the finance agreement

 

Look at the amount of credit--cash price for the car

charge for credit-Cash price plus interest over the term of the loan---

 

You will then have the total chrge for credit

 

That will be minus any deposit , trade in etc

[David_ab]

Hi

 

Thank you for your help. I've attached a copy of the finance (sorry for bad PDF quality) agreement sadly the original copy isn't that good quality in the first place as its a faxed copy. I was never given a signed copy of the agreement at the time of purchase

 

I was also wondering what can I do about it. Do I need to go to CAB or contact them directly

 

Thank you again

[dx100uk]

Scan is missing right hand side

Scan to a4 please

[David_ab]

Hi

 

Sorry about that. I've attached the full agreement now. Sorry its taken so long as I only get the chance to do it when I get in from work

 

Thanks

[CrappoMan]

I can see that the figures don't add up, but if you actually work out the payment schedule (59x £189.43 + 1x £480.62), it comes to the correct figure (£11,656.99).

 

The 'Total amount payable' box is the total amount you will pay for the vehicle, not just the amount you will pay for the credit portion.

As the deposit (Advance Payment) is a cost to you of purchasing the vehicle, it is included in the total figure.

[dx100uk]

got about £500 there to reclaim in silly vehicle replacement insurance

 

 

dx

[Peterbard]

I can see that the figures don't add up, but if you actually work out the payment schedule (59x £189.43 + 1x £480.62), it comes to the correct figure (£11,656.99).

 

The 'Total amount payable' box is the total amount you will pay for the vehicle, not just the amount you will pay for the credit portion.

As the deposit (Advance Payment) is a cost to you of purchasing the vehicle, it is included in the total figure.

 

Yes indeed and the VT amount is calculated on the TAP/total amount paid including deposit and charges=.5

 

As far as adding the deposit to the total credit etc, is concerned it makers little difference to the half value figure as it is also part of the total amount paid.

[obiter dictum]

The only time the deposit will be an issue will be if it has been included in the amount of credit for the goods

 

And not total charge for credit

 

Wilson v. FCT

 

I believe even that has now been made obsolete by recent case law

[Peterbard]

The only time the deposit will be an issue will be if it has been included in the amount of credit for the goods

 

And not total charge for credit

 

Wilson v. FCT

 

I believe even that has now been made obsolete by recent case law

 

Yes it has, the section of the consumer credit act which underpinned this was section 127(3) and it was repealed by the CCA 2006 from any agreements executed after the 7th April 2007. although it still renders the agreement improperly executed without an order of the court.