Car finance 14 day cancellation with part ex

[Kr7915]

Hi, I'm wondering if someone can help me understand what my position is in the following scenario.

 

I've bought a used car 2 days ago from a main retailer with HP. I traded in my old car which had existing finance. The dealer cleared the finance on my car and increased the price of the new car by the amount of negative equity, something which I was ok with. There was also a £200 deposit that I paid.

 

Now I've had the car for a couple of days, I'm having lots of little but significant issues with it that weren't apparent during the test drive, such as rattling noises, performance and fuel economy (used nearly half the tank over 120 miles!), and it's got to the point where I wish I never bought it and I want to hand it back.

 

My question is, what is my position if I use the 14 day cancellation period? The car is in the same condition as I bought it. Is it just a case of notifying the finance company and arranging with the dealer to collect it? Will the dealer be asking for money back from the car I part exchanged?

 

Thanks for any advice

[dx100uk]

if the agreement says you can cancel then do so

tell the finance company, let them deal with it

[Kr7915]

Thanks for the reply, but what will this involve exactly?

 

 

Will they pick the car up or do I have to take it to the dealer?

 

 

As the car doesn't really live up to the expectation given,

can I expect the deposit back as well?

 

 

The garage did mess me around in terms of getting this,

but the car seemed ideal (and there's few of this one about) so I stuck with them.

 

 

I think I'm more questioning the process and potential complications

[dx100uk]

ask the finance CO to sort out all your issues

 

 

you should be put back to the exact position you were before you under took the agreement.

 

 

dx

[Hammy1962]

A very good example of why the selling dealer should not have bumped up the finance to cover the settlement figure on the trade-in.

 

Given enough time to think about this, it might even have been illegal

 

H

[Kr7915]

I take it though that this works in my favour, i.e, that I won't have to pay back what was the negative equity?

[Hammy1962]

I take it though that this works in my favour, i.e, that I won't have to pay back what was the negative equity?

 

Sadly not true, the finance company or the dealer will chase you for it.

 

Which is why they\you are not supposed to do it.............

 

H

[Kr7915]

how would that work?

They've got my car (and said it will go to auction) on which they have settled the finance.

 

 

I've bought an overpriced car off them.

Aren't the two separate?

 

 

If they put an inflated value on the car I bought, surely they can't ask for the difference back?

 

 

That would be like me buying a laptop, say, for £200 then asking for a refund on the basis that it's worth £300? I'm unsure how this would all work out..

[phil40000]

Normally you can cancel the finance but not the purchase of the car itself.

 

 

Regarding the fuel economy the only figures the seller can quote are the 'official' mpg figures which are normally way off, especially so on newer 'eco' vehicles. 120 miles on half a tank does not sound unreasonable depending on where/how the car has been driven. A used vehicle will have wear to every component so it cannot be expected to be as economical as a new example, the same goes for minor rattles and creaks.

 

This is why used vehicles cost less than new ones.

 

 

The Consumer Rights Act uses the phrase 'fault' over and over.

 

'Short-term right to reject

– the first 30 days If your new or used car has a significant fault that was present when you bought it (as opposed to developing afterwards), you can reject the car within the first 30 days and get a full refund.

 

You do not have to accept a repair or replacement vehicle (although you can if you want to).

If you have part-exchanged your previous car on the new one, you will not get it back. Instead, you will be entitled to the full invoice price of the car (including road tax, VAT, etc).

 

You are entitled to a full refund by the same method in which you paid for the car. The dealer cannot charge for usage, wear and tear, collection of the vehicle or anything else.'

 

Of course if there are major knocks and bangs from the suspension for example than that is different. It sounds like buyers remorse and you are looking for a way out.

[dx100uk]

but its not being cancelled under the CRA

its being cancel under the Consumer Credit Act.....

[ReasonableRon]

but its not being cancelled under the CRA

its being cancel under the Consumer Credit Act.....

 

The Consumer Credit Act deals with the withdrawal from the loan (under s66A), but this has nothing to do with any contract or agreement to purchase the goods. It simply means that an alternative payment method needs to be found.

 

If the OP withdraws from the loan under the 14 day cancellation afforded under the CCA it simply means that he/she has a further 30 days to repay the amount borrowed in full, plus a nominal daily interest.

[Kr7915]

Can I just point out that this is not buyer's remorse. There are a number of problems with the car that have only become apparent since I've had it and had full use of it. Also, I've had it up to the neck with the dealer who messed me about in getting this car in the first place(I only stuck with them because I thought the car was a good deal), so I'm not willing to accept repairs or a replacement.

[Kr7915]

Also, to clarify, I meant that I am rejecting the car, not just cancelling the HP agreement.

Thanks for the responses so far

[dx100uk]

good go get 'em and don't let people put you off.

 

 

you should be put back in the same [financial]-for want of a different word position as if it never happen.