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Car Salesman Lied to us - PLEASE HELP! (I know I am in the right on this one [wink])

(23 Posts)
Flamesparrow Mon 02-Feb-09 13:11:22

The car was out of our budget.

He said that they were offering low rate HP, so we decided that the only way to get the car we needed to fit us was to get £2000 on HP.

He said 3.3% apr, and then when he got the call through said we were borrowing too little for the 3.3%, but we could have 7.7% instead.

Still less than we would have gotten a loan for so we agreed with repayments at £53 a month (give or take pence).

HP paperwork through today - 24.2% APR!?!?! shockangry We have a loan we could have topped up at 17%, there is no way we would have signed up for that.

And first repayment £195 with the £53 after that - we don't have £195, again, it was never once mentioned.

I am trying to read through all the small print, but atm I am getting in a state.

It was taken out a week ago - will we be charged for cancelling when it was misrepresentation??

And in the meantime I will have to lose my car, and the courtesy one goes in 7 days.


mollythetortoise Mon 02-Feb-09 14:09:13

what does the small print re. cancellation say is there a cooling off period? have you received money yet@ have you got the new car?

callalilies Mon 02-Feb-09 14:11:30

If the paperwork has only just arrived I assume you haven't signed it yet? In which case surely it's a case of not going ahead with it rather than cancelling it?

ruddynorah Mon 02-Feb-09 14:13:45

did you sign anything there and then in the sales office?

Flamesparrow Mon 02-Feb-09 14:40:12

Right - back from the office.

DH signed something last Monday - he doesn't know what and we have no copy hmm

The salesman phoned loan company and tells us it is 8.9% (still higher, but doable) and it shows up as 24% due to various charges hmm We have come away to do our various adding up.

Paperwork says there is no back out shock

Seeing the guy was a talking round in circles thing, hence coming home to work out more clearly.

Flamesparrow Mon 02-Feb-09 14:43:15

Ok. I have now been able to do the adding up and thinking straight.

They are telling me the truth blush

F*cking misleading paperwork angry

mollythetortoise Mon 02-Feb-09 14:44:06

why don't you work out what your repayments are over how many months and that way you can see what they 2K loan will cost you in total and then see if you are happy with this or not. You might now have no choice if no cooling off period on loan.

Flamesparrow Mon 02-Feb-09 14:46:33

I am so sick of finding letters that give me money issues

Flamesparrow Mon 02-Feb-09 14:57:13

<snurks at my thread title sure I was right blush>

People should ignore any thread I post in legal until I have had 24hrs to sort it myself and realise I am a fool....

psychomum5 Mon 02-Feb-09 16:00:25

ok, found ya.............are ya calmer yet??

Flamesparrow Mon 02-Feb-09 16:31:10

Much blush

Lizzylou Mon 02-Feb-09 16:34:20

I used to work in finance, when you take 3 payments up front it works out as a better margin for the finance company, so that's why apr is shown as higher than you were quoted.
Surely there is a cooling off period of 14days, I thought that that was standard (it was years ago)

Flamesparrow Mon 02-Feb-09 18:17:09

now that makes sense! I love you!

nappyzonehasastroppytoddler Mon 02-Feb-09 18:21:05

when we took our on a month ago we had 7 days cooling of period and do go on etc.. to make sure we were getting the best rate. The first payment was higher for doc fees and other rip of things.

Lizzylou Mon 02-Feb-09 18:22:21

My boss used to call it "tickling up the rentals", the finance company is just getting it's money back more quickly with 3 payments up front.
If your payments haven't changed and you can afford them, then it makes no difference to you (apart from the hefty 1st payment which he should have told you about).

SlightlyMadScotland Mon 02-Feb-09 18:24:51

Interest rate and APR are different I think...although it confuses me and I can't remember the difference....

They quote teh interest rate as it is lower....but APR is the important one IIRC

HumphreysCorner Mon 02-Feb-09 18:27:57

Sadly, garages seem to quote the flat rate which is always lower as opposed to the APR and always add an administration charge onto the first repayment. You do have a cancellation right, usually 14 days.

SlightlyMadScotland Mon 02-Feb-09 18:31:26

scroll down the APR section of this

Basically APR has to include any charges on teh loan...and it sounds like the bigger the difference between "interest rate" and "APR" the more expensive the loan is overall because it indicates extensive expenses.

TBH what i did was to get loan quotes from a varietey of sources...add up the total repayments over the term (e.g. 24*£53) and see how much is actually being paid back in real terms.

Flamesparrow Mon 02-Feb-09 18:36:55

We most likely are paying back more in real terms, but tbh I am now past caring. I cannot worry about money any more atm

Poor DH is a mess.

It does help to have it explained though!

Lizzylou Mon 02-Feb-09 18:37:48

APR will take into account timing of rentals. ie. 3 upfront rentals or first payment made before a month, all things used to get money in quicker. Interest rate and flat rates don't.

SlightlyMadScotland Mon 02-Feb-09 20:19:52

Flamesparrow - are you paying it back over 5 years?

Have a look at Alliance and Leicester here.

I have just plumbed in a £2000 loan over 60months and come up with an APR of 18.9%. Repayments are £50.21 per month...there appears to be no up front inlated payment (as £50.21*60 is equal to teh total repayable they quote) - and assuming your loan above is over 60m would save you £300 over 5 years.

Obviously I don't know your credit rating, financial position etc. and I know that you want to get this sorted as you need a car etc. but I would be tempted to do this just to say up yours to teh car company that are basically screwing you around.

One other thing to consider is that you would have to check with the garage as ssometimes they can get a bit arsey with prices if they are not getting comission from the HP company.

SlightlyMadScotland Mon 02-Feb-09 20:27:07

Oh...but there is a significant problem you could be screwed byt eh law here (sorry I forgot the timings thing in your OP).

If you signed the contract on their premises you have no right to cancel.

BUT I would suggest that you threaten them with trading standards and/or the financial ombudsman on the following grounds:

1. You have no copy of the contract
2. The company have changed the payment terms (i.e. interest rate) since the contract was signed?

I don't know if it will help - you can but try.

Flamesparrow Mon 02-Feb-09 21:53:39

Our credit rating isn't perfect (well, DH's which is where we need the money from) so it is the best deal we could get.

I know the £300 is galling, but I am now past the stage of caring. The finances involved since the car crash is seriously messing up DH's mental health

Thank you so much for looking into all this for me

Oh, and my mum is lending us the first payment until our settlement is through

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