Can I cancel my order for a new car? Help!

[dynastydallas]

I've made a very bad decision and signed a 'vehicle order form' in a main car dealership, agreeing to a PCP agreement (hire/lease agreement) for a new car. I negotiated the monthly cost down to more than 50% off the first price they offered me, and signed and paid a £3k deposit. I then arrived home to an email from another dealer I had contacted during the week, offering a much more competitive deal which equates to £2k off the total costs.

I think I'm now stuck with the deal I signed and am £2k worse off as a result. I haven't bought a car before and I have been so naive. I thought I had done my research and actually, the price I agreed to in the dealership was the most competitive I have been offered so far.

Do I have any recourse? I emailed the dealer to say I wanted the cancel but no reply yet.

They'd run your credit through other finance companies. From personal experience, up to 4/5 companies

DO is a former cat salesman (worked in several dealerships) he says yes their should be a cooling off period but deposit may be non refundable so you might lose it if you back out. Also I agree that it’s unlikely a salesman is off at weekends (busiest period).

*Car salesman as cats aren’t much use in this scenario.

You have 14 days withdrawal period under the consumer credit act because you're using the PCP - it's a regulated agreement. (DH was head of compliance for a huge chain of car manufacturers, he knows this stuff). THe fact you're getting it on finance has protected you here.

If the dealership start being stubborn quote the consumer credit act. Section 66. This can be done verbally or in writing. If the sales person doesn't know this tell them you are contacting the finance company too. Technically you only need to contact one of them but DH says he'd contact the dealership AND the finance company, just to make sure it's gone through as cancelled.

There is an IF here though...IF the car is over 60k then you can't back out.

Hope this helps.

Also, you are entitled to any deposit back, you should lose nothing here (as long as it wasn't an agreement for over 60k).

Really hope this puts your mind at ease. I'd call them though as well as the email, as you're on a limited time period.

I don't know any car or cat salesman (I really wouldn't trust a cat making a sale, they are sneaky feckers 😁) but the ones I've dealt with wouldn't be in during the week, off weekend then back in on the quiet Monday. He's being shifty as you want to cancel.

Go down and ask to see his manager tomorrow

Think you're stuffed, sorry. The contract is very clear on losing your deposit if you cancel. There's no 14 day thing, that's distance selling and you signed in person on their premises. And if you don't sign the finance agreement, all that means is that you'll be liable to pay the balance in cash.

But it sounds like more knowledgeable people than me think I'm wrong, so fingers crossed!

Just seen you haven't signed the finance forms yet. They shouldn't have got you to sign the vehicle order form without having the finance organised, but because it's a linked transaction, you're fine to walk away. If they are funny about that quote section fifty six of the consumer credit act at them.

Who is the finance company, out of interest?

I bought a new car FlouncyDoves and I'm certainly not a mug. And I really don't care about the whole "you lose so much just driving off the forecourt". Some people buy new cars because they want new cars, they can afford news cars and don't want to have to worry about maintaining that car.

Thank you for all the replies. Zyla thank you for your advice. I don't know the name of the finance company but think it is in house. I did ask which bank underwrites their finance and it is Volkswagon Bank who actually have a retail arm in Germany. I haven't seen any paperwork from the finance company - my details were put into a laptop and I received an email a couple of hours later from the BM saying it was all approved.

While I was there I asked the same question regarding what if finance is not approved, and was told 99.9% it would be.

... the car wasn't over 60k!

dynastydallas, just make sure you go down/ring tomorrow. In my experience, the 99% of the time approved was down to putting it through 5 ish finance companies - if one fails you move onto the next one. Each check affects your credit and the lower the rung the finance company, the rate may change/higher apr

I hope they have not put me through 5 diff companies! I will ask, but surely they should have said if this is what they were doing.

I have just read section 66a of the consumer credit act and I think I'm covered ... it says I can withdraw from any consumer credit agreement which 14 days, 'as though it has never been entered into'. Nothing about a linked transaction though

What they 'should' do and what they actually do can be quite different. I didn't work in the sales side, but I saw it happen to somebody (the going through 5 different companies and then getting approved. To meet a target people are under so much pressure that they will do anything to get a sale pushed through)

Sent you a pm :)

Reading section 56 now but I'm afraid I can't make head nor tail of it. I think it's to do with the 'linked transaction' of buying the car. If anyone can help me understand the jargon in section 56 I would be very grateful

Thanks Zyla, I'll look out for it!

I think it's just saying that they can't hold you to the order form because you signed that in the understanding the finance would be used to pay for it, so protected by the finance laws again.

Phew! I will sleep better tonight now. Thanks again

Just seen that this is about VW, my DP works for them and said you can definitely cancel. You will also get your deposit back even if the small print implies you won’t.

Morning all. The dealership is actually Audi though the finance is underwritten by VW bank. This morning I managed to finally speak to the BM. He wouldn't return my calls but DH called from his phone and left a random name, and amazingly the BM returned his call almost immediately despite me leaving 2 previous messages and sending 2 emails.

He said I cannot cancel and will forfeit my deposit. I explained that wasn't the case (FCA regs, consumer credit act etc) and he is discussing with his sales manager tomorrow.

Audi is part of the VW group (as is Seat, Porsche, Lamborghini and Bentley!) and they all have to follow the correct rules for financing. You are completely in the right with this.

If they don't sort it out tomorrow contact Audi/VW head office and also VW financial services to make a complain. State that the deal was always discussed as a finance deal and that you want your deposit back because you've changed your mind.

Any update? Fingers crossed you've sorted it.

Hi,

Yes, success today, I am so relieved. Thank you for all the help I've had from you all in resolving this. The sales manager called me this morning and was very apologetic. He cancelled the agreement and put it in writing to me immediately, and my deposit should be in my account by tomorrow morning (all in writing in any case that it will be returned in full).

I am sure the advice from Zyla swung it, so thank you!!