Incorrect finance?

[SP8]

Hello,
Hoping someone can make more sense of this than me! We purchased a car in April 23, the purchase price was £11,999. We part exchanged our vehicle which had equity of £3500, so we put this down as a deposit. We HP financed the remaining balance with an interest rate of 11.9%.
The car is no longer fit for purpose after spending thousands trying to maintain it. The finance have said we have an outstanding balance of £9,149.11 but if we settle early it will be £7805.22. This makes the car in negative equity by a large amount. We have made 22 payments of £239.88 which totals £5277.36

This doesn’t seem to be adding up.
£11,999 take away the deposit leaves £8499.00 add on 11.9% apr £9510.38 that should of been financed?

Am i completely misreading it and this isn’t how it works? I just can’t get my head around how we have £9,149.11 left to pay on a vehicle that cost £8499.00 that we have been paying off for almost 2 years and that we have paid more than £5000 off..

I’m going to be calling the finance company but wanted to make sure that i’m not missing something?!

Thank you☺️

Have you looked into your consumer rights? I'm not versed in them but it sounds like they've sold you am absolute dud of a car. My sister had a car (VW) that she bought from a main dealer that spent more time in the VW garage than in hers so she arranged to return it through the finance company for a full refund. I don't know if something like that would be applicable in your situation but might be worth looking at.

@Shade17 We have a small liability to pay, i have double checked this with them and they confirm the small liability payment takes us to over half paid of what we owe them

@Whycanineverthinkofone No wasn’t a new car. Definitely learnt the hard way too!

@WhyDoesItAlways We did, we raised it with the dealership, the warranty company and the finance company. The finance company did give us £600 back as compensation (felt like more of an insult!) We did try to return it once all the problems started to the finance company but they felt all the problems that went wrong were normal wear and tear. Think if it was new or from main dealer we would have had more luck.. who knows!

Good for you.

(Altho I call supreme BS on your claim you've never spent a penny on maintenance - you have never bought tyres, wipers, fluids or other consumables etc....yeah, right....never spent a penny indeed....)

But in the last 40 years or more, no VW car has ever ranked at the top for reliability.

They are proper shite.

Top cars are always Japanese cars.

I know this might not be your car but look here

https://www.check-vehicle-recalls.service.gov.uk/recall-type/vehicle/make/BMW/model/3%20SERIES/year/2019/recalls

FWIW, in 35 years of driving only three cars have left me stranded at the side of the road. One Nissan, one Lexus (really a Toyota) and one Ford. All were under a year old at the time they left me stranded. Two were hire cars - the Ford had catastrophic engine failure, and the Nissan’s gearbox broke. So maybe they’d been abused. The Toyota had some sort of electrical failure which took weeks to be sort of fixed. So forgive me for not ever having bought any of those brands. And as I’m not a retired teacher I haven’t seen a Honda I’d want to buy ;)

You're paying a hefty interest rate OP, and as others have said, it's an annual rate. Compound interest is a wonderful thing, but only if it's working in your favour, ie on savings.

May I suggest you spend some time on the Moneysavingexpert website? There's loads of good advice, and lots of very helpful people on there. Boning up on money and personal finance will save you many, many thousands of pounds over a lifetime. 😊💷💰

You have to buy fuel, wiper fluid for any car surely, unless these Japanese models have wear-free tyres and an infinite amount of wiper fluid?!! I thought it was clear, but obviously not for some people, I meant I have never had an issue at any service, I haven’t had to spend money on broken parts, etc.

I’m sorry mine and my wider family’s experience don’t fit your narrative.

Fortunately, the much larger user base used for these surveys give us a better picture than your family. VWs are utter dog shit.

A quick look at a recent survey shows that the top of the top 10 most reliable cars, 4 are Japanese, 3 are French (on the basis that Dacia is owned by Renault, 2 are Gerrman (on the basis that MINI is owned by BMW) and one Korean. VW are middle of the road, and Nissan almost at the bottom

www.whatcar.com/news/reliability-survey-most-reliable-cars-brands/n26159