Can I pull out of finance before I've collected the car?

[Bloodydaft12]

Hi all,

I purchased a car yesterday on finance. I am due to collect it on Tuesday.

The thing is, I've woken up this morning, and I'm not feeling too good about it. It's a lot of money (440pm) I already have a car that's a 16 plate and does what I need it to do. It costs £100pm to run. I just wanted a comfier drive as mine has a harsh suspension. I just feel very anxious about it now, and I wish I didn't do it. My fault I know. I just can not justify spending this amount of money each month. Interest is high due to my lower credit rating. The finance company said I can refinance in 12 months for a lower rate, but I just do not feel great about paying £440 for the next 12 months. I'm feeling regretful that I didn't think properly about it. It's just a stupid choice on my side.

I was thinking of cancelling the deal. Building up my credit in 12 months and then seeing where I'm at with things. Am I allowed to cancel? I put £1000 deposit down, too.

Thank you ☺️

Read your contract, there is likely to be a cooling off period so you may way be able to cancel

Check the paperwork. Is there a cooling off period?

You'd need to check the copy of the contract that you signed to see it mentions anything about a cooling off period/cancellation

I think you have a 14 day cooling off period - have a read of this and see if you think it applies: www.citizensadvice.org.uk/debt-and-money/borrowing-money/cancelling-a-loan-or-credit-agreement/

Very much depends on the contract. Was this done in person or over the phone as I think this makes a difference too.

If you are able to cancel, put the £440 a month away in savings and then in 12 months you will have a much bigger deposit and hopefully a lower interest rate.

Yes, it says the below. I wasn't sure whether this applied before I've collected the car. I've never done this before.

So it looks like you have 14 days from whenever you signed that paperwork. When did you sign?

You definitely can cancel now. They will have to repay you the deposit although they may charge an "admin fee".

Well done for realising you can't afford it and trying to not straddle yourself with more debt. A new car is always tempting but realistically they only need to get you from A to B.

Just be aware when you contact them to cancel they may and try and pull out all the stops of offering you discounts etc. Stand firm and insist on cancelling.

And what does it say in the purchase agreement for the car? You’ll need to check you can cancel that as they’re two separate agreements.

It's just a lot of money and I can better use that money for other things. I was just being stupid.

I'm going to call them now and hopefully it'll be OK. It's just not a good choice for me at this moment. My car is perfectly fine with only 50k mileage. I will keep it till I'm in a better financial place. Thank you!

It says 14 days after signed agreement. I wasn't sure whether this was after I collected the car or whether it applied before I collected. I'm going to call them now.

Thanks everyone. I appreciate it.

Around 5pm yesterday! I realised this morning that I'd made a huge mistake and I just wasn't sure if it'd be OK to cancell.

It was all done through stonacre. They are the broker. The finance company stated they can't discuss with me and I'll have to talk to Stoneacre. Is this correct?

I've managed to cancel the agreement after having several people try and persuade me to continue. Even after telling them it wasn't a good financial choice for me. It's worrying really that they try and push people who may be vulnerable to taking these high cost loans. I was passed through to so many people trying to get me to continue. They kept telling me to pay it for 12 months, then they'll refinance me at a lower rate, but I persisted and told them I didn't want to do this.

Also, the finance company, Moneybarn, was awful towards me. They threatened to destroy my credit score and add fess for me withdrawing. But their own contract tells me I can withdraw. So, I hope people can read this and be cautious of that company.

I'm really glad I didn't go through with it, and I'm now going to use the money to pay extra on my debts to clear them off quicker.

That sounds terrible OP, I am glad you managed to cancel but you are right that they could easily put pressure on vulnerable people. You can report them to
the financial services ombudsman https://www.financial-ombudsman.org.uk/

Well done for standing your ground OP, but it shouldn't have been that difficult. I wonder how many people back down and end up still taking the contract.