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Car finance agreement unwound - what next?

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Palmtreesinthedistance · 11/05/2025 19:28

Hoping someone in the know might be able to shed some light for me.

I entered into a car finance agreement two months ago. Within days of taking possession of the vehicle, some things were not right. To cut a long story short, after weeks and weeks of the dealership being difficult, they collected the car earlier this week and agreed to refund full purchase price. The finance company has said I will receive a refund of the two monthly payments already made, and I will receive deposit paid directly from the dealership.

I’ve now found another vehicle that I want to buy. Problem is, I can’t get approved for finance because the original agreement is showing as just started two months ago.

I am planning to speak to the finance company tomorrow to see if I can apply directly with them again, given they know that the original finance agreement doesn’t exist anymore (or won’t exist once it’s been unwound - if not already).

Does anyone have experience of a similar situation? I got the original finance agreement easily with a decent rate of 8.9%. I’m now being offered 29.9% by other lenders, which is obvious way too much!

I’m anxious about the situation and tomorrow feels like a long way away before I can speak to the finance company (who incidentally aren’t the quickest to respond - Creation Finance).

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