Finance declined AFTER collecting car from dealer

[eklipze3k]

Firstly, let me say thanks in advance for any help people may be able to provide

Secondly, I've just done a quick search and couldn't find this exact question so I'm sure it's a very rare occurance.

 

OK, here's the story - the finance on my current car is now complete so I was looking to get something new and give my current car to my mum as her's recently gave up the ghost.

So, I found a nice car at a dealership 120miles away and - given the distance, after test driving it I wanted to make sure that everything was ok finance wise BEFORE I went to collect. I gave all of the relevant information to the dealers, provided all of the proofs that they asked for and (due to collect the car on the 24th) I received a call on 20th July saying that the finance company were happy with everything and all I needed to do was bring in the originals of some documents (which had already been e-mailed through) when I come to collect the car so that the dealer could verify their originality.

 

So, yesterday, having had the car for a week - signed all of the forms, etc and having had the V5 signed over to my name I get a call from the finance company saying that the finance has been rejected, and then from the dealers confirming this and asking me to sort something else out or they'll have to take the car back!

 

Now, I've checked with the finance company involved and it seems that:

1) The dealers misinformed them by saying that I've been in my current job for 3 years (I've only been here since mid June) and

2) Because none of the household bills are in my name (I moved in about 10 months after my partner so everything was already set up) I couldn't provide enough proof of address

 

Nothing I can do about the job thing, fair enough and I confirmed with my own bank that even they'd be unwilling to lend without more income history in this role. But, the proofs, I specifically asked the dealers to check this as I knew I couldn't provide any household bills and so provided copy of drivers license, last payslip, council tax bill and bank statement along with copy of front and back of debit card which they checked with the financiers as being OK.

 

So really, I'm looking for some advice - I'm almost certain the dealership should NOT have let the car leave their care until they were certain they were going to get their money. Having now signed it over to me (v5c wise) as far as DVLA are concerned I'm now the registered keeper. Does this give me any rights to the vehicle? Surely as the dealers messed up by giving misinformation they should be sorting out some other method of finance, I shouldn't have to be busting a gut trying to sort this out?

 

Incidentally, the rejection by the dealer's financiers has now left a 'black mark' on my credit file, which is causing no end of hassle trying to get finance elsewhere

[Dotty50]

Hi Eklipse,

 

Did you pay any deposit or will you lose anything if they have the car back?

 

If you have just finished paying for the car you had, can you not approach that finance company to see if they will do it for you?

 

I would guess someone at the dealership is going to be in big trouble by letting this car go without payment!

 

One search on your credit file (foot print) shouldn't really affect your ability to obtain credit, you are after all, at liberty to shop around for the best deal. However, if there are now a few, this may be looked on unfavourably, but you can always explain the situation to whoever is underwriting any application you make.

 

Have you checked your credit file to ensure there is nothing else creating the problem? Although, short time in job and at address will create a problem in itself alone.

[eklipze3k]

Hi Eklipse,

 

Did you pay any deposit or will you lose anything if they have the car back?

 

If you have just finished paying for the car you had, can you not approach that finance company to see if they will do it for you?

 

I would guess someone at the dealership is going to be in big trouble by letting this car go without payment!

 

One search on your credit file (foot print) shouldn't really affect your ability to obtain credit, you are after all, at liberty to shop around for the best deal. However, if there are now a few, this may be looked on unfavourably, but you can always explain the situation to whoever is underwriting any application you make.

 

Have you checked your credit file to ensure there is nothing else creating the problem? Although, short time in job and at address will create a problem in itself alone.

 

Thanks for the reply.

 

Yes, I paid a deposit of ~£150. I've not had a chance to get my credit file yet tbh, but as you say short time in job + short time at address + not being on electoral roll won't be helping me any.

I won't be surprised if the salesman gets/has got a rollocking for letting it go tbh, and so he should. But really it doesn't help me any as I've got no fall back plan now

[Dotty50]

You could always offer the dealer so much a month, it is after all their cock up!

 

I they have given false information to get the finance passed, this is another no no, may give you a little more bargaining power.

 

But if they insist on having the car back, just make sure you get your deposit back first.

 

I worked for a large finance house for many years, dealing with motor finance and I can never remember a situation like this!

 

Don't really know what else to suggest.

[eklipze3k]

If you have just finished paying for the car you had, can you not approach that finance company to see if they will do it for you?

 

I missed this bit and never even considered it but that's a very good idea, I'll give them a call first thing Monday

[eklipze3k]

Oh well, the existing financiers (RCI finance) will only only do either Renault or Nissan vehicles, or cars sold through a Renault/Nissan dealership so that's scuppered that plan.

Time to call the dealership I guess

[Conniff]

I've not had a chance to get my credit file yet tbh

 

You can sign up to an online report with a free 30 day period, once you have your report, if you shouldn't want to continue, then you can cancel within the time stipulated and it won't have cost you a penny, but you will have got an instant report.

[eklipze3k]

You can sign up to an online report with a free 30 day period, once you have your report, if you shouldn't want to continue, then you can cancel within the time stipulated and it won't have cost you a penny, but you will have got an instant report.

 

You can't if you've already done it for free in the past

Edit: I've reactivated my account with Experian anyway and there is nothing untoward on there at all - 3 credit accounts, all in the green.

 

Anyway, I sent a rather succinct e-mail to the dealership this morning.

 

Stuart,

 

I've just come back off night shift and have just tried to call you but you weren't in yet - please don't try and call me back before 1600 as I'll be sleeping!

 

I've been unable to secure another form of finance, however, having spoken to Mel at Matrix Credit it was revealed to me that they had been informed that I had been in my current position for 3 years, and when they asked me about the pay slip from Kelly Services (a temping agency) I of course advised that I had only been in my current role (as you were aware) since 21st June. I am under the belief that this misinformation is what caused the application to be accepted when you provided the inital application, and subsequently rejected when this was corrected as you'd already discussed that the proofs provided were sufficient.

 

Given the evidence that this nightmare is no fault of my own - I wanted to avoid this exact situation by providing you with as much evidence as you could possibly need with plenty of time before coming to collect the car - I feel that I should not have had to spend the last 4 days running from pillar to post receiving further rejections and further marks on my credit file.

 

Therefore, I propose the following: 44 monthly payments of £136.13, as agreed, paid directly to the dealership from my account exactly as the finance agreement outlined. This is obviously a very unusual situation as I could not find any precedence on the internet and I believe that this offer is perfectly reasonable, given the circumstances surrounding it.

 

Please let me know ASAP, either by return e-mail or by phone if this is acceptable. I will add that, if it is not acceptable, I will expect a full refund of the £151.50 deposit paid and for the car to be collected as I will not have the time, or indeed the inclination, to drive it another 125 miles back to yourselves after this debacle.

 

Yours in anticipation

[Dotty50]

I think that is very reasonable and will be very interested in their response.

 

Good luck!

[pompeyfaith]

not so sure they as a business will be able to give you the credit as they would need a credit license is this the case have you checked

[eklipze3k]

not so sure they as a business will be able to give you the credit as they would need a credit license is this the case have you checked

 

It was only a proposal, but they've just come back saying they can't do it - which I expected to be honest. But, they are going to arrange collection and I am getting my deposit back so I guess I can look on the brightside in that I've had a free hire car for a week and only had to pay for fuel

 

Thanks for all the advice everyone, much appreciated!

[Dotty50]

Well at least you tried and you will not lose financially.

 

So mums back on the bus then!

[eklipze3k]

Well at least you tried and you will not lose financially.

 

So mums back on the bus then!

 

Aye for now, lol, we'll see what's happening in a few months and maybe try again. Again, thanks for all the advice. It's definitely one of those situations that only comes up once in a blue moon.

[lordcrocket]

sounds like you are in a contract with the finance company i'd get a civil lawyer and fight it legal aid may be avaliable if it's not theres plenty of free legal advice and tribunals about in the country

 

I reckon you have a good case here and you might be able to persuade the company who arranged the finance to give you compensation and who may pay the finance company for you

 

you may be quids in

 

get advice thou so be fobbed off

[Dotty50]

If the paperwork wasn't processed by the finance company, then there is no executed (legally binding) contract IMO.

 

But always worth asking the question.

[lordcrocket]

@ dotty so who would the car actually belong to then

 

it lawfully belongs to the finance company as they funded the payment but there appear's to be a few issues

 

from the way i'd see this is the consumer who brought the car in good faith who had a verbal contract and contract from the dealer stating it was ok in my eyes that was a another contract formed as an offer made and accepted and was given the ok by the dealer again then the consumer agreed with the dealer to drive home who then the dealer makes a mistake not the consumer

 

sorry still sounds confusing yes but if that was i i would stch up for the rights even through to court i've been in many contractual disputes and won just by the above statement even when at college we covered self employment and contracts and my tutor mentioned this .

 

still get legal advice all the same thou

[Dotty50]

But the finance company have not paid out on it though.

 

Eklipse had a call from them to advise that the application had been declined, at which point it emerged that incorrect information was given by the dealership.

 

This was after Eklipse had taken delivery on the car, hence the dealer wanting it back.

[eklipze3k]

Thanks for the extra suggestions Lord C but I've already agreed for the dealership to collect the car, I've been working nights and although I wanted to speak to the CAB, they are only open during my sleeping time. It's a very rare situation (which I really hope never arises again!) and I'm glad I've at least gotten my deposit back so essentially had a free hire car for 10 days, and it gave me a chance to fix a few niggling issues with my old car so at least I have something to drive

[lordcrocket]

no problem hope alls well in life to you all

 

peace