Cancel new car purchase

[Karenlouisee]

Hi all

 

I visited my fiat car dealership on Saturday, agreed to a credit check for car finance on a new car. Car agreed to buy us already in the car showroom. Called me the next day to say finance check went through fine. I did sign the piece of paper with details for car finance which I think was just to agree to a credit check. Made verbal agreement to pick up car after Xmas, no deposit paid.

 

Issue is now that on Monday I received a letter to say tax credits will be reduced bed now no way I could afford the finance as they have been reduced considerably.

 

Could anyone help me out on where I stand with my rights here? I've read there is no cooling off period when an agreement is made at a dealership, I feel sick thinking about it.

 

I have called them and notified already but the manager and person I agreed with are out of office until tomorrow and no one else can cancel it. Guy on the phone said something about already taking it off sale and refusing another customer? When I asked what he meant he didn't answer my question. Said to call back tomorrow.

 

Any advice appreciated!

[BankFodder]

Have any steps been taken to register the car in your name or to do anything else to it to personalise it for you?

 

If I were you I would get down the immediately and give them a letter telling them that you are formally cancelling the agreement and also explain why – that as tax credits of now been withdrawn you are not able to go ahead because you do not have the money.

 

Do this immediately and also send them a copy by post. You are quite right that there is no cooling off period because the agreement has been made in face-to-face dealings.

 

What with the rest of the terms of contract? Did you have to sign a formal agreement for the finance? – And if so have you done so?

 

Are you meant to pay a deposit? What was the arrangement for that?

 

If they decide to cause trouble then the worst they could do would be to charge you for any administrative expenses that they have incurred. If they say that they have already turned away a customer, then I would want to know full details of that customer. However, I don't see this as much of an argument in their favour.

 

The most important thing is to get down there and give them something in writing and do it now.

[BankFodder]

Incidentally, when you given the letter make sure that the letter refers to your verbal communication with them made at XXX o'clock in which you verbally gave them notice that you would not be able to proceed with any agreement.

 

Tell them that the your letter is simply confirming this.

 

Avoid saying the word "contract". Simply refer to the "proposed agreement" and say that you are now not able to go ahead with the "proposed agreement".

 

Tell them that you are informing the finance company that your circumstances of changed and that it would be irresponsible of them to lend you money. I suggest that you find out which is the finance company, get a reference number and write to them also immediately. Send that letter by recorded delivery. If you can, telephone the finance company and tell them why you will not be able to proceed with the "proposed financing" of the car.

[Karenlouisee]

I've not signed a formal finance contract. This was due to be done when I pick up the car, also agreed to pay deposit when I picked it up too. And no special requests were made for the car features or any extras, the one they had had everything I wanted.

 

Can't get down there with a letter until tomorrow! Could post today though.

 

I really don't know what the guy meant by what he said, but I guess they could already have registered it in my name or something like that. He was I think being intentionally vague. I thought things may not have gone too far given it was 3 days ago but maybe not.

 

If I have to pay an admin fee then that's fine. Would a finance agreement normally come with a cooling off period anyway? That was with fiat finance directly.

[BankFodder]

Okay that all sounds very good. I think you in a good position – although you may be liable for some kind of admin fee. If they do that then let us know what it is and we will tell you how to handle it if it seems to be excessive.

 

However, other than reserving the car, it doesn't sound to me as if you have made any commitment to buy it.

 

Post the letter off today first class but get one in there and deliver it tomorrow morning as well. This is very important to do because once they receive that, it would be unreasonable for them to continue to take any action to have the car prepared for you.

 

I can't remember if there is a cooling off period for finance – but I think there is. Somebody more knowledgeable will be around soon to let you know I'm quite sure.

 

Anyway if you have got any of the details of the proposed finance then call fear immediately and tell them that you are cancelling the application and tell them why and tell them that you wouldn't be able to repay the money. Make sure that you send them a letter about that in writing as soon as possible. Send a copy to the garage. Send a copy of the garage letter to the finance company. In other words, make everything as open as possible and involve as many people as possible.

 

Of course we might be jumping the gun here and maybe the garage is going to be perfectly decent about it – but you need to protect yourself.

 

Once again, make sure that you refer to your conversation this morning and that you are simply confirming what you have already told them and what they already know – which is that you are unable to afford it and and you will not be able to proceed with the proposed agreement.

[Karenlouisee]

Thanks very much for your help. I'm writing the letter now. I do hope they can be reasonable about it! My family have bought three cars from them in the past year including my own car I have already!

 

It is as you say that we have basically reserved it and I have passed the credit check so far. But I will make sure all concerned are notified by recorded delivery and keep my copies to be sure.

 

I will come back tomorrow to update. I can only hope admin fees aren't too much, I've read about 1k fees for backing out at the same point as myself from others, I hope it's not the case.

[BankFodder]

£1000 would be excessive – and probably more than £100 will be excessive, but whatever it was they asked, I would want a complete justification for it meaning a detailed accounting.

 

As you have bought; from them, in your letter I suggest that you point out that you hope to be able to buy a car with them when things improve towards the end of the year – meaning next year.

 

They will appreciate that it is worth keeping sensible relations with you.

[Conniff]

Passing a credit check doesn't mean you have been accepted for finance.