Cancelling a finance agreement

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This topic contains 11 replies, has 2 voices, and was last updated by Stuart Masson Stuart Masson 1 year, 6 months ago.

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  • #88807 Reply

    Chris

    Hi, me and the missus bought a new Kia Venga last week. At the time all was fine but now she has been signed off work and we will struggle to make the payments. Is there anything we can do to cancel the finance agreement?

  • #88809 Reply
    Stuart Masson
    Stuart Masson
    Keymaster

    Hi Chris. You have 14 days to cancel the finance agreement, but this does not mean you cancel the vehicle purchase – it just means you are choosing another way to pay for it. There is no provision in the law or your vehicle & finance contracts for you to cancel the vehicle purchase because you don’t think you will be able to afford it.

    For more information, have a read of our article about changing your mind after buying a car.

  • #88812 Reply

    Hris

    Cheers. Was just wondering if there was a way to give the car backwithout to much fuss and outlay. Guess ill just have to do more shifts in work

  • #88980 Reply

    John Craig

    Hi Stuart,
    Does the below sound ok for cancelling PCP? I can’t find a template anywhere.

    Many Thanks.

    Dear Sir/Madam,

    I wish to withdraw/cancel my finance/credit/hire purchase/Personal Contract Purchase (PCP) agreement as per the number stated above with you on 4th April 2016 with immediate effect.
    I believe this is within my statutory 14 days cooling off period.
    Please accept this letter as confirmation of my withdrawal
    Please confirm that the above agreement has been terminated, and that I will be invoiced for any monies owed through this agreement for the value of what was originally financed.

    • #88999 Reply
      Stuart Masson
      Stuart Masson
      Keymaster

      Hi John. Should be fine. I would go with ‘withdraw’ from the agreement, rather than cancel, as it’s a more accurate term for what you are trying to achieve (you can cancel at any time).

  • #89029 Reply

    mark

    hi

    I bought a car on finance 8 months ago, I was searching previous mot’s on the uk database government website and it shows that the car was motd in 2012 with 86k miles and the next mot in 2013 with 50k miles. I contacted the finance company and told them of this and they said there’s nothing they can do. am I right in thinking they should deal with this and take the car back as no dealer will ever touch the car as it’s been clocked ??

    • #89073 Reply
      Stuart Masson
      Stuart Masson
      Keymaster

      Hi Mark. First thing to check is that the recorded mileages are likely to be correct rather than a simple human error. It could be that the 2012 value has been recorded incorrectly and should have been 36,000 rather than 86,000, or something similar. MOT reports prior to 2012 would be useful.

      The finance company is unlikely to be too interested unless you are bringing legal pressure upon them to take some kind of action.

      This sort of information should have been available pre-purchase, so you will struggle to convince anyone that you deserve compensation of any sort eight months after taking delivery.

  • #89824 Reply

    Darryl

    Hi

    I purchased a car today on a pcp agreement with a dealership, all was well, the agreed deposit, security / credit checks etc..all passed and paid, all ready to pick up this coming tuesday, on way home the dealership emailed me to say that they have done the figures wrong and it was there fault and they can refund me the deposit, but i have already signed the paper work etc.. i want the car but they want to cancel the finance, where do i stand,

    look forward to your views

  • #89825 Reply

    Darryl

    hi,

    i also have emails from the dealers confirming the figures

    • #89832 Reply
      Stuart Masson
      Stuart Masson
      Keymaster

      Hi Darryl. You can try and fight them to honour the contract if you want, but in reality there’s not a whole lot you can do if they are simply going to refuse to sell you the car at the agreed price.

      For more information, have a read of our article about how to handle a dispute with a dealer.

      PS: Just ask your question once, mate. No need to repeat it half a dozen times on different threads…

  • #90004 Reply

    Beth Hayes

    Hi, I was hoping you could help me..

    I have entered into a contract with Audi for an A3. I signed the order form on the 30th April and I no longer want the car. The dealership called me on the 24/05/2016 stating that in my order the car engine is the same size but a newer version. This newer engine is £1250 more expensive than the one I signed for. Although the dealership are covering the cost it still is a different priced car and they are not honouring the contract I signed to.

    In the terms and conditions it states that if the price of the car increases between the order and delivery of the car then I have the right to cancel and to get my deposit back. However, the dealership are fear mongering and making it out that I will lose my deposit and possibly incur more financial costs implied with the making of the vehicle (keeping in mind they said it would be completed on the 21st September).
    I’m really worried that I can’t get out of the contract, let alone get my deposit back..any information on my situation would be greatly appreciated. Thanks!

    • #90175 Reply
      Stuart Masson
      Stuart Masson
      Keymaster

      Hi Beth. It sounds like you’ve changed your mind and you’re hoping that this gives you an excuse to walk away without penalty.

      The T&Cs of your contract do state that if the price of the car increases then you have the right to cancel. But the price of the car isn’t increasing – as you have described it, the dealer is selling you a better car for the same price.

      I would imagine that the dealership is within their rights to keep your deposit if they agree to cancel the sale.

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