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Cancelling Purchase Agreement & Finance before delicery

Home Forums Car finance Cancelling Purchase Agreement & Finance before delicery

This topic contains 7 replies, has 2 voices, and was last updated by Stuart Masson Stuart Masson 3 years, 11 months ago.

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  • #66558 Reply
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    – none –
    Member

    Hi,

    I’ve read through the (absolutely useful!) forum, but can’t seem to get a clear answer on this..

    I signed a deal on a new Audi through PCP some weeks back (over 14 days). For personal reasons, I no longer want the car.

    I’ve signed the order form, and agreed on £1k deposit – £500 which I paid when signing, and £500 which we agreed I would pay on hand-over by delivery.

    The car is due to be delivered around September time.

    1) Am I correct in assuming that by cancelling the agreement, that the finance company (VWFS) can be easily cancelled with no penalty from them since I haven’t taken delivery of car yet, and thus they have not ‘paid’ for the car yet?

    2) By cancelling the agreement, will I only lose my deposit, or can they say I must pay for full car as I signed agreement? If I only lose deposit, can they say I have to pay remaining £500, which I would be due to settle on delivery?

    Thank you.

  • #66564 Reply
    Stuart Masson
    Stuart Masson
    Keymaster

    Hi andrewsit. Have a read here about changing your mind after buying a car.

    Given that the car is a forward order, you should be able to cancel the order and maybe get your deposit back. At worst, you may lose that £500 but there shouldn’t be any further costs involved. Your finance agreement won’t have been signed yet, so there’s nothing to cancel there, so it just comes down to whether the dealer will let you walk away without insisting on retaining your deposit.

    You’ll probably lose the £500 you’ve given them, but you shouldn’t have to give them anything else. Inform them in writing (e-mail’s fine), be polite but firm and you may get your money back.

  • #66578 Reply
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    David

    hi Stuart,

    I’m a newbie here, and regarding the cancellation policy, i came across a new website called carspring.co.uk and they say they give a 14 day money back guarantee if we are not satisfied with the car.

    so in this transparent word, will carspring.co.uk change the way we buy and sell cars??

    thank you

    cheers

    • #66579 Reply
      Stuart Masson
      Stuart Masson
      Keymaster

      Hi David. This group appear to effectively a car dealership working on consignment and online rather than from a traditional sales yard. Their site does not go into much detail and their terms & conditions seem somewhat ambiguous (either accidentally or deliberately). Their T&Cs also point out that you agree not to contact the actual seller of the vehicle under any circumstances, which doesn’t bode well for their claim of transparency.

  • #66583 Reply
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    – none –
    Member

    Thanks so much Stuart, and David for your link, will read through it.

    I’ve learned that best course is to get an email over and take it from there.

    Hopefully I can post sn update with some good news soon !

    • #66587 Reply
      Stuart Masson
      Stuart Masson
      Keymaster

      I wouldn’t worry too much about the link David posted – I’m not sure if it was a plug for his own business or not, which is why i removed the links, but the site looks like a lot of spin and no substance.

    • #66597 Reply
      Avatar
      David

      hi Stuart,

      Thanks for the reply, and to clear the air I’m not representing any website or an individual.

      the reason why i posted was solely because it was partially related to the thread. A friend of mine, who’s selling his Ford Fiesta on their site, had shared his concern with me, hence posted the same on your forum.

      I’m sorry if it was against forum rules, but would definitely be an active member here.

      with the Fiesta, if it’s sold or un-sold shall keep you updated.

      thank you.

  • #66599 Reply
    Stuart Masson
    Stuart Masson
    Keymaster

    Hi David, thanks for coming back to us. It didn’t seem like the usual spam messages we get, which is why I didn’t delete it entirely, but wasn’t completely sure.

    There are a few brokerages popping up around the place trying to do the same thing as these guys. Not sure how well it will work as a business model or for buyers & sellers, but anything which improves the experience for everyone involved is a good thing as far as I am concerned.

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