25 July 2015 at 8:12 pm #66758
– none –Member
I am very confused and really don’t know what to do and can someone please suggest what they think my rights are or what I should do.
Recently I applied for car finance through a car finance broker and I was told that my application was approved in principle. I was then told to look for a car and to get back to them with the details of the car. I searched for a car and handed the details of the car to the broker. The broker approved the car and the dealer (the dealer being one of the ones they normally trade with) and asked me to view the car to make sure I was happy with the car. I viewed the car and I decided to make a deposit to the car dealer so they can reserve the car for me whilst the finance company pay them. After 2 days I received a call from the car dealer that the finance company has paid them and that I should come and pick the car. I was quiet happy and I quickly sold my car to a local dealer at a very low price and went to the dealer to pay my own part of the money £2500 and the dealer gave me a receipt of £11500 showing that the finance company has paid the balance.
Few days later I called the broker to inform them that I had collected the car and requested that I pay the monthly debit on the 23rd of every month. The broker said they have not sent payment to the dealer and that they are surprised that the dealer released the car without getting payment from them.
Now the broker has just informed me that they have requested for payment from the finance company but the finance company has requested for more paper works from me, bank statements, etc. To me it appears the finance company may decline to finance the car.
Now I am confused. What if the finance company refused to pay the dealer? What options would I have
27 July 2015 at 8:08 am #66762
Clearly someone has screwed up. The dealer should not have handed over a car until they had received payment, so they are going to start begging/threatening you to return the car pretty soon as they are in deep poo if they have given you the car keys but didn’t have the money.
It is not unusual for the finance company to request more documentation like bank statements, especially if you are self-employed or have more than one income source. It usually means that they are unable to verify the information somewhere else, or you may not have a lot of credit history for them to be able to look up. It doesn’t automatically mean that they are going to decline you.
If they do decline you, you will need to decide if you are going to play nicely and return the car (and get your deposit back), or whether you are going to be difficult and make them take legal action to try and recover the vehicle. The dealer will be desperately hoping you play nicely, as they will not have a strong legal case to show a court (they willingly handed you the keys, so they can’t claim that the car was stolen or taken without their knowlege/agreement).
Morally, you know that you have a £14,000 car which you have only paid £2,500 for. Legally you may be in a good position, but it could depend how well each side can argue its case in court.
A common sense approach would suggest that you should be able to reach an agreement to return the car but claim some compensation for your hassle, and ensure that you end up no worse than before you started.