28 February 2017 at 12:04 pm #108065
Hello. I currently pay for the finance on a Nissan, which my partner drives as I don’t hold a drivers licence. I cannot afford to pay the monthly instalments as my partner can no longer work and so I am financing everything within the household as the only income source.
Nissan Finance are being useless and I have now queried how on earth I was able to get the finance because a friend informed me that this shouldn’t be possible because I don’t hold a licence and can’t drive. When we got the car, the dealership showroom knew this and said that it wasn’t a problem but said that the only thing I should do is name myself as a driver on the policy for a period of around 2 weeks and then take it off and this was necessary, as this is what the finance company had asked. I was a little confused about this but added myself on the policy as requested but now it all makes sense to me that this was probably to get the finance through, as it couldn’t be in my partners name due to his credit rating.
I feel foolish now for not thinking about it thoroughly at the time but I just didn’t think that they would be underhand with a finance application. No one at the dealership will return my calls and simply inform me that it is Nissan Finance now that I contact. I have written to them but they don’t seem to be answering my query and just keep telling me that I cannot return the vehicle until 50% has been paid off and when I looked at the agreement, which is for 4 years (we are 2 years in) I thought that we may well be at the half way mark BUT I have noticed that the payment structure has been done in a way to ensure that it is directly in favour of the finance company and the vehicle has a massive balloon payment at the end of the finance which means that 50% will only have been paid up with us being able to return the vehicle with just 2 months of the term left!
I understand that this is my own fault for signing a document before reading it thoroughly and trusting others when the debt is going in my name but surely the finance isn’t valid? I wonder if anyone could advise me on if they think that this is in fact the case and so if it is, then surely void finance means that I should give the vehicle back? Thank you in advance.
4 March 2017 at 6:30 pm #108358
Hi Rachel. The dealership should not have encouraged you to take finance out in the first place, as it contravenes the Nissan Finance policy on accommodation deals. But that doesn’t mean that you should be able to walk away from the agreement.
The dealership is no longer involved in the process, as the car belongs to Nissan Finance and would only become yours if you paid the whole thing off (including the balloon). So it is not surprising that they are not interested in returning your calls. You can complain to Nissan UK that their dealer has behaved in a fairly unscrupulous manner, but it is unlikely to have much effect. At the end of the day, it is your responsibility to read and understand the contract you are signing.
it is normal that the voluntary termination point is rather close to the end of the term on a PCP, as you have borrowed the money for ballon payment even if you are not planning to repay it by giving the car back at the end instead. This is normal for a PCP, especially if you didn’t have a large deposit. The balloon is calculated by the car’s estimated value at the end of the agreement and is not set by the dealer. The idea is that the car should be worth about whatever is owed on it, so you end up not owing anything but not getting anything back.
It is unlikely that you will be able to successfully argue that the finance is not valid and should be voided. It may be against the finance company’s policy to finance an applicant with no driver’s licence, but again that falls on your shoulders as you signed the contract (which means you have misled the finance company, which is technically fraud even if it was not intentional).