Car Finance

[lizzydrippin]

Would I be right in thinking that once you’ve signed up for car lease finance (hire purchase) there isn’t a hope in hell of changing your mind. The agreement is £244 per month for 3 and a half yrs, then you have a choice of giving the car back and walking away or paying a lump sum of another £4,000 and keeping the car. The car is 2 yrs old.

[Buenchico]

>>> "The car is 2 yrs old"

Does that mean that you're already two years into the agreement or simply that you're buying a two-year-old secondhand vehicle?

If you're two years into the agreement, you're stuck with it (unless, unusually, the lender is prepared to consider changing or cancelling the agreement).

If you've only recently signed the finance contract though, you've got a 14-day cooling off period. This link is from a particular leasing company but the statements shown apply across all leasing arrangements:
https://www.nationwidevehiclecontracts.co.uk/blog/cooling-off-periods-explained
(I wish all companies were able to provide such clear explanations as that one does).

[david small]

My daughter signed for lease finance. Apparently her 3 year old car is in negative equity, she’s been told her final payment is more than the cars worth.

[lizzydrippin]

Thanks very much Buenchico, the car is 2 yrs old (2017 model) but yes the deal was made on Tuesday 30th July 19......we were very gullible that day and caught up in the moment. My partner was due to pick up a motability car but when we got there they didn’t have one ready and one thing led to another. My partner failed the credit check, I didn’t fail hence the finance went in my name. I don’t even drive. We do take full responsibility for being green as they come but the guys at the dealership didn’t make things clear. Thanks for the link....

[lizzydrippin]

2 weeks later after much worrying and beating myself up for being so gullible and believing these car dealers were doing everything in my favour (yes I know...) I finally came to an agreement with them which cost me £3,000 and I’m now back on Motability Scheme. It was a very expensive lesson but so very happy it’s all over.

[THECORBYLOON]

"The 14 day cooling-off period runs from the day the agreement is concluded or if later, from when you receive a copy of the agreement or, notification of the credit limit on a credit card." (From the Which site)

If you didn't receive a copy of the agreement or the credit limit 'til later, that is when the fourteen days begin.