Finance Question

fergie128 · 13 Oct 2012 at 20:19

Hi guys,

Last week I bought a new car, cost all in was £11k, going to £15k over 5 years under the credit agreement. In the time since I bought the car under credit, I have come into enough money to now simply buy the car outright. As it is within 2 weeks of me signing the credit agreement, I am within the cooling off period and can cancel it.

By cancelling it, will this allow me to simply go to the dealer and pay the 11k for the car, and that will be the end of it? Or am I now screwed and stuck with having to pay 15k, even though I will not be requiring credit?

Dealer doesn't open until 11am tomorrow, and I wanted an idea of what to expect beforehand, hence asking

Thanks!

TripleT · 13 Oct 2012 at 20:23

Read the credit agreement?

But yes usually you have 14days. When did you sign? And that's a lucky escape as that's a bad sounding agreement!

Brookert · 13 Oct 2012 at 20:24

Simple answer, ask the dealer! Are you saying it's 4k of interest?

fergie128 · 13 Oct 2012 at 20:26

Cash Price of Goods: £11,144.79
Amount of Credit: £11,144.79
Total Charge for Credit: £4,143.01

Am I right in thinking that the finance company will only pay the dealer the Cash Price of Goods. So then I would only have to settle that with the dealer? And yes, I have a 14 day window in my credit agreement.

[TW]Fox · 13 Oct 2012 at 21:04

Why did you sign an agreement which is that expensive?! Did they do you on the price of the car, too?

The good news is that you won't need to pay all that - even if you had no 14 day window you are still able to make full or partial early repayments at any point and without paying subsequent interest charges.

fergie128 · 13 Oct 2012 at 21:20

Thanks for the info Fox. I had another read at the agreement and, as you said, it seems I will only have to settle the Amount of Credit with the finance company themselves. I wasn't sure if they would claw their money back from the dealer and then I would pay the dealer etc.

Hopefully I will get this sorted on Monday then.