Rejecting a car on finance HP

[andyastrasri]

Brief summary

Purchased a used car on HP finance at start of June 2016, all ran well for 7 weeks, then the car broke down, with numerous gearbox fault codes (automated manual gearbox)

Car was taken by AA to a local specialist, diagnosed faulty clutch actuator motor, warranty company approved up to claim limit (less VAT) and I paid the balance, car off road 7 days

Reported issue to supplying garage (seemed disinterested) and to finance company, who logged all the details

Two weeks later, same thing happened, after an ignition on and off car re-started, no issues, took the car back to the local specialist, car off road 6 days, diagnosed as an implausible gearbox error, no other faults found, fault cleared, car was fine

Reported back to finance company about next issue

Fast forward another 5 weeks

Car breaks down on busy roundabout, wouldnt start, all fault lights on, pushed off road by highways agency, car restarted, no faults, cancelled AA callout

1 day later, break down again, car wouldnt restart, all warning lights on, plus 3 gearbox fault codes

At this point, my purchase warranty had run out (3 months only) I had already purchased an AA warranty, called AA, AA phoned around local garages, as soon as they found out what my car was (Its a 2010 Smart Fortwo 1.0mhd with 30K miles) they all declined the work, it got to the point, that no AA approved garage within 15miles wanted to touch the car

Car was transported back home, call made to finance company

Car has covered 3711 miles since purchase, been off the road 19 days so far and I have burnt 4 days holiday dealing with the car

The finance company have been very reasonable, have had all my AA reports and full details of every incident from me

They appear to accept that I am rejecting the car and wish to return

However, today, the supplying garage have got involved and called me directly, they questioned the integrity of the Smart specialist who repaired the car

Now, it gets interesting, the finance company called me back, saying they are awaiting a "termination" figure from the supplying garage for me to return the car to them for wear and tear and mileage covered

After a long winded back story to my message, my question is, should I be expected to pay a wear and tear type fee ? as it stands I have no clue what the figure will be

When/if the car goes back I will be 4 months payments + deposit, 19 days off the road and counting, plus excess on repair down, this I can chalk up to experience and move on

However, I feel loathed to make any other extra payment

[andymc]

pretty sure no wear and tear fee

[sospan]

Try trading standards and "unfit for purpose" options.

[surveyor]

Sit tight and see if it's worth fighting the fee...

I suspect it will be, but you never know...

[POORCARDEALER]

They may "charge" you something for the 3700 miles you have done in it

[Prizam]

If they try it on, i would suggest claiming for the days holiday lost and a hire care for the days yours was in the garage.

Then remind them that you would really just like to call it quits.

(Also, no usage fee's should apply. Goods not fit for purpose)

[andyastrasri]

Things have moved on a "little" since Monday.........

It appears that there are arrangements being made to uplift my vehicle and be recovered back to the supplying garage

However, they are still "mumbling" about a fee needing to be made to supplying garage, I have flat refused to make any payment

Also I am unsure if the vehicle is collected from me, does that then terminate my agreement and am I able to cancel insurance/road tax and warranty on it at this point in time ?

[anonymous-user]

there were new at lease for 99 per month 10k, so i would get one on lease and get rid of this.

[andyastrasri]

Further update

After seeking some legal advice, it would appear that I have to give the finance company an opportunity to inspect/diagnose (or even repair) the car, prior to moving forward

Recovery is due to arrive on Monday to collect the car, very oddly, the car is being recovered to a tiny back street garage right next door to the supplying garage

It strikes me as not an unbiased inspection, repair garage right next door to a car sales garage

I have voiced my concerns to the finance company over this arrangement

I can see this dragging on for a while yet...............

[93DW]

andyastrasri said:

Further update

After seeking some legal advice, it would appear that I have to give the finance company an opportunity to inspect/diagnose (or even repair) the car, prior to moving forward

Recovery is due to arrive on Monday to collect the car, very oddly, the car is being recovered to a tiny back street garage right next door to the supplying garage

It strikes me as not an unbiased inspection, repair garage right next door to a car sales garage

I have voiced my concerns to the finance company over this arrangement

I can see this dragging on for a while yet...............

My thought on that is that the dealer will just move the car to one of his mates garages in another part of town if you say that. Recommend a garage yourself to the finance company however check its a garage with a reasonable trade labour rate (around £70ph). If you go in all guns blazing asking for it to go into a specialist or main dealer the finance company is not going to want to pay £100ph+ for a diagnosis so will overlook you and let the dealer carry on. Have you looked on Companies House to see if the sales and repair garage have the same director? It might put your mind at ease or into overdrive but it might give some clout with the finance company if it is the same person.

[Markbarry1977]

Surely you have already given them the chance to fix it. Having already had it repaired or was that the warranty company and not supplying dealer. If you have had it repaired once and they have failed to rectify it once then can't you just tell them your rejecting it. End of.

Car sounds like a Friday afternoon special. I had one of them from Hyundai about 10 years ago. In the five years it was under warranty (purchased brand new) it was in for repair about 20 times.

[andyastrasri]

Markbarry1977 said:

Surely you have already given them the chance to fix it. Having already had it repaired or was that the warranty company and not supplying dealer. If you have had it repaired once and they have failed to rectify it once then can't you just tell them your rejecting it. End of.

Car sounds like a Friday afternoon special. I had one of them from Hyundai about 10 years ago. In the five years it was under warranty (purchased brand new) it was in for repair about 20 times.

The first repair was covered by the warranty company

The car was due to be recovered today, day off work booked, I took a phone call at 330pm from an agent of the recovery company, who informed me he was an hour away on the train........................

I said to him "Train?" how are you going to recovery a vehicle with a gearbox fault that cant be driven.........

Now looks like the earliest it can be collected is Thursday 27th and so it drags on..............

[billy939]

Would be very interested to see how this developed?

I am in a similar situation and after giving the garage 3 opportunities to fix an engine management light issue they still cannot find the problem. The car has been to an independent and BMW main dealer twice at the supplying garages expense and the fault has popped up again yesterday. I first reported the issue 2 days after I bought the car on HP as it went into limp home mode 15miles away from the garage. I have had the car nearly 3 months and covered just over 3500 miles and in that time it has been off the road for 11 days and I've reported the same EML issue to the garage 3 times. The supplying garage are frustrated but have been amicable so far but I now feel enough is enough and will be contacting the finance company to reject the car this week. Would you say I have a fair case? Will I have an issue as this will be my first time notifying the finance company! Would it best for me to speak to the supplying garage first?

[andyastrasri]

Well, my saga was resolved at the start of December

The finance company in the end rolled back the agreement, the supplying dealer wouldnt play ball at all (even though they had had the car back with them for at least 8weeks at this point)

The finance company calculated a usage fee for the miles I had covered, they wouldn't entertain any compensation or extra costs I had incurred or loss of use

At this point I had lost the will to live and agreed to their offer

Amusingly, for the next two months I still got a call from the finance company chasing me for payments on an agreement that no longer existed!

Speak to the finance company is my suggestion, put everything in writing!

[andymc]

What was the charge?

[catman]

The only part of this that I don't understand is you paying anything to get the car fixed initially.

At such an early stage, the supplying Dealer should have been responsible for a major failure.

Tim

[andyastrasri]

andymc said:

What was the charge?

From memory I paid around £650 for the 3711 miles I covered in the car

The supplying garage wanted something like 45p/mile covered, which would have been circa £1650.00 !!!!

This is why the finance company accepted my termination as they knew if I had of escalated to the financial ombudsman a charge of 45p/mile would never have been accepted

[billy939]

Mine has come to a sort of conclusion today.
Vehicle will be collected on Saturday, the garage will be retaining two payments out of the 3 I've made for mileage and wear and tear and I'll be refunded the other.

In all fairness to the garage they've accepted the first offer of settlement from the finance company and myself and it leaves me in a position where I'm finance free with a few hundred pounds towards my next car which will definitely not be an N54 engine BMW!