Step Son in a financial mess
Discussion
Hi all
After a bit of advice re:step son who has got himself into a bit of a financial mess after buying a car on finance.
He’s 20 and an apprentice on apprentice money (ie c£6ph), so not a lot. Last year he bought himself a car (from one of those car supermarket type places). Here we are half a year later and he is struggling to make the monthly payments. Each month the DD bounces and finally last week he had a bit of a (mental) breakdown told his mum and me what a mess he was in.
I must admit I was always a bit surprised at how he managed to even get the car in the first place what with him only earning a very low amount. Speaking to him tonight it turns out that the car supermarket were a bit sneaky and I think took advantage of a naive young man who was probably completely taken in at the possibility of driving home in the car of his dreams. They asked what his salary was and then they added £4K to that so as to ensure that he could get the finance. On top of that it seems as though they sold him just about every conceivable extra available all in the knowledge of what his real monthly income was.
Yes I know he’s an adult and this could end up being an expensive but valuable life lesson for him, however I/we can’t sit and watch him get deeper and deeper into a hole. It could be that he loses the car and possibly still has a debt hanging over him. My question though is whether there is any point in going back to have a chat with the car supermarket about their financial duty of care or should we just leave it as there’s nothing to be gained?
After a bit of advice re:step son who has got himself into a bit of a financial mess after buying a car on finance.
He’s 20 and an apprentice on apprentice money (ie c£6ph), so not a lot. Last year he bought himself a car (from one of those car supermarket type places). Here we are half a year later and he is struggling to make the monthly payments. Each month the DD bounces and finally last week he had a bit of a (mental) breakdown told his mum and me what a mess he was in.
I must admit I was always a bit surprised at how he managed to even get the car in the first place what with him only earning a very low amount. Speaking to him tonight it turns out that the car supermarket were a bit sneaky and I think took advantage of a naive young man who was probably completely taken in at the possibility of driving home in the car of his dreams. They asked what his salary was and then they added £4K to that so as to ensure that he could get the finance. On top of that it seems as though they sold him just about every conceivable extra available all in the knowledge of what his real monthly income was.
Yes I know he’s an adult and this could end up being an expensive but valuable life lesson for him, however I/we can’t sit and watch him get deeper and deeper into a hole. It could be that he loses the car and possibly still has a debt hanging over him. My question though is whether there is any point in going back to have a chat with the car supermarket about their financial duty of care or should we just leave it as there’s nothing to be gained?
Car finance is regulated so nothing to lose by complaining about mis-selling to the car dealer. The financial ombudsman oversee them all so there is then a further avenue.
I guess the difficulty could be it ending up as a he said they said sorta thing. Especially if the paperwork is signed basically agreeing it’s all correct.
They must have some way to deal with mis-selling complaints though as a signed document would be the case in most instances.
I guess the difficulty could be it ending up as a he said they said sorta thing. Especially if the paperwork is signed basically agreeing it’s all correct.
They must have some way to deal with mis-selling complaints though as a signed document would be the case in most instances.
I suspect that it's going to be hard - as you said yourself, he's an adult. The angle to explore might be the lying about the income, tho' I expect that will come down to the salesman's word against your step-son.
The most pragmatic solution might be to offer to get him square financially on the proviso that he sells the car.
The most pragmatic solution might be to offer to get him square financially on the proviso that he sells the car.
Thanks … appreciate the quick replies. I think we might as well have a chat with the car supermarket and then maybe the FCA and see what they have to say. Nothing to lose really, after that I think it’s WBAC or such like, hopefully the buoyant 2nd hand market works in his favour.
Certainly a big lesson for him which as long as he learns from we’ll help him resolve
Certainly a big lesson for him which as long as he learns from we’ll help him resolve
It's good that he has told you the situation, it's healthy.
To get him out from under the finance needs settling, so I'd be looking to get the car back to the dealer for the maximum amount, then putting my hand in my pocket for the balance. I really don't know how far you'll get with the dealership, if it's one rogue salesperson then they may look at the situation favourably, but if it's an endemic sales practice- and it probably is - then they might just lowball you knowing you are desperate and high five each other as you walk out.
It's easy to spout off about learning lessons etc but if he gets a default or even some sort of arrangement to pay it will hang over him for years.
Only you know if the lad is likely to do it all over again, but I'd give him a chance.
To get him out from under the finance needs settling, so I'd be looking to get the car back to the dealer for the maximum amount, then putting my hand in my pocket for the balance. I really don't know how far you'll get with the dealership, if it's one rogue salesperson then they may look at the situation favourably, but if it's an endemic sales practice- and it probably is - then they might just lowball you knowing you are desperate and high five each other as you walk out.
It's easy to spout off about learning lessons etc but if he gets a default or even some sort of arrangement to pay it will hang over him for years.
Only you know if the lad is likely to do it all over again, but I'd give him a chance.
1. Give him a massive pat on the back for fessing up to his problems and seeking help (in whatever form it may finally take).
2. Yep, take finance place to task ( assumption being tough luck, but worth a punt).
3. Help him out if you can/sell car to clear debt.
4. Buy him a pint for reaching out for help - it’s a massive thing!
5. Have a pint on me for being a good step dad ;-)
2. Yep, take finance place to task ( assumption being tough luck, but worth a punt).
3. Help him out if you can/sell car to clear debt.
4. Buy him a pint for reaching out for help - it’s a massive thing!
5. Have a pint on me for being a good step dad ;-)
Echo the advice above, but also, if he is an apprentice on low wages , 250 a weeks say, has he looked at getting a Saturday job or something? I know some people, making decent wages doing pub shifts, maybe not as good as it was, tip wise, but a Saturday night at the pub, few tips and he could increase his take home 25% or so.
Might make all the difference especially if he’s not out spending it on a Saturday!
Might make all the difference especially if he’s not out spending it on a Saturday!
Happy Jim said:
1. Give him a massive pat on the back for fessing up to his problems and seeking help (in whatever form it may finally take).
2. Yep, take finance place to task ( assumption being tough luck, but worth a punt).
3. Help him out if you can/sell car to clear debt.
4. Buy him a pint for reaching out for help - it’s a massive thing!
5. Have a pint on me for being a good step dad ;-)
This. No one needs CCJs etc at that age.2. Yep, take finance place to task ( assumption being tough luck, but worth a punt).
3. Help him out if you can/sell car to clear debt.
4. Buy him a pint for reaching out for help - it’s a massive thing!
5. Have a pint on me for being a good step dad ;-)
It's part of life's financial lessons and if you can help, imho you should. He'll owe you for a while.
I don't understand what you want out of this??
I don't think you'd ever get a financial reward.
If you just want the garage to get a telling of then no point talking to the garage. Go straight to FCA.
As for reducing the cost, is he happy to sell the car or is he wanting to keep it?
Paying off the car loan with a personal loan over a 5 period (assuming it's currently less, with a high apr) may help reduce monthly cost and keep the car. Hoping that prices are still inflated when he sells it.
I don't think you'd ever get a financial reward.
If you just want the garage to get a telling of then no point talking to the garage. Go straight to FCA.
As for reducing the cost, is he happy to sell the car or is he wanting to keep it?
Paying off the car loan with a personal loan over a 5 period (assuming it's currently less, with a high apr) may help reduce monthly cost and keep the car. Hoping that prices are still inflated when he sells it.
ConnectionError said:
It may be worth contacting the FCA and chatting with them
Affordability schedular are very important and they take a dim view of businesses not being diligent
The FCA do not deal with customers complaints. Affordability schedular are very important and they take a dim view of businesses not being diligent
Make a formal complaint to the business. They must have a a complaints procedure. Entering a salary with out evidence would be a regulatory breach. If they do not accept the complaint or reject it then the next step is the Financial Ombudsman.
Hi all
Thanks again for everyone taking the time to comment. For those asking he is paying c£360 per month (on PCP)
Personally I don’t think we’ll get anything from a complaint but nevertheless I am going to do it as I want to hear what they have to say. It’s not going to make any difference to what’s happened but I feel it’s worth talking to them as if nothing else it might make them stop and think (about their practices). Yes I know that the reality is that they will just ignore me but it might make me feel better.
As for step son he’s a good lad (aren’t they all), he already works 14 hour days doesn’t go out on the P (mainly as he has no money!) so I want to try and help him out. By the looks of things he should get more than the outstanding finance so we’ll sell and then buy an old banger so that he can get to work etc
Thanks again for everyone taking the time to comment. For those asking he is paying c£360 per month (on PCP)
Personally I don’t think we’ll get anything from a complaint but nevertheless I am going to do it as I want to hear what they have to say. It’s not going to make any difference to what’s happened but I feel it’s worth talking to them as if nothing else it might make them stop and think (about their practices). Yes I know that the reality is that they will just ignore me but it might make me feel better.
As for step son he’s a good lad (aren’t they all), he already works 14 hour days doesn’t go out on the P (mainly as he has no money!) so I want to try and help him out. By the looks of things he should get more than the outstanding finance so we’ll sell and then buy an old banger so that he can get to work etc
Edited by Forrest1 on Thursday 17th February 06:41
£360 a month is about double what I thought you were suggesting! 60 hours work just to pay that, no wonder he's stressed.
Just focus on avoiding him getting any permanent markers on his credit file - it does feel massively irresponsible for a company to allow this even if technically it was his own bad decision.
Just focus on avoiding him getting any permanent markers on his credit file - it does feel massively irresponsible for a company to allow this even if technically it was his own bad decision.
Forrest1 said:
Hi all
After a bit of advice re:step son who has got himself into a bit of a financial mess after buying a car on finance.
He’s 20 and an apprentice on apprentice money (ie c£6ph), so not a lot. Last year he bought himself a car (from one of those car supermarket type places). Here we are half a year later and he is struggling to make the monthly payments. Each month the DD bounces and finally last week he had a bit of a (mental) breakdown told his mum and me what a mess he was in.
I must admit I was always a bit surprised at how he managed to even get the car in the first place what with him only earning a very low
Yes I know he’s an adult and this could end up being an expensive but valuable life lesson for him
You were right to have your suspicions about the affordability, I'd have asked more questions!!! After a bit of advice re:step son who has got himself into a bit of a financial mess after buying a car on finance.
He’s 20 and an apprentice on apprentice money (ie c£6ph), so not a lot. Last year he bought himself a car (from one of those car supermarket type places). Here we are half a year later and he is struggling to make the monthly payments. Each month the DD bounces and finally last week he had a bit of a (mental) breakdown told his mum and me what a mess he was in.
I must admit I was always a bit surprised at how he managed to even get the car in the first place what with him only earning a very low
Yes I know he’s an adult and this could end up being an expensive but valuable life lesson for him
If my 20 year old lad (who I get the impression is living at home earning little over £1kpm) went off and bought a car costing £360pm which on a 3-5year deal would be a £10k+ car without asking my opinion I'd be pretty annoyed.
Honestly, the more I think about it I'd have told him to take it back on day 1.
Mrr T said:
ConnectionError said:
It may be worth contacting the FCA and chatting with them
Affordability schedular are very important and they take a dim view of businesses not being diligent
The FCA do not deal with customers complaints. Affordability schedular are very important and they take a dim view of businesses not being diligent
Make a formal complaint to the business. They must have a a complaints procedure. Entering a salary with out evidence would be a regulatory breach. If they do not accept the complaint or reject it then the next step is the Financial Ombudsman.
Happy Jim said:
1. Give him a massive pat on the back for fessing up to his problems and seeking help (in whatever form it may finally take).
2. Yep, take finance place to task ( assumption being tough luck, but worth a punt).
3. Help him out if you can/sell car to clear debt.
4. Buy him a pint for reaching out for help - it’s a massive thing!
5. Have a pint on me for being a good step dad ;-)
Amen to this, with multiple pints/your favourite tipple for number 5. 2. Yep, take finance place to task ( assumption being tough luck, but worth a punt).
3. Help him out if you can/sell car to clear debt.
4. Buy him a pint for reaching out for help - it’s a massive thing!
5. Have a pint on me for being a good step dad ;-)
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