Hire Purchase Vechile Problem
Discussion
The Mrs runs a small dry cleaning company and has decided to deliver the dry cleaning for an additional charge. So last week she went and purchased a small van on hire purchase. Within a few days of having the van it had started developing problems, not starting abnormal noises when driving. When the Mrs brought the van the sales guy assured her that it was a cracking van.
Now she went back to where she had the van from and told them she didn't want it anymore as it is faulty and that she wants the deposit back. But she was told by the garage that it was nothing to do with them and that she needs to sort it out with the hire purchase credit company. Is this true or is he trying to pull a fast one?
By the way I didn't go with my wife as I am currently working away.
Thanks Peter.
Now she went back to where she had the van from and told them she didn't want it anymore as it is faulty and that she wants the deposit back. But she was told by the garage that it was nothing to do with them and that she needs to sort it out with the hire purchase credit company. Is this true or is he trying to pull a fast one?
By the way I didn't go with my wife as I am currently working away.
Thanks Peter.
A lot will depend on the age and cost of the van. If she paid £100 she should have no real expectation of reliability. If she bought new, the garage should be fixing it under warranty.
I'd expect the vehicle is somewhere between the two extremes and the garage should be doing something to investigate and possibly repair.
If they won't do that she should contact the finance company direct as they have joint and several liability with the garage for the condition of the goods. The van belongs to the finance company so they have an interest in it being as described. Remember, she has NO right to wthold the HP payments.
I'm sure someone with more knowledge than me will be along soon with more detailed advice.
I'd expect the vehicle is somewhere between the two extremes and the garage should be doing something to investigate and possibly repair.
If they won't do that she should contact the finance company direct as they have joint and several liability with the garage for the condition of the goods. The van belongs to the finance company so they have an interest in it being as described. Remember, she has NO right to wthold the HP payments.
I'm sure someone with more knowledge than me will be along soon with more detailed advice.
allergictocheese said:
On my understanding of HP the contract is with the finance provider and not the dealer, so the OP's wife should approach the finance company and ask them about having the fault(s) rectified.
Even though the van was purchased because how great the salesman said it was. Surely on the basis of that they have some responsibility? allergictocheese said:
The van dealer sold it to the HP company (who now rent it out to you). I don't think you will have any contract between you and the dealer (despite the dealer 'selling' you the van). If you want to reject the van, it's the HP company who you need to bring that up with,
I have been told my mrs has a contract with both the dealer and the hp company? Not sure what route to take.There is equal liability, on different terms. The fact the van has a fault, is up to the dealer to sort. There is a warranty, and you have the Sale of Goods act to protect you.
You cannot simply just reject the vehicle, you need to give the garage a minimum of three attempts to repair the fault with the vehicle before you can reject it. Thats simply the way it works im affraid.
You cannot simply just reject the vehicle, you need to give the garage a minimum of three attempts to repair the fault with the vehicle before you can reject it. Thats simply the way it works im affraid.
LouD86 said:
There is equal liability, on different terms. The fact the van has a fault, is up to the dealer to sort. There is a warranty, and you have the Sale of Goods act to protect you.
You cannot simply just reject the vehicle, you need to give the garage a minimum of three attempts to repair the fault with the vehicle before you can reject it. Thats simply the way it works im affraid.
Won't the fact that she brought the van in the course of business mean the Sales Of Goods Act won't protect her?You cannot simply just reject the vehicle, you need to give the garage a minimum of three attempts to repair the fault with the vehicle before you can reject it. Thats simply the way it works im affraid.
Take a look at this page for an explanation;
http://www.financial-ombudsman.org.uk/publications...
The dealer does not have a contractual relationship with the OP- if the garage won't play ball he needs to chase the HP supplier (who own the vehicle and have the contractual relationship with the dealer).
There is no joint liability.
http://www.financial-ombudsman.org.uk/publications...
The dealer does not have a contractual relationship with the OP- if the garage won't play ball he needs to chase the HP supplier (who own the vehicle and have the contractual relationship with the dealer).
There is no joint liability.
allergictocheese said:
Take a look at this page for an explanation;
http://www.financial-ombudsman.org.uk/publications...
The dealer does not have a contractual relationship with the OP- if the garage won't play ball he needs to chase the HP supplier (who own the vehicle and have the contractual relationship with the dealer).
There is no joint liability.
I've had a look thank you. Although I have posted this problem on another forum and have been told that the Mrs has a collateral contract(2 contracts). Confused....http://www.financial-ombudsman.org.uk/publications...
The dealer does not have a contractual relationship with the OP- if the garage won't play ball he needs to chase the HP supplier (who own the vehicle and have the contractual relationship with the dealer).
There is no joint liability.
To be honest in terms of getting it fixed, and your not going to achieve anything else the finance company is not a bad place to start....
I was speaking to a branch manager about these a few weeks ago. He said they just got it sorted then recover the money from the trader themselves. They will not mess about.
I was speaking to a branch manager about these a few weeks ago. He said they just got it sorted then recover the money from the trader themselves. They will not mess about.
allergictocheese said:
Take a look at this page for an explanation;
http://www.financial-ombudsman.org.uk/publications...
The dealer does not have a contractual relationship with the OP- if the garage won't play ball he needs to chase the HP supplier (who own the vehicle and have the contractual relationship with the dealer).
There is no joint liability.
A Hire Purchase Agreement is a "tri-partite arrangement" involving the customer, the lender, and the supplier with the lender and supplier having joint and several liability for the fitness of the goods.http://www.financial-ombudsman.org.uk/publications...
The dealer does not have a contractual relationship with the OP- if the garage won't play ball he needs to chase the HP supplier (who own the vehicle and have the contractual relationship with the dealer).
There is no joint liability.
Edited by GoneAnon on Monday 9th February 23:57
No, it isn't. The consumer visits a showroom and chooses a vehicle, which he then instructs the HP company to buy and hire to him. His contractual relationship is with the HP company. The HP company have a contractual relationship of their own with the supplying dealer, to which the consumer is not a party.
In some cases, where the consumer enters the HP contract in reliance of a warranty given by the dealer, you might establish a collateral contract where that warranty is breached (for example, consumer wanted car with fsh. Dealer said it had fsh and it subsequently turned out it didn't). In that case you may have a claim against the dealer.
In the OP's case there's no such suggestion that a collateral contract would exist and no grounds to attach any SoGA obligations to the dealer.
In some cases, where the consumer enters the HP contract in reliance of a warranty given by the dealer, you might establish a collateral contract where that warranty is breached (for example, consumer wanted car with fsh. Dealer said it had fsh and it subsequently turned out it didn't). In that case you may have a claim against the dealer.
In the OP's case there's no such suggestion that a collateral contract would exist and no grounds to attach any SoGA obligations to the dealer.
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