Can I switch from finance to Cash ??

[PHOENIXUK]

Agreed a deal for a new motor in Feb currently waiting for it to be delivered by the end of the month. I agreed a deal to pay a cash deposit 24 payments and balloon payment with the manufacturers finance company. Signed the car order form, paid a deposit, passed finance etc but have not signed any finance agreement.

Have now decided I want to pay for the car in full on collection with no finance, is there anything stopping me doing this or am I oblidged to stick to the original agreement and take the finance as per order form?

Thanks.

[Mikeyplum]

Don't most finance companies have the "14 day cooling down period" in which you can cancel and be refunded any deposit, minus the admin fee?

I await correction...

[alcovrugbyfan]

just take the finance then phone up and pay it off?

[Mikeyplum]

alcovrugbyfan said:

just take the finance then phone up and pay it off?

Will he not have to pay some front loaded interest on that then though?

[PHOENIXUK]

Mikeyplum said:

Don't most finance companies have the "14 day cooling down period" in which you can cancel and be refunded any deposit, minus the admin fee?

I await correction...

I haven't actually signed any finance documents, so cooling of period does not apply yet, during that cool off period can you just pay the original amount or does the finance company sting you for some costs...? Only the garage order form has been signed.

Why I ask this question is that the garage obviously get some kick back from Audi for the finance and they may say they agreed the deal (discount on new car) I got on that basis...

[Mikeyplum]

PHOENIXUK said:

Mikeyplum said:

Don't most finance companies have the "14 day cooling down period" in which you can cancel and be refunded any deposit, minus the admin fee?

I await correction...

I haven't actually signed any finance documents, so cooling of period does not apply yet, during that cool off period can you just pay the original amount or does the finance company sting you for some costs...? Only the garage order form has been signed.

Why I ask this question is that the garage obviously get some kick back from Audi for the finance and they may say they agreed the deal (discount on new car) I got on that basis...

Understood...

If you have not signed any formal contract binding you to the agreement then you are free to change your mind.

I'm assuming you paid deposit (non refundable?) to order the car (made to order?) and then the garage give you the keys when you sign the finance agreement? In that case, instead of signing a finance agreement to get the keys, you hand over some pictures of HRH? The garage may decide to add on a few bucks due to this however...

[PHOENIXUK]

Mikeyplum said:

Understood...

If you have not signed any formal contract binding you to the agreement then you are free to change your mind.

I'm assuming you paid deposit (non refundable?) to order the car (made to order?) and then the garage give you the keys when you sign the finance agreement? In that case, instead of signing a finance agreement to get the keys, you hand over some pictures of HRH? The garage may decide to add on a few bucks due to this however...

Thanks for your replys.

I seem to think that you can not (legally) be offered a price for something say 50K if you pay cash or £49k if you take 'my' finance, I may be wrong on that...?

[otolith]

I believe from previous threads on PH that negotiating on the basis of finance and then switching to cash is not unknown (if perhaps unethical and definitely unpopular with salesmen).

[PHOENIXUK]

otolith said:

I believe from previous threads on PH that negotiating on the basis of finance and then switching to cash is not unknown (if perhaps unethical and definitely unpopular with salesmen).

I can understand what you are saying and if the deal had been done that way I would agree with your statement, this deal was not done on that basis, I have simply changed my mind and want to know if I have right to do so without penalty..

[TarpaTow]

I would think the people you made the agreement with were in a better position to answer than us. If they say NO, then you can see whether you have any options. It all depends on what you've already signed up to.

[PHOENIXUK]

TarpaTow said:

I would think the people you made the agreement with were in a better position to answer than us. If they say NO, then you can see whether you have any options. It all depends on what you've already signed up to.

Agreed, and I will be doing so, just using fellow Pistonheads possible knowledge before I do that, I am assuming we all do that at some time.

I have already said I have only signed the car order form.

If I changed my mind from paying cash to taking some finance it would be a no brainer that the garage would accept, just want to know if that goes the other way.

Edited by PHOENIXUK on Wednesday 4th May 16:48

[lazyitus]

If you're an individual and not a company (broadly speaking) you will have new powers under the Consumer Credit Directive. (providing it's a Hire Purchase / Lease Purchase or PCP agreement)

You now have a 'Right to withdraw' up to 14 days after signing the finance document. You then have 30 days from notifying the finance company (by phone or writing) in which to settle the amount borrowed plus a small bit of interest calculated from the amount of days after you signed the document to the day you signal your intention to withdraw from the finance.

Piss easy.

Obviously, you only need to excercise this right if they are snotty about accepting cash instead of the finance deal.

Edited by lazyitus on Wednesday 4th May 17:01

[LukeSi]

if you haven't signed for the finance just ring them or go in and tell them you are going to pay the whole balance in one go. Any decent dealer should be fine with that.

[PHOENIXUK]

LukeSi said:

if you haven't signed for the finance just ring them or go in and tell them you are going to pay the whole balance in one go. Any decent dealer should be fine with that.

Thanks for your reply, I haven't and this is what I intend to do, I just dont want to get off on the wrong foot spouting 'my rights' if I dont have any, and get looked at and treated like s**t when it goes in for servicing etc..

All my fault anyhow for venturing into car financing when I should just pay for the damned things as I always have done....

Edited by PHOENIXUK on Wednesday 4th May 17:09

[Kiltox]

PHOENIXUK said:

Thanks for your replys.

I seem to think that you can not (legally) be offered a price for something say 50K if you pay cash or £49k if you take 'my' finance, I may be wrong on that...?

There is an element of this however they can dress it up as a "£x deposit contribution from the manufacturer" etc - this is legal.

[Shmee]

Kiltox said:

PHOENIXUK said:

Thanks for your replys.

I seem to think that you can not (legally) be offered a price for something say 50K if you pay cash or £49k if you take 'my' finance, I may be wrong on that...?

There is an element of this however they can dress it up as a "£x deposit contribution from the manufacturer" etc - this is legal.

It was adamantly insisted upon me when exactly that happened to me, figures were like £51k list, £49k cash or £47k if I took Audi finance. When I posted this on the Audi forum I used they all went up in arms about how it was illegal and you can have the best price however you decide to pay.

[Kiltox]

Shmee said:

It was adamantly insisted upon me when exactly that happened to me, figures were like £51k list, £49k cash or £47k if I took Audi finance. When I posted this on the Audi forum I used they all went up in arms about how it was illegal and you can have the best price however you decide to pay.

Hmmm.... plenty of manufacturers offering deposit contributions on PCP though

[Shmee]

Kiltox said:

Hmmm.... plenty of manufacturers offering deposit contributions on PCP though

It was HP not PCP if that makes any sort of difference. I have no idea either way but as a customer just happy with the best overall deal whatever that is!

[PHOENIXUK]

Kiltox said:

There is an element of this however they can dress it up as a "£x deposit contribution from the manufacturer" etc - this is legal.

Order form states, price of car, price of extras, dicount applied, deposit taken, cash balance due, balance to finance. No manufacturers deposit or anything 'gimmicky'.

[Roberty]

If they tell you that you can't switch from Finance to cash just tell them in that case you no longer want the car and will go elsewhere with your XXthousands of Pounds!

I'm sure they'll soon change their tune.