Paid off HP early, dealership demanding more money
Discussion
I recently purchased a used Mitsubishi Outlander from a main dealership and initially took out a HP plan despite having the cash to purchase outright because of the incentives they were offering. These incentives were a deposit contribution and 2 years free servicing.
Having withdrawn from the agreement a few days ago (within the 14 day cooling off period) the dealer is now demanding we pay back the deposit contribution.
I asked the dealer to send over the term that specifically stated that we have to pay them back the deposit contribution and he sent me this paragraph which DOES exist in my agreement with Santander but does NOT appear in any paperwork I signed with the dealership:
"If you withdraw from this agreement and you have paid the cash price together with interest payable on that amount to us within 30 days title to the goods will pass to you on the same terms as would have applied had you not withdrawn from this agreement. Interest will be charged on the amount of credit at the daily amount shown on the front page of this agreement, beginning on the date when the amount of credit was provided and ending on the date the credit and accrued daily interest is repaid. You must pay us any amount that you owe to us following your withdrawal from this agreement on demand."
1. As this paragraph comes from my agreement with Santander, does this mean the dealer has no right to ask for the deposit contribution back?
2. Even if this paragraph does apply I can't see anything above that says I have to pay the deposit contribution back once I withdraw from the agreement?
I called Santander and as far as they are concerned we are square and there is nothing left to pay. I have asked for this in writing so I can send onto the dealer.
Would appreciate everyone's views on how to handle this and any past experiences of people that have been in this situation!
Thanks in advance,
Having withdrawn from the agreement a few days ago (within the 14 day cooling off period) the dealer is now demanding we pay back the deposit contribution.
I asked the dealer to send over the term that specifically stated that we have to pay them back the deposit contribution and he sent me this paragraph which DOES exist in my agreement with Santander but does NOT appear in any paperwork I signed with the dealership:
"If you withdraw from this agreement and you have paid the cash price together with interest payable on that amount to us within 30 days title to the goods will pass to you on the same terms as would have applied had you not withdrawn from this agreement. Interest will be charged on the amount of credit at the daily amount shown on the front page of this agreement, beginning on the date when the amount of credit was provided and ending on the date the credit and accrued daily interest is repaid. You must pay us any amount that you owe to us following your withdrawal from this agreement on demand."
1. As this paragraph comes from my agreement with Santander, does this mean the dealer has no right to ask for the deposit contribution back?
2. Even if this paragraph does apply I can't see anything above that says I have to pay the deposit contribution back once I withdraw from the agreement?
I called Santander and as far as they are concerned we are square and there is nothing left to pay. I have asked for this in writing so I can send onto the dealer.
Would appreciate everyone's views on how to handle this and any past experiences of people that have been in this situation!
Thanks in advance,
Szkoda said:
I recently purchased a used Mitsubishi Outlander from a main dealership and initially took out a HP plan despite having the cash to purchase outright because of the incentives they were offering. These incentives were a deposit contribution and 2 years free servicing.
Having withdrawn from the agreement a few days ago (within the 14 day cooling off period) the dealer is now demanding we pay back the deposit contribution.
I asked the dealer to send over the term that specifically stated that we have to pay them back the deposit contribution and he sent me this paragraph which DOES exist in my agreement with Santander but does NOT appear in any paperwork I signed with the dealership:
"If you withdraw from this agreement and you have paid the cash price together with interest payable on that amount to us within 30 days title to the goods will pass to you on the same terms as would have applied had you not withdrawn from this agreement. Interest will be charged on the amount of credit at the daily amount shown on the front page of this agreement, beginning on the date when the amount of credit was provided and ending on the date the credit and accrued daily interest is repaid. You must pay us any amount that you owe to us following your withdrawal from this agreement on demand."
1. As this paragraph comes from my agreement with Santander, does this mean the dealer has no right to ask for the deposit contribution back?
2. Even if this paragraph does apply I can't see anything above that says I have to pay the deposit contribution back once I withdraw from the agreement?
I called Santander and as far as they are concerned we are square and there is nothing left to pay. I have asked for this in writing so I can send onto the dealer.
Would appreciate everyone's views on how to handle this and any past experiences of people that have been in this situation!
Thanks in advance,
The dealer isn't Santander and anyway the deposit contribution isn't something you are due to them under your finance agreement, tell him to shove it.Having withdrawn from the agreement a few days ago (within the 14 day cooling off period) the dealer is now demanding we pay back the deposit contribution.
I asked the dealer to send over the term that specifically stated that we have to pay them back the deposit contribution and he sent me this paragraph which DOES exist in my agreement with Santander but does NOT appear in any paperwork I signed with the dealership:
"If you withdraw from this agreement and you have paid the cash price together with interest payable on that amount to us within 30 days title to the goods will pass to you on the same terms as would have applied had you not withdrawn from this agreement. Interest will be charged on the amount of credit at the daily amount shown on the front page of this agreement, beginning on the date when the amount of credit was provided and ending on the date the credit and accrued daily interest is repaid. You must pay us any amount that you owe to us following your withdrawal from this agreement on demand."
1. As this paragraph comes from my agreement with Santander, does this mean the dealer has no right to ask for the deposit contribution back?
2. Even if this paragraph does apply I can't see anything above that says I have to pay the deposit contribution back once I withdraw from the agreement?
I called Santander and as far as they are concerned we are square and there is nothing left to pay. I have asked for this in writing so I can send onto the dealer.
Would appreciate everyone's views on how to handle this and any past experiences of people that have been in this situation!
Thanks in advance,
It sounds like you withdrew from the finance agreement altogether, and it is being treated like it didn't exist at all. That being the case, the deposit contribution and other incentives that were part of the agreement also cease to exist, hence you now being chased for the shortfall.
Whether or not the dealer has a legitimate claim against you is up for debate, and it also depends on how much the dealer will want to pursue you to try to recover the shortfall.
Whether or not the dealer has a legitimate claim against you is up for debate, and it also depends on how much the dealer will want to pursue you to try to recover the shortfall.
Can't help but my Dad did similar when buying his car - around £28k They were giving a couple of £k contribution, and it worked out better off to get it on finance over 12 months and take the deposit contribution.
He kept the finance till it was paid off and was still quite a bit better off
Not sure I would cancel within the 14 day cooling off period as to me that seems like you have not gone through with the finance agreement, so technically there is no deposit contribution or free servicing as you've not used finance as a way of purchasing the car.
Had you have waited for the first payment and then paid it off in full after 1 month........ :-)
He kept the finance till it was paid off and was still quite a bit better off
Not sure I would cancel within the 14 day cooling off period as to me that seems like you have not gone through with the finance agreement, so technically there is no deposit contribution or free servicing as you've not used finance as a way of purchasing the car.
Had you have waited for the first payment and then paid it off in full after 1 month........ :-)
Don't get me wrong, I 100% understand why the dealer wants the money, they obviously would have got a payout from the finance company if I continued the finance.
I just can't bring myself to pay it if they don't have any concrete evidence to say it's legally binding that I have to.
Question is do I front it out and tell them where to go in the hope they will just give up or could this turn ugly if they decide to take me to court etc.
On the initial email we received they were already threatening debt collectors if we did not pay, I suspect this part of a scare tactic to get me to pay ASAP and not ask questions?
I just can't bring myself to pay it if they don't have any concrete evidence to say it's legally binding that I have to.
Question is do I front it out and tell them where to go in the hope they will just give up or could this turn ugly if they decide to take me to court etc.
On the initial email we received they were already threatening debt collectors if we did not pay, I suspect this part of a scare tactic to get me to pay ASAP and not ask questions?
Szkoda said:
"If you withdraw from this agreement and you have paid the cash price together with interest payable on that amount to us within 30 days title to the goods will pass to you on the same terms as would have applied had you not withdrawn from this agreement.
IANAL, but to me as a layman what the dealer have sent you there is the exact opposite of having to pay anything extra/back/whatever.Cancelling within 14days is usually cancelling the whole agreement, including incentives and offers, and agreed it is usually in small print in your agreement or in the posters promoting it.
If you had run for the first 30 days or so then 'paid' it off then in theory the deals and agreement would have stayed in place and you would have just 'settled' the account.
I am all for 'playing the game' but in this case I think you pulled the trigger to early.
V.
If you had run for the first 30 days or so then 'paid' it off then in theory the deals and agreement would have stayed in place and you would have just 'settled' the account.
I am all for 'playing the game' but in this case I think you pulled the trigger to early.
V.
Szkoda said:
Don't get me wrong, I 100% understand why the dealer wants the money, they obviously would have got a payout from the finance company if I continued the finance.
I just can't bring myself to pay it if they don't have any concrete evidence to say it's legally binding that I have to.
Question is do I front it out and tell them where to go in the hope they will just give up or could this turn ugly if they decide to take me to court etc.
On the initial email we received they were already threatening debt collectors if we did not pay, I suspect this part of a scare tactic to get me to pay ASAP and not ask questions?
They're not going to sue you over 400 quid. Ignore them.I just can't bring myself to pay it if they don't have any concrete evidence to say it's legally binding that I have to.
Question is do I front it out and tell them where to go in the hope they will just give up or could this turn ugly if they decide to take me to court etc.
On the initial email we received they were already threatening debt collectors if we did not pay, I suspect this part of a scare tactic to get me to pay ASAP and not ask questions?
VEX said:
Cancelling within 14days is usually cancelling the whole agreement, including incentives and offers, and agreed it is usually in small print in your agreement or in the posters promoting it.
If you had run for the first 30 days or so then 'paid' it off then in theory the deals and agreement would have stayed in place and you would have just 'settled' the account.
I am all for 'playing the game' but in this case I think you pulled the trigger to early.
V.
This is right; you cancelled too soon and should have waited until after the first hp payment had gone. We had to do this with Hyundai and so paid a months interest which was still less than the 500 incentive.If you had run for the first 30 days or so then 'paid' it off then in theory the deals and agreement would have stayed in place and you would have just 'settled' the account.
I am all for 'playing the game' but in this case I think you pulled the trigger to early.
V.
Cancelling so early meant that technically the agreement hadn't even started. Good luck all the same.
MondeoMan1981 said:
I don't think they have a leg to stand on - as if you'd technically cancelled everything, they'd be giving you the option of returning the car you'd think...
Not quite. You might cancel the finance agreement, but that in itself doesn't cancel the purchase contract which is still live. You just have to find another means of making payment to settle the outstanding amounts owed.
Szkoda said:
"If you withdraw from this agreement and you have paid the cash price together with interest payable on that amount to us within 30 days title to the goods will pass to you on the same terms as would have applied had you not withdrawn from this agreement.
I wonder if "cash price" is significant? Does the agreement have "cash price" as the price the car was up for sale at, and then show the deposit contribution taken off?
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