Paid off HP early, dealership demanding more money
Discussion
To me the Santander first line is quite clear - it says you have to repay the *cash* price in full, ie the retail price of the car if you had been paying cash and not taking the finance deal which offered the deposit contribution.
As already stated you’ve withdrawn from the agreement too early, using the cooling off period to annul the credit arrangement rather than simply paying it off early, so it seems quite logical that the deposit incentive should be repaid if you are keeping the car. That said, if Santander themselves aren’t chasing you for it......
As already stated you’ve withdrawn from the agreement too early, using the cooling off period to annul the credit arrangement rather than simply paying it off early, so it seems quite logical that the deposit incentive should be repaid if you are keeping the car. That said, if Santander themselves aren’t chasing you for it......
The OP entered a deal where he had the right to withdraw from the finance agreement. He exercised that right. I don't see any legal or contractual basis for refunding the dealer the kickback from the finance company unless that was part of the deal. According to the OP, it wasn't. And having done the same thing, I have studied the paperwork and it has never said that the dealer contribution has to be repaid if I withdraw from the finance agreement. In fact, it has never explicitly said that the dealer contribution is contingent on the finance agreement.
CharlesElliott said:
The OP entered a deal where he had the right to withdraw from the finance agreement. He exercised that right. I don't see any legal or contractual basis for refunding the dealer the kickback from the finance company unless that was part of the deal. According to the OP, it wasn't. And having done the same thing, I have studied the paperwork and it has never said that the dealer contribution has to be repaid if I withdraw from the finance agreement. In fact, it has never explicitly said that the dealer contribution is contingent on the finance agreement.
It is the risk the dealer takes to get your sale via finance, the legislation means he won't get his kickback. In communication with them just state that your contract with the dealer does not state you have to repay anything after withdrawing. If Santander come knocking its a different matter. lost in espace said:
CharlesElliott said:
The OP entered a deal where he had the right to withdraw from the finance agreement. He exercised that right. I don't see any legal or contractual basis for refunding the dealer the kickback from the finance company unless that was part of the deal. According to the OP, it wasn't. And having done the same thing, I have studied the paperwork and it has never said that the dealer contribution has to be repaid if I withdraw from the finance agreement. In fact, it has never explicitly said that the dealer contribution is contingent on the finance agreement.
It is the risk the dealer takes to get your sale via finance, the legislation means he won't get his kickback. In communication with them just state that your contract with the dealer does not state you have to repay anything after withdrawing. If Santander come knocking its a different matter. Jonnny said:
And people call the dealers, "stealers".
I get your point, but the fact that this is all based around kickbacks is where the problem starts. The legal device of withdrawing from finance agreements without penalty is there for a reason. When companies start to make financial payments based on an agreement from which one party has a right to withdraw without penalty, they are taking that risk.Some Gump said:
I'm amazed anyone has a moral compass that sides against the dealer.
OP agreed to a deal, and has gone back on it. If he wanted a different deal, he should have struck a different deal.
This is absolutely standard practice on new cars - I did it for £2750 on wife's Tiguan, no issues whatsoever. Some dealers encourage it. Would you really pay £2750 more if you wanted to pay cash?OP agreed to a deal, and has gone back on it. If he wanted a different deal, he should have struck a different deal.
I've no idea how the car industry gets away with these schemes, as it's supposed to be illegal to offer different prices for cash or credit.
Edited by Sheepshanks on Wednesday 6th March 22:47
Savvy folk have been doing this for decades.
Ford offered huge discounts on financed cars due to the massive commission they made on finance. Plenty I knew took the finance, got the discounts and paid the finance off with a much reduced rate loan.
Dealers went mental, but they were the ones stitching folk up with high rate finance and PPI anyway, so tough.
Ford offered huge discounts on financed cars due to the massive commission they made on finance. Plenty I knew took the finance, got the discounts and paid the finance off with a much reduced rate loan.
Dealers went mental, but they were the ones stitching folk up with high rate finance and PPI anyway, so tough.
Who provided the deposit contribution - Santander or the dealership?
If it came from Santander then Santander have the right based on the Terms and Conditions you have posted
If it came from the dealership and there is nothing in the Terms and Conditions from them stating that they have the right to reclaim then they do not have a leg to stand on
If it came from Santander then Santander have the right based on the Terms and Conditions you have posted
If it came from the dealership and there is nothing in the Terms and Conditions from them stating that they have the right to reclaim then they do not have a leg to stand on
tty folk have been doing this for decades. CharlesElliott said:
I get your point, but the fact that this is all based around kickbacks is where the problem starts. The legal device of withdrawing from finance agreements without penalty is there for a reason. When companies start to make financial payments based on an agreement from which one party has a right to withdraw without penalty, they are taking that risk.
exactly - I did look into it some years ago and it is illegal for extra charges to be made if you withdraw within the 14 days of a finance agreement when purchasing a car - ie dealer contribution if take finance - buy the car, pay off the loan. that's it. Its illegal to charge different amounts if buying on credit to cash hence why you get the quote for the car with finance and dealer contributions, take out the loan, pay off within 14 days. You then have the same car with same dealer contribution for the cash price;You have bought the car from the dealer day 1. Dealer no longer owns it. If you decide to pay off the finance with xyz fin co you legally can within 14 days with no penalty nothing to do with the dealer he is not part of the contract with the fin co. Dealer has been paid by Fin co. The fact there may or may not be a claw back by the fin co to the dealer is nothing to do with the car buyer that's their own private arrangement.
As others have done - I have done this on about 3 cars with no hassle or issues and considerable dealer contributions to take finance.
Edited by superlightr on Thursday 7th March 10:29
Edited by superlightr on Thursday 7th March 10:31
Sheepshanks said:
This is absolutely standard practice on new cars - I did it for £2750 on wife's Tiguan, no issues whatsoever. Some dealers encourage it. Would you really pay £2750 more if you wanted to pay cash?
I've no idea how the car industry gets away with these schemes, as it's supposed to be illegal to offer different prices for cash or credit.
Did you terminate in the 14 days cooling off period?I've no idea how the car industry gets away with these schemes, as it's supposed to be illegal to offer different prices for cash or credit.
Edited by Sheepshanks on Wednesday 6th March 22:47
Pappyjohn said:
Did you terminate in the 14 days cooling off period?
Yes. I Withdrew. And dealing with VWFS was probably the friendliest interaction I've ever had with anything VAG related - they seemed delighted that I wanted to do it. They told me how much to clear it - the expected amount (the amount borrowed plus a few quid daily interest) froze the amount and gave me 30 days to pay it.The crucial thing for me was to get their assurance that it would "clear" the finance, and I got them to assure me there would be nothing else to pay. The car did also have a service agreement that came with the finance, but I'd paid a nominal amount for that, so I had no concerns it would continue.
Edited by Sheepshanks on Thursday 7th March 11:41
Andy665 said:
Who provided the deposit contribution - Santander or the dealership?
If it came from Santander then Santander have the right based on the Terms and Conditions you have posted
If it came from the dealership and there is nothing in the Terms and Conditions from them stating that they have the right to reclaim then they do not have a leg to stand on
This is the strange bit, on the initial order form that I signed it says "Santandar" but on the invoice the dealer sent me since telling me I have to pay it says "Mitsubishi". Regardless it does not mention the dealer at all!If it came from Santander then Santander have the right based on the Terms and Conditions you have posted
If it came from the dealership and there is nothing in the Terms and Conditions from them stating that they have the right to reclaim then they do not have a leg to stand on
As soon as Santandar send over confirmation we owe nothing I will be forwarding this to the dealer with a strongly worded email politely telling them they will not be getting a penny more out of me as they have no legal right to do so.
Will keep this post updated as events unfold.
SOL111 said:
I've done this kind of thing before but for the sakes of a few ££ and keeping the peace (if you want to keep any kind of relationship with a dealership) I pay off after a few months.
It's not a few ££ though, it'll be a couple of hundred. And the OP only got £400 contribution.If the deposit contribution was a kick back from Santander, shouldn't the dealer be chasing them?
It sounds to me as if the dealer didn't think the legal agreements through, unless the op signed an agreement with the dealer specifying circumstances in which the contribution would be repaid, the dealer has virtually no ability to reclaim the money.
It sounds to me as if the dealer didn't think the legal agreements through, unless the op signed an agreement with the dealer specifying circumstances in which the contribution would be repaid, the dealer has virtually no ability to reclaim the money.
Szkoda said:
Andy665 said:
Who provided the deposit contribution - Santander or the dealership?
If it came from Santander then Santander have the right based on the Terms and Conditions you have posted
If it came from the dealership and there is nothing in the Terms and Conditions from them stating that they have the right to reclaim then they do not have a leg to stand on
This is the strange bit, on the initial order form that I signed it says "Santandar" but on the invoice the dealer sent me since telling me I have to pay it says "Mitsubishi". Regardless it does not mention the dealer at all!If it came from Santander then Santander have the right based on the Terms and Conditions you have posted
If it came from the dealership and there is nothing in the Terms and Conditions from them stating that they have the right to reclaim then they do not have a leg to stand on
As soon as Santandar send over confirmation we owe nothing I will be forwarding this to the dealer with a strongly worded email politely telling them they will not be getting a penny more out of me as they have no legal right to do so.
Will keep this post updated as events unfold.
Sheepshanks said:
SOL111 said:
I've done this kind of thing before but for the sakes of a few ££ and keeping the peace (if you want to keep any kind of relationship with a dealership) I pay off after a few months.
It's not a few ££ though, it'll be a couple of hundred. And the OP only got £400 contribution.I can't imagine any HP agreement where the monthly interest would amount to a couple hundred ££ after making 2-3 payments. And on a £15k car.
What were the terms of the agreement in % APR and duration OP?
Gassing Station | Car Buying | Top of Page | What's New | My Stuff