Cancelling a lease car order-broker wants to charge a fee
Discussion
I’ve been trying to source a lease car for the wife.
A broker didn’t have the car in stock but offered an alternative. I completed the finance check form and was advised the order wasn’t placed until I paid the fee.
I let them know within a couple of hours I wasn’t going to be placing the order and paying the fee.
They’re insisting I owe them a cancellation fee, but given I didn’t pay a fee to secure the order I don’t see how I’m liable to pay anything? I’m going to call them but wanted to arm myself with what my rights are in this circumstance before I do?
Thanks in advance.
A broker didn’t have the car in stock but offered an alternative. I completed the finance check form and was advised the order wasn’t placed until I paid the fee.
I let them know within a couple of hours I wasn’t going to be placing the order and paying the fee.
They’re insisting I owe them a cancellation fee, but given I didn’t pay a fee to secure the order I don’t see how I’m liable to pay anything? I’m going to call them but wanted to arm myself with what my rights are in this circumstance before I do?
Thanks in advance.
Pegscratch said:
If no money has changed hands then you may be in a good place, but it depends on the wording on paperwork completed up to that point. You will most likely find that you've got someone a little over enthusiastic dealing with you.
Cheers. It's not a credit agreement I've signed, in which case I'd assume I'd have the usual cool off time. It does say in the event of cancellation there is a 10% charge of the fee (which I haven't paid to confirm the order) which was £180.Lesson learned.
I think the issue was where you "started the process" by agreeing subject to (I'm assuming) your wife's acceptance. She didn't accept but their terms don't allow for it.
You may get it waived if you say you're not set against using them in future, but they currently aren't offering anything that tickles your fancy - but don't count on it and face value it's not the most expensive lesson in the world.
You may get it waived if you say you're not set against using them in future, but they currently aren't offering anything that tickles your fancy - but don't count on it and face value it's not the most expensive lesson in the world.
tigger1 said:
Contract, what contract?
Offer and conditional acceptance on a recorded phone call, where they most likely will have confirmed the fee and conditions surrounding it. Playing stupid will get a difficult response. Approach it pragmatically and their policy most likely will forgive you.Pegscratch said:
I think the issue was where you "started the process" by agreeing subject to (I'm assuming) your wife's acceptance. She didn't accept but their terms don't allow for it.
You may get it waived if you say you're not set against using them in future, but they currently aren't offering anything that tickles your fancy - but don't count on it and face value it's not the most expensive lesson in the world.
Yes pretty much. The 'verbal' contract was return the form and once you send us the fee we will place the order. Again IMNAL so my own layman's understanding is they'd have to be able to demonstrate their losses which other than running a credit check would be difficult. The process would have been after paying the broker fee to sign up to the finance companies terms.You may get it waived if you say you're not set against using them in future, but they currently aren't offering anything that tickles your fancy - but don't count on it and face value it's not the most expensive lesson in the world.
a311 said:
Yes pretty much. The 'verbal' contract was return the form and once you send us the fee we will place the order. Again IMNAL so my own layman's understanding is they'd have to be able to demonstrate their losses which other than running a credit check would be difficult. The process would have been after paying the broker fee to sign up to the finance companies terms.
Don't underestimate the cost of inputting the form into the system. 10 minutes work, the equipment they use, the space that person is in... £18 isn't likely to be far away from that cost, intentionally so that it can't be challenged. Then you're into the cost / reward of doing anything about it.I strongly recommend approaching them as a person, and explaining that they just don't have anything on offer at the moment that appeals - but if that changes you'll definitely call them back. They may stand by their charges, but nothing ventured, nothing gained. Kicking off/demanding to speak to someone about how enforceable it is is unlikely to yield positive results as you have said yourself you believe them to be on a reasonably solid footing. Their better nature is likely to give you more.
a311 said:
Yes pretty much. The 'verbal' contract was return the form and once you send us the fee we will place the order. Again IMNAL so my own layman's understanding is they'd have to be able to demonstrate their losses which other than running a credit check would be difficult. The process would have been after paying the broker fee to sign up to the finance companies terms.
The reason they ask you to return the form is to demonstrate you have agreed to the broker terms and conditions of business to introduce you to their funder.You have completed the form and agreed to their terms, which would have to show their charges including cancellation and their role as a broker. Your main lease contract only happens once the broker completes the introduction by processing your credit application and recording all contact with you on a CRM system - this is required by the regulator, including call recording for regulated clients to give you and them protection.
There are usually two contracts with lease brokers, one you sign to secure the services of the broker and then once they get credit approval you will get the main finance agreement from their chosen funder that has a whole host of cancellation rights prior to taking delivery - this is why they normally make you wait a couple of weeks from signing that, so you can't cancel and walk away from the main lease agreement; i.e. exercise your rights to the cooling off period.
If it is as you say the broker wants you to pay 10% of their fee, that sound very reasonable.
Durzel said:
Am I missing something here?
It sounds their fee was £180, and they want 10% of that - £18.
Kinda surprised that they’re both chasing that, and that you’re dwelling on it? I’d probably have a little grumble at losing £18 but wouldn’t give it much thought beyond that.
Could be read either way; 10% of £180 or £180 IS the 10%.It sounds their fee was £180, and they want 10% of that - £18.
Kinda surprised that they’re both chasing that, and that you’re dwelling on it? I’d probably have a little grumble at losing £18 but wouldn’t give it much thought beyond that.
Don't you usually have to pay a big upfront lump sum on these kind of things, leaving me to assume it would be the latter?
Durzel said:
Am I missing something here?
It sounds their fee was £180, and they want 10% of that - £18.
Kinda surprised that they’re both chasing that, and that you’re dwelling on it? I’d probably have a little grumble at losing £18 but wouldn’t give it much thought beyond that.
This.It sounds their fee was £180, and they want 10% of that - £18.
Kinda surprised that they’re both chasing that, and that you’re dwelling on it? I’d probably have a little grumble at losing £18 but wouldn’t give it much thought beyond that.
I recently applied for a lease through a broker and it was made very clear that I was entering into a contract with them at the point of placing the order - way before finance was agreed or their fee was paid.
If for whatever reason the deal fell through (including finance being refused) then there would be nothing to pay but if I pulled out I’d have to pay in the region of £300.
Seems fair to me since you’re paying for their legwork and this would dissuade time wasters.
I guess how clear this is made depends on the broker. This was through gateway2lease.
If for whatever reason the deal fell through (including finance being refused) then there would be nothing to pay but if I pulled out I’d have to pay in the region of £300.
Seems fair to me since you’re paying for their legwork and this would dissuade time wasters.
I guess how clear this is made depends on the broker. This was through gateway2lease.
Edited by mackie1 on Saturday 1st February 15:49
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