Finance woe, calling all finance experts!

[Abracadabra121]

Guys bit of a weird one here, I took delivery of a £21,500 m140 yesterday, 16 plate, 26k miles, auto. I purchased a HP agreement, initially wanted to put 6k down and repayments of £369 a month over 54 months at 11.9%, expensive I know! So anyway, I went to Dealer with £5,500 cash (£500 already paid in deposit) the dealer was unable to accept cash due to money laundering etc etc. He then proposed a plan with £1000 deposit over the same term, meaning I pay an extra £500 in cash. Repayments then came in at £488 a month over 54 months. Dealer assured me once I clear the extra 5k off that repayments will drop to near that original £369 mark but might slightly rise due to a few days interest. I was in 2 minds but I got a train up to see the dealer and really wanted to drive away there and then, I was in two minds, but like a spanner got pressured into signing on the dotted line. I drove home and too the vehicle off the forecourt! Have I f’d up? After talking to others it seems that I’m stuck with the £488 a month figure now, and at best throwing in another 5k will only reduce my term, ie end the loan sooner. I’m really regretting this now, I’m by no means a finance expert and I did realise prior that this was a very expensive way to buy but I really needed a new car. I’m absolutely gutted now is there anyway I can even get out of this agreement and start again in terms of cooling off period etc, I take it because it’s a weekend the funds wouldn’t have even appeared in the dealers accounts? The finance company is black horse, and repayments are calculated at 11.9%. Really feel like I’ve messed up big time here. I took the dealers word for it foolishly. Cars now sitting on my drive and I can’t bare to look at it only thing I can think of is clearing 13 odd grand of it in 2 years and taking the hit on the chin I guess. Any help greatly appreciated guys, many thanks

[E-bmw]

You have one course of action by the sound of it.

CALL THE FINANCE COMPANY.

Your contract is with them & you will be able to exercise your "cooling off period" rights.

[Abracadabra121]

To my understanding (no finance expert here) they will want the full some paid off within 14 days if I want to exit the agreement, is this correct? Unfortunately I don’t have a spare 26k knocking about

[Abracadabra121]

Full sum*

[Gary Kinghorn]

You can pay a lump sum off your finance figure. You usually have to wait until the first payment has been taken then you can send them a lump. Your choice is to either reduce the term, or the monthly figure.

[Abracadabra121]

This is what I wish to do just pay a lump sum and hopefully reduce the monthlies but after talking to others it seems I’ve signed up to repayments of 488 now, which is a lot more than I’m comfortable paying. I would’ve bought a m2 on lease for that kind of money

[335dTot]

You should have negotiated the APR rate down, You could have got it down to around 4-5.9%.

Your best option would now be to get a personal loan & pay off the finance, you can do this straight away, even before the 1st payment has been made.

[Abracadabra121]

I’m hoping to get another loan sorted whilst I’m still in that 14 day cooling off period, thing is my credit isn’t the best so it might be a struggle. It’s due to that reason why I settled with an 11.9% rate, thing is I’ve now landed myself in a mess by borrowing a lot more then Initially wanted thus giving me a very steep monthly repayment. Is there anyway finance company can write off/cancel original proposal and re do based on me putting down a larger deposit, or is it a case of once you’ve signed on the dotted line your stuck

[Butter Face]

Abracadabra121 said:

I’m hoping to get another loan sorted whilst I’m still in that 14 day cooling off period, thing is my credit isn’t the best so it might be a struggle. It’s due to that reason why I settled with an 11.9% rate, thing is I’ve now landed myself in a mess by borrowing a lot more then Initially wanted thus giving me a very steep monthly repayment. Is there anyway finance company can write off/cancel original proposal and re do based on me putting down a larger deposit, or is it a case of once you’ve signed on the dotted line your stuck

Read your other thread, Call the finance company, pay them the £5k you were initially going to pay the dealer and you'll be back to the same payment you would have been.

[Abracadabra121]

Yeah I’ve read your comments, thanks mate, appreciate it. So there wouldn’t be any need to re set the application etc, it would just drop to the original quote? Hopefully that’s the case and I can sort a loan elsewhere at a sensible rate. Many thanks

[gizlaroc]

OK, stop and think about this properly for a minute.


Take out a loan with Hitachi Capital Finance for £14999.
That will be approximately 3% apr.

Then pay off the whole lot with the dealer.

That will leave you with 48 payments of £332 a month and the car is yours.

Got on the Hitachi site straight away before they see your new agreement with the dealer. If you do it through Clearscore website you will probably get the best rate.

Plus the finance is not attached to the car, which can be nice if you get bored before the end of the term.


36 months is £436 a month btw.

[RUSSELLM]

Is that 3% available to everyone, or does it depend on your credit history?

[Abracadabra121]

Thanks for help guys, unfortunately I applied to Tesco yesterday for a similar rate of 3 odd percent, apparently I’m 70% likely to be accepted, hopefully find out tomorrow. Don’t think I’ll apply to hitachi till I hear from Tesco as it may seem Im desperate and struggling for the funds. My credit isn’t the greatest due to past actions, been accepted on 11% for 20k, but I’m thinking 3% is for the folk who are squeaky clean

[gizlaroc]

The reason I say Hitachi is because of their lending criteria, they are far more likely to give you a good rate than any of the others out there.

[gizlaroc]

I should add, I wouldn't worry about applying too many times, they won't see you have (not yet, takes around 14-30 days) and you don't have to accept any offer made.

As I said, I would sign up to Clearscore, they credit match you. Hitachi also don't tend to ask for lots of payslips etc. to be sent in, especially if done through clearscore.