Settlement figure mistake……
Discussion
Hi all.
First time posting, and am after some advice.
I purchased a new car on the 5/06 and had a part exchange with negative equity that I agreed to pay at the point of collection as per the norm.
The numbers were crunched on the 5/05 and we agreed the PX value, the current settlement and my liability of negative equity.
Fast forward to the 24/06 and I collected the car and paid the negative equity plus remaining deposit etc for the settlement to be paid.
Now the dealer didn’t pay my settlement straight away and instead got a new settlement figure this week and paid what was owed settling my finance, however this figure was £800 lower than the previous agreed settlement in which I had to pay the remaining negative equity.
I have spoke to the dealer (a main dealer by all accounts) and ask why the overpayment wasn’t sent direct to the finance company for them to reimburse me the overpayment amount by bacs.
They said they made a mistake and requested a new settlement figure but I would only be due back half of the £800 equating to 1 payment from them, even though the figures clearly state they were going to pay the previous settlement.
What can I do? They seem to have just waited and then chosen to pay less after my payments have bought the settlement down.
Surely this isn’t right? We had a deal with the agreed numbers that was signed by us both?
Thank you in advance
First time posting, and am after some advice.
I purchased a new car on the 5/06 and had a part exchange with negative equity that I agreed to pay at the point of collection as per the norm.
The numbers were crunched on the 5/05 and we agreed the PX value, the current settlement and my liability of negative equity.
Fast forward to the 24/06 and I collected the car and paid the negative equity plus remaining deposit etc for the settlement to be paid.
Now the dealer didn’t pay my settlement straight away and instead got a new settlement figure this week and paid what was owed settling my finance, however this figure was £800 lower than the previous agreed settlement in which I had to pay the remaining negative equity.
I have spoke to the dealer (a main dealer by all accounts) and ask why the overpayment wasn’t sent direct to the finance company for them to reimburse me the overpayment amount by bacs.
They said they made a mistake and requested a new settlement figure but I would only be due back half of the £800 equating to 1 payment from them, even though the figures clearly state they were going to pay the previous settlement.
What can I do? They seem to have just waited and then chosen to pay less after my payments have bought the settlement down.
Surely this isn’t right? We had a deal with the agreed numbers that was signed by us both?
Thank you in advance
Edited by liamjayjackson on Friday 9th July 15:12
liamjayjackson said:
Hi all.
First time posting, and am after some advice.
I purchased a new car on the 5/06 and had a part exchange with negative equity that I agreed to pay at the point of collection as per the norm.
The numbers were crunched on the 5/05 and we agreed the PX value, the current settlement and my liability of negative equity.
Fast forward to the 24/06 and I collected the car and paid the negative equity plus remaining deposit etc for the settlement to be paid.
Now the dealer didn’t pay my settlement straight away and instead got a new settlement figure this week and paid what was owed settling my finance, however this figure was £800 lower than the previous agreed settlement in which I had to pay the remaining negative equity.
I have spoke to the dealer (a main dealer by all accounts) and ask why the overpayment wasn’t sent direct to the finance company for them to reimburse me the overpayment amount by bacs.
They said they made a mistake and requested a new settlement figure but I would only be due back half of the £800 equating to 1 payment from them, even though the figures clearly state they were going to pay the previous settlement.
What can I do? They seem to have just waited and then chosen to pay less after my payments have bought the settlement down.
Surely this isn’t right? We had a deal with the agreed numbers that was signed by us both?
Thank you in advance
Your post isn't all that clear, and I don't understand what you think is the problem?First time posting, and am after some advice.
I purchased a new car on the 5/06 and had a part exchange with negative equity that I agreed to pay at the point of collection as per the norm.
The numbers were crunched on the 5/05 and we agreed the PX value, the current settlement and my liability of negative equity.
Fast forward to the 24/06 and I collected the car and paid the negative equity plus remaining deposit etc for the settlement to be paid.
Now the dealer didn’t pay my settlement straight away and instead got a new settlement figure this week and paid what was owed settling my finance, however this figure was £800 lower than the previous agreed settlement in which I had to pay the remaining negative equity.
I have spoke to the dealer (a main dealer by all accounts) and ask why the overpayment wasn’t sent direct to the finance company for them to reimburse me the overpayment amount by bacs.
They said they made a mistake and requested a new settlement figure but I would only be due back half of the £800 equating to 1 payment from them, even though the figures clearly state they were going to pay the previous settlement.
What can I do? They seem to have just waited and then chosen to pay less after my payments have bought the settlement down.
Surely this isn’t right? We had a deal with the agreed numbers that was signed by us both?
Thank you in advance
Did you end up paying more that you had agreed to pay?
Hi, yes.
Without giving exact figures…….
Settlement was 35000
Px value was 33500
I paid negative on the day of 1500 to settle the car.
But during this time I’ve still been paying monthly payments so which wasn’t included in the original settlement.
Now after a month the dealers gets a settlement figure and it’s 34000
They pay 34000, still have my original 1500 and I’ve also paid the 2 payments of 500 (which brought the settlement figure down)
Does that make sense?
Without giving exact figures…….
Settlement was 35000
Px value was 33500
I paid negative on the day of 1500 to settle the car.
But during this time I’ve still been paying monthly payments so which wasn’t included in the original settlement.
Now after a month the dealers gets a settlement figure and it’s 34000
They pay 34000, still have my original 1500 and I’ve also paid the 2 payments of 500 (which brought the settlement figure down)
Does that make sense?
If I'm understanding the position correctly surely the point here is that you paid £x to the dealer to enable them to pay off the settlement figure on your previous car.
If they didn't do this immediately and the settlement figure reduced to £y, you should be due a refund of the difference as it's your money.
On what basis is the dealer suggesting they are entitled to retain half the difference?
If they didn't do this immediately and the settlement figure reduced to £y, you should be due a refund of the difference as it's your money.
On what basis is the dealer suggesting they are entitled to retain half the difference?
Finance should have been re proposed with the new settlement figure before collection,
They may use the argument that your car is 2 months older now and that its value will have dropped to compensation the 2 monthly payments you have made. ( used car prices are very strong so doubt this will come into play )
this wont be on your order from so they surely cant use this, they owe you those 2 months payments in my view.
at my garage we would have re proposed the new finance settlement and agreed and new part ex price or kept it the same as agreed on the order form.
They may use the argument that your car is 2 months older now and that its value will have dropped to compensation the 2 monthly payments you have made. ( used car prices are very strong so doubt this will come into play )
this wont be on your order from so they surely cant use this, they owe you those 2 months payments in my view.
at my garage we would have re proposed the new finance settlement and agreed and new part ex price or kept it the same as agreed on the order form.
Aero97 said:
If I'm understanding the position correctly surely the point here is that you paid £x to the dealer to enable them to pay off the settlement figure on your previous car.
If they didn't do this immediately and the settlement figure reduced to £y, you should be due a refund of the difference as it's your money.
On what basis is the dealer suggesting they are entitled to retain half the difference?
They have basically said that the car finance is paid in arrears. So I would have used the car for a month while waiting for the new car. If they didn't do this immediately and the settlement figure reduced to £y, you should be due a refund of the difference as it's your money.
On what basis is the dealer suggesting they are entitled to retain half the difference?
But my point is I’ve paid for it as not missed a monthly payment and also paid the negative equity which would have included these payments when requesting a settlement.
Why they didn’t just forward the original settlement on the order form to the finance company I don’t know. Then the finance company would have bacs me the overpayment.
But they didn’t, they requested an up to date settlement 2 weeks after I picked up the car and because of this I had made a further payment 3 days before it was settled (which lowered the amount) and a week after my original settlement letter a payment was taken out that they based the figures for the deal on.
Dan W. said:
Finance should have been re proposed with the new settlement figure before collection,
They may use the argument that your car is 2 months older now and that its value will have dropped to compensation the 2 monthly payments you have made. ( used car prices are very strong so doubt this will come into play )
this wont be on your order from so they surely cant use this, they owe you those 2 months payments in my view.
at my garage we would have re proposed the new finance settlement and agreed and new part ex price or kept it the same as agreed on the order form.
Yeah, this is what I would have thought, or they would have just overpaid the settlement as per the order form.They may use the argument that your car is 2 months older now and that its value will have dropped to compensation the 2 monthly payments you have made. ( used car prices are very strong so doubt this will come into play )
this wont be on your order from so they surely cant use this, they owe you those 2 months payments in my view.
at my garage we would have re proposed the new finance settlement and agreed and new part ex price or kept it the same as agreed on the order form.
The car actually wouldn’t have been 2 months older as the finance payments were a few days after order and then 2 weeks after collection. Plus i told them I wouldn’t accept any less than what they have me for the PX value for my car even if the order was going to take a couple of months as the value was actually increasing weekly on my PX.
They are no more money out of pocket as they originally agreed if they pay me the difference so I can’t understand why they are dragging their heels other than to make more money at a loss from me.
Gary C said:
Do you have an invoice with these figures written on ?
If so, you are due the missing £1000
Don't argue with them, ask, demand in writing, small claims
but you do need it written down.
Yes it’s all on the customer invoice/new car order form. If so, you are due the missing £1000
Don't argue with them, ask, demand in writing, small claims
but you do need it written down.
If it helps it’s a BMW main dealer.
the day you hand the car over is the day they should settle the finance agreement, they requested a settlement 2 weeks after you do not own the car is not your problem,
i would be demanding that money back on that fact alone.
you had a payment taken out when you didnt have ownership or use of the vehicle.
i would be demanding that money back on that fact alone.
you had a payment taken out when you didnt have ownership or use of the vehicle.
Dan W. said:
the day you hand the car over is the day they should settle the finance agreement, they requested a settlement 2 weeks after you do not own the car is not your problem,
i would be demanding that money back on that fact alone.
you had a payment taken out when you didnt have ownership or use of the vehicle.
Very good point too !i would be demanding that money back on that fact alone.
you had a payment taken out when you didnt have ownership or use of the vehicle.
They have let you pay for a car you had already sold to them.
Awful service. As its a main dealer, they will not want you in the show room at peak time complaining, so don't let them fob you off.
Very poor show from the dealer really and I think they owe you the difference in the two settlement figures.
If you have an order form that shows the settlement figure as £35000 and they've only paid £34000 then I cannot see how they have any argument not to refund you. The dealer is not a party to the finance agreement and them handling the settlement is merely an administrative convenience for all parties, but they are repaying an agreement on your behalf.
You need to write a clear and concise letter before action to the Dealer Principle requesting the money is paid to you within 14 days, otherwise you will submit forms to the County Court for recovery of the money. Something along the lines of.
Dear DP,
On <DATE> I purchased vehicle <REG NO> from your dealership.
I part-exchanged my previous vehicle which was subject to outstanding finance. The settlement figure of £35000 was obtained on <DATE> and is shown on the order form. This figure was used to calculate how much additional deposit I was required to pay to cover some negative equity.
Due to the passage of time between the settlement figure being obtained and your dealership actually settling the agreement on my behalf, I had made 2 further payments on the agreement and consequently the settlement amount paid by your dealership was reduced by £1000 to £34000. The second of these payments was taken <X> days after I had part exchanged the vehicle due to your failure to settle the agreement in a timely manner.
Having taken advice on this matter the legal position is the dealership have effectively agreed to pay £35000 to a third party on my behalf as stated on the order form. You have only paid £34000, therefore £1000 remains unpaid and should be paid to myself within the next 14 days.
Please consider this a letter before action. If I have not received payment of £1000 within 14 days of the date of this letter I will commence recovery action through the County Court.
Yours sincerely,
If you have an order form that shows the settlement figure as £35000 and they've only paid £34000 then I cannot see how they have any argument not to refund you. The dealer is not a party to the finance agreement and them handling the settlement is merely an administrative convenience for all parties, but they are repaying an agreement on your behalf.
You need to write a clear and concise letter before action to the Dealer Principle requesting the money is paid to you within 14 days, otherwise you will submit forms to the County Court for recovery of the money. Something along the lines of.
Dear DP,
On <DATE> I purchased vehicle <REG NO> from your dealership.
I part-exchanged my previous vehicle which was subject to outstanding finance. The settlement figure of £35000 was obtained on <DATE> and is shown on the order form. This figure was used to calculate how much additional deposit I was required to pay to cover some negative equity.
Due to the passage of time between the settlement figure being obtained and your dealership actually settling the agreement on my behalf, I had made 2 further payments on the agreement and consequently the settlement amount paid by your dealership was reduced by £1000 to £34000. The second of these payments was taken <X> days after I had part exchanged the vehicle due to your failure to settle the agreement in a timely manner.
Having taken advice on this matter the legal position is the dealership have effectively agreed to pay £35000 to a third party on my behalf as stated on the order form. You have only paid £34000, therefore £1000 remains unpaid and should be paid to myself within the next 14 days.
Please consider this a letter before action. If I have not received payment of £1000 within 14 days of the date of this letter I will commence recovery action through the County Court.
Yours sincerely,
The way I read this, it looks like you made a mistake in continuing to pay the monthly payments on your previous loan and not realizing that those payments would reduce the settlement figure balance. The settlement figure is valid until a certain date, any payments made before the end date will come off the figure.
Yes, the dealer owes you the difference and you should pursue it, but now you are at their mercy in terms of when/if they pay it. Good luck
Yes, the dealer owes you the difference and you should pursue it, but now you are at their mercy in terms of when/if they pay it. Good luck
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