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Hire Purchase - Mis sold?
I purchased a Land Rover Discovery 3 in October 2006 and had took out a Hire Purchase finance through the dealer. At the time I clearly stated what my budget was as well as that I wanted to be able to have the following options at the end of the agreement:
1. Pay the balloon payment and own the car
2. Part exchange the car with Land Rover (and them to settle with their finance company)
3. Hand back the key and walk away from the car
The latter being the most important one.
Prior to the sale and upon delivery of the vehicle both my wife and i re-confirmed option 3. The Sales man and his business confirmed this verbally.
The regular monthly payments end in October this year, and therefore I contacted Inchcape Financial Services yesterday and was surprised to find out that they have been acquired by Blackhorse finance. But I was even more surprised that I was being told that the only options I have is the payment of the balloon payment and that I can not walk away from the car as the agreement is unregulated. As an alternative Blackhorse is willing to put the car up for sale at an auction and for us to pay the shortfall in equity if needed.
The fact is that we would never have purchased this car and finance product if we would not have been able to walk away from the car and finance without having to pay the balloon payment at the end.
Furthermore, the sales man and business manager told us at the time of sale that the GAP insurance would cover for any loss of equity at the end of the finance agreement. However it now turns out that the GAP insurance only covers the loss of equity in case of an accident.
Again, this is different of the representations made by the dealer.
We would now like to formally complain but are wondering how to go about it? And what compensation we should ask. Ideally we just want to hand back the car ASAP as I am now entitled to a company car.
Does anyone has a template letter we could use?
1. Pay the balloon payment and own the car
2. Part exchange the car with Land Rover (and them to settle with their finance company)
3. Hand back the key and walk away from the car
The latter being the most important one.
Prior to the sale and upon delivery of the vehicle both my wife and i re-confirmed option 3. The Sales man and his business confirmed this verbally.
The regular monthly payments end in October this year, and therefore I contacted Inchcape Financial Services yesterday and was surprised to find out that they have been acquired by Blackhorse finance. But I was even more surprised that I was being told that the only options I have is the payment of the balloon payment and that I can not walk away from the car as the agreement is unregulated. As an alternative Blackhorse is willing to put the car up for sale at an auction and for us to pay the shortfall in equity if needed.
The fact is that we would never have purchased this car and finance product if we would not have been able to walk away from the car and finance without having to pay the balloon payment at the end.
Furthermore, the sales man and business manager told us at the time of sale that the GAP insurance would cover for any loss of equity at the end of the finance agreement. However it now turns out that the GAP insurance only covers the loss of equity in case of an accident.
Again, this is different of the representations made by the dealer.
We would now like to formally complain but are wondering how to go about it? And what compensation we should ask. Ideally we just want to hand back the car ASAP as I am now entitled to a company car.
Does anyone has a template letter we could use?
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