24 hours car hire purchase agreement cancellation

[old solder]

Hi all,
I went into vauxhall dealership today to signed a car hire purchase agreement, i and my wife searched online and realised is a bad deal. I have not received the car yet as is needing some work done on it and i was not handed a copy of the agreement either as the guy says he will give me the document when i come to pickup the car tomorrow evening.
I now decided to go in the morning to cancel it.

I would like an advise if is within my rights to cancel within 24 hours?
Thank you all.

[MIKE770]

did you pay a deposit?? usually I beleive that part you would loose, meantime I ask for somebody to pop in here to confirm and advise you

[old solder]

Thank you for the reply. Yes I paid £200 deposit to view the car.

[MIKE770]

OK that deposit may be lost but wait for those with more knowledge to pop in here

[des8]

Whilst you have the right to cancel the finance deal within 14 days you'll need to call the finance company asap and instruct them that you do not wish to proceed with the agreement.
They can ask the supplying dealer to "un-wind" the deal and return the funds to them along with your deposit.
The dealer however isn't obliged to give you your deposit back as they may well have spent time & money preparing the car for collection. The lender also can't force the dealer to return the borrowed funds to them if the car is in a roadworthy condition.
If the dealer isn't prepared to do this you'll have to settle the finance agreement with another source of funds within the 14 days.

You do not appear to have a problem with the car, just the finance.
So arrange alternative funds and cancel the existing borrowing

[old solder]

Thank you. I went into the dealer to ask them to cancel the hire purchase. They told me they are keeping my deposit.

[paulajayne]

Thank you. I went into the dealer to ask them to cancel the hire purchase. They told me they are keeping my deposit.

Fairly normal ^^^

[R0b]

Thank you. I went into the dealer to ask them to cancel the hire purchase. They told me they are keeping my deposit.

I'm not trying to dispute whatever was said between you and the dealer but the hire purchase contract is between yourself and the finance company and the dealer has nothing to do with it. Des has correctly said that you can withdraw from the agreement but it doesn't get you off the hook for the credit that has been supplied under it.

Section 66A is the provision in the Consumer Credit Act 1974 and I've set it out below so that you understand your rights.

(1) The debtor under a regulated consumer credit agreement, other than an excluded agreement, may withdraw from the agreement, without giving any reason, in accordance with this section.

(2) To withdraw from an agreement under this section the debtor must give oral or written notice of the withdrawal to the creditor before the end of the period of 14 days beginning with the day after the relevant day.
(9) Where the debtor withdraws from an agreement under this section—;
(a) the debtor must repay to the creditor any credit provided and the interest accrued on it (at the rate provided for under the agreement), but

(b) the debtor is not liable to pay to the creditor any compensation, fees or charges except any non-returnable charges paid by the creditor to a public administrative body.

(10) An amount payable under subsection (9) must be paid without undue delay and no later than the end of the period of 30 days beginning with the day after the day on which the notice of withdrawal was given (and if not paid by the end of that period may be recovered by the creditor as a debt).

In short, just because you made a bad deal does not get you out of a contract. If the dealer fails to notify the finance company of the withdrawal or the finance company rejects the withdrawal because it did not come from you or you fail to make the first payment, you could be held liable for the full amount of the credit under the agreement. In that case you could have handed the car to the finance company or more took more of a risk and sold it to pay the majority of the proceeds off, but the dealer now has the car (whether the have full ownership/title to it I'm not sure).

Good luck.

[Aukey]

When i had finance on a car it stated that you could cancel within 14 days but would still have to pay it. Hope you have good luck with it.