Buying car advice required..

[Gr4eme]

my son wo lives in Coventry has just bought a mini from a bmw dealer, he was told by the salesman thet the apr rate was 6.5%. He put £3 grand of his own money down as a deposit and took the remainder of the balance over 3 years finance, he picked up his car last friday after he signed the credit aggreement and other forms, etc. He has just checked over the forms and found that he has been charged 16.5% apr and he's bouncing and feels that he has been conned.

so is there anything he can do about it. does he have any cooling off period etc.

all advice welcome..

[Geo77]

I am pretty sure he is legally entitled to a 7 day cooling off period!!

It should be mentioned in his paperwork somewhere.

[Gr4eme]

I am pretty sure he is legally entitled to a 7 day cooling off period!!

It should be mentioned in his paperwork somewhere.

just been googling cooling off period, if you sign on the dealers premises you loose your cooling off period.

so thats that option gone

[KTM Chris]

Are you sure he wasn't quoted a flat rate of 6.5% which has equated to an apr of 16.5%? I'm not sure how you calculate the difference between the two, but it's an old 'trick' to quote flat rates and it's up to the buyer to make sure they get the apr so they can make a fair comparison to other loans.

To be honest, I think he's stuffed if he's signed forms that state 16.5% Any arguement with the dealer will be dismissed on the grounds of a signed agreement versus an alleged conversation, I'm afraid. If I were him, I'd look to get a personal loan from the bank/building society and pay off the loan. Just look at total amount payable on both loans to compare whether it's worth it or not.

[Gregg]

Are you sure he wasn't quoted a flat rate of 6.5% which has equated to an apr of 16.5%? I'm not sure how you calculate the difference between the two, but it's an old 'trick' to quote flat rates and it's up to the buyer to make sure they get the apr so they can make a fair comparison to other loans.

To be honest, I think he's stuffed if he's signed forms that state 16.5% Any arguement with the dealer will be dismissed on the grounds of a signed agreement versus an alleged conversation, I'm afraid. If I were him, I'd look to get a personal loan from the bank/building society and pay off the loan. Just look at total amount payable on both loans to compare whether it's worth it or not.

Pretty much what i was going to add

[Gr4eme]

Are you sure he wasn't quoted a flat rate of 6.5% which has equated to an apr of 16.5%? I'm not sure how you calculate the difference between the two, but it's an old 'trick' to quote flat rates and it's up to the buyer to make sure they get the apr so they can make a fair comparison to other loans.

To be honest, I think he's stuffed if he's signed forms that state 16.5% Any arguement with the dealer will be dismissed on the grounds of a signed agreement versus an alleged conversation, I'm afraid. If I were him, I'd look to get a personal loan from the bank/building society and pay off the loan. Just look at total amount payable on both loans to compare whether it's worth it or not.

yup exactly what happened,the 6.5% was flat rate which turned out to be 13.1%apr, never mind the damage is done now, he's not the first to be took in and he certainly wont be the last, a lesson learned, maybe the hard way but he has learned and wont be so quick to sign on the dotted line in future without fully reading everything. A loan maybe an option

[Johnsdutton]

Bank loans are extortionate at the moment, still worth asking though. Remember there will be an early redemption clause on the existing loan, so check that out as it may prove to be even more expensive.

[Boy Lard]

Bank loans are extortionate at the moment, still worth asking though. Remember there will be an early redemption clause on the existing loan, so check that out as it may prove to be even more expensive.

I'm not sure their is a redemption clause on car finance now as I don't think they are allowed. As long as one payment is made the finance can then be cleared. I could be wrong tho

[bat30]

Thats what happens when you buy anything BMW related!

[Dan_BlackSRi]

Thats what happens when you buy anything BMW related!

Hardly... nothing to do with "BMW", just the way car finance works I'm afraid