Question regarding finance agreement

[Dan_FR_DSG]

Hi All,

I would like some feedback regarding an issue I am having with the transaction of my new Ibiza.

The sale and purchase process were great. The salesman and business manager did a great job and I was a very happy customer as I drove away in my new pride and joy at the beginning of this month!

The problems started 3 weeks later when I looked at my bank account and found the repayment for my old car were still being taken. My previous car was a SEAT and financed through VW Finance. I phoned the finance company and was told as far as they were concerned the account is still active and they have received no settlement payment from the dealer.

The original settlement figure had now expired and VW Finance kindly emailed me a copy of the new settlement figure, which I received in a matter of 60 seconds.

My next port of call was to phone the dealer to inform them of what has happened. They were obviously very concerned and took all my details and said they would get back to me about how they were going to sort the situation out.

The problematic issue in this is the finance agreement I signed at the beginning of the month is no longer a true reflection of the transaction that is taking place. The new settlement figure has now dropped by the repayment I have made + the interest saved. The dealer said they were happy to refund the extra repayment I had made but couldn't say at the time what they could do about the interest gained from missing the settlement date. This was 10 days ago. I have had to call the dealer on every occassion and when promised a call back I have not received one.

I won't go into the specific gripes as it isn't my intention to bad mouth the dealer. But the reasons for their lack of action are now wearing thin and I am concerned I am being fobbed off. My argument is the finance agreement is now incorrect and repaying me the repayment amount means the dealer gets to keep the interest saved by their mistake (a sum of approx £175). I don't think this is right as technically that is my money. If I had completed the transaction later in the month I would have required less finance due to a lower settlement figure and therefore a smaller repayment.

I plan to go to the dealer today (on my day off) to speak to them directly as phoning them isn't getting results. I also need to check with VW finance that the dealer has finally cleared the outstanding finance on my old car. VW Finance did point out to I am still liable for my old car, which is currently up for sale at the dealers forecourt.

So where do I stand and what are my options if I don't get a satisfactory response from the dealer?

Thanks in advance.

 

[10man]

Strange one mate, mite be best to phone before setting off just incase the bloke you need to speak isn't in, good luck and hope you get things sorted out!! Oh n try your hand at getting something out of them for your inconvenience!!

 

[viperfire]

Strange one mate, mite be best to phone before setting off just incase the bloke you need to speak isn't in, good luck and hope you get things sorted out!! Oh n try your hand at getting something out of them for your inconvenience!!

Did u read what he said mate? He's having no luck over the phone so he's right to go in!

Best thing to do in my opinion is drop in on them and then they can't fob you off. Hope you get the issue sorted mate!

 

[JamesL]

Yeah I agree - drop in, if it isn't going anywhere then speak to the general manager/director, or whoever is most senior.

Just be clear about your concerns, firm about your feelings and thoughts, and don't get emotional, in my opinion. You sound pretty level headed, to them it is just a business transaction, its nothing personal. Just my opinion.

 

[Nutkin]

First thing id do is cancel the DD on the bank account and notify the bank of what is going on.

 

[JamesL]

With regards any interest saving... they may offer a goodwill gesture, but I wouldn't go in expecting to come away better off. Yes there may have been an interest saving because of the timing of the transaction, but bear in mind that you signed up to this transaction and you knew what the financial considerations were. OK, they have dropped the ball slightly and so you had to stump up extra cash, but if all had gone smoothly, you would not have been receiving any additional money back from anyone. Bear in mind they are going to try to put the situation back to how it should have been, had they not dropped the ball - ie you had made no further payments.

As long as they refund the payments, plus any associated overdraft fee's etc if applicable, you would be no better or worse off than you would have been had everything gone to plan.

Not sure if I've made my train of thought clear - feel like I've waffled a bit, but hopefully you understand what I mean.

 

[Dan_FR_DSG]

I have just spoken to SEAT/VW Finance. The dealer has still not paid off the settlement figure. However, SEAT Finance have taken the case on on my behalf, promising to give me regular updates on the case.

The finance is being settled on the original figure as per my finance agreement. So the refunds will come direct from the finance company and not via the dealer, which should make everything much more straight forward.

It's unfortunate the dealer could not have dealt with this issue more urgently. I have had to call them for every update and got very little from them. It has spoilt the buying process (not the car) and will put me off wanting to use the dealer again. SEAT Finance have really shown the dealer up and was able to do in 5 minutes what it has taken the dealer 10 days to sort, i.e. give me the information and reassurance I needed.

 

[Dan_FR_DSG]

James I know what you mean and you are right. But at the same time them having dropped the ball means they would have pocketed the interest saving. My point to them would have been OK if you moved the date of payment you should also adjust my finance transaction accordingly.

But this point is now null and void anyway...

 

[Nutkin]

I have just spoken to SEAT/VW Finance. The dealer has still not paid off the settlement figure. However, SEAT Finance have taken the case on on my behalf, promising to give me regular updates on the case.

The finance is being settled on the original figure as per my finance agreement. So the refunds will come direct from the finance company and not via the dealer, which should make everything much more straight forward.

It's unfortunate the dealer could not have dealt with this issue more urgently. I have had to call them for every update and got very little from them. It has spoilt the buying process (not the car) and will put me off wanting to use the dealer again. SEAT Finance have really shown the dealer up and was able to do in 5 minutes what it has taken the dealer 10 days to sort, i.e. give me the information and reassurance I needed.

Make a complaint, I have just recieved an extended warranty and £500 for my troubles with the cupra. Was pretty smooth too delt with by a very nice man in customer services.

 

[Dan_FR_DSG]

Make a complaint, I have just recieved an extended warranty and £500 for my troubles with the cupra. Was pretty smooth too delt with by a very nice man in customer services.

Is that through SEAT Customer Services?

 

[10man]

Did u read what he said mate? He's having no luck over the phone so he's right to go in!

Best thing to do in my opinion is drop in on them and then they can't fob you off. Hope you get the issue sorted mate!

I understand what your saying but also by just dropping in you run the risk of the manager etc genuinely not being in and having a wasted journey!