A new car, whether new or used, costs a lot of money. According to a study from 2017, more and more people are opting for a form of financing when buying a new car. The contracts for such a loan are not always correct. For you as a customer, this means: You have a cancellation joker, because incorrect contracts can be reversed. You can find out from us how this works, what it brings you and what you have to watch out for.
Who can use the car loan cancellation joker?
If you bought your car through financing directly in the car dealership, from a legal point of view it is a so-called “connected business”. Some of these contracts are not legally compliant.
The same applies in some cases if you have financed your motorcycle or a quad. Contracts that were concluded after June 11th, 2010 are particularly worth checking. Although this does not automatically mean that all contracts are incorrect, the chance of the cancellation joker should definitely be checked individually by a lawyer.
These are the most common mistakes in loan contracts
According to many lawyers, some auto loan contracts have significant errors. Above all, these include:
- Incomplete contract documents provided by the bank to the customer.
- The contractual documents are difficult to read due to the font size being too small.
- Missing mandatory information regarding the calculation of the prepayment penalty.
- Incorrect or misleading information regarding the daily interest rate.
- Insufficient information about the consequences of a revocation and the associated loss of value.
- Missing or insufficient information on the loan broker and related commissions.
- Incorrect information about the residual debt insurance associated with the loan.
How can you use the cancellation joker?
The error in the affected contracts lies in the cancellation policy. Many of the car loan contracts lack legally required information. For you, this means: The statutory right of withdrawal with a period of 14 days has not yet started. You can therefore exercise your right of withdrawal throughout the credit period.
After a few judgments against affected car banks, for example by the Berlin Regional Court (judgment of 05.12.2017 Az. O 150/16) or the Stuttgart Regional Court (judgment of 22.03.2018 Az. O 340/17), the revocation is also after the expiry of Withdrawal period allowed. What you need is a good lawyer from a law firm specializing in this topic, who will examine your individual case and can realistically assess the chances of success. If you have legal protection insurance, there are no risks associated with it. If the lawsuit is successful, the loan agreement must be reversed.
This is how the loan agreement is processed
If the credit contract has to be reversed, this also applies to the purchase contract for the vehicle. The reason for this lies in the legal context of the “related business”. Reversal means that the contract concluded is null and void from the start, as a consumer, as if the contract had never existed.
You are entitled to this in the event of reverse processing
In order to make you act as if you had never entered into the purchase and loan contract, the bank must reimburse you for all costs incurred in connection with the contract. Above all, these include:
- The sum of the repayments made on the loan.
- All interest payments.
- Refund of any deposit.
For contracts that were concluded before June 13, 2014, you can even claim interest on the money you paid. If you have taken out a car loan of this type that is defective, you can claim interest from the bank at a rate of five percentage points above the base rate.
Any residual debt insurance taken out in connection with the loan agreement in the event of unemployment, incapacity for work or death can also be reversed in this context. In this way you will also get back all insurance premiums paid during this time.
Claims of the bank in the event of reversal
The reversal of the purchase contract also means that you have to return the purchased vehicle. For contracts concluded before June 13th, 2014:
|The bank can demand compensation for the use of the vehicle you are using. The amount of the value replacement is calculated as follows:||(Gross purchase price of the vehicle) x (number of kilometers driven)
Usual total mileage of the vehicle
In the case of sales contracts that were concluded after June 13, 2014, the law changes to the implementation of the EU Consumer Directive (RL 2011/83 / EU), in which the right of withdrawal (Section 357 (7) No. 2 BGB) was also changed. As a result, banks are not allowed to demand compensation for the use of the vehicle during this period if the contract was faulty. This view has already been confirmed in several court rulings, for example by the regional court in Regensburg (judgment of 07.08.2018 file number 2 O 259/17) or the regional court in Berlin (decision of 15.02.2019 file number 4 O 20/18).
A prepayment penalty is also not payable to the bank, as it is not a cancellation but a reversal.
Conclusion on the revocation wildcard for car loans
Many car loan contracts made in the past are flawed. Under certain conditions, you can make use of these errors and pull the cancellation joker. This means that loan agreements can be reversed, even years after they have been concluded. You should have a specialist lawyer check whether your car loan contract is affected. If your lawsuit is successful in court, the bank must reimburse you in full for the repayment and interest payments. In this case, you drove your car almost free of charge for the entire term. You also have to hand in the car. At the moment, however, it is also advisable to finance a new car because the interest rates on the market are very low.