If you purchase a car from car dealer and it has to go back do you have to give them the cashback back?

i purchased a car on finance in march 2006 and have problems with it from day 1. i told the car dealer and finance company about the problems, and have not been able to hardly use the car. it broke down in may and havent used it since, im still paying finance for it, each week, the finance company have had talks with the car dealer and they have just decided that i dont have to have the car back, they collected it just over a month ago to have it repaired because there is that many problems plus there is a question mark over the mileage. the car dealer said that the finance company could have there money back, and we could get out of the agreement and we could get our repayments back that we have paid so far. But they wont release the cheque to the finance company until we pay back £300 cashback that they gave us at the time of the deal. are they allowed to take it back and can i sue them for selling me a car that wasnt sold in the condition it was hopefully you can help. thanks

Answers:
UK law states that in a situation like this you should be returned to the position you would be in if you had not bought the goods or services (in this case the car).
Therefore, you will get back your deposit, plus your finance payments, but will forfeit the cashback as you would not have had that if you hadn't bought the car.

However, you may be able to claim interest on the money you had already paid out.
Talk to Citizens' Advice.
No, not with finance I'm afraid

Someone I know paid 2,700 pounds towards her car and she still didn't get to keep it because of the agreement.
cash back usually is on condition of keep ing the car and fufilling the terms of the finance agreement
Seek advice from a solicitor or the CAB
yes you have to give the cash back

you should be happy that they are willing to call off the deal.
they could have said you are stuck with the bad car and you have to keep making payments on it!
Yes you will have to return the £300 cashback.

That was part of the deal concerning the purchase. If the car is returned for a full refund then you will also have to refund the £300. Many companies would probably right this off as a goodwill gesture but they are not required to do so.
just give them the 300 pounds and have done with it!

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