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  • FIRST POST
    • Mike967angus
    • By Mike967angus 13th Feb 18, 11:30 AM
    • 23Posts
    • 7Thanks
    Mike967angus
    18 Year Old PCP
    • #1
    • 13th Feb 18, 11:30 AM
    18 Year Old PCP 13th Feb 18 at 11:30 AM
    My son in a moment of weakness decided to purchase a new Polo GTI. I was far from impressed bearing in mind the type of car and his age & relative nativity so ended up going to the VW dealer to grudgingly negotiate a better deal. One year in and despite a clean record his premium has made the car virtually uninsurable
    He wants rid and is in 2k negative equity.
    As car is on a PCP is it worth writing to VW finance as although he signed on the dotted line. I wonder was the PCP the correct thing to offer him bearing in mind his age (Just18)and type of car?
Page 1
    • davidwood681
    • By davidwood681 13th Feb 18, 11:46 AM
    • 47 Posts
    • 135 Thanks
    davidwood681
    • #2
    • 13th Feb 18, 11:46 AM
    • #2
    • 13th Feb 18, 11:46 AM
    He's an adult.
    People forget that in this day and age.
    Do him a life long lesson and let him deal with his own mess.

    And the dealer/finance company aren't at fault.

    You and your son are.
    • bigisi
    • By bigisi 13th Feb 18, 11:49 AM
    • 46 Posts
    • 75 Thanks
    bigisi
    • #3
    • 13th Feb 18, 11:49 AM
    • #3
    • 13th Feb 18, 11:49 AM
    He's an adult.
    People forget that in this day and age.
    Do him a life long lesson and let him deal with his own mess.

    And the dealer/finance company aren't at fault.

    You and your son are.
    Originally posted by davidwood681
    Yeah but why take any personal reponsibility when you can do your level best to blame someone else, innit!

    (tongue firmly in cheek in case it's not clear)
    • Mike967angus
    • By Mike967angus 13th Feb 18, 12:16 PM
    • 23 Posts
    • 7 Thanks
    Mike967angus
    • #4
    • 13th Feb 18, 12:16 PM
    • #4
    • 13th Feb 18, 12:16 PM
    I'm overwhelmed by your kind and friendly reply. Truly heartwarming and do hope any teenage children you may have are astute unrebellious and listen to your every word of advice as a parent. Im fully aware he's an adult (Just)and can settle the shortfall in finance.
    I am also aware that PCP sales need to be fit for purpose and all options made clear to ensure its the most suitable option as in PPI.
    • davidwood681
    • By davidwood681 13th Feb 18, 12:18 PM
    • 47 Posts
    • 135 Thanks
    davidwood681
    • #5
    • 13th Feb 18, 12:18 PM
    • #5
    • 13th Feb 18, 12:18 PM
    Facts don't care about your feelings......

    Tell him that too.
    • LeeUK
    • By LeeUK 13th Feb 18, 12:19 PM
    • 5,751 Posts
    • 2,641 Thanks
    LeeUK
    • #6
    • 13th Feb 18, 12:19 PM
    • #6
    • 13th Feb 18, 12:19 PM
    Should have stuck to a second hand Nova like everyone else at 18.
    • Mike967angus
    • By Mike967angus 13th Feb 18, 12:26 PM
    • 23 Posts
    • 7 Thanks
    Mike967angus
    • #7
    • 13th Feb 18, 12:26 PM
    • #7
    • 13th Feb 18, 12:26 PM
    Thanks for your advice!!!55357;!!!56397;
    • Mike967angus
    • By Mike967angus 13th Feb 18, 12:28 PM
    • 23 Posts
    • 7 Thanks
    Mike967angus
    • #8
    • 13th Feb 18, 12:28 PM
    • #8
    • 13th Feb 18, 12:28 PM
    Thanks for your advice!!!128077;
    • Mike967angus
    • By Mike967angus 13th Feb 18, 12:31 PM
    • 23 Posts
    • 7 Thanks
    Mike967angus
    • #9
    • 13th Feb 18, 12:31 PM
    • #9
    • 13th Feb 18, 12:31 PM
    Mine was a metro
    • jbainbridge
    • By jbainbridge 13th Feb 18, 12:32 PM
    • 1,764 Posts
    • 1,143 Thanks
    jbainbridge
    Trying to be constructive - I guess he has nothing to loose by contacting VW.

    I doubt you'd get very far with saying the PCP was mis-sold ... the monthly payments would have been very clear at the outset. You would be expected to work out if you can afford the insurance yourself.

    If he can't insure it the only reasonable thing to do would be to find a way out. Either by settling the agreement or going back to the dealer to see if he can change to a more 'practical' car.
    • motorguy
    • By motorguy 13th Feb 18, 12:40 PM
    • 16,184 Posts
    • 9,416 Thanks
    motorguy
    I'm overwhelmed by your kind and friendly reply. Truly heartwarming and do hope any teenage children you may have are astute unrebellious and listen to your every word of advice as a parent. Im fully aware he's an adult (Just)and can settle the shortfall in finance.
    I am also aware that PCP sales need to be fit for purpose and all options made clear to ensure its the most suitable option as in PPI.
    Originally posted by Mike967angus
    Surely a factual response is better than a heartwarming but useless reply?

    Also, adulthood - and in fact life in general - is about taking responsibility for your actions, not trying to find someone else to blame.
    You are not special. You are not a beautiful and unique snowflake.
    • Mike967angus
    • By Mike967angus 13th Feb 18, 12:52 PM
    • 23 Posts
    • 7 Thanks
    Mike967angus
    Yes that's pretty much where we are at with things.
    Was just wondering if they might budge a bit on a settlement and if anyone had some experience of something similar.
    Payments were explained but rules about early termination not so much.
    I think PCP deals may go similar to PPI in the future as they may be the cheapest but not always best option.
    I know you can vote and fight for your country at that age but you are still short of life experiences as he's found out the hard way.
    • motorguy
    • By motorguy 13th Feb 18, 12:56 PM
    • 16,184 Posts
    • 9,416 Thanks
    motorguy
    Yes that's pretty much where we are at with things.
    Was just wondering if they might budge a bit on a settlement and if anyone had some experience of something similar.
    Payments were explained but rules about early termination not so much.
    I think PCP deals may go similar to PPI in the future as they may be the cheapest but not always best option.
    I know you can vote and fight for your country at that age but you are still short of life experiences as he's found out the hard way.
    Originally posted by Mike967angus
    If its an actual settlement figure, then no, they wont budge. Your best hope is to try to get the best price you can for the car of which there are various means.

    They wont go the same way as PPI because they arent mis-sold. All the information to make a decision is presented to you before you sign.

    Also, you told us you further negotiated on the price which meant the deal wasnt signed and in stone at that time? How is it the manufacturer / finance company / dealers fault if you couldnt / didnt dissuade your son from the purchase based on your life experience?

    The rules and rights around early termination legally have to be (and are) in the paperwork.

    Sorry if i'm sounding harsh here but people need to take ownership for their own mistakes.
    Last edited by motorguy; 13-02-2018 at 12:59 PM.
    You are not special. You are not a beautiful and unique snowflake.
    • Herzlos
    • By Herzlos 13th Feb 18, 1:23 PM
    • 6,522 Posts
    • 5,856 Thanks
    Herzlos
    They can be pretty bad for people who don't understand them and over-commit but it's a firm case of mis-buying and not mis-selling.

    His best options are:
    Sell it privately, clear the PCP and pay off the difference. Very unlikely someone will be willing to give him top dollar for a 1 year old Polo especially if they find out he's selling it because he can't afford insurance. At that price range most people will be wanting to go to a dealer for finance.

    or

    Trade it back into VW for something a lot cheaper (to buy and insure), like a 3+ year old 1.0 Polo, carry the negative equity into that and learn a hard lesson.
    • Mike967angus
    • By Mike967angus 13th Feb 18, 1:25 PM
    • 23 Posts
    • 7 Thanks
    Mike967angus
    No you're not being harsh as nothing I haven't considered myself.
    Totally take your point about the deal not being set in stone also.
    I'm still of an option that any financial product needs to be the most suitable for that person and wonder if this should be fully explored by the dealership or are they trying to get people into cars for the lowest monthly payment regardless of the products suitability.
    • Tarambor
    • By Tarambor 13th Feb 18, 2:27 PM
    • 2,205 Posts
    • 1,591 Thanks
    Tarambor
    I am also aware that PCP sales need to be fit for purpose and all options made clear to ensure its the most suitable option as in PPI.
    Originally posted by Mike967angus
    He is an adult, he was an adult when he signed on the dotted line. He had it all explained to him, it was up to him to ensure he could afford to insure the car. He may be your child and you may still view him as being a child but in law he is capable and responsible for making his own financial decisions.

    By fit for purpose they only need to be roadworthy and mechanically sound, in other words comply with consumer goods laws. There is nothing in law which says that they have to make a decision as to what kind of car an 18 year old gets on finance.

    I'm still of an option that any financial product needs to be the most suitable for that person and wonder if this should be fully explored by the dealership or are they trying to get people into cars for the lowest monthly payment regardless of the products suitability.
    Your opinion in regards to the law carries no weight. Whilst a financial product does need to be suitable, it is the finance itself in that it is affordable for the borrower to repay, that is the only thing they are legally required to do. As I said it isn't their responsibility either morally or legally to decide what an adult chooses to spend their money on, that responsibility lies with said borrower.

    You're not going to be able to use his age or the fact he got a car he now can't insure as a way to get out of this deal.
    Last edited by Tarambor; 13-02-2018 at 2:30 PM.
    • motorguy
    • By motorguy 13th Feb 18, 2:41 PM
    • 16,184 Posts
    • 9,416 Thanks
    motorguy
    No you're not being harsh as nothing I haven't considered myself.
    Totally take your point about the deal not being set in stone also.
    I'm still of an option that any financial product needs to be the most suitable for that person and wonder if this should be fully explored by the dealership or are they trying to get people into cars for the lowest monthly payment regardless of the products suitability.
    Originally posted by Mike967angus
    Its up to individuals to decide if the product is suitable or not - it will be presented as deposit, monthly payments and final payment to be made, and options if you dont want to make that final payment.

    Its ultimately up to the individual to decide if that is suitable for their present and future circumstances. It is a financial commitment (and contract) which ultimately there are consequences for terminating it.

    Yes, it is about the monthly payments and making it "affordable" to the purchaser. Unfortunately some people forget that the shiny new thing in front of them becomes a commitment for quite a long period of time - often long after the initial shine has worn off.

    Your opinion is just your subjective opinion based on the corner your son has dug himself in to. There shouldnt be - and never will be - any onus on the finance company to ensure the product is "suitable" for someones future needs (other than the finance companys own affordability checks on the individual).

    Lets be really honest - had the dealership questioned your son on affordability and perhaps refused based on their own view of the situation, he'd simply have went to the next dealer down the road and dealt there.

    Can he really not at all get insurance? Has he / have you exhaust absolutely all avenues for this? How much has it went up? 20%? 50% 100%? Is paying the insurance for a year cheaper than getting out of the finance deal (bearing in mind hes going to have to insure something else presumably?)

    For example if his insurance is £2,000 a year on the Polo as opposed to say £1,400 on a 1.4 Corsa, is it not better to bite the bullet and pay it this year and maybe next (knowing it will go down) rather than take a £2,000 bath now (and ultimately have depreciation on another car anyway)?

    Also, being very cynical here - can he really not get insurance or does he really just fancy changing the car and is looking an excuse?
    Last edited by motorguy; 13-02-2018 at 2:48 PM.
    You are not special. You are not a beautiful and unique snowflake.
    • IanMSpencer
    • By IanMSpencer 13th Feb 18, 2:53 PM
    • 1,367 Posts
    • 1,027 Thanks
    IanMSpencer
    Let's take the more (but not quite enough) money than sense thoughts on my behalf as given!! Surprised that the uneconomic insurance for year 1 didn't trigger alarms for year 2.

    Anyway, my helpful bit of the post is have you done the basics of getting a young person's insurance down to simply eye watering levels? Are you, or any other driver over 25 with a good driving record on his insurance? If not then you should see a massive drop simply by having another driver as named driver. Note I am not suggesting that you front and name someone else as the primary driver, simply adding a named driver to the policy can work wonders.
    • motorguy
    • By motorguy 13th Feb 18, 2:59 PM
    • 16,184 Posts
    • 9,416 Thanks
    motorguy
    Let's take the more (but not quite enough) money than sense thoughts on my behalf as given!! Surprised that the uneconomic insurance for year 1 didn't trigger alarms for year 2.

    Anyway, my helpful bit of the post is have you done the basics of getting a young person's insurance down to simply eye watering levels? Are you, or any other driver over 25 with a good driving record on his insurance? If not then you should see a massive drop simply by having another driver as named driver. Note I am not suggesting that you front and name someone else as the primary driver, simply adding a named driver to the policy can work wonders.
    Originally posted by IanMSpencer
    +1

    I've said that already. My son had a 4 year old 120d M Sport at 19 and an MG ZS at 18. Both took significant work and "tweaking" each year on the insurance front to keep payments even remotely palatable.
    You are not special. You are not a beautiful and unique snowflake.
    • n217970
    • By n217970 13th Feb 18, 3:13 PM
    • 278 Posts
    • 214 Thanks
    n217970
    Are you, or any other driver over 25 with a good driving record on his insurance?
    Originally posted by IanMSpencer
    I still find my insurance is slightly lower by adding my dad as a named driver and I am 33 with 15 years no claims!
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