Peugeot Just Add Fuel Termination

Jimbob87_2

Hi, I have reached the end of my 3 year lease on Peugeot's Just Add Fuel deal on a 107. I am having no end of trouble trying to arrange the return of the car.

I was naive first off as the finance part of the agreement is for 37 months while the 3 years "free" insurance only lasts for 36. Which the eagle eyed amongst you will have noticed means I have to re-insure the car for another month if I want to drive it. So it is Just Add Fuel plus one month of insurance.

I was also stupid that I didn't notice I needed to provide an MOT certificate myself. So that is Just Add Fuel, one month's insurance and an MOT.

So accepting that I need an MOT, which isn't much, I told Peugeot they could collect the car before or on the date the insurance expired on 21st December 2013. I was told that this could not be done until I paid the last two monthly payments on the finance agreement. I said I don't mind making the payments, but they could have the car back. Again I was told no.

I went to the dealership I bought the car from, and was advised by a very helpful business manager that I could terminate the agreement voluntarily having paid more than 50% of the value of the agreement. This I did as instructed by Peugeot Financial Services in writing by email on 2nd December, asking them to contact me to arrange collection of the car.

Today, having heard nothing back since then, I called Financial Services and was told that the car needed to be insured to be collected, and collection could not be guaranteed within the next 3 weeks.

Now I am really annoyed as I have given the 14 days notice as outlined in the agreement and I feel I am being held to ransom for more insurance because they can't guarantee a collection before 21st December. I pointed out that if they had acted on my email on the 2nd they would have had 3 weeks to arrange a collection.

I am within my rights to be annoyed here aren't I? As far as I am concerned from the 21st December that is not my car. Why would I insure a car in my name so a collection company, who surely are insured to carry out their jobs, can drive it away? I thought that they must mean road tax, which isn't a problem as I understand that, but they definitely said insurance.

There is nothing in the agreement that says the car must be insured to be returned.

Any advice would be appreciated. I am writing to complain and have called several times, but I just want rid of the car and anything to do with Peugeot.

Thanks.

Tilt

Surely you ought to be able to simply drop it back to the dealer you 'purchased' it from?

Jimbob87_2

You would think so but again they said no, as if it wasn't covered by valid insurance they couldn't collect it. Also they said I needed to be present when it was collected to sign for it. I guess I need to sign the log book over to them.
Another thing I can't understand because as soon as I fill in the part of the V5C saying I have transferred ownership of the car it is no longer anything to do with me.

Tilt

Seems very odd to me that you 'cannot' return it to where the contract originated from. They would have traders insurance to enable them to drive the car.

I think they are coming it to be honest.

What does the contract documents say about 'end of term' options?

Jimbob87_2

It says that I can terminate the agreement at no extra cost if I have paid more than 50% of the agreed finance, and the car comes back in good condition (allowing for "fair" wear and tear). The terms say that should I exercise my right to terminate the agreement that I must return the vehicle at my expense with the registration certificate, tax disc, and MOT certificate, all 3 of which I have. It does say I will have to pay the total amount of the insurance element of the agreement, which expires on 21st December, so again, not a problem as it will be paid to the end of the contract.
It does't say where the vehicle needs to be returned to, so the dealership should be a legitimate and reasonable place if that is where the contract was started?

Tilt

Is all the required criteria in those terms been adhered to?

Jimbob87_2

Yes. Up to the last two months I haven't had any problems. Payments all made on time by DD, wear parts replaced as per the agreement, any damage repaired to a high standard. I will incur some additional mileage charges but we are talking less than 50 miles over the 20,000 allowed so nothing drastic.
I can't understand how if I am to "Return the car at my own expense" I have to wait for Peugeot to arrange a collection as opposed to delivering it back to the place I leased it from. Surely aside from everything else a collection isn't at my own expense? It makes no sense. I wouldn't even re-insure the car with Peugeot anyway, I would have to get short term cover and would go as cheap as possible. So they gain absolutely nothing by causing all this palava.

Tilt

Ok so you have up until Dec 20th before your insurance cover expires?

If so I would contact the dealer and inform them (you may want to do this in writing) that as far as you are concerned you have met all the terms of the agreement and will be returning the car to them by the 20th December. Ask them that if there are any outstanding issues which may prevent this, that could they put this in writing to you prior to that date.

As far as you are concerned the agreement has run it's course and you have no wish for it to continue beyond the 20th December and as such, you relinquish all responsibility for the car on that date.

I would send the letter by recorded delivery.

I do suggest that you run this past a solicitor first though. You may be able to arrange one through CAB BUT make sure you get one who specialises in vehicle leasing/financial matters.

albionrovers

I would guess, and it's only a guess, that the car needs to be inspected for fair wear and tear by a designated Puegeot vehicle inspector. They inspect the car, tick some boxes (pass), cross some boxes (fail, fair wear and tear) and then you argue about whether or not you are going to sign the form or not. He then gives you your copy and you use it to fight the expected bill which comes through the door saying that you have exceeded the fair wear and tear conditions, even though you have most certainly haven't. In other words, the sales jargon/money making machine doesn't end here?

Could this be it? Anything in your docs mentioning an end-of-lease inspection?

As an aside, in case it helps you, I recently got a bill from Honda for my last lease car, charging me for 4 separate elements of 'damage' on it's return. I argued the case with all 4 points and got it all waivered. They knew they were at it with 3 of them and expected me to pay the final one (£250), as a wee sales tactic. No bonus for the staff from me, better luck next time. It's all sales.

Jimbob87_2

Well today I called again and asked them about the issue with having the car insured when it is collected. They said that it was in the terms that it had to be insured to the end of the agreement. Which I said is fine as the agreement ends on 21st December as I was opting to end it voluntarily on that date. In any event the terms say nothing about the car being collected, only that I need to return it at my own expense. I asked for the article in the terms, but strangely enough after keeping on hold looking for it for 5 minutes, they said they would have to look into it further. They said the agreement runs to 21st January. I said it can't do, as I have opted to terminate the agreement. I said I will gladly return it to the dealer, where it will be on private land and no need for it to be insured. Again I was told no in case something happened to the car there, then it would be uninsured. I said how can that be with a forecourt full of shiny cars and none of them insured? To which they said all their cars would be covered, but mine would not be.
I said the bottom line was either that it was dropped at the dealer or collected before the 21st, as I had emailed them on the 2nd December so if they had acted promptly, I would have had the ridiculous 3 weeks to have the car collected. To which they said they couldn't have even guaranteed it then! I asked for call back from a supervisor, which I have not had.
Now having consulted with my work's fleet manager, he has said if a car is on private land, it does not need to be insured, so feasibly I could park the car at work and have it collected there. But he said the same would apply to the dealership.
Also Gov.uk says that when a car is in between owners when the V5 certificate has been sent to DVLA then the car does not have to be insured.
So I am feeling in a slightly stronger position overall.
Albionrovers...In the correspondence I have had regarding return of the vehicle it is taken for an "Independent" opinion on wear and tear before going to the auction house. The car is in prime condition so I will definitely be arguing the toss on any points they raise regarding that.

Tilt

They are simply lying when they say that your car would not be insured. I cannot believe that they do not have a storage compound for their stock of cars.

All car dealers have motor trade policies (or should have) which covers cars in their possession.

I can only repeat my previous advice but you should do it urgently because it's likely they will shut down on the 20th for the Christmas holiday. You need to get it back to them before that.