Hp / pcp / arg!

Ongobay

Hi All,

I rarely post, so apologies for only posting because I want something...!

OK, so in 2011 we bought a new car. It was literally one of the most difficult things I've ever had to do, it took hours and hours and we had every sales tactic thrown at us, from them blaming the 2011 Japan Earthquake to trying to sell us a used car that smelled of dog for £5k above the book price, on top of all the "I'll have to check with my manager" &"It's the last car in the country.." etc.

ANYWAY. After being worn down we agreed to what was a reasonable price for a car. It was around £14k. We were told all about PCP and how it works, the three options you get, the guaranteed future value etc. We were told the finance deal was for 3 years & there was no additional charges for mileage.

Here is the part where I want to bite myself.... I casually pulled out the documentation to have a look as we are at the 3 year point and what I have is a 4 year Hire Purchase agreement. The section about guaranteed future value is blank.

Our car is worth about £9k at best & there is £10k left on the agreement. According to the paperwork I will need to pay a one off £6k next year or give the car back.

Now... Yes, I'm an adult. However, the guy went through the agreement with us, he effectively explained the hire purchase as a PCP. He said that the guaranteed future value is the £6k one off payment plus the deposit we initially paid. He said that he put it through on 4 years rather than 3 as it would be cheaper for us, but we can swap our car after 3 years if we want.

Is this normal or have I been hoodwinked? I want to muster as much energy as possible before I see them again!

Thanks and sorry for the essay....!

nomoneytoday

The agreement should have the points at which you can hand the car back and walk away (VT)

jumperjohn

Ongobay wrote: »

Hi All,

It was around £14k.
Our car is worth about £9k at best

Hello,

I don't want to alarm you but did you pay a large deposit? I'm asking because if you paid £14k for a car 3 years ago I can't see how its worth £9k now, that's not much depreciation.
What car is it and have you compared with Autotrader?

Ongobay

Hi,

Our deposit was our old car, which initially they quoted £1,000 for, although when it got down to the wire they eventually offered £500 for it & they stated they would offer a discount against the car for the other £500 rather than give the straight £1,000 as deposit. If that makes sense?

I'm just checking autotrader now.

Thanks,
Chris