Getting out of PCP

aeroblade

OP can fight for their rights as the dealer may not have followed the Sales of Goods Act. The OPs partner was only 18 when signing the PCP and was pressurised by the salesman. They have a case

Clive_Woody

aeroblade wrote: »

OP can fight for their rights as the dealer may not have followed the Sales of Goods Act. The OPs partner was only 18 when signing the PCP and was pressurised by the salesman. They have a case

Which bit of the SoGA do you think they may not have followed and how would this be backed up?

Only 18? So legally old enough to sign a finance agreement.

Pressured by a salesman. That's their job, that's what they do. Unless there were threats or intimidation involved nothing doing there either.

aeroblade

Clive_Woody wrote: »

Which bit of the SoGA do you think they may not have followed and how would this be backed up?

Only 18? So legally old enough to sign a finance agreement.

Pressured by a salesman. That's their job, that's what they do. Unless there were threats or intimidation involved nothing doing there either.

OP says they were 'dazzled' by the car salesman. OP did you and your partner co-sign for the PCP or did your partner agree to the PCP in his name only and you two are splitting the cost 50/50? Did the car dealership intimidate or threaten you in anyway so that you'll sign for the PCP?

forgotmyname

Imagine if they did let people sell the car or hand it back with an agreement to settle the balance, Where is the incentive to repay the balance.

You have nothing to lose by not paying, they cannot reposess the car which you no longer have.

dannyrst

forgotmyname wrote: »

Imagine if they did let people sell the car or hand it back with an agreement to settle the balance, Where is the incentive to repay the balance.

You have nothing to lose by not paying, they cannot reposess the car which you no longer have.

But that's like saying where is the incentive to pay for the car anyway? Using your logic, the OP may aswell cancel payments and allow repossession to occur.

IamNotAllowedToUseMyName

cal123321 wrote: »

At the end he's either got to £4500 and keep the car or hand it back and not pay anything. On the the account at the minute the settlement figure is about £10000. They're selling for between £7-8000 currently

Time to do some sums.

There is £10000 left, but the guaranteed final value is £4500 so presumably there is really a debt of £5500 to be paid over the next 2 years (assuming it is a 3 year agreement).

The problem is that as most of the depreciation is taken up front, it is assumed that the value of the car will only match the agreement value somewhere at the end of the deal, so there is not a good exit strategy. Don't let yourself be deluded into thinking you are paying over the odds for a car not worth the loan value, you essentially had that benefit in buying a car you could not afford through a PCP deal.

So to buy out (£10k) and sell the car (£7k) would leave you £3000 short with no means of paying it and presumably still wanting a car, so you will spend a couple of thousand on that - which in my book means that to break the agreement you will end up with more liability than keeping the car - you end up with a shortfall of say £5k trying to break the agreement and have a cheap car which seems to have a liability of £5500. To me that says that it would cost about the same as keeping the car, with a risk that the car would not reach your target value, and also you have timing problems with a loan to cover the shortfall and get a replacement car.

What are the monthly repayments?

Basically, I would say that the safest thing is to hang onto the car and see who can help him out.

Could be worse, way back when I knew someone who bought a brand new Opel Manta GT/E but couldn't afford the insurance so went third party and within 6 months wrote it off. That's a long time to be paying off a car that you cannot drive.

aeroblade

Took out a PCP for a car worth over £10k new at the age of 18! What a great way to start life, already in debt. I just hope the OP didn't persuade her partner to sign up for the PCP just so she can have a brand new car.


I didn't buy my first car till I was 21 and even then it was a 10 year old plus banger!!

motorguy

aeroblade wrote: »

OP can fight for their rights as the dealer may not have followed the Sales of Goods Act. The OPs partner was only 18 when signing the PCP and was pressurised by the salesman. They have a case

Seriously - catch yourself on.

motorguy

aeroblade wrote: »

OP says they were 'dazzled' by the car salesman. OP did you and your partner co-sign for the PCP or did your partner agree to the PCP in his name only and you two are splitting the cost 50/50? Did the car dealership intimidate or threaten you in anyway so that you'll sign for the PCP?

Genuinely - i laughed out loud when i read that.

:rotfl:

motorguy

dannyrst wrote: »

But that's like saying where is the incentive to pay for the car anyway? Using your logic, the OP may aswell cancel payments and allow repossession to occur.

That would be very bad.

County court judgements, etc.