18 Year Old PCP

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

Mike967angus wrote: »

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.

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.

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

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.

System

Mike967angus wrote: »

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.

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.

motorguy

Mike967angus wrote: »

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.

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?

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

IanMSpencer wrote: »

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.

+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.

n217970

IanMSpencer wrote: »

Are you, or any other driver over 25 with a good driving record on his insurance?

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!

onomatopoeia99

Mike967angus wrote: »

.
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.

The dealers and the finance companies aren't insurance actuaries, they can't forseee what his insurance premium will be after a year and cannot be expected to. For all they know, he may self-insure, so there will be no premium to pay.

They will have ensured the finance product is suitable based on the criteria they are required to use, they do this too often to get it wrong. A mis-selling claim won't fly.

I question the need for a new car at 18 though - and if he hands it back and takes the hit on the finance, what's he going to do for transport?