PCP -being threatened with a default

jlgawne

So, in 2015 I looked to purchase a car through PCP, identified the car I wanted (was a used approved model from a main dealer), negotiated the figures with the dealer, everything agreed. Great.

However, because I'd never had any finance; cards, loans, mortgage etc, I knew id struggle to be accepted for the finance. So, after lengthy discussions with parents, they decided that they would finance the car for me. Discussed this with salesman at the dealership, who sent across finance forms to forward to my parents (I was offshore working at the time). I then put a deposit down by telephone.

1 week later when home from work, both my Dad and I drove around 150 miles to the dealership to pick the car up. Got there, happy with the car, everything perfect. Both of us sit down with the salesman, my dad fills out the finance paperwork, and whilst doing so, I pay the rest of the deposit for the car from my card, arrange a date for payments to come out that suit my pay day etc, and also sort out the drive away insurance in my name only. The dealership then fill out the v5 in my name and send this away to DVLA with myself as the registered owner.

So to clarify, my dad has financed the car, the dealership have registered the car to myself as the registered owner, as per previous conversations where they told us this was fine.


Fast forward 3 years, and 1 year left on the PCP deal, I try and trade my car in to a different dealership and purchase a brand new car. Because of similar circumstances, I ask to do the same with the finance again, only this time this particular dealership inform me they cant do that.
After lengthy discussions they refuse to sell me the car, and also report me to their finance services from "defaulting on the terms and conditions of my current fianance". Its important to stress every payment had been made on time at this point, the contract had been running seamlessly.

The fianance company who are part of the dealerships brand (BMW) contact my dad and give us the option of voluntarily terminating (have too much equity in the car to hand back), forcefully recovering the car, or re-registering the car in my dads name with proof of insurance to show him as the main driver (hes not and another owner devalues the car).

My question is, where do I stand on all of this? As stated, everything was done with my dad and I being 100% transparent with them, and all of this being put in place by the dealership themselves. We havent defaulted on any payments, so can they do this?

Apologies for the long winded post but had to get all the facts across.

neilmcl

Well first off you are not on the hook for this as it's your Dad who has the finance not you. It does sound like the finance co (BMWFS is it?) are complaining that your Dad is not following the T&Cs of the finance agreement, ie, not being the registered keeper.

If I were you (or your Dad in this instance) probably the best solution here is to do as the finance co. state and VT the agreement and hand the car back.

In future, try and get your own finance, and if you can't there's usually a very good reason for that.

neilmcl

Another solution might be for your Dad to register the car in his name as suggested then settle the finance and keep the car.

jlgawne

neilmcl wrote: »

Well first off you are not on the hook for this as it's your Dad who has the finance not you. It does sound like the finance co (BMWFS is it?) are complaining that your Dad is not following the T&Cs of the finance agreement, ie, not being the registered keeper.

If I were you (or your Dad in this instance) probably the best solution here is to do as the finance co. state and VT the agreement and hand the car back.

In future, try and get your own finance, and if you can't there's usually a very good reason for that.

That's 1 view, however, our view is that BMW retail were fully aware of this and as proof registered the car in my name. Theyre entrusted by Finance to enforce these T's & C's.

VT'ing means Im giving BMW a care back with around 6-7k equity above whats owed, just so they can then sell on and make more profit on it, despite them putting us in this predicament.

I would have thought it be fairly reasonable of them to view the case with discretion and see that there have been no issues whatsoever, and with only 10 month left, allow the contract to run its cause.

k3lvc

jlgawne wrote: »

VT'ing means Im giving BMW a care back with around 6-7k equity above whats owed, just so they can then sell on and make more profit on it, despite them putting us in this predicament.

Not quite sure how you say it's them that's put you in the predicament ? I'm assuming it's you and Dad (potentially with an unwitting Salesman) who's broken their T&C's


Assuming your (or Dads) T&C's say that car must be registered in finance holders name then I'd be heading back to original dealer to let them work out how to take it forward

Nearlyold

See
https://www.thecarexpert.co.uk/taking-car-finance-for-someone-else/

DD265

My parents had similar issue with BMW Finance which came to light when they had separated. Dad financed the car, but Mom was the registered keeper. They ended up giving the car back.

Is it possible to pay off the finance in full? BMW Finance may not allow it, however.

neilmcl

DD265 wrote: »

My parents had similar issue with BMW Finance which came to light when they had separated. Dad financed the car, but Mom was the registered keeper. They ended up giving the car back.

Is it possible to pay off the finance in full? BMW Finance may not allow it, however.

Of course you can pay off the finance, it's called settling the finance and you can do this at any time.

neilmcl

jlgawne wrote: »

That's 1 view, however, our view is that BMW retail were fully aware of this and as proof registered the car in my name. Theyre entrusted by Finance to enforce these T's & C's

No, it's entirely up to the person taking out the finance to fully understand and follow the T&Cs of the agreement.

motorguy

jlgawne wrote: »

So, in 2015 I looked to purchase a car through PCP, identified the car I wanted (was a used approved model from a main dealer), negotiated the figures with the dealer, everything agreed. Great.

However, because I'd never had any finance; cards, loans, mortgage etc, I knew id struggle to be accepted for the finance. So, after lengthy discussions with parents, they decided that they would finance the car for me. Discussed this with salesman at the dealership, who sent across finance forms to forward to my parents (I was offshore working at the time). I then put a deposit down by telephone.

1 week later when home from work, both my Dad and I drove around 150 miles to the dealership to pick the car up. Got there, happy with the car, everything perfect. Both of us sit down with the salesman, my dad fills out the finance paperwork, and whilst doing so, I pay the rest of the deposit for the car from my card, arrange a date for payments to come out that suit my pay day etc, and also sort out the drive away insurance in my name only. The dealership then fill out the v5 in my name and send this away to DVLA with myself as the registered owner.

So to clarify, my dad has financed the car, the dealership have registered the car to myself as the registered owner, as per previous conversations where they told us this was fine.


Fast forward 3 years, and 1 year left on the PCP deal, I try and trade my car in to a different dealership and purchase a brand new car. Because of similar circumstances, I ask to do the same with the finance again, only this time this particular dealership inform me they cant do that.
After lengthy discussions they refuse to sell me the car, and also report me to their finance services from "defaulting on the terms and conditions of my current fianance". Its important to stress every payment had been made on time at this point, the contract had been running seamlessly.

The fianance company who are part of the dealerships brand (BMW) contact my dad and give us the option of voluntarily terminating (have too much equity in the car to hand back), forcefully recovering the car, or re-registering the car in my dads name with proof of insurance to show him as the main driver (hes not and another owner devalues the car).

My question is, where do I stand on all of this? As stated, everything was done with my dad and I being 100% transparent with them, and all of this being put in place by the dealership themselves. We havent defaulted on any payments, so can they do this?

Apologies for the long winded post but had to get all the facts across.

Do you and your dad live at the same address?

Also, another name on the V5C wont devalue the car by much - a few hundred if anything - and certainly better than losing thousands in equity?

Personally, i'd be getting a personal loan out for the amount (in your name or get your dad to do it) to clear the finance OR take out your next car finance in your name and have the dealership clear the finance. There really shouldnt be a problem with that?

motorguy

DD265 wrote: »

My parents had similar issue with BMW Finance which came to light when they had separated. Dad financed the car, but Mom was the registered keeper. They ended up giving the car back.

Is it possible to pay off the finance in full? BMW Finance may not allow it, however.

They would have particular issue with this as (a) your parents separated and (b) they were then - presumably - at separate addresses.