Volvo pcp/fixed term loan

motorguy

k6chris wrote: »

Open question - does the phrase "PERSONAL CONTRACT PURCHASE" have any legal meaning or could a 'personal loan' simply be one way of purchasing a vehicle which is indeed a 'personal contract plan'?

I'm going to take a wild stab in the dark here and say that Santander who will have entire divisions of legal bods working on this stuff know their wording and whats legal.

It seems to be a loan with a balloon payment.

motorguy

DanielleOHara wrote: »

Hi all, looking for some advice.

I bought a car 3 years ago from Taggarts Volvo on what I was told was a 4 year PCP.
Recently I've been looking into my voluntary termination rights only to be informed that I infact have a personal loan and as such, I have no rights to terminate the contract early.

The finance is with Santander. I have contacted them and Volvo who are both equally useless in helping me.

I have a copy of the initial agreement which clearly states PERSONAL CONTRACT PURCHASE over 48 months. This was discussed and agreed with the salesman who made no mention of any changes to the proposal.

I believe I have been mis-sold as I was not aware that this car was being sold to me as a personal loan and this is something I would not have agreed to.

Any advice?

On the plus side, if its a 4 year plan and you're 3 years in you must be close to the breakeven point if you want / need out now?

Whats your reasoning for wanting to terminate by the way?

neilmcl

You need to get all your documents/correspondence together and speak to the dealership to find out exactly what product you're on and if, as is suggested, you're actually on one of the Fixed Sum Loan product you need to get them to explain why, as this is not a standard product and would've been only offered as an alternative to your initial PCP choice and certainly wouldn't have been done without your agreement.

https://www.santanderconsumer.co.uk/finance-that-fits/car-finance/personal-customers/fixed-sum-loan-with-guaranteed-final-payment/

Did you have much of a deposit to put down?

System

motorguy wrote: »

I'm going to take a wild stab in the dark here and say that Santander who will have entire divisions of legal bods working on this stuff know their wording and whats legal.

So did every bank who have been paying out £billions in compensation for PPI and missold loans. Don't take the fact they've a building full of legal expertise be proof they can't be wrong.

motorguy

Tarambor wrote: »

So did every bank who have been paying out £billions in compensation for PPI and missold loans. Don't take the fact they've a building full of legal expertise be proof they can't be wrong.

And how would you advise the O/P progress that through the courts?

The O/P got a secured personal loan, not hire purchase.

molerat

marlot wrote: »

If you have a personal loan, you'll own the car at the end of the term - so might be in a better position that you thought you'd be?

They in fact owned the car the moment they drove it out of the showroom and were free to do whatever they wanted with it from that moment on.


OP still has not come back with the exact wording, termination rights and numbers as written on their contract.

facade

molerat wrote: »

They in fact owned the car the moment they drove it out of the showroom and were free to do whatever they wanted with it from that moment on.

Seems odd that Santander do this, they would simply become another creditor with little hope of making full recovery if the customer were to declare bankruptcy, having previously disposed of all their assets including the car.


With standard PCP/lease/HP Santander would always own the car, and could simply recover it in the event of a default.

motorguy

facade wrote: »

Seems odd that Santander do this, they would simply become another creditor with little hope of making full recovery if the customer were to declare bankruptcy, having previously disposed of all their assets including the car.


With standard PCP/lease/HP Santander would always own the car, and could simply recover it in the event of a default.

Its a secured loan on the car, if you check the wording in the link i posted above.

facade

motorguy wrote: »

Its a secured loan on the car, if you check the wording in the link i posted above.

So the customer can't treat the car as their own then, and it is just a way of circumventing HP regulations.

molerat

motorguy wrote: »

Its a secured loan on the car, if you check the wording in the link i posted above.

The link you posted is what the op thought they had but Santander and Volvo think it is something different. Until op comes back with the precise details of what is on the piece of paper in their hand we are only guessing.
https://www.santanderconsumer.co.uk/finance-that-fits/car-finance/personal-customers/fixed-sum-loan-with-guaranteed-final-payment/

Features and Benefits

• You own the car right from the start of the loan

I wonder if op has a history of VTs.