PCP Nightmare - Advice please

GF2

Hi Guys

I’m new here and was wondering if anyone had any advice, please. I’m at the 2 year point of the PCP with Vauxhall’s and was advised by a saleswoman that my car was only worth circa £8k when I owed circa £10k on the PCP. She said, as my car is worth less than I owe, that I am within my right to start voluntary termination. So I did. It took a while for them to get back to me so in the mean time I booked in with Chips Away to correct any scratches etc and also lined myself up with a new car in preparation for the handback.

Yesterday I received an email from Vauxhall stating I’d been given the incorrect info and I owed £2.7k to started the termination.

Does anyone know my rights on this? Very stressed I’m going to end up with 2 cars!!

Thank you in advance!

AdrianC

VT is a legal right which kicks in when you have paid 50%+ of the amount you owe under the contract. That includes the balloon on a PCP. "Negative equity" does not play part of it.

Whether your financier offer some kind of negative equity cancellation clause is another question entirely - it'd be in the contract documentation you have. It's unlikely to, however, because almost all new car PCP is in negative equity from the very minute the car is driven out the showroom, unless there's a very substantial initial payment, due to the initial depreciation being the steepest part of the curve.


Right now, your cheapest way of resolving this situation is probably to cancel the new car order.

motorguy

GF2 wrote: »

Hi Guys

I’m new here and was wondering if anyone had any advice, please. I’m at the 2 year point of the PCP with Vauxhall’s and was advised by a saleswoman that my car was only worth circa £8k when I owed circa £10k on the PCP. She said, as my car is worth less than I owe, that I am within my right to start voluntary termination. So I did. It took a while for them to get back to me so in the mean time I booked in with Chips Away to correct any scratches etc and also lined myself up with a new car in preparation for the handback.

Yesterday I received an email from Vauxhall stating I’d been given the incorrect info and I owed £2.7k to started the termination.

Does anyone know my rights on this? Very stressed I’m going to end up with 2 cars!!

Thank you in advance!

I take it you did actually check you'd reached the marker of 50% of the total cost of the agreement paid?

motorguy

AdrianC wrote: »

VT is a legal right which kicks in when you have paid 50%+ of the amount you owe under the contract. That includes the balloon on a PCP. "Negative equity" does not play part of it.

Whether your financier offer some kind of negative equity cancellation clause is another question entirely - it'd be in the contract documentation you have. It's unlikely to, however, because almost all new car PCP is in negative equity from the very minute the car is driven out the showroom, unless there's a very substantial initial payment, due to the initial depreciation being the steepest part of the curve.


Right now, your cheapest way of resolving this situation is probably to cancel the new car order.

+1

Cancel the new car order immediately.

If the salesman protests, staple the letter from the finance company to his forehead.

AdrianC

motorguy wrote: »

If the salesman protests, staple the letter from the finance company to his forehead.

If the new car was coming from the same place, with the same finance house, then it'd be easy to roll the entire deal up into one, and the OP would be none the wiser about the cost to close the old deal down unless the delved deep into the numbers.

maninthestreet

I think the saleswoman gave you bad advise.

GF2

Thanks for the advice guys! Guess I was a bit stupid to just assume the person working for Vauxhall would give me the correct information.

Mercdriver

GF2 wrote: »

Thanks for the advice guys! Guess I was a bit stupid to just assume the person working for Vauxhall would give me the correct information.

She works for the franchise dealer as a saleswoman and you shouldn't simply trust a sales person. She works on commission. They aren't all sharks, but you should assume differently.

motorguy

AdrianC wrote: »

If the new car was coming from the same place, with the same finance house, then it'd be easy to roll the entire deal up into one, and the OP would be none the wiser about the cost to close the old deal down unless the delved deep into the numbers.

I think a VT triggers a very different process. Also any rolling forward of negative equity would normally be orchestrated by the dealership.

motorguy

Mercdriver wrote: »

She works for the franchise dealer as a saleswoman and you shouldn't simply trust a sales person. She works on commission. They aren't all sharks, but you should assume differently.

And sadly, they arent "experts" either.

AdrianC

motorguy wrote: »

I think a VT triggers a very different process. Also any rolling forward of negative equity would normally be orchestrated by the dealership.

Sure, VT is different. But from the driver/borrower's perspective, they were driving old car, now they're driving new car, money drips out of bank monthly.