PCP Finance

stinkerbob

I purchased my car on PCP finance in 2017 over 3 years. My husband’s job is now sending us abroad and so we need to hand the car back and do a voluntary termination. I am aware that I need to pay approximately £2500 to get to 50% of the total amount owed, which is fine. There is excess mileage of about 7500 miles too - again, happy to pay this. However they are trying to tell me that they are going to charge a collection fee of £150, otherwise I have to take it to my ‘nearest’ auction house which is in the midlands - I live on the south coast. From what I understand, I am not liable for the collection fee regardless of what the finance company say. I have sent them my VT letter and they have called me to discuss picking the car up. I explained I am not liable for the collection fee, they argued I was. I said I’m not paying for you to come and get your car. I have terminated my contract with you and so once I have paid the £2500 plus excess mileage I don’t need to pay you anymore. He put me on hold and then came back and said they would arrange to pick the car up once I had paid the £2500 and the additional charges can be dealt with afterwards. I understand I can’t pay the excess mileage until after the car has been picked up, which is fine. And as we’re about 7500 miles over the agreed mileage I have no issue in paying this. But am I right I’m thinking they can’t legally force me to pay the collection fee after they have picked the car up? Thank you for your help.

BoGoF

Does your contract mention a collection fee?

motorguy

BoGoF wrote: »

Does your contract mention a collection fee?

It doesnt matter whether it does or not. A VT is a termination of the contract.

Robby1988

I'd say you have won (well apart from shelling out thousands just to give a car back and be left with nothing!)

If they have their money and the car I think it's highly unlikely they will take you to court over a £150 collection fee.

stinkerbob

Thank you for your replies.

I didn’t receive the email on Friday with the bank account details so I chased them today. I got through to the manager and she insisted I would need to pay the collection fee. I said I was aware of my rights, and she said it would be an outstanding liability.

I have advised her that the car will be collected on Monday, as already arranged. If it is not collected, it will be left uninsured on a public road because I have no further legal interest or liability in that car. And I will be leaving the country the following day so it would really be best if the car was collected on Monday.

I hate being rude but I feel like they way they speak to you means you have to be.

The contract does mention a collection fee. I don’t have it to hand but it says something like “we may charge you a collection fee of £150”. However, my understanding was under VT the liability stopped at 50%.

I wish we hadn’t bought the car this way but it was always the intention to get to the 3 year point and then buy the car outright.

foxy-stoat

Unless you paid a very large deposit you will probably be at your half way point on month 32.

Mercdriver

foxy-stoat wrote: »

Unless you paid a very large deposit you will probably be at your half way point on month 32.

Op has stated in their OP that they are aware of how much they need to pay to get to 50%.

stinkerbob wrote: »

I purchased my car on PCP finance in 2017 over 3 years. My husband’s job is now sending us abroad and so we need to hand the car back and do a voluntary termination. I am aware that I need to pay approximately £2500 to get to 50% of the total amount owed, which is fine.

DrEskimo

foxy-stoat wrote: »

Unless you paid a very large deposit you will probably be at your half way point on month 32.

Size of the deposit doesn't make much of a difference. Maybe a month or so.

Larger deposit means smaller monthlies, so whilst the interest is reduced a little, it still takes a similar amount of time to reach the 50% mark of the total amount payable, as the monthlies are smaller.