PCP agreement extension

Jayne_louise_hutton

Hi, I’m having a lot of trouble with my existing pcp agreement. My local dealership extended my pcp agreement without my knowledge after I accepted a deal for a new car from them. I’m not sure why they have done this. I now have an extended financial agreement with them until July, however the brand new car I ordered is currently sat in the dealership. I have been told if I terminate the extension now I will incur charges and my credit rating could be effected. I have gone to the finance group who I have the pcp agreement with and they have said the extension is irreversible. Does anyone know if car companies can extend a financial agreement without the customers knowledge? Also do you know if terminating a pcp agreement will effect my financial circumstances? Any help would be greatly appreciated.

flashg67

Sounds odd that it would be without your knowledge - have you asked for a copy of the extended agreement - can't see it being enforceable without you signing for it

Jayne_louise_hutton

Yes I have. The dealership couldn’t provide me with anything apart from an internal document signed by themselves until July. I asked for documentation from the finance group I have my current agreement with and they said all they have is an email from the dealership as notification. I don’t know how this has happened.

AdrianC

When was your old PCP originally due to expire, when did you order the new car, was it a factory or stock order, and if factory what was the original estimate for delivery?

Jayne_louise_hutton

It was due to expire on 4th April 2019. I placed the order for my new car on 31st January. I think it was a factory order because it came from Germany. My car arrived at the start of April. Hope this helps.

Jayne_louise_hutton

Sorry, also the dealer said the original date could take between 6-9 weeks delivery.

AdrianC

OK, but the important date is what estimate for delivery date were you given when the order was placed, back in January?

I suspect that they extended the PCP precisely because they thought your new car wouldn't arrive by 4th April. So it's very likely that the extension can be shortened now it is here. What have they said?

Edit: OK, we crossed over. 9wks from 31st Jan is 4th April. It wouldn't take much of a delay to leave you walking, without extending the original deal. Delays are easy - especially given what was originally scheduled to happen less than a week before 4th April. Parts shortages, delivery shortages, a bit of damage in transit, a problem cropping up on PDI...

Jayne_louise_hutton

It makes sense and I can understand there might be delays, but to extend an agreement until July without any signed documentation and for it to be an irreversible process doesn’t make sense to me. The dealership now has a brand new car sat in the garage which I am not going to pick up because I’m tied in with my current contract for another few months.

AdrianC

And I repeat... ARE you "tied in"? Is it really impossible to shorten the extension?

Jayne_louise_hutton

That’s what the finance group are saying. I either continue with the payments up until July or pay a balloon payment for the rest of the value of the car. I have spoken to several people from the finance group and they have all said the same thing that it’s irreversible.

neilmcl

I think you need to speak to the dealer principal and argue that you will be not be going forward with the new car unless your current situation has been resolved. Also, you may want to get in touch with the FOS.