PCP agreement extension

DrEskimo

Presumably you were going to P/X your current car towards the new car? Did you agree a P/X price? Did you have any negative equity (i.e. P/X value is less than the settlement), or any positive equity you were using towards the deposit of the new car (i.e. P/X is more than the settlement)?

The extension of the PCP won't change the value of the car, or your settlement figure. Just trade the car in tomorrow and get the dealership to clear the finance, exactly as they would have done without an extension.

Jayne_louise_hutton

Yes that’s what the dealership explained to me. That I could hand the car back to them and then take away the new one. They valued my car twice which was well over the settlement figure, this was in January when I signed for a new car. Weeks later the dealership asked me to get in touch with the finance company to tell them my agreement was coming to an end and that I’m taking a new agreement out. The finance company responded by saying I don’t need to do anything as the dealership does everything for me. I got back in touch with the dealer who then said they couldn’t part exchange the vehicle because it was in negative equity. So I would just hand the keys back and start a new agreement. The dealership are now refusing to take the car back as they said it’s my responsibility to sell the car, they can’t do anything with it.

DrEskimo

Jayne_louise_hutton wrote: »

Yes that’s what the dealership explained to me. That I could hand the car back to them and then take away the new one. They valued my car twice which was well over the settlement figure, this was in January when I signed for a new car. Weeks later the dealership asked me to get in touch with the finance company to tell them my agreement was coming to an end and that I’m taking a new agreement out. The finance company responded by saying I don’t need to do anything as the dealership does everything for me. I got back in touch with the dealer who then said they couldn’t part exchange the vehicle because it was in negative equity. So I would just hand the keys back and start a new agreement. The dealership are now refusing to take the car back as they said it’s my responsibility to sell the car, they can’t do anything with it.

I personally wouldn't waste any more time with this dealer.

What car are you after? Have you searched on CarWow, Coast2Coast, Broadspeed and Orangewheels to see what sort of price you can get elsewhere? Check to see if you can find a dealer that will give you a better price.

Next, look at what a fair trade in valuation is for your car using places like WBAC. Check what your current settlement figure is and see whether it's like you will get some positive equity to use as a deposit.

Of course this all hinges on your need for a new car? Have you thought about just settling the finance and keeping what you have now? It will work out far cheaper in the long run....

Ectophile

This is getting way too complicated. It sounds like you need advice from someone who can look at the paperwork and see what's going on. It sounds as though the car sales company may be trying to change the offer after getting you to sign up for the new car.


That "someone" would probably be Citizens Advice.


But in general:

• Nobody can sign you up to an extension of a credit agreement without your approval. The credit company will have a formal complaints process. Look it up, and use it if necessary.
• Selling a car that's on finance is tricky, because it isn't yours until you have made the final payment. It belongs to the finance company. The buyer has to pay off any remaining finance first.