We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
PCP Finance -
Hello everyone,
My first post on this site, was recommending to come here for advice before I make any decisions at all.
Short story is;
I’ve bought a car (used - around 6 months old at the time) from a dealership. The same month I bought the car I emailed them complaining about both key fobs looking very scruffy with actual holes from nail marks and their response was that basically since it’s a “used” car, damage is expected... which I don’t think looks very good talking about a 6 month old car from a dealership. I then noticed a dent in the roof which they say since they didn’t notice it when they sold me the car, that they will not fix it and now I’ve noticed, what looks like dents in the driver side wheel arch which has been repaired, but poorly as you can still see the dent marks in the light.
Next issue is when I bought the car, I was told that I was in -£1500 negative equity and that if I wanted a new car, I’d need to pay the £1500 cash to clear the negative equity before I could pick up a brand new car (I wanted a brand new as of course it would be perfect condition and more importantly - cheaper as you get deposit contribution and lower APR). There’s now no evidence at all on my invoices etc to show that I was in any negative equity... so I’m paying much more for a car that’s just not worth the price, when I would have just got a brand new one as I would now be saving money each month....
Monthly Payment: £409.98.
Vehicle Cash Price: £22829.
Amount of Credit: £22728.
Total amount payable: £28430.04
Rate of Interest: 8.88%
APR: 8.9%
The car is no where near the value of when I bought it 13 months ago and I’m around £5000 in negative equity due to this.
If I was to voluntarily terminate the PCP contact I would need to make up a shortfall of around £9000 just to send it back!
£409.98 x 48 months = £19679.04 which is almost the value of the car when I bought it... and I won’t own the car at the end of the agreement? Surely that’s not right?
Final payment is £8640 after the 48 months to own the car .
What are my options here?
My first post on this site, was recommending to come here for advice before I make any decisions at all.
Short story is;
I’ve bought a car (used - around 6 months old at the time) from a dealership. The same month I bought the car I emailed them complaining about both key fobs looking very scruffy with actual holes from nail marks and their response was that basically since it’s a “used” car, damage is expected... which I don’t think looks very good talking about a 6 month old car from a dealership. I then noticed a dent in the roof which they say since they didn’t notice it when they sold me the car, that they will not fix it and now I’ve noticed, what looks like dents in the driver side wheel arch which has been repaired, but poorly as you can still see the dent marks in the light.
Next issue is when I bought the car, I was told that I was in -£1500 negative equity and that if I wanted a new car, I’d need to pay the £1500 cash to clear the negative equity before I could pick up a brand new car (I wanted a brand new as of course it would be perfect condition and more importantly - cheaper as you get deposit contribution and lower APR). There’s now no evidence at all on my invoices etc to show that I was in any negative equity... so I’m paying much more for a car that’s just not worth the price, when I would have just got a brand new one as I would now be saving money each month....
Monthly Payment: £409.98.
Vehicle Cash Price: £22829.
Amount of Credit: £22728.
Total amount payable: £28430.04
Rate of Interest: 8.88%
APR: 8.9%
The car is no where near the value of when I bought it 13 months ago and I’m around £5000 in negative equity due to this.
If I was to voluntarily terminate the PCP contact I would need to make up a shortfall of around £9000 just to send it back!
£409.98 x 48 months = £19679.04 which is almost the value of the car when I bought it... and I won’t own the car at the end of the agreement? Surely that’s not right?
Final payment is £8640 after the 48 months to own the car .
What are my options here?
0
Comments
-
Your options are to terminate and make up any shortfall, or pay it off and keep it.
To terminate, you need to pay half of the full amount.0 -
Total amount payable: £28430.04
Jesus, that's a lot for a car.0 -
Yeah, for a car that has already dropped more than 25% within 12 month. Just overpaying way too much for a car that’s not worth any where near0
-
I'm not meaning to sound harsh here but by the sounds of it you haven't thoroughly examined the car before signing up for the deal.
The APR you're on for the deal is poor as well. I have a similar deal/values and I'm on 3.4%.
Regarding the keys, you must have noticed them when picking up the car and queried it during your cooling off period?
Did you have depreciation in mind when you identified your make and model of car? New cars nowadays are fairly easy to track/predict depreciation.0 -
How can you be in £1500 negative equity BEFORE buying this car?0
-
Yeah, for a car that has already dropped more than 25% within 12 month. Just overpaying way too much for a car that’s not worth any where near
Most people do not sell a new car a few months after buying it.....considering you have overpaid, its a good idea to take out GAP insurance, if you havent already.0 -
tommyedinburgh wrote: »I'm not meaning to sound harsh here but by the sounds of it you haven't thoroughly examined the car before signing up for the deal.
The APR you're on for the deal is poor as well. I have a similar deal/values and I'm on 3.4%.
Regarding the keys, you must have noticed them when picking up the car and queried it during your cooling off period?
Did you have depreciation in mind when you identified your make and model of car? New cars nowadays are fairly easy to track/predict depreciation.
Yeah, I don’t believe I’ve checked the car over at all before getting it, that’s my bad but from a main dealership you don’t expect these sort of damages.
I contacted the salesman 100% within the month so hopefully was within the first 14 days. I’ve got it all logged on email.0 -
And my bad, I I should have mentioned that. I part ex’d my previous vehicle which was also on PCP.0
-
And my bad, I I should have mentioned that. I part ex’d my previous vehicle which was also on PCP.
That would make sense, you do know that you are now paying more interest on the depreciation of the previous car? Best keep on paying for this one if you cannot reject it and dont take on another PCP deal again.0 -
Ah okay thanks for your help
My main sorta question was would I have any chance of complaining to dealership / finance company about being lied to about negative equity and the damage on the car that was there?
Was thinking of making a negative social media post with screenshot of their email stating that their “used” vehicles are expected to be damaged...0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards