PCP Finance -

tommyedinburgh

Ryann. wrote: »

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...

It doesn't sound to me like you've been mis-sold the finance or lied to. The negative equity relates to what they valued your trade-in at, did you check that you were getting a good deal? A fair offer?


Regarding the social media post, I'm not convinced it really matters. I previously worked for an organisation and it made not one ounce of difference to our business, if anything it directed clicks to our site - free advertising.

Penguin_

Ryann. wrote: »

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...

Presumably they told you how much they would give you for your car? This figure was obviously less that the amount left on your previous PCP. I know when I worked for a VW dealership we used to show the deposit as a negative if this was the case, so it inflates the total price paid.

tommyedinburgh

Ryann. wrote: »

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.

It sounds like you are outwith the cooling off period? A logged email won't allow you to cancel the finance.

Ryann.

foxy-stoat wrote: »

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.

Penguin_ wrote: »

Presumably they told you how much they would give you for your car? This figure was obviously less that the amount left on your previous PCP. I know when I worked for a VW dealership we used to show the deposit as a negative if this was the case, so it inflates the total price paid.

It was a VW Dealership, and my concern is that there is no evidence at all about any negative equity, and was told on the phone to the salesman that they had paid the car off for me, which is why I’m confused at why he told me I would need £1500 cash to pay off any negative equity before I could get a brand new car.

I’ve had the car for 13 months, so yes I’m well out of the cooling off period, but what I meant was I contacted the dealership within the cooling off period about the damaged keys

Penguin_

Ryann. wrote: »

It was a VW Dealership, and my concern is that there is no evidence at all about any negative equity, and was told on the phone to the salesman that they had paid the car off for me, which is why I’m confused at why he told me I would need £1500 cash to pay off any negative equity before I could get a brand new car.

I’ve had the car for 13 months, so yes I’m well out of the cooling off period, but what I meant was I contacted the dealership within the cooling off period about the damaged keys

Yes so as part of the deal they settle your finance which lets say has £4500 left to go. The car itself is only worth (to them remember as they will want to sell it with a profit) £3000 so you are £1500 the wrong way. You haven't been lied to as far as I can see, you should have know (or still know) how much was left on finance.

tommyedinburgh

It sounds like you're going to have to put this one down to experience. Hopefully you're in a Cupra/S3/Golf R etc to soften the blow.

Andyjflet

Ryann. wrote: »

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?

I work in finance for a major brand, your negative equity is common these days, due to TCF this now cannot be lumped and bumped onto another car, however, deposit contributions can help, and customers obviously can add cash.

PCP is designed to work so that the closer you are to the end then the more chance you have being in equity, if you are not then you can hand back before the GFV is due based on the conditions you signed up to.

Your current options are to pay the difference on settlement, wait until you have paid 50% of the total amount payable and hand back, or continue with the purchase.

Based on the residual value and the APR I'm guessing this isnt a premium brand, good luck.

PS. Sounds like you have been a bit naive in not reading or understanding the terms before you signed, the reason the salesman advised that you had to settle the negative equity was as per my post above, you cant finance negative equity, it also seems you have put no deposit in, so you have effectively financed the whole car.

Ryann.

2.0 TDI so not really.


And this was Volkswagen and I’m just stupidly overpaying.

Andyjflet

Ryann. wrote: »

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...

Why do you think you have been lied to ? I cant see this at all, they have told you you need to settle the negative equity before you got into the new car, in actual fact you could have VT'd the deal if you had paid more than 50% of the total amount. VWFS are very strict on us dealers now with regard to all these matters.

Andyjflet

Ryann. wrote: »

It was a VW Dealership, and my concern is that there is no evidence at all about any negative equity, and was told on the phone to the salesman that they had paid the car off for me, which is why I’m confused at why he told me I would need £1500 cash to pay off any negative equity before I could get a brand new car.

I’ve had the car for 13 months, so yes I’m well out of the cooling off period, but what I meant was I contacted the dealership within the cooling off period about the damaged keys

The dealer would have to contra settle the original deal before they could pay out on the new deal, nothing wrong here.

The damage and keys are a different matter.