End of PCP

amyloofoo

Hi all,

My PCP contract is going to end on 24th of this month, with my payment being due on 21st. I received a letter on 30th December telling me to ring them and speak about my 4 options:

- Changing to a new vehicle
- Refinancing current vehicle
- Paying the remaining balance (~£4200)
- Handing back the vehicle

I don't like speaking on the phone and like to take notes, so booked an appointment to discuss in the showroom today instead. The salesperson immediately told me that I wouldn't be able to refinance or hand back the vehicle as they would already have requested the payment, so I needed to pay the remaining balance or sign up for a new PCP. The letter has no mention of there being a final date to hand back the vehicle (prior to the end of the contract) nor is it mentioned in the letter. Is this right or am I being told something inaccurate to get a sale? The customer service number isn't open a Sunday and I've already had a call from the sales team offering me a further discount and telling me I need to make my mind up very soon.

I'm feeling a bit pressured and very confused

neilmcl

You need to speak directly to the finance company not the dealer.

loskie

if a PCP you most definitely can hand the car back but to the finance co. Your mistake is in dealing with the dealer and not the owners of the car: the finance company.

Car dealer is not your friend and only wants to keep you trapped in a finance deal that suits them not you best

AdrianC

amyloofoo wrote: »

My PCP contract is going to end on 24th of this month, with my payment being due on 21st. I received a letter on 30th December telling me to ring them and speak about my 4 options:

- Changing to a new vehicle
- Refinancing current vehicle
- Paying the remaining balance (~£4200)
- Handing back the vehicle

Of those, 2 and 3 are the same thing - you buying that car from the PCP. The difference is just how you pay the balloon - cash or finance.
1 is simply then buying a new car on a new deal.
4 is saying "thank you", and walking away.

I don't like speaking on the phone and like to take notes, so booked an appointment to discuss in the showroom today instead.

It's not the dealer you need to speak to. It's the finance company. The dealer will sell you a new car, the finance company are the people dealing with your existing one.

k6chris

loskie wrote: »

Car dealer is not your friend and only wants to keep you trapped in a finance deal that suits them not you best

Just to add to this point, car dealers employ nice, presentable people to sell stuff; finance, options and cars, in that order. They will happily lie to you, in order to sell you finance, options or a car. It's their job and telling lies or perhaps misguiding people (if I was feeling charitable) is what they are paid to do.



As others have said, talk to the finance company, who own the car and with whom you have a contract. They will be far more straight forward than the car dealers. Good idea to take notes though!


Good luck.

missile

I would suggest you find a knowledgeable friend to speak with finance company on your behalf.

born_again

Well in reality only you know what you want to do.

Do you want to keep the car?
- Refinancing current vehicle
- Paying the remaining balance (~£4200)
But I would look for other finance options. Bank loan or maybe credit card with 0% purchase interest if finance co will take it and confirm that it is a purchase and not a cash based transaction.

Or not then it's hand it back.
Then go and find a new car.

daveyjp

Car salesman lies in attempt to sell a new car. Nothing changes in car sales!

Goudy

I don't think the salesman is completely lying to you, rather that you might have left it all a bit late.

If you read your contract it will tell you how soon you are expected to inform the finance company that you are returning the vehicle as they need to arrange inspection and collection, then settle your account and cancel the final GFV payment.

I suspect the salesman is being honest (to a point) with you by telling you the finance company will probably not be able to sort all this in the time frame before the GFV is due.

As suggested already, you need to talk to the finance company not the dealer.
If you have left it later than their standard notice time, you might be able to arrange your own delivery to whichever auction house handles their inspections, collections and disposals if you really want to hand it back.

DrEskimo

Before you even contemplate just handing it back, check its value using WBAC and other online valuations. If it's worth the same or greater than your settlement, then you can sell the car direct to them within an afternoon and have the finance cleared, and potentially some money back in your pocket.

Alternatively, check its value using AT. See what dealers and private sales are going and determine how that stacks up with the online valuations. If it looks to be advertised for a lot more than your settlement, then I would be inclined to borrow the money the cheapest way you can, and buy the car. If you then want to change cars immediately or soon after, you can. Then use the sale proceeds towards the next car.

amyloofoo

Hello all, just remembered I didn't update this and thought it may be helpful to others! As many have said, the salesperson was bending the truth quite significantly. I was (and still am) able to refinance or return my car - though my husband has decided to part-ex it for a new car for him. The salesperson has been off when I've called but I'll be letting him know his 'mistake' when I see him.