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PCP Finance

edited 16 February at 9:48AM in Loans
6 replies 232 views
Jamie8990Jamie8990 Forumite
3 posts
First Post
MoneySaving Newbie
edited 16 February at 9:48AM in Loans
Hi all,

So here's the problem. I have had a PCP with mini finance since 2017 and have had no issues making each payment.

July 2019 I had an epileptic seizure and this means I have had to surrender my licence for 1 year (and will get it back after this period) the Doctor has already said as much.
With this I informed Mini in July 2019 to see if there were options of doing voluntary termination of contract but the amount left to pay (because I wasnt half way didn't suit) there were no other stipulations from them and I have continued to pay this (again  no issues) 

Fast forward to yesterday and I've had a letter from their collections team issues a statement of intent to shortly issue a notice of default???

Checked my credit profile and I'm 100% up to date with payments and never missed one. They state in the letter that I'm in breach of contract for not currently holding a licence but the agreement I've got and read through doesn't state anything about maintaining a licence...
Im intending to complain and take this to the ombudsom but my initial concern is whether a default notice is enforceable and if so is this a traditional one? As I havent missed a payment!! 

Thanks in advance

Replies

  • DrEskimoDrEskimo Forumite
    1K posts
    1,000 Posts Second Anniversary
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    Is there anything in the agreement about having a valid insurance certificate on the vehicle? Presumably it's not insured, as you don't have a license?

    In any case, VT is not your only option. Indeed it might not be the best option either. If you want to get rid of the car, then have a look at the cars trade value and compare that against the finance settlement. You can get a settlement figure very easily, and you can get a rough idea of its trade value by running a valuation through WBAC. 

    I suspect you might want to discuss this with the dealer again given the default notice, as that may complicate things.
  • Jamie8990Jamie8990 Forumite
    3 posts
    First Post
    MoneySaving Newbie
    DrEskimo said:
    Is there anything in the agreement about having a valid insurance certificate on the vehicle? Presumably it's not insured, as you don't have a license?

    In any case, VT is not your only option. Indeed it might not be the best option either. If you want to get rid of the car, then have a look at the cars trade value and compare that against the finance settlement. You can get a settlement figure very easily, and you can get a rough idea of its trade value by running a valuation through WBAC. 

    I suspect you might want to discuss this with the dealer again given the default notice, as that may complicate things.
    So this is the thing. Nothing I can see states it has to. Regarding insurance, I do have it insured. I've spoken to the insurer and they were happy to continue having it insured and I've got it insured under Third party, fire and theft.

    I wanted to keep it insured as I plan to driving it again in July. I also dont actually want to VT, I only initially enquired to see what it looked like.
    I intend to continue paying the costs per month to have the finance which I can pay and have no issues with.

    I've had a settlement and they want nearly 3k to settle the VT because I'm not half way at the finance stage yet... hence not wanting to do it.

    The biggest thing I want to understand is where this default notice would be coming from, as so far as I can attain from CCA is that defaults are only relevant if you cannot make or have missed payments (which I havent) any thoughts on this ??
  • DrEskimoDrEskimo Forumite
    1K posts
    1,000 Posts Second Anniversary
    ✭✭✭
    Jamie8990 said:
    DrEskimo said:
    Is there anything in the agreement about having a valid insurance certificate on the vehicle? Presumably it's not insured, as you don't have a license?

    In any case, VT is not your only option. Indeed it might not be the best option either. If you want to get rid of the car, then have a look at the cars trade value and compare that against the finance settlement. You can get a settlement figure very easily, and you can get a rough idea of its trade value by running a valuation through WBAC. 

    I suspect you might want to discuss this with the dealer again given the default notice, as that may complicate things.
    So this is the thing. Nothing I can see states it has to. Regarding insurance, I do have it insured. I've spoken to the insurer and they were happy to continue having it insured and I've got it insured under Third party, fire and theft.

    I wanted to keep it insured as I plan to driving it again in July. I also dont actually want to VT, I only initially enquired to see what it looked like.
    I intend to continue paying the costs per month to have the finance which I can pay and have no issues with.

    I've had a settlement and they want nearly 3k to settle the VT because I'm not half way at the finance stage yet... hence not wanting to do it.

    The biggest thing I want to understand is where this default notice would be coming from, as so far as I can attain from CCA is that defaults are only relevant if you cannot make or have missed payments (which I havent) any thoughts on this ??
    I'm afraid I have no idea. It seems odd to me too. Have you tried contacting them to discuss it?

    Yes, to exercise your right to VT, you will have to pay at least 50% of the total amount payable. But you don't have to VT to exit the plan early. You can simply sell the car to a dealer, garage or online broker and they will settle the finance for you. Of course, how much of the finance they settle will depend on how much they are willing to buy the car for.

    What is the settlement figure if you wanted to buy the car from the finance company today?
    What is the value of the car if you were to sell it to WBAC?
    How does this valuation from WBAC compare with the value it's selling on the used market (both private ads and trade ads)?
  • Jamie8990Jamie8990 Forumite
    3 posts
    First Post
    MoneySaving Newbie
    DrEskimo said:
    Jamie8990 said:
    DrEskimo said:
    Is there anything in the agreement about having a valid insurance certificate on the vehicle? Presumably it's not insured, as you don't have a license?

    In any case, VT is not your only option. Indeed it might not be the best option either. If you want to get rid of the car, then have a look at the cars trade value and compare that against the finance settlement. You can get a settlement figure very easily, and you can get a rough idea of its trade value by running a valuation through WBAC. 

    I suspect you might want to discuss this with the dealer again given the default notice, as that may complicate things.
    So this is the thing. Nothing I can see states it has to. Regarding insurance, I do have it insured. I've spoken to the insurer and they were happy to continue having it insured and I've got it insured under Third party, fire and theft.

    I wanted to keep it insured as I plan to driving it again in July. I also dont actually want to VT, I only initially enquired to see what it looked like.
    I intend to continue paying the costs per month to have the finance which I can pay and have no issues with.

    I've had a settlement and they want nearly 3k to settle the VT because I'm not half way at the finance stage yet... hence not wanting to do it.

    The biggest thing I want to understand is where this default notice would be coming from, as so far as I can attain from CCA is that defaults are only relevant if you cannot make or have missed payments (which I havent) any thoughts on this ??
    I'm afraid I have no idea. It seems odd to me too. Have you tried contacting them to discuss it?

    Yes, to exercise your right to VT, you will have to pay at least 50% of the total amount payable. But you don't have to VT to exit the plan early. You can simply sell the car to a dealer, garage or online broker and they will settle the finance for you. Of course, how much of the finance they settle will depend on how much they are willing to buy the car for.

    What is the settlement figure if you wanted to buy the car from the finance company today?
    What is the value of the car if you were to sell it to WBAC?
    How does this valuation from WBAC compare with the value it's selling on the used market (both private ads and trade ads)?
    I was expecting that might be the case as it seems incredibly poor to take that stance.

    I'm due to call them Monday as the offices aren't open on the weekend.

    WBAC offer is about 10k but the finance is about 13k so I dont fancy paying the difference. Hence just preferring to pay the finance aside can VT later down the line for free. 

    I've not looked privately, but will keep you updated once I've made the call on monday. 
  • DrEskimoDrEskimo Forumite
    1K posts
    1,000 Posts Second Anniversary
    ✭✭✭
    Jamie8990 said:
    DrEskimo said:
    Jamie8990 said:
    DrEskimo said:
    Is there anything in the agreement about having a valid insurance certificate on the vehicle? Presumably it's not insured, as you don't have a license?

    In any case, VT is not your only option. Indeed it might not be the best option either. If you want to get rid of the car, then have a look at the cars trade value and compare that against the finance settlement. You can get a settlement figure very easily, and you can get a rough idea of its trade value by running a valuation through WBAC. 

    I suspect you might want to discuss this with the dealer again given the default notice, as that may complicate things.
    So this is the thing. Nothing I can see states it has to. Regarding insurance, I do have it insured. I've spoken to the insurer and they were happy to continue having it insured and I've got it insured under Third party, fire and theft.

    I wanted to keep it insured as I plan to driving it again in July. I also dont actually want to VT, I only initially enquired to see what it looked like.
    I intend to continue paying the costs per month to have the finance which I can pay and have no issues with.

    I've had a settlement and they want nearly 3k to settle the VT because I'm not half way at the finance stage yet... hence not wanting to do it.

    The biggest thing I want to understand is where this default notice would be coming from, as so far as I can attain from CCA is that defaults are only relevant if you cannot make or have missed payments (which I havent) any thoughts on this ??
    I'm afraid I have no idea. It seems odd to me too. Have you tried contacting them to discuss it?

    Yes, to exercise your right to VT, you will have to pay at least 50% of the total amount payable. But you don't have to VT to exit the plan early. You can simply sell the car to a dealer, garage or online broker and they will settle the finance for you. Of course, how much of the finance they settle will depend on how much they are willing to buy the car for.

    What is the settlement figure if you wanted to buy the car from the finance company today?
    What is the value of the car if you were to sell it to WBAC?
    How does this valuation from WBAC compare with the value it's selling on the used market (both private ads and trade ads)?
    I was expecting that might be the case as it seems incredibly poor to take that stance.

    I'm due to call them Monday as the offices aren't open on the weekend.

    WBAC offer is about 10k but the finance is about 13k so I dont fancy paying the difference. Hence just preferring to pay the finance aside can VT later down the line for free. 

    I've not looked privately, but will keep you updated once I've made the call on monday. 
    Oh OK, so it's worth ringing around different dealers and seeing if they can offer a better price than WBAC. You will get a lot of variation in the offer price, so if you can get anywhere near the £13k settlement then ideally you could just sell it to them, and then they settle the finance and you are sorted.

    Good luck with speaking to them tomorrow.
  • chanz4chanz4 Forumite
    10.3K posts
    Tenth Anniversary 10,000 Posts Xmas Saver!
    ✭✭✭✭✭
    Insurance you are required to cover fully comprehensive insure the car
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
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