Car PCP - Lead balloon payment

Catholic666

I bought a new VW from Lookers in Oct 2015 on a 4 year pcp. On 21st Nov 2019 I sold the car back to the dealer to avoid the balloon payment which would have been due 30th Nov 2019. They spent 30 mins checking the car. 1 wheel needed refurbishing as I'd kerbed it and I was over the agreed mileage. Otherwise they were happy. They requested a settlement figure from VW finance (the provider/package they had sold me with the car.)  The figure arrived from VW finance on email while I was waiting at the dealer. They said I'd need to pay £450 to walk away. I gladly did so on a debit card. They filled in the log book, tearing off section 9 for me to keep. It has their service manager's signature on it & I still have it along with a debit card receipt. They said they'd pay the finance off immediately. I never could have imagined what was to happen next.
They phoned me early the next day & said they weren't buying my car, saying it had been in an accident. Other than the kerbed wheel, it had not, to my knowledge been in any accident. It had passed an mot less than a week earlier. They said I must come and pick it up. I refused, reminding them that I was going on holiday (abroad) that morning. I said that I thought they'd already bought it. They said they had 30 days to change their mind, just like if I'd bought a car from them. They hung up. 5 minutes later they rang back. They said they'd do me a massive favour and still buy the car but that they'd have to auction it, not put it on the forecourt because of the damage. They said I needed to pay another £450 (to cover their losses) on a card over the phone and then I could forget all about it. I considered their request. I asked if there would be more paperwork to complete and they said no. I thought they were "trying it on" so I said I didn't have a card on me. My rationale was that if there was no more paperwork required to complete the sale, then the sale must already be complete. I went on holiday and didn't dwell on it any longer.
To my surprise, on 28th January this year I started receiving text messages from VW finance regarding the outstanding balance on my account. I phoned them and explained several times exactly what had happened. They had a record of the dealer requesting the settlement figure but no record of any payment. VW finance said they were still pursuing me for the balloon payment as the finance was in my name. They suggested me bringing the car back to them directly as a remedy. I restated that I'd already sold the car to their agent. They stressed that Lookers had nothing to do with them. I said that as Lookers was the VW dealer who'd sold me the VW car & their VW finance deal I considered them the same entity. Despite Lookers possessing the vehicle, requesting a settlement figure, signing the logbook and taking my £450, VW finance claim that Lookers did not pay the finance off. VW finance said they would investigate my complaint but that it could take a while (they said how long but I forget.) They said I could be black-listed in the meantime. I said that I wanted to raise a dispute and would be taking legal advice. They have not yet asked me for any evidence (logbook, debit card receipt, bank statement). This makes me doubt that they are actually investigating. I am still receiving messages regarding "my" outstanding balance from VW finance as well as messages inviting me to Lookers sales events from the dealer. I am very worried about this & I suffer from ongoing health issues that are stress-related.
I am baffled by this situation and I'm increasingly worried as I've read that Lookers are embroiled in some kind of a fraud scandal. I'm terrified that they are going to go "bust" whilst the situation is unresolved, leaving a false debt in my name.
I have phoned 2 no-win, no-fee solicitors but none seem interested. I'd be very grateful for any advice as I have no idea what to do.

Mercdriver

No win no fee are for Accident injuries... I'm not aware of any that operate in this manner for resolving issues like this.

Clive_Woody

Sounds like you need to contact Lookers and find out what they did with the car after you left it with them, although I would guess they would be on lock down. I would send them a letter of complaint (keeping a copy) detailing the timelines and discussions - keep it brief and leave out emotion.

Catholic666

Mercdriver said:

No win no fee are for Accident injuries... I'm not aware of any that operate in this manner for resolving issues like this.

So it seems. I naively hoped they may have an interest. It does seem like a fraud/theft (to me). In essence they've acquired a car without paying for it. I haven't rang the police.
Thanks anyway

flashg67

do you have legal cover on your home or car insurance that might offer advice? Did you receive the DVLA letter to say you were no longer the keeper?

littleboo

If the car is on finance, then the finance should have been cleared before you left the dealers to avoid this situation. In the same way, had they given you the cash, you could have taken that away and failed to clear the finance.
I wasn't aware that the dealers had a 30 day right to rejection, that's a consumer protection. They are experts and have the skills and facilities to more robustly inspect a vehicle, I think they were probably making that up. 

AdrianC

Catholic666 said:

I bought a new VW from Lookers in Oct 2015 on a 4 year pcp. On 21st Nov 2019 I sold the car back to the dealer to avoid the balloon payment which would have been due 30th Nov 2019.

I'm baffled. Why on earth didn't you simply hand it back at the end of the PCP?

They suggested me bringing the car back to them directly as a remedy. I restated that I'd already sold the car to their agent. They stressed that Lookers had nothing to do with them. I said that as Lookers was the VW dealer who'd sold me the VW car & their VW finance deal I considered them the same entity.

You can consider them the Pope, if you wish. It doesn't make it so.

The_Rainmaker

Catholic666 said:
Other than the kerbed wheel, it had not, to my knowledge been in any accident. 

That's a strange turn of phrase?  Especially since you had it from new.

DrEskimo

AdrianC said:

Catholic666 said:

I bought a new VW from Lookers in Oct 2015 on a 4 year pcp. On 21st Nov 2019 I sold the car back to the dealer to avoid the balloon payment which would have been due 30th Nov 2019.

I'm baffled. Why on earth didn't you simply hand it back at the end of the PCP?

Perhaps the excess mileage charge + alloy repair would have been greater than the £450 negative equity bill they got for trading it in.

facade

The_Rainmaker said:

Catholic666 said:
Other than the kerbed wheel, it had not, to my knowledge been in any accident. 

That's a strange turn of phrase?  Especially since you had it from new.

Cue the usual torrent of posts stating that most "brand new" cars have been dropped off the side of the boat/played bumping cars with so have had bodywork repairs before delivery, so the owner never knows.

born_again

Do a HPI on the car and see what comes back....
As to the accident. Could it be that a staff member used car when you returned it and had one?