Car PCP - Lead balloon payment

[Deleted User]

The fact that they have the car and you paid them to take it off you puts you in a good position. Write to them telling them that they have 28 days to settle the finance or send you the equivalent amount of money or you will consider legal action. Inform the finance company that you are pursuing them for the outstanding amount and to please wait while you deal with them.

Catholic666

flashg67 said:

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?

I have had no letter from the DVLA. I will try my car insurers legal dept. Thanks

Catholic666

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?

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.

I thought that was what I'd done. Returned it to the supplying dealer at the end of the PCP.
Thanks

DoaM

Catholic666 said:

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?

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.

I thought that was what I'd done. Returned it to the supplying dealer at the end of the PCP.
Thanks

It was your use of the term sold that may be confusing things.

Catholic666

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.

I had clipped a kerb which caused the visible damage to the alloy wheel. They were aware of this. It wasn't buckled and the tyre hadn't burst. The steering was not affected. It had not been in any other "accident." It has not been the subject of an insurance claim. If I'd wanted to hide it I could have replaced the wheel. The vehicle was mot'd a week before I returned it. For the mot it did require a track rod end replacing. This was on the wheel which hit the kerb. I would consider this wear & tear rather than accident damage.
Thanks

Catholic666

DrEskimo said:

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.

Possible but hardly my fault. I'm sure if a car is worth more than they agree to pay (often) they don't phone customers and pay extra.
Thanks

Catholic666

facade said:

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.

I'd kerbed a wheel. The track rod end was subsequently replaced for the mot. I had not tried to hide this. The car was 4 years old. Over that period I was not the only person to drive it. I am unaware of any other accident

Catholic666

born_again said:

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?

A HPI would be clear as there has never been an insurance claim. I'm the only person who's insured the car. The garage could have damaged it.
Thanks

Catholic666

[DELETED USER] said:

The fact that they have the car and you paid them to take it off you puts you in a good position. Write to them telling them that they have 28 days to settle the finance or send you the equivalent amount of money or you will consider legal action. Inform the finance company that you are pursuing them for the outstanding amount and to please wait while you deal with them.

Thanks. That seems like the best way forward.

Catholic666

DoaM said:

Catholic666 said:

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?

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.

I thought that was what I'd done. Returned it to the supplying dealer at the end of the PCP.
Thanks

It was your use of the term sold that may be confusing things.

Very true. This highlights common misconceptions about PCP. When I took mine I was encouraged to underestimate my mileage to reduce the payments. The salesman said I'd never be penalised for going over the agreed mileage as long as I took a replacement car off Lookers at or before the end of the PCP. Any branch of Lookers, any make, new or secondhand, finance or cash purchase. It seemed likely that I'd want to do so especially as I wasn't bound to take a new, expensive, financed vehicle. The salesman was playing on words. Whilst you aren't penalised (incurring penalty charges) the mileage does effect the value of your trade-in and therefore how much debt you are in. This isn't a penalty but does cost you money. Also, when you sign the PCP, you sign a finance agreement for the total purchase price plus interest including the balloon payment. You can't just "bring the car back" as it needs to go to the finance company (not the local dealer.) This is not made clear or it wasn't made clear to me. The balloon payment is the responsibility of the customer unless they return the car in immaculate condition to the finance company. When you sign for the car, the balloon payment is scheduled to come out of your bank at the end automatically. You have to take action to stop it from happening. You can only easily take it back to where you bought it if you take another car. The dealer isn't obliged to buy your car unless you trade it for another. If the balloon payment isn't covered by the value of your original car the shortfall is refinanced in the agreement for the replacement car. It can be a trap