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PCP Please Help

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BMH1990
BMH1990 Posts: 5 Forumite
First Post
Hyundai Finance have confirmed my total amount payable. Working off this basis I have paid off 50% of this figure and could technically VT the car (this is my end goal anyway!)

when I called them this morning, they have advised me that I have a ‘Personal Loan PCP’ and not a conditional sale. Therefore meaning that I can only VS the car and not VT. 

I queried that a personal loan and PCP are two separate things and the finance customer advisor explained that it is a personal loan as they hold no interest in the vehicle. Technically this makes it legally mine hence the only way to get rid off the car would be to sell it at auction or privately sell it. In the next breath, she told me that I had a PCP and could keep the car at the end of the contract once the balloon payment is paid.

my husband thinks they are trying to throw me off and confuse me. Has anyone else heard of a PCP Personal Loan as opposed to a PCP Conditional Sale?!

Comments

  • DrEskimo
    DrEskimo Posts: 2,432 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    What does your contract say around VT?
  • motorguy
    motorguy Posts: 22,611 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    BMH1990 said:
    Hyundai Finance have confirmed my total amount payable. Working off this basis I have paid off 50% of this figure and could technically VT the car (this is my end goal anyway!)

    when I called them this morning, they have advised me that I have a ‘Personal Loan PCP’ and not a conditional sale. Therefore meaning that I can only VS the car and not VT. 

    I queried that a personal loan and PCP are two separate things and the finance customer advisor explained that it is a personal loan as they hold no interest in the vehicle. Technically this makes it legally mine hence the only way to get rid off the car would be to sell it at auction or privately sell it. In the next breath, she told me that I had a PCP and could keep the car at the end of the contract once the balloon payment is paid.

    my husband thinks they are trying to throw me off and confuse me. Has anyone else heard of a PCP Personal Loan as opposed to a PCP Conditional Sale?!
    Yes, i've heard of it and it is a known product.

    You need to look at the paperwork that you signed and see what it says RE: your rights.  VT is a right with a Hire Purchase agreement, so you'd also be looking for mention of that.
  • neilmcl
    neilmcl Posts: 19,460 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You need to dig out your finance agreement and have a good look as to what product you have signed up to. On the Hyundai Finance website there's only 3 products available, traditional PCP, PCH and a what they call a Personal Motor Loan. The latter is a straighforward loan with no optional final payment.
  • Nearlyold
    Nearlyold Posts: 2,375 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper Combo Breaker
    The Hyundai website states this :- 

    Personal Contract Purchase in detail

    Similar to a Personal Motor Loan contract but with additional flexibility since part of the cost is deferred until the end of your contract. Also known as an optional final payment (OFP), it may give you the benefit of lower monthly repayments.

    This would clearly indicate their PCP product is based on a Personal Loan AKA (Fixed Sum/Term Loan Agreement) and therefore will not have any VT rights. VT rights apply to HP & Conditional Sale based products

  • neilmcl
    neilmcl Posts: 19,460 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 20 May 2020 at 1:48PM
    Nearlyold said:
    The Hyundai website states this :- 

    Personal Contract Purchase in detail

    Similar to a Personal Motor Loan contract but with additional flexibility since part of the cost is deferred until the end of your contract. Also known as an optional final payment (OFP), it may give you the benefit of lower monthly repayments.

    This would clearly indicate their PCP product is based on a Personal Loan AKA (Fixed Sum/Term Loan Agreement) and therefore will not have any VT rights. VT rights apply to HP & Conditional Sale based products

    No it doesn't clearly indicate that at all. At the end of the day the only thing that will state exactly what the agreement is, is the agreement itself.

    Having downloaded the information regarding their PCP product it looks like a traditional PCP to me however on the second page they do go onto to state:

    "Fixed Sum Loan with Optional Final Payment

    If you have applied for a Personal Contract Purchase agreement we may offer you an alternative product known as a Fixed Sum Loan with optional final payment (OFP). " so perhaps this is what has happened with the OP.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    This is the Hyundai page in question.
    https://www.hyundaifinance.co.uk/finance-explained/personal-contract-purchase/
    with a link to a "more detail" doc.
    https://www.hyundaifinance.co.uk/media/1252/hyundai-product-presenter-2018_pcp.pdf

    Page 3 of that seems to be the relevant one here.
    Fixed Sum Loan with Optional Final Payment
    If you have applied for a Personal Contract Purchase agreement we may offer you an alternative product known as a Fixed Sum Loan with optional final payment (OFP).

    Typical repayment periods are 25, 37, 43 or 49 months.

    This product replicates Personal Contract Purchase, part of the cost is deferred until the end of the agreement which may give you the benefit of lower monthly payments. The deferred amount is known as the optional final payment. At the end of the agreement you have the same three ownership options, but you own the car right from the start of the loan.

    Your dealer will advise if we can offer you this product, as it isn’t available by choice. The decision will be based on the car, the amount of deposit, your credit score and the optional final payment.

    This type of agreement is covered by the Consumer Credit Act 1974, which means:
    • You can pay off lump sum amounts during the agreement.
    • You can settle the agreement early by repaying the required amount.

    This type of agreement is not available to corporate entities e.g. limited companies, PLCs or limited partnerships.
  • Nearlyold
    Nearlyold Posts: 2,375 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper Combo Breaker
    edited 20 May 2020 at 4:23PM
    It should indicate that - I worked in Car Finance, we would not use  " Similar to a Personal Motor Loan" in an advert if it was HP or Conditional Sale based. - however it would appear in this case it's misleading.
     As you say the definitive answer will be typically right at the top of the first page of the agreement.
    While the majority of PCP agreements have historically been Hire Purchase agreements - the bits that make it a PCP are just tweaks to a standard HP. Some PCPs are Conditional Sale agreements and some are Fixed Sum/Term Loan agreements (basically hybrid personal loans).
    Any HP based PCP agreement will always have a statement along the lines of "This is a Hire Purchase Agreement regulated under the etc" typically right at the top of the first page of the agreement, a Personal Loan based PCP will state "This is a Fixed Sum/Term Loan agreement"  regulated under the etc.
    Think the Credit Provider is actually Santander - they do have form for switching the customer to non VT'able products - of course the dealer is meant to inform the customer
  • Thank you for everyone’s replies. Thought I’d update just in case anyone checks back-especially as it annoys me when I don’t get closure on these things!! 

    So it turned out that the loan was a personal loan against me, not the car, so I had no VT rights. It was extremely frustrating as we were told two different things by two different Hyundai customer advisors. In the end, my mother in law kindly loaned us the money to pay off the personal loan, and we sold the car to a local garage (for a loss of about £800 which were now paying back to my MIL!) 

    Lesson learned!
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