Issue with PCP company

Locornwall

I took a PCP car almost three years ago, which finishes 31st August.

i contacted the provider in July to tell them I wanted to hand the vehicle back. The provider told me it would be best for me to call them back after my last instalment, which was on 01/08/2020. They said this is because if I hand it back early it may affect my credit score / report. I contacted them yesterday and they told me the earliest they can collect it is 02/09/2020. This means I will need to MOT and tax the vehicle. I obviously don’t want to do this, as it will cost me money. I have emailed the provider today to tell them they will have to collect it sooner and if not I will show the vehicle as SORN, as I am not using it.

Any advice?
Thanks

DrEskimo

Have you checked what it's trade value is relative to the settlement (i.e. the final balloon payment)?

If the car's value is the same, or potentially greater, then it would be in your interest to trade it in, rather than simply hand it back. Not to mention much easier...

Try WBAC to get a basic quote, then look on AT and see what it's value is trade/private sale. Finally ring around a few garages and dealerships and see if any are interested in buying it from you. This will help you get the best price.

flashg67

Your contract finishes 31st August and they're collecting 2 days later - have you checked if they're contractually obliged to collect it before the contract end date? 2 days after seems reasonable.  

Grumpy_chap

 flashg67 said:

Your contract finishes 31st August and they're collecting 2 days later - have you checked if they're contractually obliged to collect it before the contract end date? 2 days after seems reasonable.  

I would imagine exactly the opposite is true - i.e. they must be contractually obliged to leave the car with the customer until the contract end date.

Just imagine the threads we would see if the PCP company could collect 2 days early.  It would be all "I have paid for this car until 31st August, now it is being taken 2 days early, what compensation will I get?"

Locornwall

Ok I see your point, but seems naughty for me to have to get the car MOT’d just for one day, meaning I’d be paying for the whole year.

Grumpy_chap

You may not need to get the car MOT'd.  Have you asked the PCP company how they wish to manage these aspects after your contract ends, when you will not be liable for the vehicle?

Locornwall

Again, I see your point, but isn’t it law it needs to be mot’d?

Grumpy_chap

But, if the car is deemed to be no longer in your possession, it is not your responsibility or liability to sort the MOT.

Out of interest, is this situation covered somewhere in the agreement?  3 year PCP and car not collected on exactly the return date must be common.

neilmcl

Grumpy_chap said:

But, if the car is deemed to be no longer in your possession, it is not your responsibility or liability to sort the MOT.

Out of interest, is this situation covered somewhere in the agreement?  3 year PCP and car not collected on exactly the return date must be common.

Until the car is handed over it is in the OP's possession.

Grumpy_chap

That may be the case, but I have had hire cars through work where the return is to leave it parked with the keys left in the glove box.  That is deemed returned once I inform them it is ready for collection.  

I also can't believe that the OP is the first time this situation has arisen, so there must be a standard procedure in place if the PCP company are asked.

Car_54

Locornwall said:

Again, I see your point, but isn’t it law it needs to be mot’d?

Only if it's on the road. Your OP suggested you might SORN it, so presumably it will be on a driveway and no MOT needed.

Wherever it will be sitting for a day or two, it needs to be insured.