Options for returning faulty PCP vehicle

skepta

Hi all,

I was hoping to sound out some opinions on a bit of car trouble we're having currently.

By way of background - spouse and I each have a vehicle on PCP which we rely on to commute to and from work (separate workplaces, not able to travel there via public transport).

I have recently had a recurring fault (faulty driver's airbag) with my vehicle, which I have had for ~10 months of a 48 month PCP deal at £300pcm. After much arguing with the manufacturer (we used a Used Approved vendor), we have been given a series of options:

1) Terminate contract without penalty, with return of the initial deposit (£2,500) - +/- any additional we can get via complaints process for loss of enjoyment etc (potentially ~£500 going by previous ombudsman judgments). The issue with this is I cannot afford any overlap as I cannot work from home and need a vehicle asap for commuting.

2) Trade in current vehicle and use outstanding equity (£4k) from the PCP to put towards a new vehicle. The trouble with this is that the used car market has increased in price significantly, so getting a like-for-like spec is: (1) very difficult as there is a small pool of cars to choose from, and (2) more expensive (~£50pcm) as vehicle values have gone up. Have negotiated with the garage so there are some concessions, but is it worth paying an extra £50pcm for a newer vehicle version (2021 reg vs 2019, 3000miles vs 22000 miles at time PCP starts when compared to old vehicle)? The idea that I'd trade in a faulty vehicle and end up paying more for a grossly similar product is a bit irritating! 

3) Continue to use current vehicle +/- additional compensation. The problem was with a faulty airbag, which had multiple visits to the garage and to date still no satisfactory fix. They have now replaced the airbag and some internal electrics. I have some reservations about driving a car that I'm not confident in the safety of though, especially considering I work long hours and will be commuting a couple of hundred miles a week in the vehicle.


Would be very grateful for opinions on best options, or if there is anything I haven't considered in this.

iwb100

I think you have been given reasonable options. I’m unsure if you are saying car is fixed but you are worried it will break again or whether still not fixed.

Second hand pcp deals are a bad idea as no doubt they will involve a hefty whack or interest compared to a new deal. I’m not fully sure what other options you feel are appropriate. If you cancel you can use the £2500 deposit you will have returned to purchase/lease a new car or a new to you car. End of the day that wouldn’t necessarily have any more delays than ordering a second hand pcp via the same dealer. But it will depend on what suits you best. If you’ve got £4K equity then you can sell the car clear the settlement and walk away with £4K to use for a replacement. Which on the face of it seems the thing to do unless your dealer is giving you a generous valuation in sympathy over your issues to try and hook you into another overpriced pcp.

Have you checked your value using an online valuation and car purchasing service? If that leaves you with £4K equity then obviously sell clear the settlement and you have that money to use as you choose.