PCP Finance - Paying for a car that's in repair

Amital77

Hi 
I wanted some advice I have a car that I have PCP that broke down last week due to the gear box failing (only a year old). However I am still paying a monthly cost for a car I cannot use and I don't have a courtesy car as nothing is available. Please can you advise what is my rights? Can I stop the PCP payment or does this breach my contract?
Kind regards
Amital

Herzlos

Unfortunately not; the car and the finance are largely separate, though because the bank owns the car you can get them to apply some pressure on the dealer to deal with the warranty issue (if it is a warranty issue).

It shouldn't take too long to replace a gearbox; how long are you expectingto be without the car for?

daveyjp

Replacing a gearbox isn't a long job once you have a new gearbox to fit. Getting a gearbox at this time could take weeks or months.

4 years ago waited 2 months for a turbo to be changed due to problems getting the part, 

I'd be pressuring the garage for a courtesy car.

DrEskimo

Posted this on a thread very similar to yours just yesterday:

"You need to get out of the mindset that the PCP monthly payments are a cost for renting the car for a certain period. The monthly cost does not represent a month of using the car.

The PCP is simply a finance product to help you finance the purchase cost of the car. No more, no less. Therefore any compensation you are owed has no correlation with what you pay monthly to finance the purchase cost of the car."

m0bov

You can absolutely take it up with the finance provider, they are jointly liable. It makes a huge difference to your rights.

Speak with them!

motorguy

Amital77 said:

Hi 
I wanted some advice I have a car that I have PCP that broke down last week due to the gear box failing (only a year old). However I am still paying a monthly cost for a car I cannot use and I don't have a courtesy car as nothing is available. Please can you advise what is my rights? Can I stop the PCP payment or does this breach my contract?
Kind regards
Amital

What have the franchised dealership said?  When will they have the car back to you?

You should be entitled to a courtesy car, you could escalate that to the manufacturers customer care line.

Dont stop the PCP payments, however DO talk to them as they are the owners of the car and can put pressure on the franchised dealership to resolve it quickly to your and their satisfaction.

iwb100

m0bov said:

You can absolutely take it up with the finance provider, they are jointly liable. It makes a huge difference to your rights.

Speak with them!

Jointly liable? They are not. They lent money to buy the car. That’s it. They want it in working order at the end. But they aren’t liable for repairs in any way. 

Clive_Woody

If a car is faulty or not of satisfactory quality

If your complaint is about a fault with your car, we’ll look at whether:

a fault exists/existed

the fault means the car was not of satisfactory quality at the time of supply

your finance provider or the dealership has done anything to put things right

As the finance provider is the supplier of the car, they are liable for the quality of the car when it was supplied.

This is because the Consumer Rights Act 2015 implies a term into the contract that goods supplied under these types of agreements are of satisfactory quality.

For cars bought with credit cards or point of sale loans, these terms are implied into the purchase contract with the dealership. But because of section 75 Consumer Credit Act 1974, we can, subject to certain criteria, look at these complaints against the credit card or loan provider.

We think it’s fair to say that a reasonable person would expect the quality to be higher in a new car, than a cheaper, more roadworn car. And that a new car could be used and free from defects for a considerable period of time.

https://www.financial-ombudsman.org.uk/consumers/complaints-can-help/credit-borrowing-money/car-finance