Audi Accident PCP

Roxxy_2

In a bit of a bizarre situation which I need some advise. 

A few weeks ago an Audi dealership picked up my car to complete some repair work. On route to the dealership, their driver (driving my car) was involved in accident and subsequently the car has now been written off. The car was on PCP ( I am 15 months into a 48 month contract) having also put down a decent deposit. I have GAP insurance which will essentially cover my finance (pay off outstanding settlement figure). 

However, at the end of this all I will be left without a car.. I am not in a position financially to take out another finance agreement but want to understand what I can do to claim against ultimately the fact that I have been left in a situation where through no fault of my own I now will have no car and can't afford to buy another one. Audi & their insurance have said that I am unable to make any further claims for losses as any loss should be as a consequence of the accident. 

Audi whilst being nice, are not confirming anything in writing to me... 

facade

Your own insurance should pay out current market value of the car (to the finance company), you will then receive the difference between this and the settlement figure, which should be at the very least your original deposit, as market value is probably more than the invoice price.

The gap insurance will only activate if somehow the market value is below the settlement figure, or less than the invoice price, so even if it has depreciated (unlikely in the present climate) you will at least get the invoice price, which will surely be more than settlement figure + deposit.

So you will have the decent deposit + a bit extra to buy another car with, or take out another PCP.

It is not anyone's fault that you can't make the finance work, you can only be put back in an equilivalent position- before the accident you had an asset worth £x, so you receive £x in exchange for it.

DullGreyGuy

facade said:

Your own insurance should pay out current market value of the car (to the finance company), you will then receive the difference between this and the settlement figure, which should be at the very least your original deposit, as market value is probably more than the invoice price

The OP wasnt driving the car and so it wont be their own insurance that pays out anything.

facade said:

The gap insurance will only activate if somehow the market value is below the settlement figure, or less than the invoice price, so even if it has depreciated (unlikely in the present climate) you will at least get the invoice price, which will surely be more than settlement figure + deposit.

It will depend what type of GAP they have, by the sounds of it its just Financial GAP rather than RtI or RV in which case it'll only payout if the finance is greater than the insurance payout which is probably unlikely given the comment of a large deposit being paid and the current value of secondhand cars

To the OP - you are not party to the accident and so wont be able to claim anything else from their Motor insurers. You will need to look at your contract with the dealership in relation to the service they were providing about any limitation of liability you agreed to in relation to whilst the vehicle was in their care. 

It would also be helpful if you work out what you think your "losses" are? Immediately before the accident you had a car worth £X and a loan liability of £Y and so a net position of £Z. The insurance settlement, should put you in a minimum position of £Z and if £Z is negative then you're GAP insurance will fix that. More likely £Z is positive which you can then use as the deposit on the next vehicle and thus you are in the same place and havent lost anything. 

Clearly if you buy your replacement car from the same garage thats trashed your existing car then hopefully they'll be wanting to give you a decent deal given they've caused the situation.

Roxxy_2

So there is no compensation as such that I can claim? I guess my issue is that the finance doesn't take into consideration the loss of the car is the inconvenience to myself... nightmare situation that leaves me with the hassle of buying another car!

TadleyBaggie

Until you have paid the balloon payment you have bought nothing, you are effectively renting the car for the duration of the PCP agreement. So you will need to start another PCP agreement and then you will be back in the position you were before. As has been suggested there might be some residual value due back to you, this can be used as a deposit.

DullGreyGuy

Roxxy_2 said:

So there is no compensation as such that I can claim? I guess my issue is that the finance doesn't take into consideration the loss of the car is the inconvenience to myself... nightmare situation that leaves me with the hassle of buying another car!

You claim would be made against the contract rather than the RTA. So it depends in part on the T&Cs of that contract.

Generally the british courts work on the basis of damages and mainly special damages... ie you can show you've lost £100 so they pay you £100. General damages come in when it comes to injuries and such where its a somewhat arbitrary amount attached to the pain and suffering. 

The courts generally accept life's a pain at times and so payments for "inconvenience" are rarely entertained beyond a token amount. If you are having to hire a car as you cannot live without one or incurring taxis/bus charges when you'd normally drive then these are things that could be considered as a valid head of claim assuming the contract doesnt limit liability.  It'd also be sensible to talk to the garage re a courtesy car whilst your replacement vehicle arrives.

daveyjp

If you put down a heavy deposit on PCP you need to have insurance in place which pays it back in the event of a write off, otherwise as you have found it is lost.

Stateofart

I would be laying this issue at the dealer to 'help' you into another deal.  Perhaps with a three-year servicing package or some sort of good-will gesture.