PCP Advice

alexmales

Hello,

My son had his motorbike stolen and was on a PCP deal. The insurers are paying out but there is a £2k difference from what he's getting vs what he owes to settle the agreement. Can he use the money to purchase a bike to the value he receives and carry on paying the pcp for his stolen bike?

Or does he have to settle his agreement although he has no other funds to make up the difference? Thanks

TadleyBaggie

The PCP finance needs the be settled first, the insurance company may pay it directly to the finance company. Any shortfall will also need to paid. Has your son attempted to negotiate the valuation price?

superbigal

He could hope that the dealer may allow a new PCP starting with negative equity.
Certainly won't help if the same thing happens again.

MalMonroe

alexmales said:

Hello,

My son had his motorbike stolen and was on a PCP deal. The insurers are paying out but there is a £2k difference from what he's getting vs what he owes to settle the agreement. Can he use the money to purchase a bike to the value he receives and carry on paying the pcp for his stolen bike?

Or does he have to settle his agreement although he has no other funds to make up the difference? Thanks

Hi, your son should phone the finance company and ask - he should phone them anyway, to advise them of the theft.

Information in the following link is helpful -

https://www.carwow.co.uk/guides/financing/car-stolen-whilst-on-finance? 

It refers to cars but I guess it applies to motor bikes too.

It also advises letting DVLA know, in order to claim a road tax refund.

[Deleted User]

Does he have any GAP cover? Sometimes dealers bung it in with finance packages

Look at the market for SOLD prices as well as you may be able to negotiate on the payout if you can demonstrate the price

Note also with insurance if he's paying monthly he will need to keep paying that.

As per above post, he will get a pro rata refund of VED (there is no such thing as road tax)

MrFrugalFever

You CANNOT carry on the agreement with no physical asset, the finance company will need to be informed (although likely will be informed by Experian/HPI anyway) so that they can deal with it appropriately. The finance company own that bike not your son, so he must pay the finance company the settlement fee, irrespective of if there is a shortfall.

If he has GAP insurance then he’s quids in, if not, he’ll need to learn the hard way.

alexmales

We contacted Bemoto finance and they are happy to have us continue making the payments regardless of if we have the bike in possession or not. The insurance is going to pay my son directly so I think we are all good.  Thank you all for your advice and comments.

kaMelo

alexmales said:

We contacted Bemoto finance and they are happy to have us continue making the payments regardless of if we have the bike in possession or not. The insurance is going to pay my son directly so I think we are all good.  Thank you all for your advice and comments.

If that's the case then I'm absolutely staggered on both counts.

Herzlos

Sounds like the bike finance may have been unsecured then rather than attached to the bike. I can't see any details for Bemoto finance online though, just insurance, so I can't confirm.