Buying a car on a PCP contract ...

Snoopy481148

Hi there ... in November 2012 I bought a new Toyota car through the dealership on a PCP contract. Having recently been approached by email regarding a potential 'mis-sold' deal, and despite being a tad cynical, I read through all of my purchase documentation. On this purchase, I part exchanged me car that was originally a local government leased car and I decided to buy it for cash ( price agreed with the lease company at the time ) as my local government employer was cancelling all leased car availability as a cost cutting measure and I had the choice of buying my lease car outright or handing it back and buying another car. On studying my sales invoice for my new car, there is an amount of £1200 added onto my bill and described as 'HP Settlement'. Hand on heart, I wasn't aware of this figure and as the part exchanged car was actually owned outright there simply was no outstanding HP to settle.  I queried this by email with the dealership general manager and he simply said it must have been an HP settlement on my part exchange.  He also said that as they keep no 'deal files' over seven years, he was unable to help me further. I have since gone back and provided my lease car purchase receipt and their own 'part exchange' form, signed by me, where I confirmed that the part exchange vehicle was 'unencumbered' with any finance.  I am waiting to hear his response. I still own the car. 

My questions really are why have they charged me 'HP settlement' when there was none?  Can they deny any liability as they no longer keep 'deal files' over seven years?  Are there any motor trade situations where adding 'HP settlement' , where there clearly was none, may have been done?  And if they continue to negate my enquiry, who should I turn to for advice?     Thanks in advance! 

facade

Just a suggestion

They pay VAT on the difference between the price they paid for the car, and the price they sold it to you for.

So if they can reduce the price you paid "on the books" then they pay less VAT.

They can't "over state" the trade-in, because that would be money you paid for the car.

Is the £1200 "extra" money, or is the £1200 + what you paid + the trade-in value equal to the purchase price of the car?

Obviously, as the salesman responsible probably doesn't work there any more, or he can't remember that far back you won't know. (Equally obviously, if he did do something odd, he would have been acting without the knowledge of the dealership, and you'd expect the "HP settlement" money to show in an audit somewhere..... )

However, as there was no HP to settle, it looks like there is something for the PCP vultures to go on

tifo

You can try and make a claim with the seller but if the matter is over 6 years old then you have no claim at court  ....  the seller may also quote statutory limitation as the matter is over 6 years old.

Herzlos

It certainly sounds like an ambulance chasers stretch - as mentioned it's been statue barred for 5 years already so you'd have no prospect of success at a court.

Then there's no paperwork at the dealer, no-one will remember it, and you presumably read, agreed with and signed the contract at the time.

So can you prove that you were somehow coerced or mislead? What are you hoping to achieve?

tifo

Herzlos said:

What are you hoping to achieve?

I'd guess £1,200 plus statutory interest to date.

It'll be almost impossible proving why the OP didn't realise the mistake before. The statutory limitation can start from the date a mistake is realised, you'd get 3 years from that time, if it could not reasonably have been found before but in this case i don't think that can apply, you've seen the mistake now after someone contacted you about a 'mis sale' brings the question about why did you not check the same paperwork in 2012?

Snoopy481148

Thank you to everyone who replied, it does paint a difficult picture for sure.  The reason why I never recognised this entry before was that at the time my wife had died from a long and arduous battle with MS and I was working twelve hours a day so probably just glad to exchange my car for a new one and get on with life.  As for any follow up of a mis-sale, that was never my intention as I am totally cynical about such things to be honest.  It only came to light when I looked through the paperwork and noticed this 'HP settlement' entry that had no place there. I now understand how 'statutory limitation' applies here but I still have a sense of justice insofar that this could have been an 'underhand manoeuvre' assuming it's simply not a simple mistake. As for the 'sales executive' concerned, he left the company very quickly after the sale as I rang to make post sale enquiries and was told he had moved on. 

Again thank you everyone for your input, it's really appreciated and gives me both caution and reason in my argument with the dealership. And yes, it they offered me £1200 plus statutory interest 'in resolution' and without admitting liability, I would be thankful and case closed. 

Snoopy481148

facade said:

Just a suggestion

They pay VAT on the difference between the price they paid for the car, and the price they sold it to you for.

So if they can reduce the price you paid "on the books" then they pay less VAT.

They can't "over state" the trade-in, because that would be money you paid for the car.

Is the £1200 "extra" money, or is the £1200 + what you paid + the trade-in value equal to the purchase price of the car?

Obviously, as the salesman responsible probably doesn't work there any more, or he can't remember that far back you won't know. (Equally obviously, if he did do something odd, he would have been acting without the knowledge of the dealership, and you'd expect the "HP settlement" money to show in an audit somewhere..... )

However, as there was no HP to settle, it looks like there is something for the PCP vultures to go on

Well a quick reckoning suggests that ##Is the £1200 "extra" money, or is the £1200 + what you paid + the trade-in value equal to the purchase price of the car?## comes to some £1900 more than the purchase price of the car so the disputed £1200 would go some way towards that.  

born_again

Don't forget the cut to the company doing the chasing..

Snoopy481148

born_again said:

Don't forget the cut to the company doing the chasing..

Agreed!   But I guess if the car dealership refuses duscussion then I might as well try a claim company with this information built in.  Any idea what such companies take in commision?