PCP/Fixed Loan issues

Scottiepuss

Hi forumites - anyone had any experience of of anything like this? Bit long-winded but bear with...

In August 2021, I bought a used car from Toyota (Aygo - 2015 reg), on finance - one payment of £242 per month.

In October 2022, I was offered, from the same dealer, a new Aygo X, again on finance but the payment was to be split as trading in the old car left about £900 of negative equity, so Toyota Finance set up PCP payment of £247, and a separate fixed term loan of £21 to cover the negative equity bit. 

In August 2023, I was called by the same dealer to ask if I wanted yet another new Aygo. I asked what the catch was, bearing in mind that my current car wasn't even a year old, and was told there wasn't one, there was a good market for nearly-new cars and they wanted mine. I said I didn't want to be spending more than £270 per month, and was assured I wouldn't be (I have this in writing).

I picked the new car up on 22nd November last year, finance was agreed at £235 per month via Toyota Finance plus another fixed term loan of £35 to again cover the negative equity issue. My assumption was that the previous finance agreement and loan would be cancelled and the new one would take its place but I discovered two weeks ago that I'm still paying the fixed term loan of £21 for the 2022 car. When I queried this, I was told it was because there was negative equity, and that as I signed the loan agreement, I was liable for it. My argument is that why would I be paying a loan on a car I no longer have, and why was there a second negative equity loan set up - why couldn't the existing one be carried on? The answer was that because I'd said I didn't want to be more than £270 a month, that was how they'd arranged it. I said, but I am paying more than £270 with the three separate payments, and that at no point was I told that yes, the new car wouldn't cost more than £270 but don't forget the previous negative equity loan. If I had, I'd never have agreed to have a new car.

Do I have a right to be angry or do they have me bang to rights? The attitude since I picked up my new car has been pretty dismissive and my calls are now being ignored. I feel they've been at best disingenous, and at worst downright dishonest. 

Thanks for reading this tome...

Ganga

What is the term on the £21 and the £35 loan payments.

Scottiepuss

41 months on both the £21 and the £35 payments

molerat

It seems you didn't check that the separate loan agreement would be wound into the finance for the new car.  The dealer unlikely had details of the separate loan to hand and could only see the main finance on the car, a bit of a failing on both sides but you should have brought it up.  So you are paying £21 pm for one car you no longer have and £35 for another you no longer have on top of paying for the one you do have - the dealer obviously has you on their mugs list !

Scottiepuss

Thanks, you've made me feel soooo much better .... no I'm paying £21pm for the car I no longer have. The £35 is for the car I currently have. My argument is they should have flagged the first payment before sorting out the finance on the latest car. It may be I should have brought it up, but it didn't occur to me. Why would it? And why would the dealer not have the details of the separate loan to hand - they were the ones who arranged it in the first place. Same dealer for all three cars since 2021.

molerat

£21 is paying off the negative equity on car 1

£35 is paying off the negative equity on car 2

Both paying off cars you no longer have

£235 ? is paying for the car you currently have.

The first negative equity loan would likely not show up when they looked at the car on their system as it was not secured against the vehicle, the only bit they were interested in.  They would have no knowledge on the current status of that loan.  The only thing they were interested in was getting you to buy a new car.