PCP plus top up loan

Nancykitt

Hello  - just wondered if anyone has any advice as I'm finding the car finance reclaim situation quite confusing...

I got a new Toyota in December 2018 with a 42 month PCP. However, when they ran my details through they told me that I wouldn't be able to buy the car unless I took out an additional 'top up loan' through Santander - which was an extra £50 a month for 48 months. In spite of it being a separate agreement, the total monthly amount I paid, including the top-up, was shown on my PCP. 
I changed the car for another new model in 2020 but I was, of course, still paying off the Santander top up loan (now paid off). 

I wasn't given an option to get the additional finance from anywhere else and I don't feel it was fully explained to me. I was just told that I needed to agree to both the PCP through Toyota finance the top-up through Santander in order to get the car. 

Do I have a claim?

Can anyone advise? Ta!

Nasqueron

Nancykitt said:

Hello  - just wondered if anyone has any advice as I'm finding the car finance reclaim situation quite confusing...

I got a new Toyota in December 2018 with a 42 month PCP. However, when they ran my details through they told me that I wouldn't be able to buy the car unless I took out an additional 'top up loan' through Santander - which was an extra £50 a month for 48 months. In spite of it being a separate agreement, the total monthly amount I paid, including the top-up, was shown on my PCP. 
I changed the car for another new model in 2020 but I was, of course, still paying off the Santander top up loan (now paid off). 

I wasn't given an option to get the additional finance from anywhere else and I don't feel it was fully explained to me. I was just told that I needed to agree to both the PCP through Toyota finance the top-up through Santander in order to get the car. 

Do I have a claim?

Can anyone advise? Ta!

OK firstly, there is no "car finance reclaim"
Secondly, the current issue (about inflating APR for commission) covers second hand sales primarily, a new car is unlikely to have this issue as they get the commission for the sale and they are going to give you as low APR as possible to complete the deal 
Thirdly, what evidence do you have for this requirement to take out a loan (in writing, not something you say you were told)?
Fourthly, a car finance company have no reason to tell you finance elsewhere is possible, in the same way that if you went to Waitrose, the staff don't have to tell you that you could buy products at Aldi for less

2018 sales would be highly and thoroughly documented with your agreement and everything in the terms and conditions which you signed so it's very unlikely (though not impossible) that you would get any sort of success with a complaint about mis-selling

dunstonh

Do I have a claim?

Nothing you have said indicates you have reasons for complaint but equally nothing says you havent

I wasn't given an option to get the additional finance from anywhere else and I don't feel it was fully explained to me.

That is totally irrelevant and not a complaint reason.   If you go into an Apple store they wont tell you that you can buy a Samsung.

Nancykitt

Having read the latest article on this site, I was under the impression that there were a number of issues - eg, being misled about costs etc...eg, I was told by the salesman 'not to worry' about the mileage restriction/charges for extra mileage. 

I'm not sure the Waitrose analogy works - if I'm in Waitrose, it's a reasonable assumption that I might want to buy something from there. If I'm in Toyota and they say I *have* to use Santander for additional finance, then that might be an issue...

Nancykitt

dunstonh said:

That is totally irrelevant and not a complaint reason.   If you go into an Apple store they wont tell you that you can buy a Samsung.

But that analogy doesn't work either. I chose to go into a Toyota dealer, it's not like they didn't tell me I could have bought a Honda. The point I'm making is that the main PCP was funded through Toyota finance but I was told I *had* to take out an entirely separate loan with Santander in order to buy the car. 

400ixl

Nancykitt said:

Having read the latest article on this site, I was under the impression that there were a number of issues - eg, being misled about costs etc...eg, I was told by the salesman 'not to worry' about the mileage restriction/charges for extra mileage. 

No, its about 1 particular issue as stated. Where the salesperson was given free reign on what interest APR you were offered without any explanation.

Being told not to worry about additional mileage charges is not in any way related and a separate issue if it has been a problem. Not sure how you would prove that one though.

That anaolgy does work. The dealer will have a relationship with the manufacturers finance company and a bank for anything outside of that finance companies remit, they are not independent, so won't recommend you go elsewhere to another bank who they do not have a relationship with. It is for you to think for yourself about whether you should be comparing the whole market.

You could have gone anywhere to get a loan and put that loan down as additional deposit money and then paying the two side by side.

Nearlyold

Did you have a Part Exchange that was in negative equity ie you owed more than your Part ex was worth, that would be a common reason to require a top up loan. They wouldn't be able to increase the PCP loan to cover the negative equity

dunstonh

 but I was told I *had* to take out an entirely separate loan with Santander in order to buy the car. 

Dealers will often have secondary finance firms available.   If the primary one cannot do it then they move to the next.   They are not required to be whole of market.