Cazoo concerns - Administration

Mutton_Geoff

https://youtu.be/RZmSbxRMbI8

Goudy

It's important to note for owners that bought cars from Cazoo on finance or anywhere else come to that, the dealer/Cazoo aren't the lenders.

Even a main agent dealer won't finance the deal themselves but will usually arrange finance with the finance arm of that manufacturer.
So buy a new Ford and the Ford dealer will arrange for the Ford Motor Credit Company to finance the deal.

Your finance was arranged by a dealer/Cazoo with a lender like Blackhorse or Santander, it's they that financed the deal and they that you owe money.

Cazoo's administration has no bearing on your finance arrangements going forward and if it was a PCP deal you will still have all the familiar PCP options available too you at the end, though some terminology used often clouds one of these options.

As is commonly quoted you have three main options at the end of a PCP contract.
Pay the final balloon (GFV) payment.
If you do nothing, the finance company will take (or try to take) this from you bank account on the specified date at the end of your contract.

Trade it in before the final balloon payment is due and depending on it's value as a trade in, it could be worth more or less than the balloon.
If it's more than the balloon, this goes towards your deposit on the new car.
If it's less they will usually roll this into the new finance arrangement. But why would you as you have another option.
Similarly you could use a can buying service, they will settle the finance and pay you the difference, it it has any. 

Hand it back and pay nothing more except excess mileage and any damage beyond fair wear and tear.
There is often confusion over the term "hand it back"
It's not actually going back anywhere, certainly not who you bought it from. It goes "back" to who financed it.
You don't hand it back to the supplying dealer but to the finance company that you borrowed the money from.
You will have to arrange this a few weeks before the balloon payment is due. (otherwise you can guess what will happen, see first option)
Their representative, usually one of the large auction houses will come and inspect it when collecting, though some times you can drop it off if you are fairly local.

plantation_2

Cazoo statement of affairs has just been published. Based on estimate by administrator looks like anyone owed money will get 5p or so in the £.  There's page after page of people owed £100- £300 so will only be getting £5 or so each, what an admin nightmare.