New vehicle replacement unable to be fulfilled

thelakes1989

Hi all,

I was involved in an accident whereby my car was written off. 

The car is less than 12 months old and on a PCP and as part of my policy I am entitled to a new vehicle replacement. I do not have GAP insurance.

Unfortunately, the price of the car has increased (though the only changes are the steering wheel and a badge) so significantly that the finance company cannot agree to swap my agreement over which would normally be the case. The specification of the exact same car now features cost options that were previously standard, leading to the increase.

My insurance are now suggesting I should receive market value for the car because the replacement cannot be fulfilled.

I've read up on Ombudsman decisions and can see that they typically suggest that it should be return to invoice where a new vehicle replacement is party of the policy but cannot be fulfilled.

Has anyone had any experience in this scenario that can let me know what they had happen?

I have raised a complaint just to say that this doesn't seem fair as someone who had paid in cash would be getting the same car. It's unfortunate the finance company won't agree, but that doesn't seem like it should give my insurance a get out of jail free card, so to speak.

TIA

DE_612183

when you say "policy" - do you mean your PCP contract or your Insurance contract?

cw8825

from what you have said. The insurance company are happy to play ball and would have arranged the new vehicle replacement. You cant complain to them because of the decision made by the finance company

Your complaint should be down to the finance company but at the end of the day, they are a business and it is totally up to them. You can check through your finance agreement to see if there if anything you can use in your favour but I doubt it

In terms of what you are paid out market value would be fair, surely market value is going to be very accurate if its nearly new
cost price - instant depreciation for being 2nd hand - adjustment for mileage

You cannot force them to provide a new car of pay the invoice value, otherwise, every 11 months you could total loss a brand new car for 'free' 

thelakes1989

DE_612183 said:

when you say "policy" - do you mean your PCP contract or your Insurance contract?

The replacement is part of my insurance policy.

thelakes1989

cw8825 said:

from what you have said. The insurance company are happy to play ball and would have arranged the new vehicle replacement. You cant complain to them because of the decision made by the finance company

Your complaint should be down to the finance company but at the end of the day, they are a business and it is totally up to them. You can check through your finance agreement to see if there if anything you can use in your favour but I doubt it

In terms of what you are paid out market value would be fair, surely market value is going to be very accurate if its nearly new
cost price - instant depreciation for being 2nd hand - adjustment for mileage

You cannot force them to provide a new car of pay the invoice value, otherwise, every 11 months you could total loss a brand new car for 'free' 

I get your point but the same can be said for someone who paid cash? They could get a replacement every 11 months for totalling it too. 

If I'd paid cash then my insurance would presumably be paying the increased value for a replacement so why should I not be able to recover a similar cost to put myself in the same position I was in before just because the finance company won't agree?

thelakes1989

I've realised that my post is not clear. The insurance policy says I should benefit from a new vehicle replacement, not the PCP.

XRS200

The insurance company will be getting a discount so not paying full replacement cost. 

Any chance you could finance elsewhere, pay off the PCP therefore removing the finance companies objection?

thelakes1989

XRS200 said:

The insurance company will be getting a discount so not paying full replacement cost. 

Any chance you could finance elsewhere, pay off the PCP therefore removing the finance companies objection?

I can definitely get finance elsewhere, I'm just having such a hard time engaging with my insurance they've just defaulted to market value. I've no objection to them doing whatever they need to do behind the scenes and I can take up a new PCP but it just doesn't even seem like they're open to it. 

cw8825

thelakes1989 said:

I've realised that my post is not clear. The insurance policy says I should benefit from a new vehicle replacement, not the PCP.

If you check the wording it probably mentions that it’s subject to agreement from the finance company