Taking PCP financed car abroad (EU)

art48

Would like to know what are my options here.

I plan to take the car on a holiday trip overseas (EU) that would overlaps the maximum abroad driving limit set by the finance company policy documents.
It is going to be under 90 days abroad so the car is covered insurance wise for the full length of the trip.

I requested to have them extending the period as a one-off but got declined with no further justifications.

I already paid 50% of the PCP deal so far.

Can the car be repossessed at the Customs & Borders when coming back to the country due to breach of contract?

Does the finance company knows our whereabouts at any time, i.e. by having fitted a GPS tracker in the vehicle? The car is traceable through the official car app, not sure if they have law rights to access it too?

How could they potentially know the car was out of the country for more than the allowed limit?

I struggle to understand why would they decline such request, payments have been always made promptly, car is insured, what is the fuss about it?

Wonder if someone had a similar situation that could share a bit more info?

Mildly_Miffed

No, HMRC can't confiscate the car.
I very much doubt the financier has a tracker in it, nor would they have access to the manufacturer's app.

Why are they refusing? Because they have every right to, quite simply. It's their car, not yours. They don't need to give you a reason. You're the one who wants to vary the contract you signed, not them.

Don't forget that - assuming you're a UK national without a visa or residency in the country you're going to - the only EU country you can spend more than 90 days in is the Republic of Ireland, and the 90 day limit applies across the whole Shengen zone if you're travelling through multiple countries.
You should also check into whether you're going to be breaking the law in the country you're going to, having a foreign-registered car there for so long.

Hoenir

As with any potential contract breach. When it does go wrong then it can be extremely costly to rectify.  That's the risk you take. 

art48

Hoenir said:

As with any potential contract breach. When it does go wrong then it can be extremely costly to rectify.  That's the risk you take. 

What would be the risk, for them to request me to pay the remaining 50% of the deal?
If that is the case, would I be the legal owner of the car?

Nasqueron

Are you keeping the car at the end or looking to hand it back?

GPS - unlikely unless that was part of the deal 

If you pay off 100% of the car yes it's yours, this is the best way to deal with PCP from an MSE view - you pay it off, keep it and don't just effectively rent the car for 3 years

Hoenir

art48 said:

Hoenir said:

As with any potential contract breach. When it does go wrong then it can be extremely costly to rectify.  That's the risk you take. 

What would be the risk, for them to request me to pay the remaining 50% of the deal?
If that is the case, would I be the legal owner of the car?

I haven't read the small print of the contract you entered into. Breach of contract effectively means loss of rights. 

sheslookinhot

Your overthinking it. Go and enjoy your trip.

Hoenir

Totally overlooked the fact you need the leasing company's permission. Without a valid VE103B being produced the vehicle can be impounded. 

Nobbie1967

Hoenir said:

Totally overlooked the fact you need the leasing company's permission. Without a valid VE103B being produced the vehicle can be impounded. 

It’s not a lease, it’s a conditional sale finance agreement so they should have a V5C as the registered keeper of the car.

Personally, I’d ignore the restriction as I’d question the enforceability of the term. I can’t see what loss they would suffer from a breech unless you lost the car while abroad and weren’t covered by your insurance for some reason.

Herzlos

I'm assuming their concern/risk is that when their car is outside of the UK, should the creditor stop paying it'll be much harder to recover the asset. They can't forbit it outright so allow a restricted time outside the UK.


How many days are you allowed and how many are you planning?

art48

Hoenir said:

Totally overlooked the fact you need the leasing company's permission. Without a valid VE103B being produced the vehicle can be impounded. 

It is not a lease it's a PCP when I have the option to buy the car back at the end of the contract which I am planning to anyway.