PCP payments

monkey4037

After some advice. Had my car for 17 months on PCP. It has developed a major fault, and the garage cannot source the part so it is in for long term fix (nonidea how long this will be)

My question is, am I responsible for paying for a faulty car that I cannot use, through no fault of my own? As the Finance company 'own' the car, why would I pay for a product I don't have?

cw8825

yes you are still responsible. not the finance company.

If you had paid cash you would be in the exact same position, the finance company is only lending you the money and allowing you to pay monthly

Veteransaver

Is the car still under warranty? If so you should really be pushing for a courtesy car

monkey4037

Yes I have been given a courtesy car but it is a very basic car. It's a manual as well which means my partner can't drive it as they have an automatic only license. My thoughts are that I am paying for a particular product, and the courtesy car isn't that product (spec wise etc)

monkey4037

cw8825 said:

yes you are still responsible. not the finance company.

If you had paid cash you would be in the exact same position, the finance company is only lending you the money and allowing you to pay monthly

So I am responsible for a faulty product that I don't legally own? I understand that I am responsible for payment for a product that works, however can't see how I am obliged to pay for something that doesn't work 

DrEskimo

In the same way you are obliged to pay a bank back if you buy a TV with a credit card and still owe on it after 17months and the TV breaks.

PCP is just a finance agreement to help you pay the invoice cost of the car because you don't have the capital up front. You are responsible to maintain the car. It's not a monthly cost to use the car.

Is the car new or used? Is it under warranty? The hire car is nothing to do with the finance company. Speak with the garage fixing your car if you are unhappy with the hire car, but unless it's a main dealer, I suspect it's just standard hire car offered and there's nothing more they can do. If it's a main dealer worth asking. I've had decent hire cars before from dealers.

monkey4037

DrEskimo said:

In the same way you are obliged to pay a bank back if you buy a TV with a credit card and still owe on it after 17months and the TV breaks.

PCP is just a finance agreement to help you pay the invoice cost of the car because you don't have the capital up front. You are responsible to maintain the car. It's not a monthly cost to use the car.

Is the car new or used? Is it under warranty? The hire car is nothing to do with the finance company. Speak with the garage fixing your car if you are unhappy with the hire car, but unless it's a main dealer, I suspect it's just standard hire car offered and there's nothing more they can do. If it's a main dealer worth asking. I've had decent hire cars before from dealers.

Car was bought new and is still under warramty

Ectophile

DrEskimo said:

In the same way you are obliged to pay a bank back if you buy a TV with a credit card and still owe on it after 17months and the TV breaks.

PCP is just a finance agreement to help you pay the invoice cost of the car because you don't have the capital up front. You are responsible to maintain the car. It's not a monthly cost to use the car.

Is the car new or used? Is it under warranty? The hire car is nothing to do with the finance company. Speak with the garage fixing your car if you are unhappy with the hire car, but unless it's a main dealer, I suspect it's just standard hire car offered and there's nothing more they can do. If it's a main dealer worth asking. I've had decent hire cars before from dealers.

PCP is a form of Hire Purchase.  Which means that you don't own the car until you make the final payment.

So the finance company is very much involved - it is their car that's gone wrong.  And, thanks to the Consumer Credit Act, they are jointly liable with the retailer if something is wrong with the car.

DrEskimo

Ectophile said:

DrEskimo said:

In the same way you are obliged to pay a bank back if you buy a TV with a credit card and still owe on it after 17months and the TV breaks.

PCP is just a finance agreement to help you pay the invoice cost of the car because you don't have the capital up front. You are responsible to maintain the car. It's not a monthly cost to use the car.

Is the car new or used? Is it under warranty? The hire car is nothing to do with the finance company. Speak with the garage fixing your car if you are unhappy with the hire car, but unless it's a main dealer, I suspect it's just standard hire car offered and there's nothing more they can do. If it's a main dealer worth asking. I've had decent hire cars before from dealers.

PCP is a form of Hire Purchase.  Which means that you don't own the car until you make the final payment.

So the finance company is very much involved - it is their car that's gone wrong.  And, thanks to the Consumer Credit Act, they are jointly liable with the retailer if something is wrong with the car.

Yes, and it’s being repaired. Whilst it’s being repaired they have been given a hire car. There’s nothing more to raise with the finance company at the present time unless there is an issue with the repair. The OP can discuss the hire car with the garage, but there is no requirement to provide a like for like. 

The issue is the OP is characterising the monthly finance payments as though they represent a monthly hire of the car, like a car lease. It isn’t. 

monkey4037

DrEskimo said:

Ectophile said:

DrEskimo said:

In the same way you are obliged to pay a bank back if you buy a TV with a credit card and still owe on it after 17months and the TV breaks.

PCP is just a finance agreement to help you pay the invoice cost of the car because you don't have the capital up front. You are responsible to maintain the car. It's not a monthly cost to use the car.

Is the car new or used? Is it under warranty? The hire car is nothing to do with the finance company. Speak with the garage fixing your car if you are unhappy with the hire car, but unless it's a main dealer, I suspect it's just standard hire car offered and there's nothing more they can do. If it's a main dealer worth asking. I've had decent hire cars before from dealers.

PCP is a form of Hire Purchase.  Which means that you don't own the car until you make the final payment.

So the finance company is very much involved - it is their car that's gone wrong.  And, thanks to the Consumer Credit Act, they are jointly liable with the retailer if something is wrong with the car.

Yes, and it’s being repaired. Whilst it’s being repaired they have been given a hire car. There’s nothing more to raise with the finance company at the present time unless there is an issue with the repair. The OP can discuss the hire car with the garage, but there is no requirement to provide a like for like. 

The issue is the OP is characterising the monthly finance payments as though they represent a monthly hire of the car, like a car lease. It isn’t. 

Interesting take you give above. May i ask if yhis is just your own opinion or is taken from factual evidence? A quick google gives the following:

PCP works like a long-term rental agreement and also gives the opportunity to purchase the vehicle outright via a 'balloon' payment at the end of the agreement.

Not looking for an argument, just some evidence based facts rather than just an opinion

monkey4037

DrEskimo said:

Ectophile said:

DrEskimo said:

In the same way you are obliged to pay a bank back if you buy a TV with a credit card and still owe on it after 17months and the TV breaks.

PCP is just a finance agreement to help you pay the invoice cost of the car because you don't have the capital up front. You are responsible to maintain the car. It's not a monthly cost to use the car.

Is the car new or used? Is it under warranty? The hire car is nothing to do with the finance company. Speak with the garage fixing your car if you are unhappy with the hire car, but unless it's a main dealer, I suspect it's just standard hire car offered and there's nothing more they can do. If it's a main dealer worth asking. I've had decent hire cars before from dealers.

PCP is a form of Hire Purchase.  Which means that you don't own the car until you make the final payment.

So the finance company is very much involved - it is their car that's gone wrong.  And, thanks to the Consumer Credit Act, they are jointly liable with the retailer if something is wrong with the car.

Yes, and it’s being repaired. Whilst it’s being repaired they have been given a hire car. There’s nothing more to raise with the finance company at the present time unless there is an issue with the repair. The OP can discuss the hire car with the garage, but there is no requirement to provide a like for like. 

The issue is the OP is characterising the monthly finance payments as though they represent a monthly hire of the car, like a car lease. It isn’t. 

And also, there is an issue with the repair. The garage cannot provide a timescale for the repair. They said it could take months to source the part required to fix it