PCP payments

DrEskimo

monkey4037 said:

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

What fact would you like? That PCP is a secured finance agreement? It certainly can ‘act’ like a rental agreement, but it isn’t one. 

As far as I can work out you have two main issues:

1. you don’t think the hire car is suitable replacement,

2. you don’t think you should pay the finance whilst the car is being repaired (although not clear if you are happy to keep paying if a like for like hire car was provided). 

In the first instance the availability of a suitable hire car should be discussed with the repairing garage. Have you done this? Do they have an alternative or have they refused?

I’m not sure the finance company have many levers they can pull if they don’t have another hire car available. You certainly can’t stop paying. It just isn’t how it works. Same way if your car is written off and your insurance company only offers a proportion of the value. You have agreed to pay the total value of the finance against the car. 

DrEskimo

monkey4037 said:

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

Unfortunately not uncommon at the moment. I sympathise as my last car was in for repairs for over 9months. I owned it outright and didn’t expect to get compensation or some of the value I paid back on the car. 

I had access to another car but after a few months when I went to collect and fault was still
present I was offered a good hire car. Which is why my advice is to speak with the garage regarding the hire car. 

monkey4037

DrEskimo said:

monkey4037 said:

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

What fact would you like? That PCP is a secured finance agreement? It certainly can ‘act’ like a rental agreement, but it isn’t one. 

As far as I can work out you have two main issues:

1. you don’t think the hire car is suitable replacement,

2. you don’t think you should pay the finance whilst the car is being repaired (although not clear if you are happy to keep paying if a like for like hire car was provided). 

In the first instance the availability of a suitable hire car should be discussed with the repairing garage. Have you done this? Do they have an alternative or have they refused?

I’m not sure the finance company have many levers they can pull if they don’t have another hire car available. You certainly can’t stop paying. It just isn’t how it works. Same way if your car is written off and your insurance company only offers a proportion of the value. You have agreed to pay the total value of the finance against the car. 

Thanks.

Currently engaging with the garage over a suitable hire car.

monkey4037

DrEskimo said:

monkey4037 said:

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

Unfortunately not uncommon at the moment. I sympathise as my last car was in for repairs for over 9months. I owned it outright and didn’t expect to get compensation or some of the value I paid back on the car. 

I had access to another car but after a few months when I went to collect and fault was still
present I was offered a good hire car. Which is why my advice is to speak with the garage regarding the hire car. 

And that's my point. You owned your car. I don't own mine, the finance company do. So effectively I am paying for something that they own, that doesn't work. Appreciate your comments on all above though. Hopefully things will be resolved ASAP

cw8825

What fact would you like? That PCP is a secured finance agreement? It certainly can ‘act’ like a rental agreement, but it isn’t one. 

As far as I can work out you have two main issues:

1. you don’t think the hire car is suitable replacement,

2. you don’t think you should pay the finance whilst the car is being repaired (although not clear if you are happy to keep paying if a like for like hire car was provided). 

In the first instance the availability of a suitable hire car should be discussed with the repairing garage. Have you done this? Do they have an alternative or have they refused?

I’m not sure the finance company have many levers they can pull if they don’t have another hire car available. You certainly can’t stop paying. It just isn’t how it works. Same way if your car is written off and your insurance company only offers a proportion of the value. You have agreed to pay the total value of the finance against the car. 

Thanks.

Currently engaging with the garage over a suitable hire car.

If you need a larger/automatic ask if they contribute the cost of a normal car and you will pay the extra. 

Alternatively make do with what they have given you

monkey4037 said:

Unfortunately not uncommon at the moment. I sympathise as my last car was in for repairs for over 9months. I owned it outright and didn’t expect to get compensation or some of the value I paid back on the car. 

I had access to another car but after a few months when I went to collect and fault was still
present I was offered a good hire car. Which is why my advice is to speak with the garage regarding the hire car. 

And that's my point. You owned your car. I don't own mine, the finance company do. So effectively I am paying for something that they own, that doesn't work. Appreciate your comments on all above though. Hopefully things will be resolved ASAP

The finance company do not ‘own’ your car. You do. 

The finance is secured against it. So they have an interest in it. 

If you have a mortgage you don’t say the bank own your house. When something goes wrong you wouldnt ask the bank to fix it

LightFlare

on the plus side - at the end of the pcp the vehicle will be worth more due to the reduced mileage being put on it while it’s off being repaired 

born_again

Ectophile said:

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.

Given no mention on the cost of the car. If it's over £30K, then no S75. Could be S75A  (£60,260 limit) if this is classed as linked finance. 

If this is a warranty claim, then many manufactures do not provide a replacement car, that is down to the dealer to provide.

monkey4037

born_again said:

Ectophile said:

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.

Given no mention on the cost of the car. If it's over £30K, then no S75. Could be S75A  (£60,260 limit) if this is classed as linked finance. 

If this is a warranty claim, then many manufactures do not provide a replacement car, that is down to the dealer to provide.

S75? S75A? Could you explain these please?

born_again

S75 covers purchases over £100 to £30K for breach of contract &/or misrepresentation (only need to make a 1p payment on a CC to protect the whole amount)
S75A covers linked finance (so taken out via a finance co (not credit card) up to £60,260 limit For same reason as above.

These are not a cover all insurance as many think. They just hold the lender jointly and severally liable.

https://www.moneysavingexpert.com/reclaim/section75-protect-your-purchases/