Car Finance Help and Advice

Herzlos

What's actually broken?

It sounds like the PCP has finished but the finance company won't take the car back unless it's repaired, which isn't unreasonable. 

So options are either to pay the balloon and fix the car, or fix the car and hand it back. Can you  get it repaired cheaper from an independent garage or using used parts?

Mags1953

born_again said:

Why are the finance company chasing? Have they stop paying due to the problems?

Is there not someone (friend who's car it is) that can type this out for you, as sorry to say makes little sense. 

No he completed his obligations on the finance it was the condition of the car that this situation arose back in January he couldn't afford the £8000 to have the repairs done hence the dealer kept it until April after his final payment then advised they would charge him £40 per day storage he arranged to have it transported to his home address that's when the finance company got involved for him to make good the repairs return the vehicle to the dealer or they will take him to court 
I'm only posting what he has told me..I went over this with him I think your right seeing some of the replies I'm now confused I only offered to help because he works a lot of hours I can only go off what he conveyed to me. Thank you for your time

Mags1953

DE_612183 said:

I think perhaps this is a PCP - and the payments have been made but rather than pay the balloon payment the OP's friend wants to hand the car back - but the dealer won't take the car back as it's knackered.

The finance company will take the car back and dispose of it - but it's going to cost him £8k

Correct..that's what has happened the finance company say * they will take him to court * your answer is absolutely correct thank you 

Mags1953

Car_54 said:

Perhaps the OP's "friend" could post and give us the full story? Until then, we will go round in circles.

Thank you I'm only going off what he has told me..I went over this with him emailed him with what I posted this I don't know anything about car finance or leasing. Thanks again 

Mags1953

DullGreyGuy said:

Mags1953 said:

Hi everyone thank you for your replies 
Yes I understand that the finance company aren't owed any money however, the dealer phoned him has he could not afford the cost to repair it they suggested he had over used the car 😉 and that he would have to pay the £8000 of course this wasn't possible so the car remained with dealer until he made the final payment he then had to pay to have it transported to his home the finance company are saying he hasn't fulfilled the agreement ie he didn't give it back but the dealer wouldn't take it back. The finance company are now saying they will scrap it the figure they have now demanded is £4000 to scrap it. He has written to the Ombudsman mid May but no response yet 
He just needs help to advise if ge has any legal rights. 

The more you say the more confused the situation is getting... suggest you get your friend to post themselves or at least have them sitting with you so you can remove the contradictions/mud from your story. 

If it was on finance which ended in April but he's keeping/bought the car then its nothing to do with the finance and if he went over the mileage on a PCP wouldnt matter because he retained the car. 

If he was leasing car then there is no finance so it ending in April but he still has the car doesnt add up. 

There is no need to be rude I didn't copy and paste  I sent him to him  by email before  I posted it on here he did go over it. It is a screenshot & to be clear they have demanded the money for the repairs then return it to the dealer. Sorry if you see contradiction/mud  was just trying to help a friend not looking for insults

sheramber

Mags1953 said:

Car_54 said:

Perhaps the OP's "friend" could post and give us the full story? Until then, we will go round in circles.

Thank you I'm only going off what he has told me..I went over this with him emailed him with what I posted this I don't know anything about car finance or leasing. Thanks again 

With finance under PCP , which it sounds is what he has, he agrees to make payments over a certain period of time.  These  payments do not cover the whole amount that has been financed.
At the end of that time there is a balloon payment to be paid  to  make up  the total amount financed at the beginning. 

This payment is set when the agreement is made.

You can either pay the balloon payment in the agreement or hand back the car. 

If your friend does have a PCP agreement then he either pays the balloon payment  and keeps the car. He can do what he likes with it after that.  The balloon payment would appear to £8000

or

He hands back the car to the finance  company but due to the fact that the car is  broken he either has to get it repaired to hand back a running car .

Or he hands back a broken car which will be scrapped but he will still owe the finance company money. 

This should all be detailed in his financed agreement. 

paul_c123

Age/make/model/trim/engine/mileage of car

What's the fault (or symptoms of the fault)?

What's the connection with the MoT? (Plenty of faults which will stop a car dead aren't covered by MoT, for example gearbox issues)

Mags1953

sheramber said:

Mags1953 said:

Car_54 said:

Perhaps the OP's "friend" could post and give us the full story? Until then, we will go round in circles.

Thank you I'm only going off what he has told me..I went over this with him emailed him with what I posted this I don't know anything about car finance or leasing. Thanks again 

With finance under PCP , which it sounds is what he has, he agrees to make payments over a certain period of time.  These  payments do not cover the whole amount that has been financed.
At the end of that time there is a balloon payment to be paid  to  make up  the total amount financed at the beginning. 

This payment is set when the agreement is made.

You can either pay the balloon payment in the agreement or hand back the car. 

If your friend does have a PCP agreement then he either pays the balloon payment  and keeps the car. He can do what he likes with it after that.  The balloon payment would appear to £8000

or

He hands back the car to the finance  company but due to the fact that the car is  broken he either has to get it repaired to hand back a running car .

Or he hands back a broken car which will be scrapped but he will still owe the finance company money. 

This should all be detailed in his financed agreement. 

Thank you so much that's very kind of you to help. I did look over his finance agreement I could see the deposit monthly payments interest and total amount however, I couldn't see the balloon payment that's not to say it's not on there *somewhere * he'll have to go through it himself I did see the charges for excess mileage 0.09 pence per mile. I'm sure the mileage is way above the mileage allowed? 
I will forward this to him and once again thank you for your helpful information. 

jimjames

Mags1953 said:

sheramber said:

Mags1953 said:

Car_54 said:

Perhaps the OP's "friend" could post and give us the full story? Until then, we will go round in circles.

Thank you I'm only going off what he has told me..I went over this with him emailed him with what I posted this I don't know anything about car finance or leasing. Thanks again 

With finance under PCP , which it sounds is what he has, he agrees to make payments over a certain period of time.  These  payments do not cover the whole amount that has been financed.
At the end of that time there is a balloon payment to be paid  to  make up  the total amount financed at the beginning. 

This payment is set when the agreement is made.

You can either pay the balloon payment in the agreement or hand back the car. 

If your friend does have a PCP agreement then he either pays the balloon payment  and keeps the car. He can do what he likes with it after that.  The balloon payment would appear to £8000

or

He hands back the car to the finance  company but due to the fact that the car is  broken he either has to get it repaired to hand back a running car .

Or he hands back a broken car which will be scrapped but he will still owe the finance company money. 

This should all be detailed in his financed agreement. 

Thank you so much that's very kind of you to help. I did look over his finance agreement I could see the deposit monthly payments interest and total amount however, I couldn't see the balloon payment that's not to say it's not on there *somewhere * he'll have to go through it himself. 

Your post also refers to lease so if that is the type of agreement then that is completely different to PCP and doesn't have a balloon payment at the end, just deposit and monthly amounts so it's possible that is the type. It would be unusual for a lease car to be at least 3 years old at the start of the contract though which presumably it must be if it has had an MOT. It's a nice gesture to help out and your friend might be busy but it will probably be quicker and clearer if they post the details rather than relaying back and forth via you.

ontheroad1970

Used cars are now being sold as leases - not PCP.  Personally I wouldn't touch them with a bargepole, but such a thing does exist