Personal Contract Hire Order/Price mismatch

simonjh

Hi, I am after some advice around a recent PCH deal I signed up for. The vehicle I ordered was priced as if it had a cost option paint and this option cost was added to the list price detailed on the PCH order, I had originally requested the included colour however there was no stock of this colour car available and so I selected a colour with the additional monthly premium which was available and was in transit to the dealer so already had been produced.

Post ordering the manufacturer changed the available colours on the website and the colour I selected has been renamed and is now the no cost option. This means the List Price detailed on the Order is higher than the list price of the actual vehicle that is being delivered, the colour name on the order is also different from the actual vehicle colour name. When I raised this with the PCH broker they were dismissive and stated they paid the same price for all of the cars in the batch regardless of colour whether option cost or not and are unwilling acknowledge that I am now paying the same monthly rental payment but for a car that is actually less value than specified on my Order. I feel that they should honour the price advertised for the included colour since this is now what I am receiving rather than one with a cost paint option.

I have submitted a formal complaint to the broker and also raised with Santander. Santander stated they do not get involved in the sales discussions so were not able to comment on the issue and to raise with the broker.

Appreciate any views on this.

Woodstok2000

So for clarity, you agreed a price you were happy with, and placed an order at that price for a vehicle with certain specs.

The dealer is going to provide you with the car, as per your spec, at the price you agreed.

The same car is now available for a lower price on their website.

Unfortunately you generally cant expect a refund if an item goes down in price after you've bought it...

Mildly_Miffed

You're getting the car you ordered, in the colour you ordered, at the price you ordered.

And you want to change that?

What's the cancellation terms on the deal?

Isthisforreal99

So let's turn it on it's head, say you ordered a no-cost colour then after you ordered it, it became a chargeable colour you would have been happy paying it?

simonjh

I'm saying the value/list price of the car detailed on the order was the basis I signed the lease agreement on. Subsequently I found out the vehicle being supplied value isn't that at all and is less.

Car1 colour A optional +1000 List Price £49000 lease per month £310
Car 2 colour B included List price £48000 lease per month £290.

I sign up for Car 1 terms since Car 2 no stock but I am now receiving Car3 terms:

Car3 colour A2 included price List Price £48000 lease per month £310.

Woodstok2000

I noticed tesco have got some good clubcard deals this week. I'll be sending them every receipt Ive got and expectjng them to honour the current price on all my historical purchases too. Will let you know what they respond with.

simonjh

https://forums.moneysavingexpert.com/discussion/comment/81936829#Comment_81936829

https://forums.moneysavingexpert.com/discussion/comment/81936838#Comment_81936838

I think turning it on it's head would be being offered a cost option metallic paint included in the price, you would probably jump at that? But I wasn't offered anything but told after ordering that I am expected to pay for the metallic cost paint when the car I'm getting does not have it.

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/81936907#Comment_81936907

Thats slightly different. The way i read your original post was that you were told about the paint not being available, and chose a different paint which was also a chargeable option, and then later on that paint was changed to a standard option.

So, the question is, at the point you ordered your car with your second choice non-metallic paint, was that paint a chargeable extra?

Penelopa.Pitstop

I would try to get finance contract amended and remove cost option, since there's no cost option any more.

I ordered stock car in red (had choice of 3 colours), but then was informed there's only white left which is free and price was changed to reflect it.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6661248/personal-contract-hire-order-price-mismatch

In the case of lease rates, the lease cost is not necessarily lower for a lower list price.

This can particularly be the case with colour. A consumer might see that a car has a list price of, say, £35k in standard colour - white - and an extra £500 for an option colour - black. The lease company can probably buy all the different colours at the same price. The car with the option colour might then sell for more at the end of the term so could mean a slightly lower lease cost than the car with the standard colour.

Whether or not the sales representative can charge the customer a bit more for one colour versus another colour is down to the agreement. Maybe the extra fee was not really for the colour but for the speed of delivery?

simonjh

It's interesting, google AI seems to think:

If the broker quoted a price based on a paid option (e.g., metallic paint) and included that cost in the monthly rental, but the car is delivered with that option as standard/free (reducing its actual value), you are potentially paying for a higher-spec car than you are receiving.Here is a guide to handling this situation based on consumer rights:

. Identify the Misrepresentation

• The Problem: The Order Form shows a List Price (including a cost option) that is higher than the actual manufacturer list price of the car being delivered.
• The Issue: Your rental payment is calculated on a false, higher total cost.
• Evidence: Gather the initial order form, any emails discussing the car's specifications (specifically the colour or option), and the final invoice or car details showing the option is now free. 

2. Action to Take with the Broker

• Formal Complaint: Do not rely on verbal dismissiveness. Send a formal complaint in writing to the broker.
• State the Case: Clearly state that the contract contains a misrepresentation of the vehicle’s list price, resulting in an inflated rental payment.
• Request a Quote Revision: Demand the rental cost be adjusted to reflect the true, lower list price of the vehicle.
• Broker's Argument: The broker claiming they "paid the same price" is irrelevant. If the manufacturer's invoice list price is lower, the PCH contract should reflect that. 

3. Escalation and Consumer Rights

• If the Broker is Unhelpful: PCH agreements are regulated by the Financial Conduct Authority (FCA).
• Financial Ombudsman Service (FOS): If the broker does not resolve the complaint within a reasonable time (usually 8 weeks), you can refer the case to the FOS. Misrepresentation of the total cost of the vehicle is grounds for a complaint.
• Financial Ombudsman +2

Summary Checklist for Next Steps

1. Stop Verbally Communicating: Document all future interaction in writing.
2. Highlight Misdescription: Note the specific page on the order where the "cost option" is listed, and compare it to the current manufacturer price list.
3. Threaten FOS Referral: Clearly state that if the calculation is not corrected, you will escalate this to the Financial Ombudsman Service for misrepresentation.