Voluntary termination of PCP and disputing the bill for damage -Alphera

Poteroo

I voluntarily terminated our PCP and paid the excess mileage but had a bill for £700 for damage from Alphera. I have disputed this in writing as the car was second hand, 5 years old and the damage was wear and tear. I've just had a call threatening me with a negative impact on my credit rating as it is a missed payment. It will take 8 weeks to get an answer back about the amount we owe and I have to pay the balance in 7 days. I can see why they do this but is this a real threat? I don't know how to find out and need to apply for a remortgage very soon. TIA

MasterG83

You need to read the BVRLA guide that comes with the handback option, when the vehicle was inspected were you present? If so did the inspector go through the damage?

MasterG83

• Carry out the appraisal of the vehicle 10 – 12 weeks before the vehicle is due for return. This will allow you to arrange to have any unacceptable wear and tear rectified.
• Appraise the vehicle as honestly as you can – be objective. Ask a friend or colleague to help you.
• Choose a time and place with good light. This is how the leasing company will examine your vehicle. Appraisals carried out in poor light invariably miss some faults.
• Before appraising the vehicle, make sure that it has been washed and is thoroughly clean but remember to allow time for it to dry. Water on the paintwork can mask faults.
• Walk all the way around the vehicle and examine closely each panel including the roof, bonnet, doors, and body for significant damage. Observe where the light is reflected differently from dents and scratches.
• Crouch or kneel down at the front and rear of the vehicle and look along the bodyline on each side. This will help you see scratches and dents that may otherwise be difficult to spot.
• Inspect lamps, lenses, windows and mirrors for chips, cracks and holes.
• Check the tyres (including spare) for damage. Check that the wear on the tread across each tyre is even. Inspect wheels, wheel trims and wheel spokes for scratches and deterioration.
• Clean and valet the interior.
• Check upholstered areas for odours, tears, burns, stains and wear.
• Inspect all controls, including audio equipment and accessories – they should be present and fully functional.

Poteroo

Yes I did and didn't sign it as we didn't agree with the costs given to repair the scratches etc that were pointed out. Thanks fro taking the time to reply- this is my first experience of voluntary termination and it's teh credit score implications I'm really worried about.

MasterG83

You need to continue to make the payments until the case is resolved, and you will get those back regardless.

The 8 weeks is the normal FOS complaint response time. This means that Alphera will be looking at the case, your agreement isn't closed until this is resolved.

I would discuss your dispute with the lender regarding the BVRLA findings, putting together any photographs of the original damage etc.

I specialise in this area, what were the charges for broken down?

Poteroo

Thank you, that's really helpful. I don't have them to hand but it's mainly marks on the car - small scratches that we think are wear and tear. Thanks for replying

MasterG83

For reference, fair wear and tear might be stone chips, reasonable size, wear to seat bolsters.

Scratches, dents, kerbed alloys, damage of any kind, warning lights etc are not.

BVRLA have a dispute service if required.

In my experience, a compromise can usually be made.

Mildly_Miffed

What is acceptable varies so widely by person - some people think that it's inevitable that a 3yo car looks like it's been through a warzone, others panic at the slightest stone chip. This is precisely why the size of acceptable scratches etc is documented in the industry-standard guide, applicable to all financiers who are part of the major industry body.

After that, there's two questions conflated.

1. Should you have been charged at all? If they're within those acceptable dimensions, no. Otherwise, yes.

2. Can you negotiate the charge? Their charges will be standardised. You had the option for getting the work done prior to return.

The guide is publicly available, but should have been provided by your financier.
https://issuu.com/bfwsn67/docs/bvrla_fair_wear_and_tear_standard_-_cb6bf45bb50403?e=2001091/30897824