Car finance issue

badaz52 · 5 July 2018 at 11:03AM

Mercdriver wrote: »

Any person can be foolish, but it doesn't make them a fool. Yes, OP was foolish to not read the document carefully before signing.

OP - what is the final rental payment? Normally there is advance rental payments up front - normally 3,6,9 or 12 months worth of payments up front followed by say 47 payments on a 4 year lease. I haven't seen a larger payment at the end of a lease (apart from payiment for excerss miles).

The final rental payment is around £6500, which I thought was a final balloon payment because the amount was very similar to what was on my PCP agreement on the other car. In terms of advance rentals I'm not sure how they worked it out, I gave them my old car and £500 which would only amount to about 2 months payments but to my knowledge the £500 was to clear the negative equity on the car I was trading in not any advance rental. On that basis I don't think I paid any advance rental up front it was just a 48 month lease.

I have spoken to Peugeot about my options and they would only expect me to clear negative equity in order to trade in. If there is no negative equity then they just want a deposit and away I go. I know I've been foolish but do feel let down by the dealership as they never gave me all the finance package options at the time, they selected the lease one for me as it was in all likeliness a little cheaper than the PCP plus I asked for 4 year (which may not be possible on PCP?) as I was on PCP I had no reason to believe the new finance package was any different and the paperwork has minimal differences between PCP/Lease so I think anyone would have missed it.

wgl2014 · 5 July 2018 at 11:34AM

If you have a lease then there is no negative or positive equity, you pay the contracted amount to hire the car and at the end you give it back.
I think you need to go over your paperwork very carefully to see exactly where you can find yourself at the end of the lease, as I understand it you will be paying £6.5k to hand the car back and end up with nothing.

Edit: A quick Google suggests I am wrong!

https://www.psa-finance.co.uk/personal-finance-lease

I don't really get how this is different to PCP, there's no option to buy at the end but you can sell to whoever you like and pay off the final payment. Presumably if you want the car you could sell it to yourself!

badaz52 · 5 July 2018 at 11:47AM

I hadn't thought of it like that. I could sell it to my Dad lol.

Arklight · 5 July 2018 at 12:07PM

I'm unclear what the final rental payment of £6500 is. Why would you pay that? What happens if you don't?

Without seeing the contract we can't say if it looks like you were mis-sold. If you can blank the personal details out then you could add an image of the document to your post.

A legal contract is only enforceable under the jurisdiction of a court of law. If yours is ambiguous, contains unreasonable terms, or contravenes statute, then it may not be valid.

People seem to be making a lot of assumptions about what you've signed without seeing it.

facade · 5 July 2018 at 5:37PM

wgl2014 wrote: »

Edit: A quick Google suggests I am wrong!

https://www.psa-finance.co.uk/personal-finance-lease

I don't really get how this is different to PCP, there's no option to buy at the end but you can sell to whoever you like and pay off the final payment. Presumably if you want the car you could sell it to yourself!

It reads to me that you don't pay the balloon if you hand it back.

If you want to keep it then you pay the balloon and a "peppercorn" rental for evermore, or you can sell the thing and only pay the balloon, which is the weird part, as it would be cheaper.....

Car finance issue

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