Dealer extended PCP to accommodate new car without consent, now stuck

Medders100 · 10 August 2018 at 10:17PM

First time post, and I’m in need of a bit of help! Back in May I ordered a car through a Skoda dealer who promised deliver before September when my existing PCP expires. In July they said that it might not be August , maybe late September and suggested extending my pcp for 3 months. We discussed but I did not consent. In the next communication they said they had done it ‘just in case’ – I wasn’t that bothered as I didn’t realise what it really meant.

Last week they emailed to say the car has been delayed and will be an additional 12 weeks, and that I could cancel the order if I wanted and they’d return the deposit. I found a car at another dealer that was available and at a good price, so I cancelled and put the deposit down on the new one.

When I spoke to vwfs about cancelling the extension so I could hand back my current car in Sept as planned, they said that the agreement was non reversible and that if now have to do a voluntary termination to hand back in sept. It was then that I began to wonder how the dealer had managed to extend the pcp agreement without any official consent from me! I’m not prepared to do a VT as I work hard to keep a good clean credit report, and I don’t feel that I should be at a disadvantage for this dealers ‘mis-selling’. They have subsequently said ‘you’re not our customer any more, so we’re not helping you’, which I am astounded by.

Vwfs are pretty useless and the new dealer have sent them an email on my behalf to try and cancel it but with no luck.

I’m really at a loss about what I can do . I feel really annoyed that a dealer with no official authority from me can alter a credit agreement in my name, but I can’t then reverse that! I really don’t want to VT but I can’t afford 2 finance payments whilst this all plays out. Vwfs just said raise a complaint and it’ll take 8 weeks.

Sorry it’s so long, but I’m in a bit of a quandary!

whambar · 10 August 2018 at 10:49PM

The VT is a right so doesnt impact your credit record as such albeit it can be flagged as a VT (which isnt a default or missed payment) it may mean VWFS may not loan to you again which may be an issue if you are buying a car from a VAG brand

How I would approach this - as an everyday joe:

1. See if new dealer has any more margin left to give you more allowance in deal to give you the additional 3 payments to VT - easier but morally not right if you didnf agree to extension

If not

Write to original dealer and VWFS clearly highlighting its a formal complaint and letter before action - hold them jointly and individually responsible for miselling in that contract varied (as extended) without your knowledge or consent - VWFS said 8 weeks but I have also found them to be pretty efficient

Await response and then escalate to FCA (or whoever it is that regulates) if a negative response

In meantime I would VT car in Sept and if I was 100% sure Im right about what was and wasnt agreed - pay VT fee on Credit card and await obumsman decision or go far track small claims Court route for value of VT - as they are so big they may well miss it and you may get default decision anyway - pay CC when claim won

As a side note make sure your old car meets the fair wear and tear requirements as per BVLA guide if you do VT as delap charges can hurt - you dont normally see this with Pex but VWFS will VT using BCA so it goes straight to auction

[Deleted User] · 10 August 2018 at 10:52PM

I'm no expert on this but would be annoyed as you are, my instincts would be to write to the boss of vwf explaining exactly what has happened and give him/her 7 days to reply, if that doesn't work I might be tempted to take some legal advice.

Medders100 · 11 August 2018 at 9:15AM

Thanks for such a detailed reply, it’s really helpful. I have raised a complaint with vwfs and they said they are managing it all, but that all options still remained open to me.
I may check with them to see if havinvg a VT on record will negatively affect my chance of getting another pcp with them, or if they can put a note somewhere to say that they had actually advised me to VT when they learned of the situation. They said that there would be no fee or payments but that I just needed to do it befor my next payment was due in early September.
The other option I though of over night was to ask if the new dealer could part ex my car and give me a neutral amount for it (currently a bit negative) as they would be in a better position to make money on it selling through the network. Then they’d just settle the finance - would that work?

DrEskimo · 11 August 2018 at 9:54AM

When you say they extended the PCP, precisely what have they done?

How long was the original PCP?

Have they merely recalculated your original deal and just made it 3months longer (and given you a new GFV to reflect this).

Are you actually in negative equity, or is this based on their woeful trade in valuation. How much is it to settle your finance in full, and how much can you realistically get for it? Try WBAC, Evans Halshaw and Tootle. Look at private market and see what the general sale price is.

whambar · 11 August 2018 at 10:07AM

I have never done it myself but I’ve have been told by someone who said that they have - VWFS have a discretion method for customers who have Finance and taking out New Finance with them in that if dealer agrees to buy car at their book value they will accept - this was on a straight lease not a PCP (lease is very difficult to end early without paying off all contracted costs). The dealer will run the figures and he will know instantly what the settlement is

One thing that I learned more recently that surprised me is that there is some sort of trade log - as a dealer could see every price I had been quoted in P/ex & to sell to trade as they were listed by price and postcode area of dealer bidding - so try new dealer before WBAC etc in case it shows price being bid

Your PCP GFV should be very close to bottom end of trade price so may well be attractive enough to the dealer to do that for you and if they don’t want it they will know a dealer that does - so your thought may work out - of course you shouldn’t have all the hassle of this but at the same time I would want my new car and not be paying for 2 as all the hassle of insurance Parking and all that

Medders100 · 11 August 2018 at 1:22PM

My original agreement was 42 months, ending September, but now it’s December so they’ve extended it by 3 months. I have no idea about an updated GMFV, but then again I had no idea that they had applied on my behalf, or that it was non reversible! I’m sure there are other terms that I have no idea about, but working for a FS company regulated by the FCA, I am astounded that this is allowed to happen!

What makes me laugh is every time I’m on hold to vwfs is the hold voice over keeps saying ‘to make any changes, you have to be the named agreement holder’ - unless you are a dealer - then you can apparently do anything you like!

DrEskimo · 11 August 2018 at 3:47PM

Medders100 wrote: »

My original agreement was 42 months, ending September, but now it’s December so they’ve extended it by 3 months. I have no idea about an updated GMFV, but then again I had no idea that they had applied on my behalf, or that it was non reversible! I’m sure there are other terms that I have no idea about, but working for a FS company regulated by the FCA, I am astounded that this is allowed to happen!

What makes me laugh is every time I’m on hold to vwfs is the hold voice over keeps saying ‘to make any changes, you have to be the named agreement holder’ - unless you are a dealer - then you can apparently do anything you like!

Personally, VT is the last option I will always advise people to avoid. Similar to just handing the car back. With the exception of new EV's or new models where the GFV predictions can be widely optimistic, generally the GFV is set to the predicted lowest trade value, and invariable better price can be achieved through other methods.

I will always try to get the best price for the car, and that may require a bit of work, but when you consider you could be upwards of £2k better off, the small effort required to ring around other dealers or trade sites, or the couple of months it takes to advertise and sell privately is more than worth it to me.

So essentially, the amount of finance you have on the car, and the value of the car have not changed, despite the extension. So, just as you would have done had you been 3months before the original loan agreement, look to see where you can get a good price that will settle the outstanding finance, then proceed with the purchase of the new car.

You can look at private sale if you can settle the finance in the short term, sale or return if you have decent garages in the local area, Tootle to see if other dealers might buy it for a good price, or places like WBAC or Evans Halshaw for a better trade price.

Medders100 · 11 August 2018 at 5:51PM

Sadly due to a really unrealistic gmfv (£10.5k) my private sale opportunities are really limited. Evans halshall have quoted £8795, trade in was coming out at £9500, so I think that the only option left to me is to get the offending dealer to buy the car at gmfv or to wait, pay the installments and hope to win compensation from dealer / vwfs. Am I missing any options?

DrEskimo · 11 August 2018 at 5:54PM

Medders100 wrote: »

Sadly due to a really unrealistic gmfv (£10.5k) my private sale opportunities are really limited. Evans halshall have quoted £8795, trade in was coming out at £9500, so I think that the only option left to me is to get the offending dealer to buy the car at gmfv or to wait, pay the installments and hope to win compensation from dealer / vwfs. Am I missing any options?

Is it a diesel?

Rule of thumb is that private sale is around £2k more than trade, so would £11k be a realistic private sale price?

If it has decent options and in a nice colour, lower than average mileage and in good condition it should shift.

What sort of prices have dealers got the same car up for?

Medders100 · 11 August 2018 at 6:12PM

Yes it!!!8217;s a 2.0 tdi. Dealer pricing seems to be around £11300 for similar mileage and spec.

Dealer extended PCP to accommodate new car without consent, now stuck

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