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  • FIRST POST
    • Mike967angus
    • By Mike967angus 13th Feb 18, 11:30 AM
    • 23Posts
    • 7Thanks
    Mike967angus
    18 Year Old PCP
    • #1
    • 13th Feb 18, 11:30 AM
    18 Year Old PCP 13th Feb 18 at 11:30 AM
    My son in a moment of weakness decided to purchase a new Polo GTI. I was far from impressed bearing in mind the type of car and his age & relative nativity so ended up going to the VW dealer to grudgingly negotiate a better deal. One year in and despite a clean record his premium has made the car virtually uninsurable
    He wants rid and is in 2k negative equity.
    As car is on a PCP is it worth writing to VW finance as although he signed on the dotted line. I wonder was the PCP the correct thing to offer him bearing in mind his age (Just18)and type of car?
Page 2
    • onomatopoeia99
    • By onomatopoeia99 13th Feb 18, 3:25 PM
    • 4,282 Posts
    • 9,657 Thanks
    onomatopoeia99
    .
    I'm still of an option that any financial product needs to be the most suitable for that person and wonder if this should be fully explored by the dealership or are they trying to get people into cars for the lowest monthly payment regardless of the products suitability.
    Originally posted by Mike967angus
    The dealers and the finance companies aren't insurance actuaries, they can't forseee what his insurance premium will be after a year and cannot be expected to. For all they know, he may self-insure, so there will be no premium to pay.

    They will have ensured the finance product is suitable based on the criteria they are required to use, they do this too often to get it wrong. A mis-selling claim won't fly.

    I question the need for a new car at 18 though - and if he hands it back and takes the hit on the finance, what's he going to do for transport?
    INTP, nerd, libertarian and scifi geek.
    Home is where my books are.
    • Chiefdave135
    • By Chiefdave135 13th Feb 18, 3:27 PM
    • 1 Posts
    • 1 Thanks
    Chiefdave135
    Advice
    I'm loving some of the replies on this post. I'm 20 and I bought my Polo GTi at 19 when it was 5 months old, insurance was expensive but for me it was affordable, this year I'm looking at renewing and I'm getting quotes back at 1000 less than this last year. I can tell you though that trying to insure the car at 19 was expensive and I do regret not waiting until I was 20 to buy the car. What your son did was exactly what I did, however, he went and bought a new one which was stupid. Has he not been saving money up for this year's insurance? That would have been the sensible thing to do. I left myself with less than 100 quid a week to enjoy myself with and that didn't include 45 quids worth of petrol, I know it's hard when you're a young lad and you want to do everything but there is a way, I've been there and done it and I personally don't regret what I did and I'm not looking at getting rid a year on. Your lad needs to make his own way in life and not have daddy looking after him all the time, he got himself into a mess, he needs to get out of his mess. End of.
    • missile
    • By missile 13th Feb 18, 3:54 PM
    • 9,479 Posts
    • 4,715 Thanks
    missile
    One year in and despite a clean record his premium has made the car virtually uninsurable
    ...?
    Originally posted by Mike967angus
    That seems very strange?
    What was premium at year 1?
    What is his premium for year 2?
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home
    • Mike967angus
    • By Mike967angus 13th Feb 18, 5:15 PM
    • 23 Posts
    • 7 Thanks
    Mike967angus
    To clarify I started the thread not my son. As an adult you make your own decisions and have to live with them. He is fully aware of this.As stated in my first post he signed on the dotted line.
    He works hard as do lots of others and is by no means spoiled. We make mistakes when we are young even those who feel the need to lecture or preach on forums and we learn from them and move on.

    As regards insurance it went from 1600 to over 3000 even with both parents and a black box and I always shop around.

    As for the car he would have loved to keep it however it's not cost effective to do so and better to cut his losses. Because I'm old I can get insured for 200 fully comp and we will try and sell it or hawk it round the dealers/ webuyanycar etc was just wondering if a better solution was out there if there isn't there isn't end of.

    There is an article on "this is money" re mis selling of PCPs which may be of interest.
    Last edited by Mike967angus; 13-02-2018 at 5:17 PM. Reason: Typo
    • Shaka_Zulu
    • By Shaka_Zulu 13th Feb 18, 5:27 PM
    • 1,431 Posts
    • 3,838 Thanks
    Shaka_Zulu
    I know you can vote and fight for your country at that age but you are still short of life experiences as he's found out the hard way.
    Originally posted by Mike967angus
    Not if the government get their way they will all soon be able to vote at 16 (not just in Scotland) scary isn't it!!
    • JRDXN
    • By JRDXN 13th Feb 18, 5:31 PM
    • 1 Posts
    • 1 Thanks
    JRDXN
    One thing to check is disposable income on the agreement. Did they receive proof of disposable income? If not you might have a case going down the FCA route ? I only say this because when i signed up they didnt prove it and just made a figure up to fit within the guidelines?
    • Shaka_Zulu
    • By Shaka_Zulu 13th Feb 18, 5:32 PM
    • 1,431 Posts
    • 3,838 Thanks
    Shaka_Zulu
    Why don't you sell your car (your wife's car?) and take it on?
    • uknick
    • By uknick 13th Feb 18, 5:36 PM
    • 761 Posts
    • 344 Thanks
    uknick

    There is an article on "this is money" re mis selling of PCPs which may be of interest.
    Originally posted by Mike967angus
    If you are referring to the 2016 This is Money article;

    http://www.thisismoney.co.uk/money/cars/article-3644528/Claims-lawyers-looking-mis-selling-PCP.html

    that people were not specifically told PCP may cost more than a bank loan, wouldn't that be covered under caveat emptor? Or, the fact it wasn't explained the balloon payment may be more than the car is worth, isn't a buyer expected to do due diligence anymore?

    I did read the other day interest only mortgages are being looked at because people don't realize they have to find the capital to pay the mortgage off at the end of the loan period. What did they think would happen? The bank would write it off?
    • AnotherJoe
    • By AnotherJoe 13th Feb 18, 6:00 PM
    • 9,608 Posts
    • 10,687 Thanks
    AnotherJoe
    No you're not being harsh as nothing I haven't considered myself.
    Totally take your point about the deal not being set in stone also.
    I'm still of an option that any financial product needs to be the most suitable for that person and wonder if this should be fully explored by the dealership or are they trying to get people into cars for the lowest monthly payment regardless of the products suitability.
    Originally posted by Mike967angus
    How on earth would you define "most suitable" ? In what of a 100 different respects?

    All the finance company and dealer need be concerned with is have teh optiosn been clearly explained. Its not their problems that you and your son were careless / niave enough to not be abel to afford the insurance payments, thats his lookout.

    PPI was entirely different and trying to equate it to that so you can escape the blame for a poor life choice, isn't on.

    As someone said in a very early post, this is a great life lesson for him and losing a couple of k now might be exactly whats needed to make him be more careful and cautious with money in future and repay the cost 100x over.

    Were he actually to wriggle out of this, the lesson would likely be " it doesn't matter what i do i can always blame someone else for my screw ups just like dad told me"
    • Mike967angus
    • By Mike967angus 13th Feb 18, 6:05 PM
    • 23 Posts
    • 7 Thanks
    Mike967angus
    Partially agree people should check things out themselves although very few of these mortgages were sold without a hefty endowment (Which I'm sure someone received a hefty commission)
    Regards the Buyer Beware on a PCP, I don't know...That's why I asked the question !!!55357;!!!56833;
    • Robisere
    • By Robisere 13th Feb 18, 6:09 PM
    • 2,284 Posts
    • 3,084 Thanks
    Robisere
    I am 72 now and my cousin (and lifelong best mate) almost 72, but years ago, we both bought thoroughly innapropriate ways to get mobile. At 17 I borrowed money I didn't have to buy a motorbike. At 18 my cousin borrowed much more to buy a beautiful yellow Ford Zephyr convertible*.

    We both experienced problems paying back the HP and had to sell bike and car, then spent about a year each working off the difference. It was a salutory lesson to both of us and we each received our full share of parental "We Told You So." Neither of us bought anything that we could not comfortably afford, again.

    The point is, we were young. We saw the shiny, 'chick magnet' vehicle of our dreams and every sensible consideration went out of the window. Sad realisation came when we no longer had the vehicles, money and the 'chicks' had gone, but we each had a short good time before crashing back to Earth. But 72 still remembers being 18: how many critics of the young man in question here, were always sensible when they were young? I think it took me to 23 and my first child, to show any signs of maturity.

    The lad has learned the same lesson that my cousin and I learned. I hope it stays with him.

    * Yes, before anyone tells me they were never made, Zephyr and Zodiac convertibles were made: converted by a company called Crayford Convertibles. And my cousin's was beautiful.
    Last edited by Robisere; 13-02-2018 at 6:13 PM.
    I think this job really needs
    a much bigger hammer.
    • Mike967angus
    • By Mike967angus 13th Feb 18, 6:16 PM
    • 23 Posts
    • 7 Thanks
    Mike967angus
    That is an excellent post and so true
    Thanks for summing up the thread perfectly.
    • motorguy
    • By motorguy 13th Feb 18, 6:38 PM
    • 16,767 Posts
    • 9,939 Thanks
    motorguy
    I am 72 now and my cousin (and lifelong best mate) almost 72, but years ago, we both bought thoroughly innapropriate ways to get mobile. At 17 I borrowed money I didn't have to buy a motorbike. At 18 my cousin borrowed much more to buy a beautiful yellow Ford Zephyr convertible*.

    We both experienced problems paying back the HP and had to sell bike and car, then spent about a year each working off the difference. It was a salutory lesson to both of us and we each received our full share of parental "We Told You So." Neither of us bought anything that we could not comfortably afford, again.

    The point is, we were young. We saw the shiny, 'chick magnet' vehicle of our dreams and every sensible consideration went out of the window. Sad realisation came when we no longer had the vehicles, money and the 'chicks' had gone, but we each had a short good time before crashing back to Earth. But 72 still remembers being 18: how many critics of the young man in question here, were always sensible when they were young? I think it took me to 23 and my first child, to show any signs of maturity.

    The lad has learned the same lesson that my cousin and I learned. I hope it stays with him.

    * Yes, before anyone tells me they were never made, Zephyr and Zodiac convertibles were made: converted by a company called Crayford Convertibles. And my cousin's was beautiful.
    Originally posted by Robisere
    Has anyone criticised the sons choice to buy the car? I know i havent?

    What has been criticised is the "blame culture" attitude that it must be someone elses fault.
    Last edited by motorguy; 13-02-2018 at 6:46 PM.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • motorguy
    • By motorguy 13th Feb 18, 6:40 PM
    • 16,767 Posts
    • 9,939 Thanks
    motorguy
    That is an excellent post and so true
    Thanks for summing up the thread perfectly.
    Originally posted by Mike967angus
    It doesnt actually - the criticism has generally been levied at you for trying to find someone else to blame, when in reality its your sons fault and situation and you condoned it (perhaps reluctantly) at the time.

    I'd be the first to admit i've spent (and lost) stupid amounts of money on cars over the years, however (a) i enjoy cars and (b) i own my bad decisions, not try to blame anyone else.
    Last edited by motorguy; 13-02-2018 at 6:44 PM.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • motorguy
    • By motorguy 13th Feb 18, 6:44 PM
    • 16,767 Posts
    • 9,939 Thanks
    motorguy
    Partially agree people should check things out themselves although very few of these mortgages were sold without a hefty endowment (Which I'm sure someone received a hefty commission)
    Originally posted by Mike967angus
    Hows that related to PPI?
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • Mike967angus
    • By Mike967angus 13th Feb 18, 8:03 PM
    • 23 Posts
    • 7 Thanks
    Mike967angus
    Me too but we are talking big numbers these days.
    If he was 25 I wouldn't have asked the question.
    If your 18 you are legally an adult but credit is too easy to get if you've got a good credit score.
    On the other hand the less fortunate pay through the nose.
    Car will be sold and any shortfall will be paid by him and was always going to be the case.
    I really only wanted to know if it was worth asking VW finance to bear this in mind as it's likely to be around 2000.
    He's learned his lesson which is invaluable and maybe it's better at 18 than 25.
    • Tarambor
    • By Tarambor 14th Feb 18, 4:43 AM
    • 3,070 Posts
    • 2,222 Thanks
    Tarambor
    Oh it is most definitely better learned at 18 than 25 when kids and mortgage are likely to be in the very near future if not there already.

    I have a great long list of stuff that goes into the "If I'd known at 18 what I know now" category.
    • AdrianC
    • By AdrianC 14th Feb 18, 8:12 AM
    • 17,602 Posts
    • 15,968 Thanks
    AdrianC
    Car will be sold and any shortfall will be paid by him and was always going to be the case.
    I really only wanted to know if it was worth asking VW finance to bear this in mind as it's likely to be around 2000.
    Originally posted by Mike967angus
    So it's worth throwing 2k away - and, presumably, still needing to buy a car - rather than simply wincing and accepting a 120/mo increase in insurance premium?
    • n217970
    • By n217970 14th Feb 18, 8:15 AM
    • 333 Posts
    • 274 Thanks
    n217970
    So it's worth throwing 2k away - and, presumably, still needing to buy a car - rather than simply wincing and accepting a 120/mo increase in insurance premium?
    Originally posted by AdrianC
    I agree, I think getting some insurance comparative quotes on cheaper cars might be a better first step - if they come in at 2k plus for a lower group he would be as well sticking as his is.
    • agrinnall
    • By agrinnall 14th Feb 18, 9:08 AM
    • 20,344 Posts
    • 16,119 Thanks
    agrinnall

    * Yes, before anyone tells me they were never made, Zephyr and Zodiac convertibles were made: converted by a company called Crayford Convertibles. And my cousin's was beautiful.
    Originally posted by Robisere
    Was it like this one? I'll bet they're worth a bit these days.

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