PCP Voluntary Termination

[Shaunyb]

Hi,
I recently took a pcp deal out on a new car at the price of £17999.

I am 11 days into the agreement and have my car and happily driving round. Today i received my finance documents and I just noticed that the price of goods states £20449... the £449 is a service plan and the car company only charge £1 admin charges and nothing else...

So it looks like to me they have added on £2000 to the price of the car without me knowing. I will be calling them tomorrow to find out what has happened but in the meantime here are my questions that i hope somebody can help with...

1) if they come back with some bullcrap story about the price 17999 was for the car we shown you outside but yours is £20000, do i have the right to give them the car back and walk away with very little cost??

I know that sounds petty but im really annoyed and willing to cut my nose off to spite my face.

2) i part exd a car for £20800 but owed £21000 leaving £300 negative equity. I payed a £300 deposit and my agreement shows this offsetting against the old finance meaning there was no negative equity in the end... am i covered by the consumers act to cancel this? - my terms state i can cancel within 14 days but i must pay the outstanding balance owed... which confuses me...

I will ring tomorrow for answers but just wanted to get my knowledge of rights in my head if i have been lied too...

Sorry for the essay and thanks for the help!

Shaun

[Shaunyb]

Re: PCP Voluntary Termination

[MENTION=71570]R0b[/MENTION] i think i need you...

[R0b]

Re: PCP Voluntary Termination

Hi Shaun,

First of all you should have received pre-contract information documentation which showed exactly what you were paying for. Did you sign anything at the dealership, is the extra £2,000 interest for finance or does it relate to a different model of the car.

Does the documentation show the VIN number at all and can you cross check with your car model, check the dealer website if possible see if they are advertising your car still or if its been taken down.

Any witnesses with you at the time to back up your story?

[Shaunyb]

Re: PCP Voluntary Termination

Im so happy you are here Rob ive read lots of your replies

Yes unfortunately i did receive pre contract information and it all mirrors the ones i received today but i didn't notice the price as i assumed it was interest related until i looked today and realised the interest is separate and total payable is £24k...

I have read absolutely everything I've received now and it doesn't state how this figure has been made... the finance company start with £20449 then calculate interest from then on...

The car i bought has been taken down but it is still on Google images of their site with the price £17998. My wife was with me and he sat there and praised their company for selling these new cars at £17999 instead of £25k...

The cat i seen first was sold but he said he had a number of them available with the exact same spec in different colours... and the same price.

[Shaunyb]

Re: PCP Voluntary Termination

I also unfortunately signed that pre contract information i first received but unsure it was binding until the day due to signing everything again and providing all my proofs for the finance...

[R0b]

Re: PCP Voluntary Termination

Well, you've certainly put yourself in a difficult position I am afraid since you signed the documentation (this is why you don't just 'sign' paperwork you should read it especially taking out finance for such a large amount!). That being said, it may be that there is a misrepresentation in that you were expecting one price which you relied and expected to pay but they have now increased that sum substantially.

I am not sure what you mean by it still being on Google images, do you mean it has all of the pricing information and specifications? Either way I would save a copy of that to your computer and print a copy in paper form just to be extra safe.

The way car finance works normally is that the dealer will sell the car to the finance company who will own it and in turn sells/hires it out to you on finance, so your complaint should be directed at the finance company, not the dealer (the finance co. can go after the dealer if they wish). You should make a formal complaint to them with a view to taking it further to the financial ombudsman if there is no satisfactory resolution. You should also mention that your wife was with you at the time, strength is in numbers.

You could mention in your letter, if you are currently happy with the car, is for the finance company to terminate the current finance and re-issue new documents in accordance with the price agreed which was £17998. The FCA is currently monitoring/investigating dealerships who offer car finance as there is suggestion consumers are being misled so perhaps you could mention that and throw that into the ring too though it will either go one of two ways: they take it on board or ignore it.

Did you pay your deposit by credit card by any chance?

[Shaunyb]

Re: PCP Voluntary Termination

Ohh noo... i was worried that would be the answer. It states on my agreement i have a 14 day 'no reason' walk away right. Does that not apply to me?

It goes on after to state that i will have to pay in full the amount outstanding plus a daily interest charge until its paid which is where i was confused... why would people walk away within 14 days if they have to pay it anyway... unless i am reading it wrong.

Google images, i googled my reg as it brings the link up on their website. When i clicked the link it says the car is now sold with no further imagines but for some reason if i click images on Google it shows a snap shot of the page that it was like when the car was for sale... so ive kept it. But it states the price, model and spec just not in any further detail.

I paid by my debit card...

I will phone the finance company tomorrow to see what happens. If they agree that they bought the car for £20449 then i will be complaining to every man and his dog. I am very stupid for not noticing that before signing...

Thank you for your help Rob its such a difficult subject so its great having an expert to help

[Shaunyb]

Re: PCP Voluntary Termination

Doors my debit card protect me in anyway?

[R0b]

Re: PCP Voluntary Termination

Normally you sign the agreement on the premises which means you don't have any cooling off period, though if you do cancel the agreement it still means your tied to the finance but maybe not the car.

However if you got the contract through the post and then signed it, it may become a distance contract which means you effectively have a no quibble 14 day cooling off period to return the goods without any additional penalty and the finance would effectively be terminated. I would need to see the wording of it to understand the position better, but certainly if you didn't sign the contract on the dealer's premises then it is possible it is deemed a distance contract.

If you are going to call the dealership tomorrow, I would suggest you might want to record the call for reference and evidence if you need to rely on the conversation. Download a call recording app on your phone and use it when making the call. Calls are exempt from data protection rules because they are for domestic and personal use so you won't have any issues relying on it.

As a point to note for the future, any goods or services over £100 should ideally be purchased or a deposit put down (the deposit amount does not have to be the full amount it can be £10 as long as the value of the goods or services is £100 or more) on credit card. It gives you added protection because in the event of a breach of contract or misrepresentation, the credit card company is jointly liable - gives you added protection.