Voluntary termination of car PCP and extra finance company charges

[hawkhill]

My daughter has paid more than 2/3rds of her agreement for her car and due to working abroad had decided to terminate. The finance company sent a form out which she completed and the vehicle was inspected. For reasonable wear and tear on vehicle we were charged just over £500 + £600 for the service booklet not being filled in. I find it an unreasonable way of making money and was expecting not having to pay anything further. Do I have any recourse in challenging these extra charges? Can someone advise please.

[R0b]

Re: Voluntary termination of car PCP and extra finance company charges

My daughter has paid more than 2/3rds of her agreement for her car and due to working abroad had decided to terminate. The finance company sent a form out which she completed and the vehicle was inspected. For reasonable wear and tear on vehicle we were charged just over £500 + £600 for the service booklet not being filled in. I find it an unreasonable way of making money and was expecting not having to pay anything further. Do I have any recourse in challenging these extra charges? Can someone advise please.

Morning, I think more details are needed from you to better understand your position. There is an obligation on your daughter to take reasonable care of the car which would probably extend to having the car maintained through an annual service at least - Did she have the car serviced at all? If not, then I think it is reasonable for them to form the view that it should have been serviced as part of her duty to maintain it.

However, these charges can sometimes often be inflated and even though a car has not been serviced but repaired and MOT'd where necessary, the value might be a lot less than they are seeking to recover, if not negligable. Even more so, where the car is a brand that is known for holding it's value and is well built.

If your daughter is unhappy with these charges then you should ask for an explanation as to how they have come to this calculation and/or whether you consider the charges levied as representing an accurate representation of the car diminution in value. If they have based it on the average cost of £100 per service and your daughter has had the car 4-5 years then that is probably a sensible reasoning, but if lets say they've charged the services at £250 based on what a dealership would charge, it might be arguable that they ought to mitigate their losses and it would be reasonable for them to have the car serviced at a garage with a lower price and carried out at an equivalent standard.