Pcp help

[Marionkemp]

Hi, licence revoked on medical grounds and have car on pcp

[Marionkemp]

Advised Vauxhall of situation but they are not interested. Either pay full settlement or pay monthly payments. Can't get insurance as no licence therefore am I not in breach of contract?? Any advice would be appreciated

[R0b]

Hello,

First thing to do is check the terms and conditions of the PCP and see if there is anything in there around 'force majeure' or 'events beyond your control' and see what it says. If there isn't anything in there then you may have a case to terminate the contract on the basis that it has been 'frustrated'. Frustration of contract:

1. Occurs after the contract has started.
2. The frustrating event goes to the root of the contract.
3. The frustrating event happened through no fault of either party.
4. Further performance is impossible, illegal or the contract is now radically different to what was first agreed.

If you can satisfy the above then you can terminate the contract and discharge liabilities. Obviously you won't get anyone on the phone to understand this so I would suggest that if you think there are grounds, make a formal complaint to Vauxhall and set out your story leading up to your licence being revoked. Explain that as a result you cannot make use of the vehicle which goes to the heart of the contract and it is now impossible and/or illegal for Vauxhall to continue hiring the car out to you. In the circumstances you consider the contract to be terminated under the doctrine frustration of contract; all liabilites including payment are now discharged and you seek confirmation from Vauxhall that they accept this. If they don't then you want a final letter so you can pursue it to the Financial Ombudsman.