Dilemma MG4 needs swapping

[Jto]

Hi All
Anyone else having financial problem sorting out a new car.
My dilemma is negative equity ( totally horrendous values) with 3 year old MG4 on PCP Finance. I cannot get a deal that is anywhere
Near what I am paying now.
It’s 3 years into a 4 year contract and not sure if I can hand it back?
Would leasing be anyway of getting out of the problem.
Any thoughts or help would be gratefully received
Neil

Hi
I would speak with you financial company who should help you.

 

[LenEV2016]

Hi
I would speak with you financial company who should help you.

Finance company won't be able to offer a financially viable way out, ending your deal early because you fancy a new car and are unfortunately in negative equity isn't their issue.
The only two options you have are a voluntary termination (if conditions are met) or see out the last year of the deal and hand it back, the negative equity then becomes the finance companies issue not the customers

 

[Kevin Smith]

None of which encourages me to switch from buying what I can afford outright (and keeping it until it is too old for my economic maintenance) to any of the modern methods of buying on the never never as my folks would have called it 40+ years ago! That ejector set was initially fitted to Mrs Smith's Fiat 125, cost £500 and my first car was a £300 fiesta with dents all round and every shade of silver spray can paint in the catalogue. Now I buy base model MG4s and still expect to have them until they hit their teens, if I'm spared and still have a license!

 

[Jto]

I am in a similar position. My Camden grey se sr will be 3 years old at the end of January 26 and is on a 4 year PCP with Santander through the dealer.

I don't have access to the original PCP agreement because I can't get access to my original virgin media email account (long story). So when I take it back for the service and MOT, I will have to ask them for a copy of it.

My question is:
Does anyone know was the guaranteed final vehicle valuation part of the original agreement, not the final lump sum payment?

I doubt very much that there will be any equity left after the 4 years is up, so I anticipate having to give it back at that point.
I really do like the car so would most probably get another one.

Hi
All you need to is ring Santander 0800 085 1759 and ask them to email a copy of the PCP agreement, my understanding is the final valuation is the same as final lump sum. If you give the car back that was the guarantee amount so if over time the is worth less that down to them. If you decide to keep the car that is the amount you have to pay to keep it and you lose. But over time you could get equity back.

 

[Ecoman]

Santander ≡ MG Finance; in late 2023 (for me), they were the only option from MG – so may well fall into the FCA PCP mis-selling saga (see i.e. https://www.moneysavingexpert.com/reclaim/reclaim-car-finance/).

My personal experience (and I am far from alone, it seems) has been that they are the most appalling organisation, with the worst so-called ‘customer services’ imaginable. I won’t detail as beneath contempt – but broadly was due to their misinterpretation of their ‘max 28 days abroad without written permission’ policy, which they don’t apparently understand themselves – even after their Complaints Department agreed with me in writing. I wouldn’t go near them again.

agreed their customer service is appauling

 

[Jto]

Santander ≡ MG Finance; in late 2023 (for me), they were the only option from MG – so may well fall into the FCA PCP mis-selling saga (see i.e. https://www.moneysavingexpert.com/reclaim/reclaim-car-finance/).

My personal experience (and I am far from alone, it seems) has been that they are the most appalling organisation, with the worst so-called ‘customer services’ imaginable. I won’t detail as beneath contempt – but broadly was due to their misinterpretation of their ‘max 28 days abroad without written permission’ policy, which they don’t apparently understand themselves – even after their Complaints Department agreed with me in writing. I wouldn’t go near them again.

I am on my 3rd car with them had no problems with them, how would they know you’re out of the country for more then 28 days as long payment is made. If I was going out of the country I wouldn’t getting there permission.

 

[rjhfandclf]

how would they know you’re out of the country for more then 28 days

They wouldn’t ... until something goes wrong – in the same way that no-one knows it was you who burgled a house, until you get caught. The point is that their contract, which one signs, says that you cannot take the car abroad for more than 28 days without their written permission.

I wasn’t going to elaborate here, as I said, but since you ask … When I bought the car, it was on the clear understanding that this would not be a problem, as long trips abroad were the (almost) sole reason for buying it. The dealer (said that he had) contacted the Santander rep, who confirmed that all I needed to do was let them know each time I took it for long trips – as stated in their T&Cs.

As soon I did this the first time, I got the prompt answer (which presumably the ‘Customer Services’ dingbat I had contacted copied straight off his computer screen’s ‘list of answers for stupid customers’) that 28 days is all that is allowed … Not entirely correct; which was what the Complaints Department agreed when I elevated my complaint after similar repeated unintelligent responses from ‘Customer Services’.

To make matters worse, I have repeatedly done the same, exactly as instructed on numerous occasions since, and every time I’ve received the same response – despite copying to them and referring them to their own Complaint Department’s decision. They simply don’t read what you say, and couldn’t care less. They are also rude as well as, in the end, they simply stop responding to my replies seeking justification. My solution has been always to advise them of my intentions and seek permission, as instructed, but if they can’t be bothered to either read and answer what I have actually said to them, I leave the ball in their court to get round to it in their own time – which, of course, they never do. That is then their problem and not mine.

 

[salty]

Typical of Big companies. Not necessarily all. But certainly most.

 

[mikgle]

A PCP is a longterm car hire, in that they come with a Guaranteed Minimum Future Value at the end of the lease, its only a problem if you try to end the lease early. Remember than new MG4's are £10k cheaper than they were 3 years ago, also there are currently some cracking new EV's with excellent 2 year lease deals around £250 / month

What, a new MG4 is now £16k? Where?

 

[GJMG4 North]

What, a new MG4 is now £16k? Where?

Cheapest currently on Autotrader £17,795 (MG Morecambe) for a new unregistered MG4 SE, which is >£10k below current list price, rather than £10k lower than 3 years ago, but the sentiment is still there, or there abouts. We are seeing some incredible deals around currently, from one extreme like the Dacia Spring under £10k (pre-reg with 10 miles from Vertu group) to the other (£23k off a BMW i7 at Williams Bolton). There are big discounts around right now and this is likely to continue for some time as manufacturers race to hit the ZEV requirements when faced with a large number of new market entrants (Leapmotor, BYD, Jaecoo, Xpeng, etc.) plus the legacy manufacturers have a number of new models coming too. It's going to be a buyers market for the time being I think.

 

[mikgle]

Cheapest currently on Autotrader £17,795 (MG Morecambe) for a new unregistered MG4 SE, which is >£10k below current list price, rather than £10k lower than 3 years ago, but the sentiment is still there, or there abouts. We are seeing some incredible deals around currently, from one extreme like the Dacia Spring under £10k (pre-reg with 10 miles from Vertu group) to the other (£23k off a BMW i7 at Williams Bolton). There are big discounts around right now and this is likely to continue for some time as manufacturers race to hit the ZEV requirements when faced with a large number of new market entrants (Leapmotor, BYD, Jaecoo, Xpeng, etc.) plus the legacy manufacturers have a number of new models coming too. It's going to be a buyers market for the time being I think.

That's amazing! Not thinking of myself (my MG4SE was £27k 3 yrs ago, with the 3 coat red finish) but theres a few friends who maybe looking, I'll be sure to pass on this. Many thanks!

 

[GJMG4 North]

That's amazing! Not thinking of myself (my MG4SE was £27k 3 yrs ago, with the 3 coat red finish) but theres a few friends who maybe looking, I'll be sure to pass on this. Many thanks!

There's another £500 to be saved if you don't mind a pre-reg (Paul Rigby Birmingham, or Stoneacre Wigan) with delivery mileage. Budgen Shrewsbury are offering their 75 plate demonstrator for under £17k

 

[Buster72]

Hi
All you need to is ring Santander 0800 085 1759 and ask them to email a copy of the PCP agreement, my understanding is the final valuation is the same as final lump sum. If you give the car back that was the guarantee amount so if over time the is worth less that down to them. If you decide to keep the car that is the amount you have to pay to keep it and you lose. But over time you could get equity back.

Very much appreciated.

 

[Buster72]

Santander ≡ MG Finance; in late 2023 (for me), they were the only option from MG – so may well fall into the FCA PCP mis-selling saga (see i.e. https://www.moneysavingexpert.com/reclaim/reclaim-car-finance/).

My personal experience (and I am far from alone, it seems) has been that they are the most appalling organisation, with the worst so-called ‘customer services’ imaginable. I won’t detail as beneath contempt – but broadly was due to their misinterpretation of their ‘max 28 days abroad without written permission’ policy, which they don’t apparently understand themselves – even after their Complaints Department agreed with me in writing. I wouldn’t go near them again.

I have already submitted a claim from by email using MSE claim format.

 

[rjhfandclf]

I have already submitted a claim from by email using MSE claim format.

I did the same on 13/11 – more out of curiosity than great expectation – but haven’t even received the courtesy of an acknowledgement, surprise, surprise ... although others certainly have heard back from them. MSE now says wait 8 weeks, then chase again.

NB the MSE form email on for Santander ('[email protected]') doesn’t seem to be the same as quoted elsewhere – variously: ‘[email protected]’ or simply ‘[email protected]’, and replies are said to come from ‘[email protected]’. I’m probably on their black list, but my email wasn't returned, so hopefully is in the mix. Any chaser will go to all addresses. If that fails, then it needs to be elevated to an FCA or FOS, it seems.

 

[LenEV2016]

I did the same on 13/11 – more out of curiosity than great expectation – but haven’t even received the courtesy of an acknowledgement, surprise, surprise ... although others certainly have heard back from them. MSE now says wait 8 weeks, then chase again.

NB the MSE form email on for Santander ('[email protected]') doesn’t seem to be the same as quoted elsewhere – variously: ‘[email protected]’ or simply ‘[email protected]’, and replies are said to come from ‘[email protected]’. I’m probably on their black list, but my email wasn't returned, so hopefully is in the mix. Any chaser will go to all addresses. If that fails, then it needs to be elevated to an FCA or FOS, it seems.

Have Santander been outed as one of the companies with the commission payments to dealers

 

[rjhfandclf]

Have Santander been outed as one of the companies with the commission payments to dealers

They are listed on the MSE site as such and have a dedicated page or two on their own website including a DCA complaint form of their own too, so presumbly they are involved. They are also obligated, as I understand it, to contact every borrower proactively themselves (so long as they have up-to-date contact info - which by the very nature of the issue, they must surely have) within the timeframe specified.

 

[LenEV2016]

They are listed on the MSE site as such and have a dedicated page or two on their own website including a DCA complaint form of their own too, so presumbly they are involved. They are also obligated, as I understand it, to contact every borrower proactively themselves (so long as they have up-to-date contact info - which by the very nature of the issue, they must surely have) within the timeframe specified.

Doesn't sound like they are being very proactive

 

[Chrisdriving]

FWIW RCA finance who did both my Leafs were not involved in the mis selling but they also have a contact and check agreement page on their website as i checked for both cars.

 

[ClaretFozzy]

I’ve VT’d three cars and was actively encouraged to do so by BMWFS when I was getting rid of my M135i for an X3 M40d!

Never made any difference to any future finance applications, even through the same lender.