PCP issues

[RoadUser]

Good Evening!

A bit of clarification, are the PCPs arranged via MG dealers non-standard as such? As according to the finance company they say there is no option to terminate it early after paying the 50% of value as it's not an option in the contract even though they say it's a PCP deal. Doesn't this go against consumer regulations?

Thanks
RU

 

[siteguru]

(AFAIK) If it's a regulated financial product then the 50% voluntary termination option is a legal right - there's no need for T&Cs to state this.

 

[RoadUser]

Thanks. So they couldn't override this either then by excluding this?

 

[tsedge]

Are you sure your a looking at PCP, not a lease?

Leases are inflexible - that's the big drawback of them.

 

[RoadUser]

While it was presented as a PCP and structured like one, it doesn't appear to be a PCP.

This is an extract.

The credit provided under the agreement is made by way of a fixed sum loan and as such, you do not have the right to voluntarily surrender the vehicle under s.99 of the Consumer Credit Act 1974.

 

[admiralross2400]

Yeah I came across this too. Turns out it's a personal loan and not actually held against the car. There's been a few complaints sent to the ombudsman about it. They upheld one under very specific circumstances, the rest they didn't uphold as it's pretty clear in the T&Cs...

They say to uphold it you'd need some evidence from the dealer that they pushed it as a PCP loan specifically and sold it to you as such.

 

[Greyhoundowner]

I tried to return about 3 years into 4 year PCP, basically they said they would act as an agent to sell (since worth less than owed would just sell and send me a bill). Now trying to arrange return at end of the 4 years and that’s also being a pain, they seem to insist their collection agent will be in touch once final payment made. Final payment 28th June and I collected car 5th July so seems unlikely timescale also MOT Expires 29th June and insurance 5th July. Any experience on here?

 

[tsedge]

Yeah I came across this too. Turns out it's a personal loan and not actually held against the car. There's been a few complaints sent to the ombudsman about it. They upheld one under very specific circumstances, the rest they didn't uphold as it's pretty clear in the T&Cs...

They say to uphold it you'd need some evidence from the dealer that they pushed it as a PCP loan specifically and sold it to you as such.

It was presented exactly as a PCP to us, they know ever reads all the small print. Although it shouldn't make a difference as we are not planning to terminate early.

 

[tsedge]

I tried to return about 3 years into 4 year PCP, basically they said they would act as an agent to sell (since worth less than owed would just sell and send me a bill). Now trying to arrange return at end of the 4 years and that’s also being a pain, they seem to insist their collection agent will be in touch once final payment made. Final payment 28th June and I collected car 5th July so seems unlikely timescale also MOT Expires 29th June and insurance 5th July. Any experience on here?

From my experience with other makes it can take a while before the car is collected. Usually they come out to assess condition as there may be additional charges (extra mileage, body damage etc...), then notify you of the final settlement and then arrange collection once everything is agreed and paid.

It can take time before the car goes, believe it is your responsibility to keep it taxed (if on road) and insured in the meantime.

My neighbour was missing a chromed tailpipe cover on the exhaust of his BMW M Series, they wanted £600! He went to a breaker's yard and fitted one for £40. Did delay collection for several weeks though.

 

[Greyhoundowner]

From my experience with other makes it can take a while before the car is collected. Usually they come out to assess condition as there may be additional charges (extra mileage, body damage etc...), then notify you of the final settlement and then arrange collection once everything is agreed and paid.

It can take time before the car goes, believe it is your responsibility to keep it taxed (if on road) and insured in the meantime.

My neighbour was missing a chromed tailpipe cover on the exhaust of his BMW M Series, they wanted £600! He went to a breaker's yard and fitted one for £40. Did delay collection for several weeks though.

That seems crazy but thanks for the Heads up. How on earth that would work if I was replacing straight away, I wouldn't want to insure an extra car.

 

[tsedge]

That seems crazy but thanks for the Heads up. How on earth that would work if I was replacing straight away, I wouldn't want to insure an extra car.

Well, hopefully you will have a good experience.

The thing is, technically it is their car, you are just looking after it for the finance company and are responsible for it while you "own" it, including regular servicing, tyres, fixing things that break etc... It only becomes "our" car if we buy it back at the end.

 

[Greyhoundowner]

Well, hopefully you will have a good experience.

The thing is, technically it is their car, you are just looking after it for the finance company and are responsible for it while you "own" it, including regular servicing, tyres, fixing things that break etc... It only becomes "our" car if we buy it back at the end.

What will be their view do you think, I’m hoping to return just before mot and service due (I don’t see why I should pay for next owner).

 

[tsedge]

What will be their view do you think, I’m hoping to return just before mot and service due (I don’t see why I should pay for next owner).

You don't need to do anything before it is due, or once they've assessed the car. I can't speak to what Santander's policy is as I've not financed with them before.

 

[tsedge]

Can anyone who has finished their MG finance share with us what the process was like in detail?