PCP Finance and the CCA

[IrmaConsumer]

Hello everyone, I'm new to this forum so apologies if this is posted in the wrong area or anything.

I have an issue with Jaguar Financial Services. 3 years ago I took out a PCP deal with them for a new car. In March 2006, due to divorce, ensuing court case and a long period of unemployment, I declared myself bankrupt. JFS agreed to let me keep the car so long as I continued making payments. I did this. I was discharged in March 2007. This month the car comes to the end of its contract and the balloon is due. I always intended to take out another deal with JFS for another car. However, they have turned me down for finance. I asked if I could re-finance the balloon (£9,000) with them. They turned me down. I have tried to get credit to pay the balloon and/or buy another car. No-one will touch me. I have tried many, many places. So I am faced with having to hand the car back. This gives me two problems: No car(!) and an excess mileage fee of about £3,000. I don't have £3,000 nor will anyone lend it to me. I was advised by a business manager in the motor trade that I could hand the car back under the auspices of the CCA 1974 and as I have paid more than half the amount back, I can just walk away without paying any more. I have written to JFS stating that I intend to do this. They have written back to me saying I am liable for the excess mileage.

Can anyone tell me where I stand? :-|

 

Many thanks.

[poppynurse]

bump

[IrmaConsumer]

? What does that mean??

[maroondevo52]

Bring

Up

My

Post

 

Poppynurse was just 'bumping' your post to get it back to the top of the threads, hoping someone will help you

 

Sorry, I can't help with your problem, but will move this thread to a Forum you should get more advice.

 

Regards.

 

Scott.

Edited September 13, 2008 by maroondevo52

[speedqueenbob]

Hi,

 

If I'm reading this right you are trying to VT the car back to FCE (Jag Finance) as you have paid enough monies under the half and thirds rules.... Well if you wish to do this you must be handing the car back within the terms of the agreement as in mileage stipulations, service record and condition if you fail any of these criteria the finance house is within its rights to ask for compensation. As you have excess mileage on the vehicle you must pay the pence per mile figure over and above the agreed mileage at end of contract.

 

The only way you can get round this is if you settle the finance or pay the balloon figure. It sounds like the only way you could do this is by P/X your car and downsizing or selling private and settling finance of(although you must settle finance off before you release your car). But in current market conditions you are unlikely to do this.

 

All manufacturers are taking a massive hit on their PCP products at the moment as car have devalued approx 15/20% in the last three months for example allegedly BMW have put a half billion provision against their PCP business and bad debtors in Europe.

 

I'm afraid that since you have exceeded your agreed mileage you are caught by the short and curlies........ Good Luck

[IrmaConsumer]

Thanks for the advice. Not what I wanted to hear . It's odd that a business manager from the local Porsche dealer (my wife works there) has said we can just return it under the CCA (not under the PCP agreement) and walk away. Looking at the contract, under the heading "TERMINATION: YOUR RIGHTS" it says:

You have a right to end this agreement. To do so, you should write to the person you make your payments to. They will then be entitled to the return of the goods and to half the total amount payable under this agreement, that is £14,856.20. If you have already paid at least half this amount plus any overdue instalments and have taken reasonable care of the goods, you will not have to pay any more.

 

I have paid well over half. I do not have any outstanding overdue payments. I have taken more than reasonable care of the goods. There is still one payment outstanding on the car, so I haven't got to the end of the PCP arrangement. This therefore sounds like I can hand it back and walk away (which is what the business manager from Porsche says I can do). I called the OFT who have passed all the details onto local trading standards. They said someone will call me next week. I am a little concerned about the letter I got from Jag which ignores everything I said about the CCA and the fact that I don't intend to pay any more monies. They are arranging to collect it now - I wanted to really understand my rights before I gave the vehicle back.

 

Do you still think I don't have a leg to stand on?

 

Thanks.

[ReasonableRon]

I might be wrong, but I would have thought that 'reasonable care of the goods' would include not exceeding the contracted mileage that I assume you agreed to.

[IrmaConsumer]

Hmm... good point Ron. I imagine you're right. Damn it.

[raydetinu]

How much is the car worth to dealer, if more than £12k get them to buy it off you and settle the PCP and you keep the rest?