PCP handback true or false

[trade vet 704]

One of our guys heard this outside the school gate,So it may not be true.Punter hands back her  PCP and is asked to pay £1000 for stonechips etc.I understand that is now a normal occurrence.She negotiates this down to £500,but of course she has not got £500 ( must be maxed out).So to enable her to get another PCP car,a separate payment plan is set up to repay the £500 over 5 years !!!! and the punter is happy.So much for responsible lending,surely this cannot be true.

[Dan W 57]

12 minutes ago, trade vet said:

One of our guys heard this outside the school gate,So it may not be true.Punter hands back her  PCP and is asked to pay £1000 for stonechips etc.I understand that is now a normal occurrence.She negotiates this down to £500,but of course she has not got £500 ( must be maxed out).So to enable her to get another PCP car,a separate payment plan is set up to repay the £500 over 5 years !!!! and the punter is happy.So much for responsible lending,surely this cannot be true.

I always one problem with these stories, a customer always undersells the damage on their vehicle.

we have had a few people wanting to vt their car and have asked if they can come in and us have a look at what we think the condition is like. they seem to think knackered alloys big scratches and scuffs are ( not damage )
 

[Cornish Guy 45]

£50 trade repair M8.

 

[trade vet 704]

It's the £500 repayment plan I was concerned about not the renovation charge.Anyone heard of this happening .

[Dan W 57]

2 hours ago, trade vet said:

It's the £500 repayment plan I was concerned about not the renovation charge.Anyone heard of this happening .

First I have heard of it as well, quite worrying if that's going to be common

[BHM 994]

Christ, what a tale. I’ve got to say though, it doesn’t surprise me. 

[have a word with the wife 299]

wouldnt surprise me either, its another "2 cars in drive and *f* all in fridge"

what is the alternative ? no newer car and chase her for £500, or put her in another car and let her tell herself this is only a few more pounds a month ?

when she arrives home in her new car it looks to her neighbours like shes doing well, and thats all shes interested in, shes probably showing it off right now. [unless your reading this at 3 o clock in morning in which case its doubtfull, but she may have bought a torch, on her card]

 

when provident are knocking on the door and youve kept up your payments on your loan theyre offering another loan " to tide you over xmas" 

 

[Earunder 69]

I'd be very careful with this.  I can foresee a HUGE problem with dealers / lenders operating on these circumstances.

The PPi claim snakes will be looking to exploit a flaw in this so be very very careful.

[grant8064 219]

2 hours ago, Earunder said:

I'd be very careful with this.  I can foresee a HUGE problem with dealers / lenders operating on these circumstances.

The PPi claim snakes will be looking to exploit a flaw in this so be very very careful.

Agreed. We have always stayed well clear of offering PCP, much to our brokers annoyance. Idea is a nonsensical ticking time bomb IMO. If you can't afford a Q7 on HP you simply can't afford it. Clever maths and future value predicting is asking for trouble and only a short term fix for manufacturers to keep increasing their sales year on year.

[Arfur Dealy 823]

1 hour ago, grant8064 said:

Agreed. We have always stayed well clear of offering PCP, much to our brokers annoyance. Idea is a nonsensical ticking time bomb IMO. If you can't afford a Q7 on HP you simply can't afford it. Clever maths and future value predicting is asking for trouble and only a short term fix for manufacturers to keep increasing their sales year on year.

Borrow borrow borrow, and feck the default............ That's the attitude 

[Earunder 69]

13 hours ago, grant8064 said:

Agreed. We have always stayed well clear of offering PCP, much to our brokers annoyance. Idea is a nonsensical ticking time bomb IMO. If you can't afford a Q7 on HP you simply can't afford it. Clever maths and future value predicting is asking for trouble and only a short term fix for manufacturers to keep increasing their sales year on year.

Don't get me wrong, we do offer PCP but don't push or advertise it on a major scale like some.  It's a good product for later / more expensive vehicles and is ideal for the person wanting to change their vehicle every 3/4 years.

When someone goes for the PCP deal we do a separate 'old style' Demands & Needs sheet that the customer must sign when they sign their finance documents.  The plus is that Santander do a short video with their e-sign so it explains, in detail, the whole process.  That along with our D&N's simplifies and explains everything in fine detail.  This will cover our backside if the PPi snakes find (which they will) a loop whole or way to make a claim against the lender or dealer for mis-representation or mis-selling.

[BHM 994]

A slight hijack to tell a story but it’s pertinent;

A couple of weeks ago a DP at a local dealership (who shall remain nameless) told me of a punter with a SEAT, had wanted out of her car a couple of months early, realised she’d have to shell out but was happy to do so.

Anyway she goes to the SEAT dealership to hand back, goes through the whole process then they ask her for over £6000.

To cut a long story short, she’d originally completed a D&N form saying 25K miles per annum. She still has that form. During the negotiations she wanted the monthly payments lower. Anyhow, it seems the salesman adjusted the computer figures and BINGO! He gets to her monthly figure by reducing the annual mileage to 5K.

Obviously she must have signed the contract but the dealership didn’t issue an amended D&N, the salesman is long gone, the woman still has her SEAT that’s now due for chopping in, SEAT want £6000+ to hand back a high mileage Ibiza (+ a few lumps & bumps) and the best thing is no one seems to know who’s to blame. 

[grant8064 219]

4 minutes ago, BHM said:

A slight hijack to tell a story but it’s pertinent;

A couple of weeks ago a DP at a local dealership (who shall remain nameless) told me of a punter with a SEAT, had wanted out of her car a couple of months early, realised she’d have to shell out but was happy to do so.

Anyway she goes to the SEAT dealership to hand back, goes through the whole process then they ask her for over £6000.

To cut a long story short, she’d originally completed a D&N form saying 25K miles per annum. She still has that form. During the negotiations she wanted the monthly payments lower. Anyhow, it seems the salesman adjusted the computer figures and BINGO! He gets to her monthly figure by reducing the annual mileage to 5K.

Obviously she must have signed the contract but the dealership didn’t issue an amended D&N, the salesman is long gone, the woman still has her SEAT that’s now due for chopping in, SEAT want £6000+ to hand back a high mileage Ibiza (+ a few lumps & bumps) and the best thing is no one seems to know who’s to blame. 

If it's a white one with 90k on the clock I might have underwritten it a couple of weeks ago?! Either that or this situation is rife at Seat because that's a very similar story to one I got off a young female punter who was getting nowhere at the main stealers

[trade vet 704]

1 minute ago, BHM said:

A slight hijack to tell a story but it’s pertinent;

A couple of weeks ago a DP at a local dealership (who shall remain nameless) told me of a punter with a SEAT, had wanted out of her car a couple of months early, realised she’d have to shell out but was happy to do so.

Anyway she goes to the SEAT dealership to hand back, goes through the whole process then they ask her for over £6000.

To cut a long story short, she’d originally completed a D&N form saying 25K miles per annum. She still has that form. During the negotiations she wanted the monthly payments lower. Anyhow, it seems the salesman adjusted the computer figures and BINGO! He gets to her monthly figure by reducing the annual mileage to 5K.

Obviously she must have signed the contract but the dealership didn’t issue an amended D&N, the salesman is long gone, the woman still has her SEAT that’s now due for chopping in, SEAT want £6000+ to hand back a high mileage Ibiza (+ a few lumps & bumps) and the best thing is no one seems to know who’s to blame. 

It's a void deal ! The punter can hand it back and the dealer will have to cough up,I think there is going to be a lot of that.

[BHM 994]

1 hour ago, grant8064 said:

If it's a white one with 90k on the clock I might have underwritten it a couple of weeks ago?! Either that or this situation is rife at Seat because that's a very similar story to one I got off a young female punter who was getting nowhere at the main stealers

I don’t know the colour but I know she was slightly above her mileage anyway. It’ll be up in the North East if it is the same car but my guess is there’ll be a few of these deals that turn nasty.

As my friendly DP said - the salesmen don’t care because they’ve probably moved location twice cos they’re constantly chasing a pot of gold & are lucky to get in 18 months before they get itchy feet. In fact, let’s be honest, unless it’s a close-knit family run business then even the senior staff & DPs don’t seem to last much longer.