I'm no legal expert, but surely if they have not released the car to you, they are in breach of contract and you can cancel?
Can anyone help with this? Before all this madness started I signed an agreement with Audi for a new Q8.
I'm now on furlough and finances are tighter than anticipated for the forseeable future.
I was meant to pick the car up from an Audi dealership literally the day they closed their offices due to Covid19.
Now though I'm not sure I'll be able to make the payments.
So far I've paid a deposit and signed the finance application, but have not picked up the car or signed hand over documents etc.
What are my options?
Can I cancel now? Can Audi help by reducing the finance payments etc?
I'm not sure how best to proceed on a legal basis.
Any help appreciated.
Thanks.
Last edited by Thorien; 22nd April 2020 at 18:48.
I'm no legal expert, but surely if they have not released the car to you, they are in breach of contract and you can cancel?
Would the answer not be just reading what the terms say for whatever you’ve signed?
They closed the night before... Sorry should have clarified. Was meant to pick up next morning.
I can help with this. Will PM my number.
Gav
Contact the finance company, exercise your right to cancel it. You’re not in receipt of the goods, and in any event should still be within the cooling off period?
In the past personally I've always completed the finance docs at the dealer during handover, the initial paperwork is just the application.
You will however need to pay a fee that will be on the vehicle order form should you cancel the purchase so I dont think you can walk away scot free
Why not in the first instance contact the finance company
Is the V5 in their name or your name?
You could not collect the car because they had closed or you did not attempt to given your change in circumstance?
Have you got a DD signed and in place?
I FEEL LIKE I'M DIAGONALLY PARKED IN A PARALLEL UNIVERSE
Sounds like you’ve maybe dodged a bullet with the timing of the closure and not having signed the final docs.
I would agree with the above, isn’t there a mandatory cooling off period of 14 days when you sign a finance agreement, just say you will invoke that if the circumstance comes up.
Cheers..
Jase
On another note I have a 1 year old RR Velar that still has 3 years left on the PCP and £48k of the balance remaining. I assume I can't just hand the car back citing COVID stuff (even though I am still employed) as I genuinely regret the purchase due to the cost of running the barsteward. Resale value will be less than the £48k still owed so I'd imagine they could try and come after me for the delta but realistically what can they do in this climate?
Even if you had signed the docs you'd still have a cooling off period,i don't think the V5 will be in your name as that would be a faux pas by the dealer doing that prior to payout.
Hang on. I didn't ask for judgemental knee-jerk reactions based ona misunderstanding of my question so if you want to do that the Bear Pit is the place. What I meant was if I returned it citing Covid as a desire to keep costs down I assume they would want me to pay the delta on what is owed (not that I was trying to do a swerve). My intention would be to pay what is owed as I don't want a nagative credit record but I wanted to know in reality in this climate what would credit companies be able to do about it anyway as loads of people will be handing back PCP cars, not paying loans and credit cards (heck I myself would be 5 months of unemployment away from such a scenario and I suspect most people less than that). In this climate with government bailouts and money printing what realistically are these creditors going to be able to do about it that's all the question was
That is exactly what I thought your question was initially.
I'll leave it anyway, as you say may not be the place for such discussions.
@ryan
Pretty sure that all mortgage companies, finance etc are doing a payment holidays of minimum 3 months. There is no penalty’s or blips on credit reports. Even if the car finance people won’t help your mortgage people will so maybe just shuffle your finances around a bit till it’s all sorted.
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Even if you had signed the docs you'd still have a cooling off period,i don't think the V5 will be in your name as that would be a faux pas by the dealer doing that prior to payout.
Considering that the majority of cars are sat as expensive ornaments on the owners' driveways at the moment, doesn`t it make people question the sense in paying so much money per month just to own a flashy car? whichever way you look at it, they're expensive items, are they really worth the money?
Maybe I`ve just reached the stage in life where I don`t care how old my car is, the fact that it was bought and paid for years ago and is costing virtually nothing on depreciation is heartening.
I would think hard before taking on the commitment of an expensive vehicle.
Thanks. Just to say I don't need to do this for the forseeable (touch wood) but my query was if I decided to hand it back what would I be expected to pay and the implications for not doing so. I'll keep it regardless for now as the lack of mileage at least I guess is keeping the residual balance a bit higher. Although all in (including insurance and residential parking fees) the car has cost me £950 per month (excluding petrol) and it has driven a total of 5,839 miles since I bought it in March last year! Would have been cheaper to get an Uber everywhere I reckon! For sure next car will be MUCH cheaper as this whole virus episode has made me reprioritise where I spend my money and on what.
If the worst came to the worst OP, would they change it for a car within your means?
The correct term is "voluntary termination" in the case of wishing to hand a car back before the end of the contract.
You have to have paid >=50% of the total borrowed, or at least pay that amount to bring it to 50%.
Yep ….its 50% of the payments, not the term.
My wife's RR Evoque is in horrific negative equity & we reckon the 50% breakpoint will be at month 47 out of the 48 month PCP !
Spoke to a guy at Audi & he said that could be right, as Q3 on a PCP were similar & that the ability to do the Voluntary quit couldn't be done until around 46-47 months in
Hi
I'm sure they would , IF you pay/re-finance the outstanding contract value !
My 535d has done it's shirt over the last 3yrs with a brexit/covid combi....£20k balance on the PCP with a PX value of £16.5k and decreasing as I type
The BMW dealer I bought it from suggested the other week that if I wanted , he could get me into another deal as it is quite ' popular ' at the moment. I asked him based on what figure , the PX or PCP balance....of course you know the answer....I've only got 3x months left on the contract too - madness !
Best Neil
PCP...The new PPi.
I’m just waiting for the TV adverts..... Have you been sold PCP?, Did you realise you’d spend a load of money on a rapidly depreciating item that’d be worth nowt in 3 years? and own nothing at the end of it? we can get your money back, call now to speak to one of our advisors
I think you've been told porkies. The balloon balance doesn't matter it's the PCP term. At 50% through this balance you can voluntary terminate as is your right. I think what you're looking at is finance remaining Vs the cars worth on a depreciation chart (where you exit negative equity)
If your payments are for argument's sake £100 per month for 48 months then at month 24 (or by paying 24x£100) you can be shot of it. Excess milage and admin costs may apply. Same applies to Ryan.
@OP - thank god you didn't sign. Write to VWFS and the dealership by email cc'ing yourself and tell them you're not collecting. They will understand and you won't be the only deal they've had fall out.
That's interesting. Does the finance part not include the balloon payment then? In my case that amount is £33k. If I am 13 months into a 48 month agreement of £x per month plus balloon are you saying once I've paid 24 x £x monthly payment I can be shot of it irrespective of the £33k baloon?
No, the balloon payment forms part of the total amount due under the PCP agreement.
If the total amount due under the agreement including the balloon is, for example, £80k then you can voluntary terminate at the £40k point. That will likely be much further along the agreement than month 24.
For most PCPs where balloons and interest have been set realistically, half way should be around 30 to 36 months in a 48 month agreement.
The total amount due will be on the finance paperwork, it will also state what the amount you’ll have to pay is to be able to terminate it at the 50% paid date.
I don’t know the answer to this so just wondering - all the posts here about cooling off period, is that applicable to this type of deal?
Reason I’m asking is that on most of the PCP and CH deals that I’ve taken out, I’ve spec’d the car personally - engine size, colour, add ons etc. That’s then built at the factory and shipped over. Surely as most of them are bespoke I’d be bound to take the deal? Otherwise if I’d ordered hand stitched purple leather seats with sky blue pink spots that costs an extra 5k and then just decide to exercise my cooling off rights, the car dealership are screwed? My current X3 was in a batch of around 30 that were shipped to the uk so I had to pick whatever was available at a good deal, or bespoke the order and pay a lot more.
OP good luck and let us know how you get on.
In history there have been plenty of catastrophic (for some people) events that have been outside of peoples control but have severely affected their finances.
The Great Depression, the negative equity housing market, Black Monday. Creditors will still pursue debt where it is owed and no bankruptcy or other protections in force. Only Governments appear to be able to get out dept and/or print more money...