End of lease problem

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Tue 16 Jun 2020 21:49
End of lease problem - galileo

My son-in-law's PCP lease ended in March, the lease company said they couldn't collect the car "due to lockdown". (This is clearly a lie, on a daily basis I see recovery trucks moving cars around).

Anyway, they suggested he keep the car and continue payments, which, as he was shielding and working from home he refused.

They then asked him to record the mileage reading and email this to them, undertaking to keep the car unused in a safe location.

He found they were continuing to take payments, contrary to statements they had made, he got his bank to cancel the direct debits and now they threaten to start recovery proceedings if he doesn't pay the amounts they tried to collect.

This seems to be an attempt to cover losses they expect to make when sending the car to auction, not seen small print of the contract but he assures me it is their responsibility to collect the vehicle at lease end: it's their failure which caused the problem, why should he continue to pay for a car he can't use?

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Tue 16 Jun 2020 22:40
End of lease problem - daveyjp

He probably won't be alone and manufacturers/finance houses will try it on. He should have cancelled his dd at the end of the agreed period, however that has passed.

There were a lot of similar questions when lockdown was announced and I checked a few manufacturers websites for their advice.

Some were very poor, even a few weeks in, others were excellent, especially BMW Finance. Their advice was to stop driving the car and store it safely off road until the vehicle could be collected, no need for the vehicle to be taxed or insured.

General consensus was once the PCP period is over if the buyer choses not to pay the balloon the car is the responsibility of the finance company, which appears to reflect BMW approach.

A neighbour must have had a car on PCP as I saw Mannheim doing an inspection and collecting it a couple of weeks ago.

Edited by daveyjp on 16/06/2020 at 22:42

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Tue 16 Jun 2020 23:14
End of lease problem - SLO76
Easy enough, check the terms on his printed contract and demand any overpayments be returned. But he has to be sure of what he’s signed and that he is correct in what he says. No need to ask outwith, it’s all in black and white in his copy. If the firm are in breach contact their customer services and politely ask them to act.

Edited by SLO76 on 16/06/2020 at 23:15

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Wed 17 Jun 2020 15:59
End of lease problem - concrete

As SLO says, it is all in the small print. Is it a lease or a PCP? There is a difference. However both should have defined periods of payment. When that period ended in March then your son should have cancelled the DD after the last payment. The lease company should then collect the car. The PCP company may require it's return to the supplying dealer or a one off payment to keep the car. Either way it is quite straightforward and the procedure should be clearly laid down in the agreement. If the lease company have taken unauthorised extra payments I can't see how they can now pursue a debt. The debt is owed to to you. Maybe there is more to this than meets the eye. Could it be the contract has an option for them to extend it with a notice period and you have missed the deadline to decline? You really need to read it through carefully, there is something awry here. Why would a lease company pursue for payments they are not entitled to? I know some companies are pretty brass necked but this really is very unusual. More information required.

Cheers Concrete

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Wed 17 Jun 2020 17:14
End of lease problem - leaseman

I fully concur with SLO and Concrete. I deal with many Leasing Companies on both Leasing (Personal and Corporate clients) and Contract Purchase. They are 2 very distinct types of contract.

The Companies I deal with have, invariably, been more than fair to their customers during this last 3 months and, therefore, I am of the opinion that the driver, in this instance, has not complied with their obligations. READ THE CONTRACT is the only information that I can offer as advice, until we are given the Full Facts.

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