Skoda PCP – collection at end of agreement

[Naomi]

Hi
My son has a car on PCP via Skoda Finance. His agreement ends on 23rd January 2017 (payment of £60 to be collected on that day to end contract) and he informed Skoda in December that he would be returning the car to them. He was advised that BCA would be in contact with him to arrange inspection and collection of the vehicle.

He’s contact Skoda Finance twice to chase this up as he hadn’t heard from BCA, after pushing for a collection date BCA contacted him and have advised they will inspect the car on 25th January and collect it on 26th January – past the end date of the agreement.

My son informed them that the car will not be insured and declared SORN as he plans to transfer his insurance onto his new car on 23rd January when his Skoda agreement ends – both Skoda and BCA have advised he needs to have the car insured and taxed otherwise he will be charged £100 for a low-loader – the car will be stored in secure private car-park where my son works (car dealership). Where does my son stand legally?

[Stuart Masson]

Hi Naomi. Legally, there is probably nothing to protect him. It will simply be a matter of negotiation.

I imagine that his contract will state that he has to keep the and insured as long as it is in his possession. As to how long the finance company has to collect the vehicle once the agreement is concluded, it is likely to be whatever is deemed reasonable.

He can either argue with the finance company to sort out an alternative, such as dropping the car off to a local Skoda dealer, or simply keep the car insured for another couple of days – he should speak to his insurance company about how much this would cost (probably very little). It won’t cost him anything to keep the car taxed, as he has already paid for January’s road tax and won’t get anything refunded from the DVLA.

[Author]

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