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Vehicle ordered, took much longer than original lead time, no deposit paid

TCE home 2021 Forums Car finance Vehicle ordered, took much longer than original lead time, no deposit paid

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    • #151076
      Susan
      Guest

      Hi there, I wonder if you can help. We signed a new vehicle order back in April last year for a VW Tiguan and it took until Xmas Day to turn up, we’ve been in a PCP for the last 14 years with VW and this will be our first lease as we no longer want the whole balloon payment at the end. We’ve had to have a concessionary arrangement with VW whilst waiting for the new car to arrive, the original lead time was to get the car by September but new regulations came in delaying the build.
      Anyway the whole thing has been a nightmare and trying to hand our existing car back has also been quite traumatic. When we placed the order we didn’t pay any deposit, and now my husband is thinking we should just settle the balloon payment, keep our existing car and withdraw from the delivery of the new car. Can we do that ?
      When I looked at the order, which was sent to me by email it does say something about Clause 14 overleaf, but it would appear the leasing agent didn’t send that page with the order so I’m not sure what Clause 14 is.
      Any advice would be great, thank you

    • #151080
      Eliot
      Guest

      Hi Susan,

      If by lease you are referring to Personal Contract Hire Finance then you should be entitled to walk away from the leasing contract up until you take delivery of the vehicle. If the lease is financed with Volkswagen Financial Services (VWFS), then you can actually cancel your agreement within your 14-day cooling-off period which begins once you have taken delivery of the vehicle. That said, I’m not sure what impact the concessionary arrangement will have.

      My advice would be to directly contact the finance provider for the new car you have on order and ask exactly what your rights are concerning the cancellation of your contract.

      KR

      Eliot

      • #151081
        Susan
        Guest

        Thanks Eliot, yes its a PCH, which I believe is the new term for a personal lease ??
        We will contact VWFS to see what they say, I’m concerned we might be charged administration costs for paperwork being raised by the dealer who we ordered the car from (we did it over the phone and online only, none of it was in a dealership so I think distance selling rules would apply) and VWFS extended the arrangement based on us ordering a new car not changing our minds 9 months later and wanting to buy the existing car….

    • #151084
      Eliot
      Guest

      Hi Susan,

      Yes, you are correct about PCH.

      The dealer may well try to charge you a cancellation fee or additional administrative charge for cancelling but I would suggest they would be hard-pressed to force you to pay it. It is normal practice for a lease funder to informally extend a lease when the customer has ordered a new vehicle through their finance house again. You could use the argument that during the time it has taken for the manufacturer to build and supply the vehicle your financial circumstances have changed – which is sort of true when you are now considering that buying out your current car is the better option for you.

      Funders and introducers to finance must abide by the “Treating Customers Fairly” policy that the Financial Conduct Authority (their regulator) insist on. I run a Leasing Brokerage and we are bound by the FCA and BVRLA best practices – it would be worth checking to see if your supplier/introducer is registered with BVRLA and if it gets to a point where you feel you are being treated unfairly or are unsure as to your rights, you can contact them for advice. Link if you need them (but hopefully not) https://www.bvrla.co.uk/consumer-advice.html

      KR

      ELiot

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