Volvo changing of PCP and balloon payment amount after payment of my deposit

TCE home 2021 Forums Car finance Volvo changing of PCP and balloon payment amount after payment of my deposit

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    • #144324
      Nicolas D

      Back in June I paid my local Volvo dealership a £1,000 deposit on a Volvo XC40.

      We’d agreed a price (after I got quotes from a number of other dealerships) what my full deposit would be (£5,000 including the first £1,000) and also what my monthly PCP payment would be.

      The monthly amount was particularly important to my partner as she didn’t want me spending much more than my current PCP with Audi. Between my partner and I we had agreed we would spend up to £40 more than the current PCP as our max.

      We did hammer this point home when asking what the monthly amount was an reconfirming it on email.

      It’s now October…I’ve now been contacted by the dealer to tell me the car has arrived, can I choose my number plate and then they slipped into the conversation that the monthly PCP had changed. They now say that Volvo has reduced the final ‘balloon’ payment and increased the monthly PCP by a further £15 for the 48 month PCP. It might not sound much but a jump of £15 a month means I will have to pay £720 more by the end of the PCP agreement.

      The dealership reiterated that the price I negotiated for the car hasn’t changed and that if I want to keep the car at the end of the PCP then I’ll have less to pay. They also said that Volvo change the balloon payment amount from time to time which wasn’t mentioned previously.

      I’ve not as yet sat down to sign any paperwork. I’ve made the £1000 deposit at the start but not the rest. I’ve deliberately not picked out a number plate either, that can wait.

      What room do I have to get the monthly PCP payment back down by £15 to what was ‘agreed’ in June?
      I put ‘agreed’ in quotes as I know having someone say something and it being binding are not necessarily the same thing.

    • #144345
      Stuart Masson

      Hi Nicolas. The reason that the dealer is reiterating that the price of the vehicle has not changed is that you are entitled to cancel the contract on a car if the price has gone up and the dealer can’t honour the original price.

      You are entitled to cancel the finance contract up to 14 days after it has been activated, but that doesn’t cancel the actual purchase of the vehicle – it just means you need to find another way to pay for it.

      if you cancel, the dealer will almost certainly try to retain your £1,000 deposit and you’ll probably have to fight to ever get it back.

    • #144346
      Nicolas D

      Hi Stuart

      Thank you for such a quick response and detailed answer.

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