My Girlfreiend is after a new car and wating sometihng more as a 1.2.


I'm a mechanic at this garage too.


She is on a PCP finance thing, she paid 1500 deposit, and has been
paying monthly instalments for almost 2 years. and if she wanted the
car at the end of the 3 years, she had a 2000 lump sum to pay.


Basicly,


The sales manager phonred the finance company to get a settlement fee,
which was 4424, i was sat there when they gave him this, he value'd her car as a trade in at 4000 but was
willing to make it upto 4424 so the clio wipes itself out and we start a new finance on the new car from scratch.


But she was in today again, and she got quotes for her new car, on HP
finance, but they are trying to add 2000 pounds ontop of the finance
saying thats for the first cars final payment????


But sureley, they phoned for a settlement fee, it was 4424, this is
surely the amount she ow's untill the car is hers, including the final
payment. ???

She paid 1500 deposit,
Has paid approx 2800 in momnthly payments,
and then 4424 to settle it, (settlement fee)

Total, 8729,

with the car costing 7000 new  i'm sure, I guess the 1700 is interest and stuff

So how car we still ow another 2000 after this???



I think they are trying to con us???


Any ideas???

Sounds odd Scoobs. A settlement figure is the figure required to completely settle the account, all outstanding payments including any optional final payments and any interest and stuff that was part of the schedule she will have signed at the start of the agreement.

You're right to be suspicious when another two grand all of a sudden comes into play. The only thing I can think of apart from someone trying to lift your leg is that the current car is only worth £2500 and so negative equity is being re-financed. Check the true trade value of the current car and see if this could be the case. 

Get your Girl to speak direct to her finance company and ensure that the settlement quoted is the settlement. 

Challenge the salesperson about it, then the sales manager.

Hope this helps.

Jon

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You gotta tie yourself to the mast my friend, and the storm will end.

Phoned them up,

Were getting 5 grand for the clio, (old car)

She says,  the Swift(new car) is 11000

Minus the 5000 trade in

add on the 4424 negative equity the clio had, and thats what your paying, plus they knocked a 400 discount off since i work there,

But at the end of the phone call, she says it would have been cheaper if the clio never had negative equity on it??,

but the trade in cost, covers the equity plus 600 quid towards the new car???

Were going in on monday but i think its all sorted, will double wheck it on the paperwork just incase tho.

Cheers.

If you're getting £5000 for the Clio and it's settlement is £4424 then there is no negatve equity but a deposit which should come off the price of the new car.

The order form should show

£new car     -

£p/x            +

£settlement

legally, the px value cannot be less than the settlement figure. If there is negative equity then the px value will show the same as the settlement figure and the difference between the true value and the p/x alowance will be rolled into the price of the new car. The total cash price of the vehicle cannot be lower than the amount to finance, it must be equal or show a deposit.

If it stinks when you check it out Monday, let us know...

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You gotta tie yourself to the mast my friend, and the storm will end.