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Sorry if this may have been discussed in any other thread but needed some clarification and wasn’t able to find the answer after searching online.

Having read hundreds of forum threads online, I think it is now well known that after you return your car towards end of PCP through VT, it most cases it is not a smooth ride and real drama begins to unfold.

You get unexpected and substantially higher charges in the name of damages as car finance companies are visibly upset over you doing a VT and want to recover as much money as possible. You have not signed or accepted any of these charges during inspection and return of your EV.

Now coming to my question:

If after you return your car on PCP via VT and the car was immediately sold by finance company within one month and you suspect that they’ve actually sold the car at much higher price than expected and yet they’re claiming unreasonable costs for minor wear and tear (scratches barely visible to eyes), how do you defend those charges and deny the debt as car finance companies use heavy handed approach of threatening to pass on debt to the debt collectors, damage your credit report by putting a default on it?

  • Can we ask for proof of sale? How much car was sold for ? What was their expected price? Copies of listing on sites like Autotrader or auction price?
  • If they did any repair work after vehicle was returned them ? What was the cost of the repair work? Copies of receipts for evidence of repair work carried out?
Reason for this being you are expected to return car in a condition with reasonable wear and tear. ‘Reasonable’ is a perspective which can differ. I know people will point to BVRLA guidelines but there are claims these guidelines are mainly for commercial use vehicles.

If car finance company has eventually sold the car for a much higher than expected price, how can they levy outrageous charges to you by claiming there was significant wear and tear.

How do we fight this if they’ve refused further discussion and negotiation?

And if car finance company is breaching ICO guidelines and putting a default on credit file to blackmail you into paying a debt you deny then how do you remove such default mark on your credit report and take action against them for breaching ICO guidelines?

Sorry for lengthy post. Thanks for reading. Hope I will get some valuable inputs to proceed with next steps.
 

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Premium Member
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Sorry to hear of your issues. Unfortunately I don't think the finance company getting more for the car than the balloon is going to be relevant and they generally don't fix cars, just make an adjustment to the value of the car to cover cost (of dealer who purchased) to rectify.

If you believe the return costs are excessive and/or incorrect, your best approach is to raise a formal complaint and ask for details of their complaint process. You have to use the word complaint as they are then required to respond according to their legally binding process. If you aren't happy with the complaint resolution you should then contact the FOS. Note that you do normally have to follow the complaint process before you contact FOS.

Here is a case study
 

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VW ID.3 Worst Edition
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VT is a clear consumer right, laid out in law, and your finance agreement lays out exactly when you’ll be able to exercise that right and how.

The issue described is really one of what constitutes fair wear and tear isn’t it? It could occur even at the formal end of the PCP where you don’t pay the balloon and hand the car back.

I’m presuming here that you VT’d in accordance with the agreement, so that is done and dusted, and there were no arrears?

Had you stayed within the mileage limit of the PCP agreement as well?

If it’s just the fair wear and tear part, then the BVRLA guidelines are about as good as you’re going to get.

What did they say needed repair and replacement and to what extent?
 
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