Rejecting a car on PCP

[wizzywig27]

Hi all

Is there anyone in here with any expertise or experience of rejecting a car? I am looking for some advice.

My partner has rejected a car purchased in March - it was a Polo which she rejected due to the seatbelt recall (hope its ok to post here). VWUK have agreed to the rejection and it has all gone through today. The problem is she paid £500 deposit (she has a receipt for this), of which only £381 was accounted for on her credit agreement. The dealer also used the £500 deposit contribution from VW to put towards her negative.

As she was in negative equity VW have kept the deposit. My understanding is that I would be put into the same position I was in before I took out the agreement (confirmed by VWFS). Irrelevant of the value of her car, she only rejected it because it was not fir for purpose.

Can she do a chargeback for the £500? If so what could be the repercussion of this?

 

[BarryG79]

How much negative equity was she in?
If it was more than £500 and that was all she put in then happy days.


Sent from my iPhone using Tapatalk

 

[winrya]

Sounds like your £500 paid off money owed on the previous car so it wasn’t added onto the new agreement. You have to treat it separately and in effect you didn’t actually put the deposit on the new car, you used it to pay off the old car hence it not being fully visible on the new agreement.

 

[wizzywig27]

The point I am making is on the credit agreement she has put £380 towards the new car - so surely she is entitled to at least this amount back

 

[BarryG79]

Doesn’t matter how they displayed the figures, she’d still have to pay the negative on the last car.


Sent from my iPhone using Tapatalk

 

[wizzywig27]

That I am in no doubt, but what I am saying is she paid £380 TOWARDS her NEW car, which is represented in the figures on her finance agreement, so even though they have moved numbers around, legally she has paid £380 towards the new car

 

[RichardT]

I think the point here is that no one can give an answer without knowing all the figures.
What they put on the paperwork is often just jiggling with numbers.
Most important, what was the negative on the previous car - that would need to be paid off somehow.

 

[wizzywig27]

The negative is what she is short falling now, just over £600

 

[AlS3BE]

Its probably the way the dealer fudged the numbers to add up.
This is how I see it.
Your old motor let’s say was worth £1000 and you owed £1600.
Your £500 would have paid off this negative equity and £100 of the dealer contribution would have paid this negative equity.
Your new agreement on the new car would have the remainder of the dealer contribution which is what you are seeing as the £381.
Assuming you did not get your old car back there is still that negative equity to pay off which is why you are £600 out of pocket. Someone needs to pay this negative equity and it’s not gonna be the dealer as the finance company needs the balance paid off in full.
For the dealer they broke even(I use this loosely). In fact on paper they would have taken the depreciation as a hit on the new car you rejected as you would have put some miles on it.

 

[wizzywig27]

Its probably the way the dealer fudged the numbers to add up.
This is how I see it.
Your old motor let’s say was worth £1000 and you owed £1600.
Your £500 would have paid off this negative equity and £100 of the dealer contribution would have paid this negative equity.
Your new agreement on the new car would have the remainder of the dealer contribution which is what you are seeing as the £381.
Assuming you did not get your old car back there is still that negative equity to pay off which is why you are £600 out of pocket. Someone needs to pay this negative equity and it’s not gonna be the dealer as the finance company needs the balance paid off in full.
For the dealer they broke even(I use this loosely). In fact on paper they would have taken the depreciation as a hit on the new car you rejected as you would have put some miles on it.

Yeah, this all makes sense. I do appreciate what everyone is saying, but surely as I have a contract which clearly states I paid £380 deposit, they owe me that money as it doesn’t state where that money came from.

There is also the point that I could argue the dealer missold her the products as she was told she was putting £500 deposit in, not paying xxx off her negative

 

[AlS3BE]

Your old car that was in negative equity will always be paid off in full first and ultimately your responsibility as you cannot trade in a car you did not own and to own this you need to settle the loan.
Dealers deposit contribution/discounts isn’t really cash so that needs to be excluded. There will be some small print or illustration somewhere to show this is what they did.
My view is cause you rejected the new car so your position would be as if you had your old car then sold it for £600 less than the settlement figure so you should be £600 out of pocket.
The argument of misselling is something different and something you can take up with the ombudsman.
Even if you managed to get it back then the numbers would be re-adjusted and you will have to pay back the negative equity on the old car so it would be in one hand and out the other. Ultimately you had negative equity in the old car that needs paid off and there’s no avoiding it.
This is all my back is fag packet calculations and not meant to offend.

 

[wizzywig27]

No offence taken mate, I appreciate the input.

To add confusion I rejected mine (which is why I now have an A3), here is what happened:

OH:

Settlement figure: £17500 approx
Car value: £13000 approx
Negative on current car: £4500
Deposit paid: £500
Deposit accounted for on finance paperwork: £381
Amount deposit returned: £0

Myself:

Settlement figure: £17000 approx
Car value: £13000 approx
Negative on current car: £4000
Deposit paid: £850
Deposit accounted for on finance paperwork: £220
Amount deposit returned: £850

Also bare in mind that the amount to finance is the actual value of the car, no negative was carried forward in any way.

I don't get how I got all mine back and she got nothing.

 

[Sparks43]

Surely if you have rejected the car because it's faulty etc - The negative equity isn't your problem - You've rejected it

Therefore you should start again on a new agreement with your deposit back into the figures

I rejected a VW Golf GTI many years ago and changed to a VW Golf GTI Turbo - I had to pay the difference between the cars as the Turbo model was more expensive

 

[wizzywig27]

Sorry totally misread your post, so edited it to say:

Yes I 100% agree, but it seems they are arguing over the negative from the previous car, not this one, even though she has a signed credit agreement, whatever the dealer done really hasn't been clear.

It is not her fault that this car has been rejected. VWUK have paid off £129 of her negative as a 'good will gesture' but no one is willing to sort the other £500.

No apology for the car being faulty and having to initiate a recall, no apology for being passed from pillar to post, no apology for taking as long as they did, nothing.

 

[wizzywig27]

Hi all

Just a quick update, OH received a call today from VW, long story short the lady spoke to the powers that be and they decided to refund her the £500