PCH informed payment increased before delivery
PCH informed payment increased before delivery
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Scuba_steve

Original Poster:

579 posts

209 months

Saturday 27th October 2018
quotequote all
A friend of mine has ordered a car from Seat UK, the car was not due to materialise until January as the car was a custom colour/specification.

The garage has contacted my friend and informed them that the vehicle is now on site, and oh, by the way, the GFV has changed and your repayments are increasing by c.£120pm.

Friend has an order form only, not signed any finance paperwork, have not paid any deposit.

They are understandably taken aback by this - my question is, where do they stand? Can they refuse the order/walk away? It doesn't seem right that they can announce a rather large increase in payments?

Butter Face

34,710 posts

189 months

Saturday 27th October 2018
quotequote all
Of course they can walk away, but they shouldn’t.

Any emails with the figures etc agreed??

Scuba_steve

Original Poster:

579 posts

209 months

Saturday 27th October 2018
quotequote all
They were phoned/verbally informed to say that the car has arrived, but as the GFV has changed the payments are increasing.

They have no paperwork with the price, the dealer quoted the original agreed price over the phone today, and then the new price/payments.

When they ordered the car, they were not told that the car value/payments could change, pre delivery only that the engine type might change due to some test.

PorkInsider

6,577 posts

170 months

Saturday 27th October 2018
quotequote all
I walked away when a car I ordered on PCH went up in price due to not being delivered in time for the VED changes in 2017.

The car was delayed for some quality checks, or something, and then a further inexplicable lengthy delay which meant that it arrived after the 31st March new car VED change cutoff, despite my ordering it with a lead time that should have seen it arrive in Feb at the latest.

Audi basically said the price was going up, take it or leave it, and the only cover my contract with them offered was that I could walk away without penalty.

PorkInsider

6,577 posts

170 months

Saturday 27th October 2018
quotequote all
Scuba_steve said:
They were phoned/verbally informed to say that the car has arrived, but as the GFV has changed the payments are increasing.
Something a bit fishy here... GFV and PCH in the same discussion?



Butter Face

34,710 posts

189 months

Saturday 27th October 2018
quotequote all
Yes it all sounds a bit odd TBH.

Sheepshanks

40,950 posts

148 months

Saturday 27th October 2018
quotequote all
Scuba_steve said:
Friend has an order form only,
Doesn't the order form have the payment details? Remind them that a contract is in place.

Scuba_steve

Original Poster:

579 posts

209 months

Saturday 27th October 2018
quotequote all
PorkInsider said:
Scuba_steve said:
They were phoned/verbally informed to say that the car has arrived, but as the GFV has changed the payments are increasing.
Something a bit fishy here... GFV and PCH in the same discussion?
Apologies, I'm getting this information secondhand from someone who is panicking that they're being taken for a ride/forced to pay more than they should be.

It's a contract hire. Seat re-evaluated the residual value of the car. Lower residual value means they have to pay more for the car to cover the additional depreciation. They've never had this much of a lag when ordering a car, they placed the order in July. The order form they have does state that they can pull out prior to collection.

Scuba_steve

Original Poster:

579 posts

209 months

Saturday 27th October 2018
quotequote all
Sheepshanks said:
Scuba_steve said:
Friend has an order form only,
Doesn't the order form have the payment details? Remind them that a contract is in place.
No payment details on the order form.

roadsmash

2,667 posts

99 months

Saturday 27th October 2018
quotequote all
PorkInsider said:
Scuba_steve said:
They were phoned/verbally informed to say that the car has arrived, but as the GFV has changed the payments are increasing.
Something a bit fishy here... GFV and PCH in the same discussion?
It’s not odd, just because it’s a PCH and the OP’s friend doesn’t have the option to buy, doesn’t mean that that FV doesn’t change for the owner of the car (lease company).

There are many reasons the quote for the monthly rental can go up and a change in FV is one of them. Increases in VED is another.

OP, your friend can walk away no problem, regardless of the reason, let alone the payment going up £120 per month.

Ask them to match what was agreed (make sure they put it in writing) or he’ll walk away.

Although it’s likely that they’ll end up out of pocket if they were to honour the original pricing... so they probably won’t do so, and he’ll have to walk away or pay the higher rental.

PorkInsider

6,577 posts

170 months

Saturday 27th October 2018
quotequote all
roadsmash said:
It’s not odd, just because it’s a PCH and the OP’s friend doesn’t have the option to buy, doesn’t mean that that FV doesn’t change for the owner of the car (lease company).
He said GFV, not FV.

BIG difference.

roadsmash

2,667 posts

99 months

Saturday 27th October 2018
quotequote all
Scuba_steve said:
PorkInsider said:
Scuba_steve said:
They were phoned/verbally informed to say that the car has arrived, but as the GFV has changed the payments are increasing.
Something a bit fishy here... GFV and PCH in the same discussion?
Apologies, I'm getting this information secondhand from someone who is panicking that they're being taken for a ride/forced to pay more than they should be.

It's a contract hire. Seat re-evaluated the residual value of the car. Lower residual value means they have to pay more for the car to cover the additional depreciation. They've never had this much of a lag when ordering a car, they placed the order in July. The order form they have does state that they can pull out prior to collection.
Tell them to stop panicking. Sounds like they won’t revise so just tell her to walk away.

(And get a better car) wink

Sheepshanks

40,950 posts

148 months

Saturday 27th October 2018
quotequote all
Scuba_steve said:
They've never had this much of a lag when ordering a car, they placed the order in July.
Well that's bks - many people have been waiting for various VAG brand cars all year and some are still being told it'll be well into next year before they get their cars. I'm on a SEAT Ateca forum and there's people on there in that position.

Scuba_steve

Original Poster:

579 posts

209 months

Saturday 27th October 2018
quotequote all
roadsmash said:
Tell them to stop panicking. Sounds like they won’t revise so just tell her to walk away.

(And get a better car) wink
I think they'll walk from the deal, I would if it was me. (Again apologies for the terminology, FV instead of GFV.)

I'd not be paying the sums discussed for a Leon estate in a unique colour.

Goldfever4

234 posts

103 months

Saturday 27th October 2018
quotequote all
£120/mo? Jesus! That's an enormous increase. Stuff that.

Nickp82

3,949 posts

122 months

Saturday 27th October 2018
quotequote all
£120 per month is a massive difference.
Sounds like someone has dropped a bk in some way and is making excuses to me.

Goldfever4

234 posts

103 months

Saturday 27th October 2018
quotequote all
Nickp82 said:
£120 per month is a massive difference.
Sounds like someone has dropped a bk in some way and is making excuses to me.
Yes, quite. Either on the original quote or this new figure.

If the original quote was really £120/mo less than market rates then I can see why the dealer would try to wriggle out of it. Perhaps that leaves room to negotiate, but it still stinks.