COVD-19 - Lease/PCP/Car finance Deferral Thread

[Greg2018]

Hi not sure if it helps anyone but I have an Jag XE Sport on a personal lease from lex auto lease. Car was due to go back today but I chose to extend my lease agreement by 6 months. Very quick process with lex autolease, they redid the finance check, told me what the new monthly payments are (which are about £15 cheaper a month) and then sent me an amended lease agreement. All signed and returned online so was pretty straightforward. The only extra cost I’ll have is to service the car which I think I would’ve had to pay for anyway as service was due about a month before it was originally due back

[hoganscrogan]

I think the extensions are a win win for us and the funders in this climate - I'm very grateful to Santander for pausing and extending! I'll let you know what happens with BMW.

[Soton Thunder]

hoganscrogan said:

I think the extensions are a win win for us and the funders in this climate - I'm very grateful to Santander for pausing and extending! I'll let you know what happens with BMW.

I’ve had an email from BMW today stating my deferral has been approved and I will received further details of the deferment period and effect on future payments. Sounds like they will just be spreading the cost over the remainder of the contract.

[PenelopaPitstop]

Burwood said:

JS0 said:

PenelopaPitstop said:

Do you think lease VWFS will keep a record who had "financial difficulty" and may deny new contract in future? I don't need to defer payments, but if they are giving 3 months free, I don't mind asking for it.

I'm 4 months away from end of my contract, car is not used at the moment anyway, using weekend one.

I’m amazed they don’t do this with VT but from reading around it doesn’t seem to effect people returning to the same funder. I know they can’t add it to credit file but like you say, an internal marker is both possible and legal.

Given the circumstances I’d say not. (I would say that though as I’ve applied for it)

Theres no chance of them doing that. If they did the customer would buy go elsewhere and VW will shift even fewer cars.

I will wait about a month and consider it. If I get 6 months extension, that could take me to next spring. Another season of winter tyres use and 3 free months are great bonus. No way I can lease similar car for that money. Service is already pre-paid, so no extra costs.

[ivrytwr3]

I have a Seat Tarraco with Zen Auto - no longer doing the commute miles, but still used for shopping runs - 13 months into a 24 month lease.

I am confused as to why people are saying "free months" - all i am reading is "payment deferrals" ie you extend by 3 months, but you still pay for it - is this correct?

I am trying to work out if speaking to Zen Auto/Seat is worthwhile.

Any help/advice?

[Soton Thunder]

ivrytwr3 said:

I have a Seat Tarraco with Zen Auto - no longer doing the commute miles, but still used for shopping runs - 13 months into a 24 month lease.

I am confused as to why people are saying "free months" - all i am reading is "payment deferrals" ie you extend by 3 months, but you still pay for it - is this correct?

I am trying to work out if speaking to Zen Auto/Seat is worthwhile.

Any help/advice?

Depends on the lender. Some have indeed given 3 free months (eg Volvo through Santander).

[talksthetorque]

ivrytwr3 said:

I have a Seat Tarraco with Zen Auto - no longer doing the commute miles, but still used for shopping runs - 13 months into a 24 month lease.

I am confused as to why people are saying "free months" - all i am reading is "payment deferrals" ie you extend by 3 months, but you still pay for it - is this correct?

I am trying to work out if speaking to Zen Auto/Seat is worthwhile.

Any help/advice?

Both.
Some are just extending their lease as can normally be done, either informally or formally. Montly payments can stay the same or change.

Some are using Financier schemes to help those financially affected by Covid19 and the fallout from it to get a 3 month payment holiday.

The Terms of doing it either way differ from financier to financier.

Edited by talksthetorque on Monday 25th May 16:32

[AbuHaneefah]

Hi All,

Anyone have any joy with Nissan Finance (RCIBanque) ?

I picked up my LEAF on the 15th March with a 15k pa mileage contract.
Since the 23rd I have hardly driven it.

I gave my Volvo back a couple of Months early and paid the penalty as I thought I would be saving a significant amount with fuel savings.

I did call Nissan Finance and all they have offered is a Payment holiday then a lump sum repayment or spreading the extra over the term.

What I am really interested in is reducing the mileage.

[Soton Thunder]

Finally received written confirmation from BMWFS today. No payments for next 3 months. Contract extended by 3 months and an additional charge for the remaining months that’s equivalent to a total of just over 1 monthly payment. Net effect almost 2 months free. Will definitely need to do the 2 year oil service now but probably would have had to anyway. No change to mileage.

[sdh2903]

Anyone taking a vwfs payment holiday, keep an eye on your credit file. Vwfs at their finest again....

[JS0]

Just had my VWFS official COVID paperwork though. They are extending the lease and increasing the cost. I mean it was worth a try and obviously failed, but it’s totally the opposite of what I was told on the phone.

[JS0]

Just done the figures,

So my original contract had a cost of £7101.25 for the term.

The new contract extends by 3 months and including what I’ve already paid totals £7551.61

This is an extra of £450.36 but I’ll have had the car 3 extra months, so £150.12 a month for the “3 covid months” that’s about half my normal monthly so still some gain to doing the scheme.

[hueyfast]

Same for me.

Just been emailed the new agreement from VWFS.

I only had 3 months of the contract remaining when I applied.

My payments will go up by an additional £75 per month for the last 3 months.

Like the poster above I will have had the car for an extra 3 months for £75 pm is the way I'm looking at it.

However it's not what I was told when I applied also.

Problem I have is my next lease is delayed and its going to be a close call that it will be here before this one is all paid up. May be a better bet for me to revert to the original contact and look to informally extend if needed. Off for a think

[talksthetorque]

Complain.
If you've all been told something else by VWFS ask for the recordings of the calls.
It's totally wrong that they should try and change the terms after different ones were agreed.

[JS0]

I agree I’m going to ring up Monday and complain, but I’m guessing they’ve already thought about this which is why

1, you only have 5 days from the day of the email to agree or they’ll “reinstate your original contract and collect all overdue payments”

2, they give you the option to go back to the deal you were originally on.

Dirty tactics after 3 months of silence. My mother in law applied for her deferment 1.5 months after me but we received the email on the same day... seems they were holding back on purpose!?

[Andy665]

Had my offer through from VWFS this morning - no extension, three month payment deferral but remaining monthlies rise by £50 per month meaning total lease for same duration will cost an extra £150 - told them to stick it where the sun doesn't shine - a long way removed from the original offer

[UKADV]

Qualified advice was posted on PH about what a payment holiday / deferral means contractually. These warnings were largely ignored.

[talksthetorque]

UKADV said:

Qualified advice was posted on PH about what a payment holiday / deferral means contractually. These warnings were largely ignored.

Link please.

[sdh2903]

My remaining 10 monthlies on my cupra have gone up by 35 a month but they've given me a 3 month extension. Normal payment is 295. So I've got 3 months longer with the car for 350 quid. But more importantly it helped me out over a crappy period with next to no income and thats what it was meant to do.

For those saying it wasn't as advertised, where were you getting your info? As all the vwfs faqs were so vague and didn't give a definitive answer as to how it would be handled. It never said 'you'll get 3 months free on us' it said your agreement may be extended and payments may increase?

[JS0]

talksthetorque said:

UKADV said:

Qualified advice was posted on PH about what a payment holiday / deferral means contractually. These warnings were largely ignored.

Link please.

Irrelevant anyway as it was just hearsay from people who hadn’t called VWFS nor read any VWFS info.

I ignored the warnings and have got 3 months extra at half rate... lucky I don’t believe hearsay.