Terminating PCP contract one year early

[jerrin91]

Hi all

Asking this for my brother

He has a 1.5 2016 Renault Clio bought on a 4 year PCP contract.

The car had an engine failure due to overheating last week. The car while on the motorway ran out of coolant and as a result engine overheated and cracked all the hoses and seals and thereby leaking oil. In other words, engine failure. According to my brother this all happened without any warning. Luckily, this happened just two months before the standard three year Renault warranty was about to run out in December.

The dealer has acknowledged this is rather unusual and have sent the diagnosis report to France and the car will now require a new engine. Waiting on this now.

Thing is he has lost his faith in the car and with one year still go before the contract finishes, he is scared if something similar will happen again outside the warranty.

So the question,

-is it possible to terminate the PCP contract on the basis that the car failed on him and as a result he has lost faith in the car's reliability?
-if not, can the dealer be forced to offer another year's warranty.
- does the new engine come with separate warranty?

thank you all

[SteBrown91]

1-no, Renault are repairing the car free of charge.
2- no
3- no, the warranty is for the car, so any parts fitted are covered under the same warranty.

There is nothing stopping him part exing the car and settling the finance (if there is positive equity)

[jerrin91]

SteBrown91 said:

1-no, Renault are repairing the car free of charge.
2- no
3- no, the warranty is for the car, so any parts fitted are covered under the same warranty.

There is nothing stopping him part exing the car and settling the finance (it there is positive equity)

ok may be not the entire car but since its going to be a brand new engine by Renault themselves, wouldn't the engine at least be fitted with its own warranty, say for 1 or 2 years?

[ElectricPics]

jerrin91 said:

ok may be not the entire car but since its going to be a brand new engine by Renault themselves, wouldn't the engine at least be fitted with its own warranty, say for 1 or 2 years?

No. The car is being made good under the terms of the warranty and the fact that it's having a new engine fitted is irrelevant. If you have a washing machine fitted with a new motor under warranty, you don't get any extra warranty on the new part.

[M_A_S]

ElectricPics said:

jerrin91 said:

ok may be not the entire car but since its going to be a brand new engine by Renault themselves, wouldn't the engine at least be fitted with its own warranty, say for 1 or 2 years?

No. The car is being made good under the terms of the warranty and the fact that it's having a new engine fitted is irrelevant. If you have a washing machine fitted with a new motor under warranty, you don't get any extra warranty on the new part.

Unless of course your brother wanted to pay for the new engine, then he'd have a warranty. I'm assuming he doesn't though?

[Camelot1971]

If they have paid 50% of the total amount due, including the final payment, they could consider a voluntary termination of the finance agreement.

[pozi]

If you paid back 50% of the total finance amount you can terminate a PCP contract early and hand the car back penalty free.

Check your paperwork which will show the criteria for voluntary termination.

If I could type faster I would have been in before the above post

[anonymous-user]

He could ask for a discount on the Renault extended warranty as a bit of goodwill for the inconvenience?

[jerrin91]

Camelot1971 said:

If they have paid 50% of the total amount due, including the final payment, they could consider a voluntary termination of the finance agreement.

I was reading about this and it appears like car finance companies don't like this idea at all and says despite this not affecting your credit score at all or anything, some finance companies may decline any further finance applications from you?

[martinbiz]

Why not just ask the finance company instead of on here???? Plenty of pcp’s get terminated early especially where the customer wants to change the car for a new model and does not want to wait until the contract expires, quite often they will want you to do it if benefits them. Her indoors had a sportage on 3 years and the dealer contacted us in March this year with a good deal on the new model that had just arrived.so we did the deal with 10 months still to go on the old one

[Camelot1971]

jerrin91 said:

Camelot1971 said:

If they have paid 50% of the total amount due, including the final payment, they could consider a voluntary termination of the finance agreement.

I was reading about this and it appears like car finance companies don't like this idea at all and says despite this not affecting your credit score at all or anything, some finance companies may decline any further finance applications from you?

It's hard to find actual evidence of that, but a finance company doesn't have to do business with you, even if you have a good credit history. VT doesn't sit on someone's credit record as a "black mark" like a defaulted agreement would though.

[Kuji]

Doubtful you could hand it back under the standard halves and thirds rule, until the engine is sorted. As it isn't a complete car they can shift on immediately..

It is therefore a unique case, that will require a unique solution, that will require a conversation with the finance company.

And the finance company and the manufacturer shouldn't be confused as the same entity.

[Terminator X]

ElectricPics said:

jerrin91 said:

ok may be not the entire car but since its going to be a brand new engine by Renault themselves, wouldn't the engine at least be fitted with its own warranty, say for 1 or 2 years?

No. The car is being made good under the terms of the warranty and the fact that it's having a new engine fitted is irrelevant. If you have a washing machine fitted with a new motor under warranty, you don't get any extra warranty on the new part.

Eh, the new part will at least be covered for 12 months surely washing machine or car?

TX.

[Byker28i]

charltjr said:

He could ask for a discount on the Renault extended warranty as a bit of goodwill for the inconvenience?

We had this on our Mazda 6. It had one of the engines built with soft camshaft hardening so grenaded about two weeks before the end of the three year warranty (just a few days after it was serviced). It was in the mileage range of the failure, within the batch of serial numbers of known problematic engines, but Mazda preferred to let them detonate rather than fix the issue early.

So whole new top end, turbo etc, and Mazda extended the warranty for another year as compensation. Then another turbo a year or so later for free as the one they put in didn't last long...

[Butter Face]

charltjr said:

He could ask for a discount on the Renault extended warranty as a bit of goodwill for the inconvenience?

Doesn’t need to. A 2016 Clio will have a 4yr/100k warranty as standard.

[eybic]

Terminator X said:

ElectricPics said:

jerrin91 said:

ok may be not the entire car but since its going to be a brand new engine by Renault themselves, wouldn't the engine at least be fitted with its own warranty, say for 1 or 2 years?

No. The car is being made good under the terms of the warranty and the fact that it's having a new engine fitted is irrelevant. If you have a washing machine fitted with a new motor under warranty, you don't get any extra warranty on the new part.

Eh, the new part will at least be covered for 12 months surely washing machine or car?

TX.

Nope, you don't get a new warranty on a warranty replacement. I used to work for Renault and it was the main thing people struggled to understand, the only option could be asking the dealer to bill OP's brother 1p then he should get a warranty but if he doesn't pay anything then the warranty on everything runs out at the time it was originally destined to.

[HTP99]

eybic said:

Terminator X said:

ElectricPics said:

jerrin91 said:

ok may be not the entire car but since its going to be a brand new engine by Renault themselves, wouldn't the engine at least be fitted with its own warranty, say for 1 or 2 years?

No. The car is being made good under the terms of the warranty and the fact that it's having a new engine fitted is irrelevant. If you have a washing machine fitted with a new motor under warranty, you don't get any extra warranty on the new part.

Eh, the new part will at least be covered for 12 months surely washing machine or car?

TX.

Nope, you don't get a new warranty on a warranty replacement. I used to work for Renault and it was the main thing people struggled to understand, the only option could be asking the dealer to bill OP's brother 1p then he should get a warranty but if he doesn't pay anything then the warranty on everything runs out at the time it was originally destined to.

Yep this is a big thing that people fail to grasp, if a product is in warranty; car, washing machine, TV whatever, and a part is replaced under that warranty then that part is only covered for the duration of the remaining warranty on the product.

[Initforthemoney]

If they have agreed to a new engine, surely it would make even more sense to keep it?

At least it shouldn't lunch itself in the PCP time left!

[jerrin91]

eybic said:

Nope, you don't get a new warranty on a warranty replacement. I used to work for Renault and it was the main thing people struggled to understand, the only option could be asking the dealer to bill OP's brother 1p then he should get a warranty but if he doesn't pay anything then the warranty on everything runs out at the time it was originally destined to.

so if you pay a penny then they ll bill it and automatically give you warranty on the part? but then would they even agree to do so knowing very well the whole reason behind why we want them to bill it ? sure they don't really want the customer coming back for free replacement after the standard warranty is over

[jerrin91]

Butter Face said:

Doesn’t need to. A 2016 Clio will have a 4yr/100k warranty as standard.

that's new info. i need to check with my brother if he is aware of this

i can see Renault starting from 2015 did "Renault 4+ Package" where they offered 4 years warranty. but last year they redcued this back to 3 years.

https://www.autoexpress.co.uk/car-news/102518/rena...