How do I get out of a PCP agreement?

Honest John Back Room » Legal matters
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Sat 9 Apr 2022 22:48
How do I get out of a PCP agreement? - Heavy_Metal
I signed up to a PCP agreement on 06/04/22. Placing a deposit online. My circumstances have changed and it’s no longer viable for me to enter the agreement.

The dealership have told me that I have lost my rights to a 14 day cooling off period because I have signed a credit agreement.

I haven’t seen the car in person or set foot on dealer premises.

Having mentioned distance selling regulations, the dealership have said these do not apply as I have already bought the car.

The dealer has said the only way to back out is to find fault with the car.

They gave me two options. Either pay the full settlement of £45,000 in full or go ahead with collecting the car whenever I can.

No V5 signed. No road fund in place. Have not even changed over my insurance.

What are my rights? If any. Thank you.
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Sun 10 Apr 2022 07:19
How do I get out of a PCP agreement? - _

I don't think we can help you, go and see a solicitor.

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Sun 10 Apr 2022 08:59
How do I get out of a PCP agreement? - Bromptonaut

Where did you sign the agreement?

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Sun 10 Apr 2022 10:22
How do I get out of a PCP agreement? - Maxime.

The car order is separate from the PCP.

Car order, perhaps lose the deposit.

PCP is an agrreement to buy on finance, but if you cancel you must clear the finance. subject to interest charges on a daily basis from some suppliers. (KIA, hyundai and some others)

If you signed at a dealer premises, is important, but there could well be financial penalties for you.either way.

Best to be nice to the dealer, with proof that you can't afford the car, and they'll sell it soon enough...

But I am a bit puzzled, this is the 3rd question about cancelling an expensive car purchase in recent days, Is it for real?

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Sun 10 Apr 2022 15:47
How do I get out of a PCP agreement? - Heavy_Metal
I haven’t trawled the board so was not keeping a tally on how many PCP threads in so many days. I have been on the forum for over ten years but a change in e-mail address called for a change in user name.

Anyhow, the agreement was signed off premises. The car was never seen. There was no part-exchange. Only a deposit.

It was really upsetting as the dealer was trying to box me in. I felt bullied. I’m an emotional kind of guy. Not really a hard man of sorts. The dealer was trying to force me to come in to the showroom.

A call from my solicitor has settled the matter.

For anyone interested. If you order online or via phone then this counts as a distance sale. There is a lot of misleading information online about how the payment method is cancelled but not the car purchase. This is simply not true. No matter what the reason and you need not give a reason, you have 14 days to cancel no matter what. Even if you have placed a deposit you are entitled to it being returned unless there was anything specific done in preparation such as paying for a fancy paint protection coating.

Thanks everyone.
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Sun 10 Apr 2022 16:24
How do I get out of a PCP agreement? - Bromptonaut
A call from my solicitor has settled the matter. For anyone interested. If you order online or via phone then this counts as a distance sale.

Distance selling regs was the reason I asked about where you signed.

Fairly common, at least pre Covid, for dealers to insist you went to their premises to sign.

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Sun 10 Apr 2022 16:41
How do I get out of a PCP agreement? - Heavy_Metal
Yes that prompted my research so thank you!
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Mon 11 Apr 2022 15:31
How do I get out of a PCP agreement? - nick62

Not that it will make any difference, but this dealer needs reporting to the relevant trade body responsible for enforcing the distance selling regs.

It's reprehensible that they attempted to basically defraud you (and that it took a word from a solicitor to settle this).. I assume from the figures quoted it was a main dealer?

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Sun 10 Apr 2022 15:48
How do I get out of a PCP agreement? - Heavy_Metal
This is important. There is a lot of stuff online and confusing. I asked HJ too.
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Sun 10 Apr 2022 18:43
How do I get out of a PCP agreement? - _

Thanks for coming back and telling us.

I tend to trust peoples REAL experiences more than some of the advice given by experts.

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