Settlement Figure Payment

[Hamish2015]

So, here's a question, your changing your car which is a PCP and:

1. You request and receive a settlement figure for the trade in and send it to the new car dealership two days before collection, this is valid for 11 days and includes next payment due date.

2. Collect new car four days before next payment is due and advised not to cancel payment by dealer in case go into arrears (rebate will be issued if overpayment occurs).

3. Pick up new car on 17th and sign documents, hand over old car.

4. Payment for old car still taken on 21st which I assumed will be returned.

5. No rebate so contacted previous car finance company, they state Lexus dealer paid off finance due after payment taken on 21st so I have effectively got my new car and made a payment on a car I no longer legally owned as it was traded in on the 17th.

6. To make matters worse I looked over the documentation and found that they actually included this value in the trade-in figures (which I didn't notice).

7. Checked with finance company and the Lexus dealer made contact for settlement after the 21st so the figure given was including the payment I made when I no longer owned or had the car in my possession.

Can they actually take my old car and not pay the settlement figure for that date and allow me to make an additional payment which they include in my figures and refuse to refund? In all my years of car ownership I have never made a payment on a car I no longer have or own and is in a garage forecourt having been traded in. 

Any of you had similar experiences, am I missing something and I'm somehow wrong in my expectations?

  

 

[Moleman]

1 hour ago, Hamish2015 said:

So, here's a question, your changing your car which is a PCP and:

1. You request and receive a settlement figure for the trade in and send it to the new car dealership two days before collection, this is valid for 11 days and includes next payment due date.

2. Collect new car four days before next payment is due and advised not to cancel payment by dealer in case go into arrears (rebate will be issued if overpayment occurs).

3. Pick up new car on 17th and sign documents, hand over old car.

4. Payment for old car still taken on 21st which I assumed will be returned.

5. No rebate so contacted previous car finance company, they state Lexus dealer paid off finance due after payment taken on 21st so I have effectively got my new car and made a payment on a car I no longer legally owned as it was traded in on the 17th.

6. To make matters worse I looked over the documentation and found that they actually included this value in the trade-in figures (which I didn't notice).

7. Checked with finance company and the Lexus dealer made contact for settlement after the 21st so the figure given was including the payment I made when I no longer owned or had the car in my possession.

Can they actually take my old car and not pay the settlement figure for that date and allow me to make an additional payment which they include in my figures and refuse to refund? In all my years of car ownership I have never made a payment on a car I no longer have or own and is in a garage forecourt having been traded in. 

Any of you had similar experiences, am I missing something and I'm somehow wrong in my expectations?

  

 

I feel you should expect better, but I am not surprised at what at face value appears to be a sharp practice: To make matters worse I looked over the documentation and found that they actually included this value in the trade-in figures (which I didn't notice). They appear to know what they were doing, just not it appears fully communicated to you or understood by you.

Lesson learnt.

[ALAW]

I agree with Moleman sharp practice this. Ive done this lots of times over the years. Usually getting the settlement figure and this is usually valid for 30 days maybe 28. You trade car in and the trade in buyer pays it off ive never had an issue.

[steve2006]

Very naughty, if this payment was taken into account on the paperwork you signed there is nothing you can do legally to recover it now but I would certainly be having a word or 2 with the sales department.

[Phil xxkr]

2 hours ago, steve2006 said:

Very naughty, if this payment was taken into account on the paperwork you signed there is nothing you can do legally to recover it now but I would certainly be having a word or 2 with the sales department.

I agree, this definitely smacks of sleight of hand. Personally I would bring it to the attention of the dealer principal. Also how did you pay? If by card you certainly have scope there. 

[steve2006]

Good point Phil, if it was a Direct Debit payment you have the DD guarantee so could take the issue up with your bank maybe?

[Phil xxkr]

8 minutes ago, steve2006 said:

Good point Phil, if it was a Direct Debit payment you have the DD guarantee so could take the issue up with your bank maybe?

Definitely, the threat of involving a Bank or CC company tends to add impetus and focus 😎

[Hamish2015]

Thanks for all the replies guys, I've been in touch with the dealer and the situation has been clarified, the invoice detail was ambiguous to say the least. The additional payment was actually included in my final figures but this was not clearly stated. At least it has restored my confidence in the dealer although I did point out that the details should be much clearer from a customer perspective! There is a lesson learned though and that is to scrutinize invoice details and raise concern during the sales process, but I guess that's quite hard when you are getting a new car.

[Bill Dawes]

Not had same problem (yet) but I found the way Lexus present the figures on their order form bewildering, figures appear to be plucked from the ether, seemed to add up in the end but not a very customer friendly presentation, assume it makes sense to them.

Bill D.

[Hamish2015]

2 hours ago, Bill Dawes said:

Not had same problem (yet) but I found the way Lexus present the figures on their order form bewildering, figures appear to be plucked from the ether, seemed to add up in the end but not a very customer friendly presentation, assume it makes sense to them.

Bill D.

Yeah, and the amount of paperwork to be signed containing legal and contractional details and conditions is bewildering too. I would imagine most customers don’t really take time to read every detail! For such a big ticket purchase you would think the FCA would create rules or even a pro-forma document to be used.