timshoubridge Posted December 1, 2008 Report Share Posted December 1, 2008 I'd like to ask for advice and whether anyone else has had this problem. 2 years ago I entered into a finance agreement with Porsche for my Boxster. Whilst at the dealer (Reading) we discussed our options at the end of the term (3 years). The salesman confirmed 4 options: (1) Give the car and keys back, (2) refinance final payment, (3) part ex using any surplus towards deposit, (4) sell privately and pocket any difference or pay off any deficit. This was reconfirmed with a business manager when we came to the discussions on discount etc. The agreement states on the top of page 1 that it is regulated under the consumer credit act 1974. Interest rate was stated and we were happy...off into the sunset of Boxster ownership. Recently I've had an unexpected benefit whereby I get the option of a wifes car through my company, so I thought I'd look at my options. To cut it short, after a quick and angry chat with Porsche Finance GB I end up at the stealers discussing my unhappiness with a senior manager (dealer principal on phone also) to be told that there is no option to give the car back and as a gesture of goodwill they will "look favorably" on me at the end of the term, although they will not put that in writing. I say they have misrepresented their product and they say they can't remember. Well now we're into trading standards territory and I'm on a mission. May well not get anywhere but I know what I was told and they are lying. I understand buyer beware etc. but find this quite underhand and I cannot let it go. Porsche finance did actually tell me that I was not the first to contact them with this problem and that I should pursue it with the dealer. I smell something nasty and want to get to the bottom of it. Has anyone else had this? Trading standards are reviewing the contract but I'd like better info before I go off on one. Many thanks Tim Link to comment Share on other sites More sharing options...
Notb4eleven Posted December 1, 2008 Report Share Posted December 1, 2008 What does your finance agreement say? Link to comment Share on other sites More sharing options...
timshoubridge Posted December 1, 2008 Author Report Share Posted December 1, 2008 What does your finance agreement say? Nothing. Link to comment Share on other sites More sharing options...
Notb4eleven Posted December 1, 2008 Report Share Posted December 1, 2008 The option to 'hand back the keys' should be specified in the finance agreement, otherwise, in general, I don't believe you have the right. Didn't you find this strange when you entered into it? Did you get anything in writing? There were recent changes earlier this year which allows you to hand back the keys if you've paid at least half of the amount financed, but I don't believe you're covered as your agreement preceded these changes. Link to comment Share on other sites More sharing options...
Ben_ Posted December 1, 2008 Report Share Posted December 1, 2008 If you've financed more than 25k then its unregulated. The balanced payments scheme is basically an un-guaranteed balloon and at the end of the term the balloon could go up or down depending on the FHBR. This is what keeps your monthly payments the same throughout the term. The difference between BP scheme and normal balloon payments scheme is that you pay off capital and interest each month, unlike other balloon schemes where all the interest is front loaded. The 'handing the car back' type of agreement is if you have GMFV, and this is possible only because you pay a higher interest rate than BP scheme, and BP is routinely the cheapest rate of finance, alongside normal HP scheme. I don't believe that on a BP scheme you're allowed to hand the car back - its like a rental or lease with no early termination I believe What were you trying to do? Hand the car back? I'm trying to figure out from your post. If you want to get shot, then the only alternative is to sell the car, and pay off the finance - the settlement figure will include 60 days interest - as you're 2 years in it shouldn't be that much as you've been paying off interest and capital over the last two years - depending on how much you borrowed! I'm on balanced payments too but I went in with my eyes open - if interest rates are still as low in Dec 2010 as they are now or lower, I'm happy as my balloon will be a bit lower! Link to comment Share on other sites More sharing options...
Araf Posted December 1, 2008 Report Share Posted December 1, 2008 If you want to get shot, then the only alternative is to sell the car, and pay off the finance - the settlement figure will include 60 days interest - If you are able to pay off lump sums, then pay off all the balance except a couple of quid. Then the 60 day penalty will be based on that couple of quid only. This is just another aspect of the 'free' money ideas that much of the public got swept up in. Frankly, if you had 7 or 14 days (whatever the cooling off period is) to scrutinize the papers or cancel, and decided not to, or chose not to read documents signing you up to a £40k debt, then that's your choice. I wasn't given the opportunity to look over your agreement, so why should I be expected to pick up a proportion of the cost - as that's what will happen. Link to comment Share on other sites More sharing options...
Paul O Posted December 5, 2008 Report Share Posted December 5, 2008 I've got a BP scheme on mine, but im sure it also has a guaranteed future value. I also thought they mentioned handing keys back at the end. However, I have to admit I don't intend on having the finance that long to use either option so I wasn't really paying attention. I'm wondering if they maybe sold it to me in such as way that it implied these things but wasn't a definate agreed option. Perhaps they used to take the keys back when the equity in these cars was significantly higher, even though they weren't obliged too, and now the market is on its a.rse they aren't quite so keen. Thinking about it, I've not been any help at all really with all that - but I do sympathise with your situation and hope you get it resolved soon. Paul. Link to comment Share on other sites More sharing options...
Ben_ Posted December 5, 2008 Report Share Posted December 5, 2008 I've got a BP scheme on mine, but im sure it also has a guaranteed future value. I also thought they mentioned handing keys back at the end. Paul. If it is Paul then you should be paying a higher rate of interest in your BP scheme than a typical 1.75%-3% over FHBR - I got a 1.75% over FHBR back in Jan 07 which was the lowest anyone could negotiate - short of being the Business Manager myself If you have a GMFV then your agreement contract will state that clearly - which means that if the ar*e has still not been put back onto the 2nd hand market values at the end of your contract you can happily hand back the keys with no financial penalty knowing full well that your car is worth thousands less than the final rental figure!! Luck sod! Link to comment Share on other sites More sharing options...
Wibbler Posted February 22, 2009 Report Share Posted February 22, 2009 Tim, Did you ever get anywhere with this? I was recently looking into mine and I'm not best chuffed to realise that it's not an option in the balanced payment finance deal. Cheers. I'd like to ask for advice and whether anyone else has had this problem. 2 years ago I entered into a finance agreement with Porsche for my Boxster. Whilst at the dealer (Reading) we discussed our options at the end of the term (3 years). The salesman confirmed 4 options: (1) Give the car and keys back, (2) refinance final payment, (3) part ex using any surplus towards deposit, (4) sell privately and pocket any difference or pay off any deficit. This was reconfirmed with a business manager when we came to the discussions on discount etc. The agreement states on the top of page 1 that it is regulated under the consumer credit act 1974. Interest rate was stated and we were happy...off into the sunset of Boxster ownership. Recently I've had an unexpected benefit whereby I get the option of a wifes car through my company, so I thought I'd look at my options. To cut it short, after a quick and angry chat with Porsche Finance GB I end up at the stealers discussing my unhappiness with a senior manager (dealer principal on phone also) to be told that there is no option to give the car back and as a gesture of goodwill they will "look favorably" on me at the end of the term, although they will not put that in writing. I say they have misrepresented their product and they say they can't remember. Well now we're into trading standards territory and I'm on a mission. May well not get anywhere but I know what I was told and they are lying. I understand buyer beware etc. but find this quite underhand and I cannot let it go. Porsche finance did actually tell me that I was not the first to contact them with this problem and that I should pursue it with the dealer. I smell something nasty and want to get to the bottom of it. Has anyone else had this? Trading standards are reviewing the contract but I'd like better info before I go off on one. Many thanks Tim Link to comment Share on other sites More sharing options...
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