4 Months ago, I agreed to a PCP deal with Skoda for a new 2019 Fabia as I was told it would meet all my driving needs as I do a lot of motorway driving for work. Up until recently the car has been perfect for what I need, However it is now showing a severe lack of power and drinks fuel (£250 per month). I have been looking at a diesel superb and have spoken to a few dealers who have agreed that this would suit my needs better than the Fabia. 

 

As this is my first new car and I have never had a PCP before this, How would I go about swapping my car for the Superb? Is it just as simple as calling Skoda finance and explaining that the car doesn't meet my needs and asking to hand it back for a swap? The car was purchased for £20k which is what the finance agreement is for and I'm now looking at a 19 plate Superb with low milage for around the same price. I don't know what to do as I have been told that I have negative equity in the car now as it has 9K miles on it and is only 4 months old. 

 

Please advise and thanks in advance. 

I'm afraid not. You are locked into a PCP for the duration. You may be able to get out of it but you won't get you owe for it, you will be in negative equity. I.E, you took finance on 20k, it's worth 12k at part ex value now, the difference is what you need to find to get out. 

16 minutes ago, Chris said:

I'm afraid not. You are locked into a PCP for the duration. You may be able to get out of it but you won't get you owe for it, you will be in negative equity. I.E, you took finance on 20k, it's worth 12k at part ex value now, the difference is what you need to find to get out. 

Thanks, I had a feeling that would be the case after speaking to one of the sales "Executives" at Skoda yesterday. 

 

I have emailed the rep today to see if he can get me a valuation on it, then I'm going to call SFC tomorrow to get a settlement fee. I noticed that there wasn't any 19 plate used Fabias on the forecourt when I was there so I'm hoping they are in demand and that will put the price up a little bit.  

 

Anyway thanks again!

If it's down on power and using more fuel than it should, it would be worth your while using that as a stick with Skoda. 4 months in I'd be arguing for them to take it back and let you start a new deal. It might be worth a chat with Trading Standards or Citizens' Advice.

1 hour ago, chimaera said:

If it's down on power and using more fuel than it should, it would be worth your while using that as a stick with Skoda. 4 months in I'd be arguing for them to take it back and let you start a new deal. It might be worth a chat with Trading Standards or Citizens' Advice.

I thought about this but realised that they may just repair it instead of replace. The ideal scenario would be that they take it back and let me have a new deal for the superb. 

42 minutes ago, Danny0239 said:

I thought about this but realised that they may just repair it instead of replace. The ideal scenario would be that they take it back and let me have a new deal for the superb. 

Either way, it's leverage and worth using to your advantage.

1 hour ago, chimaera said:

Either way, it's leverage and worth using to your advantage.

I have also just been through all the documents for the Finance. There is at least 3 discrepancies in the amount to be paid in finance. Does this mean that the PCP could be invalid? Considering they've ****ed up on the documentation? 

15 hours ago, Danny0239 said:

 Up until recently the car has been perfect for what I need, However it is now showing a severe lack of power and drinks fuel (£250 per month). 

So the car was suitable for you initially but now may have developed a fault which has made it feel sluggish and economy is affected; so why not have the fault investigated (under warranty) and be happy with the car again? 

 

Swapping will literally cost you thousands and it should be relatively easy to do as any dealer will likely bite your hand off for you to take a finance product on the replacement and also add your negative equity to the pot.  Commission lottery won!  There's obvious pitfalls to this as you'll be in even more negative equity from the outset with the new finance package and it sounds to me like you don't quite know what car you want so there's a real risk that you'll be in the same boat several months down the line.   I would make sure you speak to a broker/insurer and get a suitable level of GAP cover too.   Don't even entertain any quotes for a dealer.  They'll be 3-4 times more expensive than someone like gapinsurance.co.uk

 

Another thought is that a you'll also have a few hard credit searches against your report in a short space of time.  It shouldn't lead to any complications with your chances of getting a new finance product but could have an affect on your credit file, if only for a few months. 

Edited 22 July, 20196 yr by penguin17

@Danny0239

What annual mileage did you enter into?

 

4 months & 9,000 miles so 2250 miles a month @ £250.

Is that around 44 mpg you are getting ? 

Much as the Superb might do, near 10 miles per litre of fuel, but needs diesel & AdBlue.

Edited 22 July, 20196 yr by Roottootemoot

25 minutes ago, Roottootemoot said:

@Danny0239

What annual mileage did you enter into?

 

4 months & 9,000 miles so 2250 miles a month @ £250.

Is that around 44 mpg you are getting ? 

Much as the Superb might do, near 10 miles per litre of fuel, but needs diesel & AdBlue.

@Freedom 20K miles per year.

 

Other Skoda Dealers have advised that i would get between 50 - 67MPG from a diesel Superb.

I Currently get around 42-44MPG. Depending on the traffic.

Edited 22 July, 20196 yr by Danny0239

They never pay for their own fuel or get that while running the demonstrators up to 3,000 + miles.

 

There will be Superb owners / driver on this forum that can tell you what MPG they get if you say what car you are looking at.

Re: loss of power. Is there a genuine fault with the vehicle, or are you trying to find reasons to swap over to the Superb? 

 

I did this with my Honda Civic when looking to purchase my Octavia Scout. I wish I'd waited a little longer before purchasing. 

 

If you didn't do any research before signing on the dotted line for the Fabia; 'lesson learnt'. Do your research before rushing into this one

 

From personal experience salesmen will tell you what you want to hear*, as long as it gets a sale out of you. 

 

Do you think it's a coincidence that 'salesman' and 'snakeoil' both begin with 'S' and contain eight letters??!! 

 

snake oil

noun

INFORMAL•NORTH AMERICAN

1. a substance with no real medicinal value sold as a remedy for all diseases.

    

   • a product, policy, etc. of little real worth or value that is promoted as the solution to a problem.

      

      

      

      

     *when purchasing my Octy Scout a couple of options I wanted on the vehicle were pushing the price up, to the point I was going to cancel the sale and save a little longer. The salesman saw that I was going to cancel and stated the options were 'nice to haves' but not essential, and I should save my money for something else. 

      

     Even after 9 years, guess which items I still regret not speccing! ! 

 

5 hours ago, Danny0239 said:

I Currently get around 42-44MPG

 

Sounds like something is wrong. Have you had the first service? If on fixed servicing it is due at 9,400 miles.

 

What version of Fabia do you have. I have never got that low with mine in three years.

 

It started at 50 MPG when new and will now get as good a low 60's in the summer.

With low 50's in the winter. Mine improved after the first service as well.

Mine is a 1.2TSI petrol 5 speed manual.

 

Thanks AG Falco

18 minutes ago, AGFalco said:

 

 

Sounds like something is wrong. Have you had the first service? If on fixed servicing it is due at 9,400 miles.

 

What version of Fabia do you have. I have never got that low with mine in three years.

 

It started at 50 MPG when new and will now get as good a low 60's in the summer.

With low 50's in the winter. Mine improved after the first service as well.

Mine is a 1.2TSI petrol 5 speed manual.

 

Thanks AG Falco

How do you find the 1.2 TSI?  I'm looking at a 1.2 TSI SEL (65-17 plate) to replace my wifes ageing mk4 Golf GTI.  I was looking at the 90PS version, thinking that it could be custom remapped by a local firm, should we find it to be lacking.  But as it will be mainly used for a short, B road commute to work and getting around town then I'm hoping it should be more than up to the job. 

40 minutes ago, penguin17 said:

How do you find the 1.2 TSI?

 

Lucky/good.

I bought it new after the smartlink was fixed, in June 2016.

It is the 1.2 TSI 90 4 pot engine and I swapped from a Turbo diesel 5 door Peugeot.

 

The engine compared to the Peugeot is:-

Sweeter, quieter, faster more responsive, revs up to higher speeds and is almost as good on fuel.

It's no GTI, but what it has is easily used and is quicker than I expected.

Torque peaks at 1400 RPM and holds that until 3500 RPM, not long after that you hit max BHP.

 

I was hoping for 50 MPG but after three years that is now my winter aim.

I do mainly B road/country road but even trips to/in/around London it betters 50 MPG.

With petrol now cheaper than diesel and the road tax at only £20 per year it's good for me.

The tax rate went up in April 2017 to £140 per year.

The 3 pot 1.0 TSI 95 replaced this engine later on ( 2018? )

 

The only thing I would have paid extra for IF it was an option is the 6 speed manual gearbox.

It doesn't need it but could easily pull one gear higher that the present 5th gear. About 55 MPH at 2000 RPM.

 

Thanks AG Falco

9 hours ago, AGFalco said:

 

Lucky/good.

I bought it new after the smartlink was fixed, in June 2016.

It is the 1.2 TSI 90 4 pot engine and I swapped from a Turbo diesel 5 door Peugeot.

 

The engine compared to the Peugeot is:-

Sweeter, quieter, faster more responsive, revs up to higher speeds and is almost as good on fuel.

It's no GTI, but what it has is easily used and is quicker than I expected.

Torque peaks at 1400 RPM and holds that until 3500 RPM, not long after that you hit max BHP.

 

I was hoping for 50 MPG but after three years that is now my winter aim.

I do mainly B road/country road but even trips to/in/around London it betters 50 MPG.

With petrol now cheaper than diesel and the road tax at only £20 per year it's good for me.

The tax rate went up in April 2017 to £140 per year.

The 3 pot 1.0 TSI 95 replaced this engine later on ( 2018? )

 

The only thing I would have paid extra for IF it was an option is the 6 speed manual gearbox.

It doesn't need it but could easily pull one gear higher that the present 5th gear. About 55 MPH at 2000 RPM.

 

Thanks AG Falco

Great info, very helpful. 

 

I think it could be the right car for us.  

 

Thanks 

The good news is you are not locked into the PCP for the rest of the term. Whilst it isn't normally a good idea to try to get out with negative equity, you can do it if you like, it just depends how much of a hit you are prepared to take. Although...

 

There is also one way of getting out Scott free whilst in negative equity and it does not hurt your credit rating (and is 100% legal). Once you have paid off half the total amount owed, including your deposit, you can hand the car back to the finance company. They have to take is as it's the law and is in your agreement. Unless you put in a big deposit and the GFV is favorable to this, you will almost certainly have to wait until at least the half way point of the agreement and most probably longer, but it is something to keep an eye on. The amount is probably written in teeny print in your PCP agreement and if it isn't you can request it. 

 

Also if someone wanted to buy your car, a dealer or a private sale, as long as they paid off the settlement amount (or you pay it off first in the case of a private sale) then you are clear of the car and it's incumbent finances  

20 hours ago, Lady Elanore said:

Once you have paid off half the total amount owed

 

Normally this will occur at the end of your PCP deal. 

 

On 21/07/2019 at 18:30, Danny0239 said:

4 Months ago,

No chance of that after 4 months.

OP gone quiet.

 

Thanks AG Falco

1 hour ago, AGFalco said:

 

Normally this will occur at the end of your PCP deal. 

 

 

 

Not true at all. I got out on my Seat Toledo 2 years into a 3 year deal. It depends on rates, GFVs, deposit and term. Trust me I sold cars for a living 

We trust you fully, but not because you sold cars.  That would be what a salesperson would want of you.

 Wanna buy a Vitara? Only kidding. Thinking of keeping her a bit longer (although the aircon has packed up!! what timing  ) 

26 minutes ago, Lady Elanore said:

Not true at all

 

On 21/07/2019 at 18:30, Danny0239 said:

The car was purchased for £20k which is what the finance agreement is for

 

On 21/07/2019 at 18:30, Danny0239 said:

I have been told that I have negative equity in the car

 

9000 miles in 4 months and wants to swap from a Fabia to a Superb to save money. 😮

 

Thanks AG Falco

27k a year is certainly strong mileage. Sounds like he needs a super eco diesel and perhaps not the 'petrol model' it sounds like he has acquired. 

 

Actually just realised he entered into a 20K mileage contract, so unless his mileage drops at certain times of the year he might get hit with a penalty payment if he ever takes the 'hand it back' route.  Be interesting to see if there was a legal case that could be made if the agreement doc has errors (although he would have to prove it was not something he had understood, as he will have signed the agreement to show he was in accord with it 😞 ) 

Edited 24 July, 20196 yr by Lady Elanore

On 24/07/2019 at 19:45, Lady Elanore said:

 

Not true at all. I got out on my Seat Toledo 2 years into a 3 year deal. It depends on rates, GFVs, deposit and term. Trust me I sold cars for a living 

TLDR: 'Voluntary Termination' is the term for ending the agreement once you have paid back 50% of whatever is on the contract (total amount payable)  Though there may related charges to do so, e.g; admin/collection/inspection fees.  

 

As long as you made all your payments on the car and aren't in arrears then it shouldn't adversely effect your credit file. Though the lender may not be willing to offer you finance products in future.   It's a legal right of the customer to apply for a voluntary termination;  it was put in place to protect the borrower in the event of changes to circumstances.  Finance companies don't like it one bit as it they will likely not recoup the rest of the balance due to the cars value being less than the remaining 50%.  A finance company will likely try it on with the inspection and try to claw back some money by invoicing the borrower (excessively) for scratches and general condition but they are subject to BVRLA fair wear and tear guidance, so adhere to that and you should be fine. 

 

Oh and you can't legally be charged for excess mileage in a voluntary termination.  The finance company may try bully you into paying a 'pro rata'd' excess mileage charge or similar but they can't legally 'make you' pay.  Worse case scenario for them is that you've taken care of the car but done significantly more mileage than what's in the contract.  So the car is worth much less due to mileage and they can't recoup cash from repairs and misuse. 

 

 

On 01/08/2019 at 20:00, penguin17 said:

TLDR: 'Voluntary Termination' is the term for ending the agreement once you have paid back 50% of whatever is on the contract (total amount payable)  Though there may related charges to do so, e.g; admin/collection/inspection fees.  

 

As long as you made all your payments on the car and aren't in arrears then it shouldn't adversely effect your credit file. Though the lender may not be willing to offer you finance products in future.   It's a legal right of the customer to apply for a voluntary termination;  it was put in place to protect the borrower in the event of changes to circumstances.  Finance companies don't like it one bit as it they will likely not recoup the rest of the balance due to the cars value being less than the remaining 50%.  A finance company will likely try it on with the inspection and try to claw back some money by invoicing the borrower (excessively) for scratches and general condition but they are subject to BVRLA fair wear and tear guidance, so adhere to that and you should be fine. 

 

Oh and you can't legally be charged for excess mileage in a voluntary termination.  The finance company may try bully you into paying a 'pro rata'd' excess mileage charge or similar but they can't legally 'make you' pay.  Worse case scenario for them is that you've taken care of the car but done significantly more mileage than what's in the contract.  So the car is worth much less due to mileage and they can't recoup cash from repairs and misuse. 

 

 

Yep, exactly that