Early Termination Penalty On Pcp

[Jezzer]

A few months on from purchasing my Lexus, I realised the implications of the fact that it was on PCP that is not regulated by the Consumer Credit Act. The car is now coming up to 2 years old and, for a number of reasons, I'm thinking of changing it.

I was alarmed at Lexus Financial Services attitude that: 1. As it's unregulated they ask for 5 month interest as a penalty (regulated PCP is only 1 month) and 2. They won't budge even if you're looking at another Lexus and refinancing.

I think it's pretty poor and sums up my opinion of Lexus and their dealers at the moment that they don't car about customer loyalty.

Anybody been more successful in getting a better settlement from LFS?

[simon k]

A few months on from purchasing my Lexus, I realised the implications of the fact that it was on PCP that is not regulated by the Consumer Credit Act. The car is now coming up to 2 years old and, for a number of reasons, I'm thinking of changing it.

I was alarmed at Lexus Financial Services attitude that: 1. As it's unregulated they ask for 5 month interest as a penalty (regulated PCP is only 1 month) and 2. They won't budge even if you're looking at another Lexus and refinancing.

I think it's pretty poor and sums up my opinion of Lexus and their dealers at the moment that they don't car about customer loyalty.

Anybody been more successful in getting a better settlement from LFS?

i returned mine on a pcp about 5 months ago, i was at the point that i had paid half of the value so i could return it without having to pay anymore.

have you checked how much you would need to pay to be able to return it?

also you have the option of selling the car and paying back the total finance ammount, which as in my case the car was worth alot less than 50% of its purchase price when at 28 months old.

they took the car back and sent it to auction the last i heard it was up for sale at lexus newcastle

[Jezzer]

A few months on from purchasing my Lexus, I realised the implications of the fact that it was on PCP that is not regulated by the Consumer Credit Act. The car is now coming up to 2 years old and, for a number of reasons, I'm thinking of changing it.

I was alarmed at Lexus Financial Services attitude that: 1. As it's unregulated they ask for 5 month interest as a penalty (regulated PCP is only 1 month) and 2. They won't budge even if you're looking at another Lexus and refinancing.

I think it's pretty poor and sums up my opinion of Lexus and their dealers at the moment that they don't car about customer loyalty.

Anybody been more successful in getting a better settlement from LFS?

i returned mine on a pcp about 5 months ago, i was at the point that i had paid half of the value so i could return it without having to pay anymore.

have you checked how much you would need to pay to be able to return it?

also you have the option of selling the car and paying back the total finance ammount, which as in my case the car was worth alot less than 50% of its purchase price when at 28 months old.

they took the car back and sent it to auction the last i heard it was up for sale at lexus newcastle

So that's one of the main issues of the (old - they can't do them any more) unregulated agreements - there is no voluntary termination clause. When I took out the PCP, anything over £25k of finance could be sold unregulated. A lesson learned in double checking the agreement before you sign it. :tsktsk:

[simon k]

cant you sell it and pay them off? or is the car not worth the amount owed

[Jezzer]

cant you sell it and pay them off? or is the car not worth the amount owed

Yes, I could sell it but it's the fact that they want to take the best part of £1000 as an early termination penalty which, I think, is a rip. It seriously affects my opinion of Lexus and I think, on this alone, I wouldn't buy another car from them.