Have I dropped a bollock here? (Car finance/PCP)

[Wrongdissection]

Got a car on PCP almost 4 years ago over a 4 year term. Got the PCP not through the dealer but through a friend who is a broker for such things - PCP is with Santander. PCP term is now almost up and I’ve heard nothing from Santander so I’m not really sure what the next steps are as I’ve never done this before. Anyway, it occurred to me in a panic that I’ve not had the car serviced, is that going to be a problem? I don’t recall at all being informed that was a term of the PCP but of course it probably was wasn’t it? Other than the paperwork with the GFV and the payments and how long the agreement was for etc I didn’t receive any other T’s & C’s that I have a record of - and it’s the kind of thing I usually keep.

Anyone know about this sort of thing and how much the penalty might be if it turns out I have broken the terms and conditions? I’ve tried to contact Santander but due to Covid they’re only open for 17 minutes between 0900 and god knows when and eleventy thousand other people are trying to get through at the same time.

It might be a problem. I got my pcp through the car company and when I bought it they specified that it had to have an annual service or there would be fees to pay at the end of the agreement. I can't remember numbers exactly, I think it might be around £100 fee per missed service.

Essentially the car is worth a little less with no service history, so if you agreed to give them back a car worth £2000, but you end up giving them a car worth only £1500 then they would want the extra money from you.

If you pay to keep the car though then they might waive the fees for lack of service.

Maybe speak to the garage you bought from and ask them to liaise with Santander.

£100 per service I could cope with. £1000 not so much.

I doubt the garage would liaise with Santander as it was never arranged through them. I could ask my friend but I don’t want to appear stupid so thought I’d ask you lot instead 😳

Are you keeping the car?

I wasn’t planning on it no. But I would like another one.

Sorry, I think you might have to bite the bullet then. Hopefully it's not too expensive for you.

Yes you must service it. Is the car damaged at all?.

Ring them.

As an aside- and you might want to look into how this affects you- You might not have heard anything from them because they have no plan for ending agreements at the moment. There have been many articles in the paper about how people have had to keep paying/re-tax/reinsure cara at the end of their agreed terms when they haven’t wanted to because there’s no way to give the cars back. Hopefully this changes soon but it’s an absolute scandal.

@Wrongdissection I did this with Toyota, had the car 3 years and didn't service it, although I had only done 12000 miles. They told me the warranty is void with no service (luckily I didnt need it) and they traded it in for new one 🤷🏻‍♀️ I expect car dealerships will be screaming for custom after this, someone will take it off your hand for a new one

I didn't get mine serviced because it clearly said annually or every 15,000 miles, I now know this means 15,000 if sooner than a year. I handed it back half way actually, and they could have charged but they didn't. If you are wanting a new car it will likely be fine, if you just want to hand it back and walk away without something else then they're probably going to try and get every penny.

You are required to keep it in good condition and if it is in worse condition than expected for its age and mileage when you hand it back you will be liable for refurbishment.
It is Santander Consumer Finance you need to contact, just in case you weren't aware.
How long until the agreement ends?

Have you kept within the mileage limits?

I’ve kept within the mileage limits (about 7k under in total) and the car otherwise is in good condition. The contract is due to end on 15th July.

You don't state how long there is to go on the current agreement. Most PCP providers write to customers about three months out from the expiry date to set out your options and ask your intentions.

As Santander are not tied in any way to your vehicle's manufacturer i very much doubt they'll let the fact the car hasn't been serviced slide - but that's only an issue to you if you elect to return the car at the end. If you choose that option I'd expect them to add a charge for lack of service history to any charge made for any damage outside of normal wear and tear, or ask you to have it serviced at your expense by the manufacturer.

If you wish to PX the car the dealer will adjust the value to account for lack of service history and any damage, at which point they can construct an offer for you.

If you choose to pay the final payment and keep the car, you have no worry, but you really should get it serviced! It's running around on oil that's nearly four years old, using four year old filters, brake pads and everything else! It also helps verify the mileage.

As above the contract is due to end on 15th July this year. I actually did get it serviced the first year but don’t have a record of it because the book wasn’t in the car and I forgot to take it back to get it stamped. I know. I deserve whatever they throw at me for being so bloody disorganised. Brake pads/discs etc have been changed during lifetime of car with me after being picked up on the MOT etc so From that respect I’ve maintained the car.

In that case, the situation is not quite as bleak as you painted it! If you can, get the dealer who serviced it to reprint their invoice, and I'm sure they'll stamp your service book as well.

Hopefully the trade will be back at work by mid July, the dealer i work at its looking at reopening for sales in early June. How the market might look at that point is difficult to assess, but I'm sure they'll want a 'fast start'. Good luck.

Thank you, I will try and get a record of the service and then at least I have one year. Pads and discs were replaced in December and I have proof of that being done. I plan to get the car Valeted and will then see what I can get for it part-exing for a newer car.