Drivers 'stuck' with cars they don't want

  • Some drivers stuck with cars that can't be collected
  • Won't need to pay for MOTs, for now
  • Dependent on manufacturer

Car dealership

Drivers on PCP (Personal Contract Purchase) deals are being stuck with cars they don’t want because car companies can’t collect them due to Coronavirus (COVID-19) lockdown.

The reason? The firms that car companies use to collect your cars are being furloughed due to the pandemic. The results are that some people coming to the end of PCP agreements, where they don’t want to buy the car and pay the balloon payment, are being forced to keep cars they don’t own.

A spokesperson for Volkswagen Financial Services told Parkers: ‘We are covering the cost to keep vehicles taxed and insured where they cannot be collected due to COVID-19.

‘However, where customers want to continue using their vehicles they will be required to tax and insure the vehicle in line with the T&Cs of their agreement.

‘When the current lockdown restrictions are lifted, we will be in contact with the customer regarding a suitable time to arrange collection.’

An affected Parkers reader said: ‘I have indicated I don’t want to buy it through a balloon payment and it is not my property. I understand that these are testing times, but, if I owed them any money I am absolutely sure they would be all over me.’

>> What to do if your car is due to go back during the Coronavirus (COVID-19) lockdown


Depending on the length of your PCP agreement, your MOT might be running out too. This isn’t something most people need to worry about, for the short-term at least.

The Government advice for cars, vans, and motorcycles, is that the MOT expiry date will be extended by six months if it’s due on or after 30th March 2020.

But, it must also be kept safe to drive.

>> More advice on MOTs during Coronavirus

What this means for you

If you don’t want to own your car at the end of your PCP agreement (in other words, if you don’t want to pay your balloon payment), and you don’t want to drive your car, you don’t have to pay anything.

However, if you do want to use your car, some manufacturers are making you pay the tax and insurance yourself.

The advice is now to contact your finance provider to see what you should do.

Further reading

>> Car payment holidays – explained

>> Ford announces six-month payment holiday for new cars

>> Coronavirus driving advice

>> Car scrappage schemes: how much can they save you?

>> All of the 0% car finance deals