Driving to Europe with car on finance?

[M101]

Ordered a Model Y Long Range and opted for PCP with CA Auto Finance. On reading the paperwork it states that the car can not be taken outside of the UK. Is this a usual term with Tesla lending partners?

We regularly travel to Ireland and France by car. On previous cars I have had to notify the finance company who then gave permission but there hasn’t been an outright blanket ban on taking the car outside the UK.

 

[spdpsba]

On reading the paperwork it states that the car can not be taken outside of the UK. I

Unless we have given permission to do so is the extra bit with that agreement.

I guess we can request them before the trip and they will let us take just as in lease except we do not need the V5c as it is PCP.

 

[M101]

I’ve enquired about obtaining permission and the response from CA Auto Finance is:

“Until the vehicle is clear of finance, the vehicle is not allowed to be taken outside of the united kingdom due to the vehicle being owned by CA Auto Finance.”

Are Tesla’s other lenders as restrictive?

 

[Rob_S]

Lex terms

 

[Tony Hoyle]

I can't even find a mention of overseas travel the tesla PCP terms.. the closest term is

keep the Vehicle at all times in your possession or
control and on demand inform us of the whereabouts of
the Vehicle;

Worth remembering to check though for future finance options, I wasn't aware it could be a thing before (I suspect most people don't know and never check).

 

[M101]

Thanks @Rob_S, I'll see if Lex is an option.

@Tony Hoyle, it 5.3 in the CA Auto Finance terms:
5.3 You must not take the Goods outside the United Kingdom, or allow them to be taken outside the United Kingdom, unless we have given you our permission.

It's a misleading clause if they have no intention of ever giving such permission.

 

[Tony Hoyle]

Good to warn people off CA.. Is there are reason you didn't go direct to Tesla? Their deals always seemed pretty good.

 

[M101]

Tesla directed me to CA Auto Finance. It was done over the phone with the representative from Stockport who had arranged the test drive earlier in the day. I did notice some other options in the app, but he said to go to CA for the 1.8% APR offer.

 

[Tony Hoyle]

1,8%.. that seems absurdly cheap especially with recent rises in interest rates. At that rate you could take the money and stick it in a high interest account and make money..

I guess they achieve that in part by having very restrictive policies.

 

[Jason71]

Hopefully not a dumb question but what if you take it out of the UK and don't tell them? Unless there is an accident or its stolen then they would never know but if one of those things DID happen what would be the outcome?

 

[spdpsba]

Hopefully not a dumb question but what if you take it out of the UK and don't tell them?

I jsut checked CA finance agreement - yes they want us to get the permission. So I am going to ask and if they don’t let me I am going to do as what you mentioned.

Unless there is an accident or its stolen then they would never know but if one of those things DID happen what would be the outcome?

I will update - hopefully will be alive to update

 

[WllXM]

I jsut checked CA finance agreement - yes they want us to get the permission. So I am going to ask and if they don’t let me I am going to do as what you mentioned.

Yes I think you simply have to notify them before every trip.

Just like Lex terms posted above, they shouldn't unreasonably refuse.

After all, as it's a PCP, I assume you are holding the V5C so can produce documents if stopped abroad.
Would have been more difficult if you had a HP contract, as you would have had to request a VE103B every time from the finance company.

 

[spdpsba]

At that rate you could take the money and stick it in a high interest account and make money..

Unfortunately they don’t give the cash and they give a car which we can’t sell as it is on PCP.

 

[WllXM]

Unfortunately they don’t give the cash and they give a car which we can’t sell as it is on PCP.

No but at this rate, all potential cash buyers should stop and arbitrage!

So I've had a quick look at Tesla website and indeed it seems that PCP financing is no longer done by Tesla Finance Ltd now, but CA Consumer Finance then? Curious that they are re introducing third parties for something they were previously doing in house (at a much higher rate indeed...)

 

[spdpsba]

it seems that PCP financing is no longer done by Tesla Finance Ltd now, but CA Consumer Finance then? Curious that they are re introducing third parties for something they were previously doing in house (at a much highe

Yes, it is CA finance and I was one of the early taker of one of those offers. What Tesla said at that time was they were not able to get a low interest financial company to offer these loans so they took CA (it may be their own but in a different name or something) and then were offering cash bonuses. This happened during the end of year sale where I got the £3000 & 3.8 APR. It works out similar to the current 1.8%APR they offer to Model Y.

There was lot of confusion with the cash bonuses as Tesla didn’t want to change the retail price on their sale and CA finance wasn’t offering the reduced £3000 as they were offering loans for the sticker price.

Anyhow, after few days of phone calls they managed to write the loan amount as £43,990 or something for the Y.

 

[M101]

No but at this rate, all potential cash buyers should stop and arbitrage!

Yes no point buying outright in cash whilst this offer is on (unless you want to drive in Europe). Cost of credit is £3k over 4 years, investments should return at least £8k, so minimum return is £5k. If things go well it will be better. Either way, it should comfortably cover the interest cost, so very unlikely to be more expensive.

Yes I think you simply have to notify them before every trip.

That's what I expected, I am hoping that the representative who responded to my initial enquiry has simply got it wrong but our trip is at the end of the month, and there has been no reply to my messages today, their last response was:

“Until the vehicle is clear of finance, the vehicle is not allowed to be taken outside of the united kingdom due to the vehicle being owned by CA Auto Finance.”

 

[Durzel]

Hopefully not a dumb question but what if you take it out of the UK and don't tell them? Unless there is an accident or its stolen then they would never know but if one of those things DID happen what would be the outcome?

Probably that they'd have the car off you and request full payment of the finance, for breach of contract.

Devil's Advocate but don't know why people should think that they have a right to take someone elses's car (property) outside of their practical control (e.g. the borders of the country). Inconvenient, but finance is convenient in other ways - giving people access to a car they might not otherwise be able to afford... swings and roundabouts.

 

[Jason71]

Probably that they'd have the car off you and request full payment of the finance, for breach of contract.

Devil's Advocate but don't know why people should think that they have a right to take someone elses's car (property) outside of their practical control (e.g. the borders of the country). Inconvenient, but finance is convenient in other ways - giving people access to a car they might not otherwise be able to afford... swings and roundabouts.

If its a PCP then technically its not entirely someone else's car its part yours.

 

[WllXM]

Probably that they'd have the car off you and request full payment of the finance, for breach of contract.

Devil's Advocate but don't know why people should think that they have a right to take someone elses's car (property) outside of their practical control (e.g. the borders of the country). Inconvenient, but finance is convenient in other ways - giving people access to a car they might not otherwise be able to afford... swings and roundabouts.

Even when you’re hiring a car short term (via high street rental agencies), there are clauses that allow the car to be taken to Europe (for a fee, admin+continental insurance&recovery).

I would be very surprised if a finance provider on something as long term as PCP would completely prevent you from doing an overseas trip which is really common for the holidays.

 

[Fursty Ferret]

It’s a very unusual restriction (mine is leased and has no such rule) and unreasonably limiting. Consequently I think you could perhaps argue that you should have been notified before signing the contract.

Do you have legal cover on your home insurance that you could tap for advice? Hiding dodgy stuff in contract a contract you write and then blaming the customer is frowned upon in the financial world.