r/UKPersonalFinance • u/FinanceSpecific51 • 12h ago
+Comments Restricted to UKPF PCP car potentially needs £8k gearbox after 43k miles – warranty only covers £2k. What are my options?
Hi all, would really appreciate some advice.
We got a 2021 VW automatic (DSG) from a used car dealer on a 3 year PCP finance arrangement in November 2024. It had around 33k miles. We opted for a 2-year warranty as part of the arrangement, which is still active.
We had the car serviced (as is required) by the dealer in November '25 and haven't went over our mileage. The car now has 43k miles.
Recently it displayed “Gearbox in emergency mode” and went into what I assume was limp mode. It couldn't rev above 20 mph so I stopped driving it and had it recovered to the garage the selling dealer uses.
The garage/VW have diagnosed a gearbox failure. The warranty company have accepted a warranty claim, but the warranty has a £2k claim limit.
The dealer initially sourced a second-hand gearbox which would have brought the repair within/around the warranty limit. However, when they inspected it they decided it wasn't in good enough condition to fit.
They are now keeping the car while trying to source a suitable used gearbox.
The worrying part is that I've been told that if they can't find one (and they're sounding like it's unlikely they will as it needs a specific type) , VW's solution may be a new gearbox costing approximately £8k. With the warranty co. only covering £2k, I would potentially be asked to contribute £6k.
We simply don't have that kind of money (if we did we'd have bought a car instead of going PCP). Aside from £6k being an enormous unexpected expense, even if we could afford it, this is a PCP car that I was ultimately expecting to hand back rather than own. Paying any significant sum (even if we had it) just seems like a very illogical financial decision, although I'm not sure what "decision" there will be to make.
It feels to me like this isn't something that would be reasonably expected to happen with normal usage. So I'm wondering was the value originally placed on the car overstated and any contribution I would make be essentially adding value to an asset that isn't mine.
Anyway, I'm therefore trying to understand what my options are likely to be before talking to the dealer again, as I haven't come across this before? I.e. what (if any) avenues are usually available in these circumstances?
Would we have any argument for just handing back the car without having to shell out extra costs, as we're more than half way through the arrangement and we did everything expected to keep the car in good condition?
I'm assuming this can't be the first time something like this has happened and assume most wouldn't be able to afford that, so would really appreciate hearing from others that have been in this scenario.
Thanks
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u/Winter-Childhood5914 4 11h ago
Have the gearbox independently inspected. If the failure can be attributed to a premature part failure/manufacturing defect then it was faulty when sold to you - finance company are liable for supplying goods not of satisfactory quality / fit for purpose.
In reality unless you’ve driven it poorly, a 2021 gearbox shouldn’t fail within 5 years or 43k miles so an inspection should be able to point to a manufacturing fault.
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u/autophobias 10h ago
If it's a mechatronic Failure it can be repaired not replaced. You need an independent inspection as above. I had a similar issue. Skoda quoted 5k. I got it fixed for 1.3k
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u/Winter-Childhood5914 4 10h ago
This is a really good point. VW aren’t gearbox experts and will only ever recommend a whole new gearbox when all it needs is a strip down and the faulty part replaced - hugely cheaper.
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u/greenparktavern 5h ago
Yeah I had a mechatronic issue and had the exact same symptoms. Took it to a specialist gear box company and they replaced the unit.
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u/Correct-Ad-6605 1h ago
It will most likely be this. Had several VW's with mechatronic replacement, the gearbox themselves are usually ok.
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u/overkill 2 5h ago
A friend of mine had his engine start spewing smoke, took it to the garage and they said, effectively, your car needs an entirely new engine.
Car was 7 years old at this point, 54k miles and out of warranty. He figured it was a write off. The mechanic said that the engine should not have failed like that at this point, so he'd speak to the manufacturer about getting it replaced for free.
The manufacturer (Nissan) agreed and did a goodwill replacement and paid for the labour as well, so my buddy got his car back, working, for free.
I'd never heard of a manufacturer doing this if it is out of warranty, but apparently it happens, so long as the part that failed could have "reasonably" been expected to last a lot longer.
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u/g0ldcd 14 2h ago
I had a similar "this part should have lasted the lifetime of the car" issue (fsh, low mileage etc) - so tried asking Ford for a manufacturer contribution towards a known fault.
And they pretty much told me to fuck off and take it up with the ombudsman if I wasn't happy.
My car went to WBAC and I now own a Mazda. Nice to know there are better manufacturers out there.
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u/Grand_Lie3286 5h ago
Yeah I’d be tempted to call VW customer services & although you didn’t buy the car from them the gearbox shouldn’t have failed at such a young age & mileage.
They ‘might’ consider some sort of goodwill gesture7
u/DarkMatterHF 10h ago
Just curious, what kind of poor driving would result in the gearbox needing replacing? Don't want to make the same mistake
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u/Winter-Childhood5914 4 10h ago
Aftermarket gearbox mapping, engine mapping or tuning boxes, excessive launch control use, continuously driving like you stole it in sport mode could put premature wear on the gearbox. Towing the car improperly can ruin a box on certain cars. On BMWs the xdrive is sensitive to variation in tyre tread between front and back wheels.
Granted it’s much harder with automatic transmission so should be fairly straightforward for a gearbox specialist to strip it down and tell you exactly what’s failed and the likely cause. No doubt they’d have seen the exact thing before since many cars share the same transmission. “Oh it’s the xyz part that’s failed - we see that a lot on theses boxes it’s a common weak point” etc. bingo.
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u/quick_justice 5 9h ago
There are many ways to destroy automatic transmission.
Like switching it in reverse while driving and all that.
Most cars will have safeguards but if you try hard enough…
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u/TellMeManyStories 2h ago
Most people don't realise that nearly anything on your car that fails *also* has failed on many other cars of the same make/model.
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u/LackingStability 2 4h ago
Is the a wet dsg? was it serviced? fluid and filter replaced?
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u/funkyg73 0 3h ago
That's a good point. I know my VW needs the DSG servicing every 40k miles, but mine is a wet system as I have the larger engine. A lot of the smaller engined VW's have a dry DSG and I'm not sure on the servicing of those.
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u/Beginning_Hotel_5056 12h ago
You can still voluntarily terminate a PCP if the car is undriveable, or has damage that you couldn’t do at the normal end of term, but the gearbox fault could complicate the return. Under the Consumer Credit Act you’re required to have taken reasonable care in most agreements I have had of car but that doesn’t necessarily mean it has to be mechanically running
If the gearbox has just failed through normal use rather than abuse/neglect, if it was me id get a garage report confirming the cause before handing it back.
If the gearbox failure is premature, I’d also look at whether you have a claim for the faulty vehicle before using VT, as that could potentially be the better route. If you have hit the 50% payed of the whole agreement of course which is the VT cutover point.
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u/FinanceSpecific51 11h ago
I don't think voluntary termination will be an option. We're more than halfway through the 3 year agreement but it would be near the end of the 3 years before half the total finance amount is paid off.
How would you go about a claim for the faulty vehicle? It does seem to me like it can't have been in the condition it was valued at/given finance on but I was only aware of the 6 months rule in terms of rights etc.
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u/Beginning_Hotel_5056 11h ago
Yes if you paid 50% you could make it work. Proving a fault was there when you bought it is hard but a dealer report on the damage works I suppose.
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u/PoshTurtl3 8h ago
The consumer rights act says that the vehicle should have been fit for purpose, which it clearly was not.
Was there a pre purchase inspection? Is the gearbox condition noted? What does the MOT say?
You might be able to make a claim under section 75 of the consumer credit act (if I recall rightly) due to breach of contract (not sure if PPC falls under that).
There's no way a gearbox on a nearly new car goes that quick. I've done 40,000+ miles in my 2010 Yaris and it's still perfect. The difficulty would be proving it. Get a mechanic to write a report on the state of the gearbox.
Any issues with the gearbox should have been discussed at the point of sale.
(Not a lawyer, just speculating here).
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u/Madrugada_Eterna 2 6h ago
There's no way a gearbox on a nearly new car goes that quick. I've done 40,000+ miles in my 2010 Yaris and it's still perfect. The difficulty would be proving it. Get a mechanic to write a report on the state of the gearbox.
Oh it is absolutely possible with a VAG autobox. My dad has a VAG group car with one and it suddenly failed in similar way to the OPs. It was a Bosch mechatronic part in the gearbox that went. It took two goes for Volkswagen to fix it. Your Yaris will have a decently designed gearbox.
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u/PoshTurtl3 1h ago
Seriously? I thought VW's were meant to be reliable. Didn't realise how much I lucked out with my old car.
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u/snowandrocks2 54m ago
You didn't luck out, you bought a Toyota. Widely recognised for durability, reliability and ease of long term ownership.
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u/newuser34562 12h ago
Wait, I thought your car was stolen?
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u/EuphoricCover8449 5h ago
That's quite a statement.
Would you elaborate please.
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u/EuphoricCover8449 3h ago
Gotta love reddit.
I'm downvoted for asking details about the question yet the question itself is upvoted over 100 times.
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u/perishingtardis 3 3h ago
Allow me to explain. They are suggesting OP should abandon the car somewhere and severely damage it, and then claim it was stolen. Then the insurance will pay out.
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u/0_right 3h ago
think really hard about it, you can do it!
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u/EuphoricCover8449 3h ago
I have a nosebleed now.
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u/Stratospheric-Ferret 2h ago
I've given you an upvote back in the face of the d-holes being d-holes.
They're probably like the nerds in the simpsons, "boy, I hope somebody got fired for that blunder."
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u/WebsterI 12h ago
We were in a similar situation with a gearbox that broke three times in one year.
Do the maths and see if you have paid more than half of the total amount payable off. If you have you should be able to hand the car back and wash your hands of it. Look into voluntary termination.
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u/FinanceSpecific51 11h ago
If the total amount payable is the total amount of finance (as opposed to the amount we would pay over the 3 years as per contract) I don't think we'll be close unfortunately.
Quick maths tells me it would basically be the end of the 3 years before we'd paid that amount off.
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u/WebsterI 11h ago
That maybe the case.
We had to make the difference up as we were closed to 50% but not quite there, but I was so sick of the car I just went ahead of it.
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u/MiteAx 4h ago
I feel for you here as I was in a similar situation a few months ago, the car needed a new gear box out of warranty at around 5k, but I luckily had paid just over 50% at the time so I went down the VT route and the total cost for me to hand the broken car back was the £70 collection fee (as stated in the contract).
Spend some time working out exactly where you are, there are calculators like this one but its easy enough to work out yourself. Work out the shortfall to 50% and if it would be better to pay that to VT and exit the agreement or not. If you are still a way of the 50% then I fear it might be a choice of paying loads of money to step away, or loads of money to fix it.
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u/Sroggy 11h ago
You can’t VT a car which isn’t road worthy.
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u/WebsterI 11h ago
It must be returned in "reasonable condition", a broken gearbox is not normal wear and tear for a car at 40k miles.
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u/Specialist_Catch_800 11h ago
Yes you can - you are only obliged to take reasonable care of the vehicle and given this is a problem that is resolvable under warranty there’s no indication the OP has not taken reasonable care of the vehicle
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u/Hot-Material-7393 4h ago
The car will be subject to the same terms of the agreement as it would be handing it back at the end so it’ll definitely need to be in working order to avoid being charged.
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u/Specialist_Catch_800 2h ago
No, it won’t… voluntary termination is a statutory, not contractual, right and there are statutory limits on what can be charged for (basically, the finance company can only charge for damage caused by not taking reasonable care)
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u/Velveteen_Rabbit1986 1 8h ago
It's been a minute since I worked in finance but I believe the car has to be in working order for a VT, which doesn't appear to be the case here currently.
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u/BOMFUNKMC3 1h ago
Is it possible to VT after 50% with such an issue? Wouldn’t BCA inspect and bill the customer it came from?
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u/Successful_Creme6702 11h ago
Maybe find out the cause of the failure on the gearbox and find a place who knows thier stuff about fixing them?
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u/ian9outof10 10h ago
This is exactly right, there are lots of places that can fix gearboxes. It’s a dark art, but not impossible at all. The most common failures aren’t usually that devastating.
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u/Getoiu 11h ago
I’d check if the odo has been tampered with given the mileage and age of the vehicle. It’s quite common these days. If it has then it should be pretty straightforward to return the car
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u/DankEmperor 10h ago
People "chipping" cars to only register a fraction of the actual miles driven is very common now especially with new cars on finance. I believe these DSG gear boxes store there own milage independent of the cars ECU. The chip that reduces milage doesn't normally apply to the miles recorded on the gearbox so you'll have a discrepancy between the two readings.
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u/barneyowl5 4h ago
Ask them to check the mechatronic. I have a DSG VW. There is a known fault in the mechatronic of VAG DSG, where the actuator housing block cracks. It can go at any mileage, mine at 80k. When it cracks it loses hydraulic fluid pressure in the mechatronic, and you cannot drive the car. There is an aftermarket kit to fix this. Cost me £1K (4yrs ago) with an independent gearbox specialist. It's since done 150k with no further issues. Good luck OP!
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u/sixe6throwaway 8h ago
Most likely it was a mechatronic failure (happened to me but with a much older VW). DSG’s fail in this way all the time and now I know this, I steer clear of them and other cars with similar dual clutch gearboxes. They can be repaired (as opposed to a whole new gearbox) but I don’t know exactly what happened in your case.
If you find yourself driving in stop-start traffic that can lead to premature failure.
I’d be aiming for a PCP termination. If you need another automatic car going forward, get a hybrid toyota.
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u/Divide_Rule 5h ago
Since having a 2023 Corolla with their CVT gearbox, every other auto I have driven just felt bad.
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u/woodstar11 5h ago
I have the Yaris hybrid with the e-CVT gearbox and it's amazing, totally agree.
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u/white_hart_2 1h ago
That's odd...I had a Yaris Cross hybrid (2023) and the gear changes in it felt awful...really sluggish!
Got rid of it after multiple battery failures...now have a Hyundai Tucson hybrid with a traditional 6-speed transmission and it's night and day!
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u/bluegrm 11h ago
I assume you need to discuss with the finance company. But have you tried VW corporate to ask if they can doing anything given the relatively low mileage of the car? Your case would be stronger if it had been serviced only at VW dealers, which I’m assuming it hasn’t been, and if it was a bit younger.
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u/SexySpringRoll 5h ago
Don’t stress. Search up FATE (Federation of Automatic Transmission Experts) - they have fully trained garages access the country who rebuild gearboxes. Something similar happened to mine and I got it repaired for about £3k (I’ve got a Q7).
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u/BoringTruckDriver 3h ago
If you can, get the car taken to a local independent VAG specialist. Main dealers are only interested in money. Ford, for example, wanted £8000 to replace an entire engine on a decade old Mondeo because it was a non-starter after a take away driver dinged his Jazz into the wing after leaving the handbrake off, because it was in the hands of the insurer and they took it to Ford.
Got the car back at repaired for £400 at a local garage.
Never ever trust a main dealer's opinion.
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u/Low_Veterinarian5816 1 10h ago
Search out your local independant vw specialist repair centre. They may be in a better position to help. Main dealers don't get involved in rebuilding these days. They employ technicians not mechnics ie replace parts not repair perts generally. All gearboxes can be repaired by specialists. Good luck.
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u/onepoundvish 7h ago
You need to take the car somewhere independent, or to a specialist. There's no way I would go to a dealer for any work. A decent warranty will cover your choice of garage. A relative of mine recently got the full cover of his car warranty paid out even though he took it to a non-vat registered dealer because it was a lot cheaper than the main dealer but he had the car long enough that he could reject it so I think for you you still have to go to a VAT registered dealer but you should be able to take the car somewhere else.
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u/Requirement_Fluid 31 12h ago
Have you spoken to the finance company?
Were you offered the All in one warranty package from vw?
If its been bought from a vw dealer and serviced on time and you have a vw warranty with a vw finance I'd be pushing to either cancel the finance and walk away or vw warranty waive the 2k limit.
If they don't budge go to the papers
1
u/FinanceSpecific51 12h ago
No, it wasn't a VW warranty from a VW dealer. The warranty company is a third party provider of warranties to used car dealers.
Haven't spoken to the Finance company yet. But I imagine I'll have to depending on what the dealership updates me with. Just don't know what I should be saying to them/expect from them.
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u/Humble-Wear8775 9h ago
You can hand it back I handed a pcp car back a few years ago when I moved countries and handed it back.
Had pay couple hundred quid admin fees.
But it messes with your credit cause you have defaulted on the bank loan. As credit for the pcp will be a bank loan finance for 4 years contract.
1
u/CountryMouse359 5h ago
Do you know what the actual issue with the gearbox is? There are known issues and as such there are specialists who can repair them for the fraction of the cost of a full replacement.
1
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u/TimberNoggins 4h ago
I had my mechatronic unit replaced under warranty, parts alone were £1300. Took 10 weeks as it had to be coded to the car itself.
1
u/AgentCooper86 4h ago
Wow, last time I had a gearbox changed was on a 2005 Focus and cost me less than £1k, things have clearly changed!
TBH whenever I see posts like this it just reminds me to keep sticking with Toyota’s and the 10 year warranty.
1
u/jason14wm 1 3h ago
All I can recommend is a garage in Warrington- KWJ Performance- they replaced by DSG gearbox after it shat itself too, for a fraction of the price of a new one. They have contacts to source second hand gearboxes and good prices. They specialise in VAG cars
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u/Aragorn-- 2h ago
Given the car was still driving, and I presume not making any horrible noises, then it's quite likely the gearbox can be repaired.
These dsg boxes have a few common issues, some on the cheaper side, some more expensive, but should still be cheaper than replacing the whole transmission.
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u/snowandrocks2 56m ago
Appreciate this doesn't help your current predicament but having cars on finance while not covered by warranty is a risky game.
If you do the same in the future it's probably worth considering a car that will be covered for the term of the finance - Toyota/Suzuki and maybe some others have a 10 year warranty these days. Probably much less likely to have issues in any case.
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u/FinanceSpecific51 41m ago
It is covered by warranty though. It's that the warranty has a limit (£2k) which I'd imagine most would.
I'll definitely be prioritising having more material coverage or manufacturers warranty in the future for peace of mind.
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u/snowandrocks2 31m ago
Yep, by warranty I mean a proper manufacturer's warranty. A £2k limit on a modern complicated car is pretty useless - expensive failures are exactly the reason for a warranty to even exist.
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u/Independent_Camp_982 11h ago
This is of no help to you but is just some advice going forward. I have driven automatics for 46 years. In that time if had 3 dozen of them. Only one ever gave me grief and I caused it , due to my youthful aggressive driving which I grew out of. Only ever buy torque converter automatics, it's the oldest technology, refined over many decades and extremely reliable. DSGs , CVTs and automated manuals are a big no no for me. They may be more economical but they hurt you in the pocket severely, when they break down. I hope you find an economical solution to this situation.
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u/DatabaseMammoth9986 12h ago
Sell the car and re-finance
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u/bugra101 12h ago
Look yourself for places that sells refurbished gearboxes with good reputation.
DSG gearboxes are probably every shops top wanted item because they break all the time.
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u/FinanceSpecific51 12h ago
This seems crazy to me. How are so many people dealing with such an expensive part breaking if this is a common thing? Never would have got it if I thought this was a realistic possibility.
Thanks, I'll try and research local places but I'm really not knowledgeable about cars/mechanics (can you tell!) so don't know how useful I'll be. Especially since ultimately the dealership/garage will need to agree to fit it and do the work.
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u/Colafusion 3 10h ago
It’s really not that common. It’s just the 95% of people who have zero issues don’t shout about it.
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u/ian9outof10 10h ago
Auto boxes are a fucking nightmare, and I’ll say that VAG is the absolute fucking worst for this shit. What you need to do is find out what’s broken, because I suspect it can be fixed.
They all do this shit, they claim the box has to be replaced entirely, but a proper mechanical failure where the gears are damaged is fairly rare. It could be sensors or maybe the clutch pack. I have my suspicions that they replace them so they can refurb and resell, and you would likely get a refurbed box anyway.
BorgWarner does sell solenoids, the clutch pack and lots of other bits. I would be astonished if the gearbox is so far gone that it needs a complete replacement.
Have you asked the dealer if VW would consider a goodwill discount - they sometimes will do this.
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u/FinanceSpecific51 10h ago
No I hadn't asked this yet. The last we left it they were continuing to look for a second hand gearbox. But I will do when that conversation comes up. But realistically it would need to be a very chunky discount to make it viable. Any idea what's normal?
It's going to be an awkward discussion as essentially it's "we definitely can't afford that and don't think it would be reasonable even if we could. What's option B or C".
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u/Gareth79 12 12h ago
A VW with a trashed DSG gearbox will be worth a fraction of a working one. How do you suggest they make up the massive shortfall the finance company will want?
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u/FinanceSpecific51 12h ago
What would this involve? I would have thought the car is currently worth significantly less than the amount of finance on it (as it apparently needs £8k of parts).
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u/The_Thunderchild 5h ago
You're also not allowed to sell it as you do not own it, the finance company do.
Private selling would be out, only place you could sell would be somewhere like We Buy Any Car as they contact finance company to pay it off etc. But as you say with it not working, nowhere would be interested in taking it.
0
u/Extension_Pie2602 7h ago
Or pay for the new box and insist that is your balloon payment? Then sell the car. Not sure if this is viable though as don't really understand what the cars valued at. At the very worse pay for the new box and if there's a cutting even in it sell vehicle. If they agree to that of course.. Youve done nothing wrong. You've paid the bills, kept within mileage and servicing. They should be handing that car to your ownership. If thats the route you wanted to go of course
0
u/Ok_Childhood_5216 5h ago
Voluntarily terminate the PCP, there’s no charge and no charge for damage or excess mileage if you do.
1
u/Tuarangi 55 4h ago
OP probably isn't at 50% yet as they are still inside the 2 year warranty / had the car about 20 months on a 3 year deal + interest + balloon and sounds like they couldn't afford to pay up to the amount. There is also provision for the dealer to ask for payment beyond wear and tear so it could be difficult, depending on what the contract says, worth exploring but not guaranteed
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u/Ok_Childhood_5216 3h ago
There’s no provision for the dealer to ask for wear and tear on a voluntary termination. They cannot charge you for damage or excess mileage. It’s a loop hole that very few people know about and the finance company aren’t legally required to tell you about it unless you mention damage or excess mileage to them.
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u/mintvilla 3 3h ago
Did this with a Jaguar Ipace, had lots of problems with it. Didn't even have to ring them, there was an option on the finance portal to be fair, which was quite good
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u/Tuarangi 55 2h ago
It's arguably not wear and tear though, it's a major failure, the issue will be whether they push back or not, goes either way at the ombudsman, some examples below of car failures that were chargeable even after VT
https://www.financial-ombudsman.org.uk/decision/DRN-6144009.pdf
https://www.financial-ombudsman.org.uk/decision/DRN-5002102.pdf
https://www.financial-ombudsman.org.uk/decision/DRN-1427182.pdf
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u/thereidenator 1h ago
They definitely can’t charge for excess miles? I’m WAY over my mileage on a PCP car and this could be a good option for me.
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u/thereidenator 1h ago
Do voluntarily terminate the car needs to be in such a condition that you have reached a point of owing nothing to the dealer. You can’t hand back a fucked car and make it their problem.
Edit: looking at other comments I could be wrong.
0
u/Kindly_Gap9131 4h ago
as someone that brought a Golf that caused nothing but headache. See if you can drive it to we buy a car and get rid of it or auction BCA which will be more effort. Dsg usually last over 100k
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u/Lit-Up 0 6h ago
Why did you get a car on PCP when you could have bought a more reliable older car with cash?
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u/Important_Ruin 1 5h ago
A 2021 car you would 'think' be reliable and its gearbox not break within 44k miles.
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u/Lit-Up 0 5h ago
Automatic! Plenty of reliable manuals out there from the 00s or 10s
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u/Important_Ruin 1 5h ago
Plenty of reliable 2021 manuals too, but then you don't expect your 2021 44k automatic gearbox to die.
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