Motor Vehicle Finance Claims
PCP vehicle finance stands for, personal contract purchase and this is now by far the most popular method used by private individuals to purchase motor vehicles and has replaced the traditional hire purchase agreements.
There is a perception that by using the PCP method of financing, it is a more flexible way of purchasing a motor vehicle. Given that the requirement to input a large deposit as is sometimes necessary with hire purchase, this is not the case with PCP agreements. Deposits on PCP agreements can be very small and the payments can also be tailored to the buyers monthly affordability.
The difference is, with PCP agreements the buyer will never actually own the car unlike with hire purchase agreements where the buyer will eventually own the vehicle and in most cases with have equity left in the car at the end of the agreement.
Under a PCP agreement the buyer will have to return the vehicle at the end of the term unless, they elect to pay the balloon payments at the end of the agreed finance period.
The National Association of Commercial Finance Brokers (NACFB) believe that the mis-selling of PCP agreements is all down to the information given to the buyer at the point of sale by the car dealership or sales organisation. Here below are some of the main mis-selling points that could relate to an agreement that you have signed.
- If you signed the PCP agreement were you advised by the sales organisation or the car dealership that you may be paying a considerable amount more for a PCP agreement than you would have been under a hire purchase agreement?
- Were you told that by entering into a PCP agreement that you would have more equity in your car by the end of the agreement and that that equity could be used to further finance of the PCP agreements at a later date?
- Was the “balloon payment” fully explained to you? Were you advised that there would be a large balloon payment to be made at the end of the PCP agreements in order for you to take ownership of the vehicle or that if you did not pay the balloon payment you would never own the vehicle?
- Did the sales organisation or the car dealership undertake a detailed fact find into the affordability to yourself of the PCP agreement? Or, did the sales organisation or the car dealership merely asked you what amount you could afford and work the payment back based on your answers in respect of affordability of the monthly payment?
- The sales organisation or car dealership mentioned to you that they had a financial interest in recommending the finance they sold to you? Did they mention that they were receiving commissions from the finance company that they recommended to you?
- Did you fully understand the PCP agreement and paperwork that you were issued with by the sales organisation or car dealership at the point of sale? It is important to the sales process that you were provided with sufficiently clear and transparent information at the point of sale and that you understood the risks involved in making an informed decision about your PCP agreement.
Many of the above are issues that are related to PCP mis-selling and if any of the above are familiar or apply to yourself then it may well be that you have reasonable prospects of proving the mis-selling of a PCP finance agreement.
Please do not hesitate to contact us to find out more about how we can help you make a claim for mis-sold PCP agreements.