Are you planning to buy a car in the UK? If so, then you must be looking for affordable car-buying choices. Buying a car with full payment could be heavy on your pocket. You can save money and look for options that allow monthly payments on car purchases. However, the Personal Contract Purchase (PCP) plan is getting popular in the car industry. It has proved to be one of the best options for a vehicle in the UK. You can choose any car in the PCP, depending on your finances. You need to know that PCP plans do not mean that you own the vehicle but that you are driving a car with someone else’s ownership. Commonly, a buyer makes a PCP claim when they get the illusion of being the car’s owner.
What is a PCP Plan?
The PCP plan is economical for drivers who cannot afford a car but they can afford monthly payments to drive a car. At the end of every PCP plan, the individual must renew the contract to continue with the same plan. The best thing about the PCP scheme is that it allows you to drive different cars every 3-4 years, depending on the contract’s expiration. However, unless the balloon payment is not made, the car ownership is not made until you have made a balloon payment – a significant payment to have the rights to the car.
What Leads to a PCP Claim?
Any misinformation shared about car financing to the buyer could result in a PCP claim. An individual was mis-sold a vehicle if they did not have a complete information about the vehicle. Unfortunately, a lot of people fall for the PCP plans without having a complete understanding of the PCP contract. The salesperson uses different techniques to convince the individual to sign the PCP contract without understanding its terms and conditions. Ambiguities in the PCP contract arise when it lacks the information about responsibilities of the vehicle between two parties. For example, if the car goes into wear and tear condition at a later stage, the contract does not specify who will make payments for car repair.
Considerations for PCP Claim
Motor finance misselling is possible in the UK. However, to determine a PCP claim, an individual must consider a few things.
Commissions: PCP agreements often have hidden commissions, involved. Many brokers and car dealers do not share information on the commission they receive from a PCP plan. This leads to hidden commissions, which are heavy on the buyer’s pocket. In such situations, your PCP claim is valid and worth thousands of pounds.
Higher Interest Rates—If the salesperson fails to explain the reason for the high-interest payment, they are hiding financial information from you.
Ambiguities in the Contract—Often, PCP agreements do not have a clause mentioning the responsibilities of vehicle repairs, which can lead to a valid PCP claim.
Car Options Were Not Discussed—You were not told about any car finance plans other than the PCP plan, as those could be more affordable for you.
How Else PCP Claim is Valid?
If you were to mis-sold a vehicle and then learn about cheaper plans than the PCP plan, you are eligible to make a PCP claim from your seller. Besides calling out the salesperson for not telling you about other options, you can also claim for vehicles purchased from them. A second-hand car is sold to the buyer at the price of the new vehicle’s current value that leads to PCP claim.
Though the PCP plan is affordable for many commuters, you must always look for better options in the market. The PCP claim is valid for only those individuals who have bought the PCP plan. They can claim dispute of mis-selling of the vehicle through the plan.
