What Is PCP Finance?
Personal Contract Purchase or PCPs seek to convince customers that they’re getting a good deal on their vehicle purchase.
- A PCP is a type of vehicle financial solution that lasts usually between two and five years.
- The anticipated depreciation of the car during the duration of the financial amount is the metric that helps in determining the car finance amount.
- Once the car finance period of the car ends, the driver pays a balloon payment and gets full ownership of the car.
You Could Be Owed Thousands
A report has been published by the FCA that over 550,000 consumers were paying 50% more on their packages of car finance than they should have paid.
- Finance companies and car dealerships have also been overcharging by up to £1,100 per deal.
- Less than 35% of finance brokers have explained to PCP clients that they do not really own the car until and unless they make all payments. This includes the balloon payment that needs to be made at the end of the lease duration.
Mis-Selling Scenarios You May Have Faced
- The interest charges were not explained properly by the salesperson.
- There was no clarity on the explanation of financial responsibility related to vehicle repairs.
- The full range of car finance options was not presented to you.