Ford is a well-known automotive brand worldwide. It is recognised for its innovative technology, reliability, and value. Individuals in the UK can benefit from car financing options and own Ford cars more efficiently. It is convenient for the customers to choose Personal Contract Purchase (PCP) or Hire Purchase (HP) car finance deals to own the car. However, many people do not understand the complexities of a car finance agreement and fall into the trap of mis-selling.
Mis-selling can happen to anyone. It can happen to individuals who purchased cars on finance between 2007 and 2021. The Financial Conduct Authority (FCA) discovered that thousands of vehicles were mis-sold due to hidden commission arrangements. The Discretionary Commission Arrangements (DCAs) were not disclosed to the customers, and they paid a higher price for their car finance deal. The investigation is still ongoing, but individuals who purchased a Ford or any car on finance can make a Ford PCP claim. If their case is valid, they will get a refund.
Why People Choose PCP Finance?
Car finance is a common way to own luxury cars in the UK. Britishers have been using car finance agreements for a very long time. Most car manufacturers offer car finance deals to facilitate their customers. PCP and HP are well-known car finance agreements, but they also have some differences.
PCP finance is mainly preferred by customers who are unsure about owning a car after the contractual term. Whereas, an HP buyer pays off the entire cost of the car to own it at the end of the contract.
A PCP contract offers three options to its users at the end. They are to retain the car, return the car and renew the contract. The contract offers an optional balloon payment at the end. This is known as a Guaranteed Minimum Future Value (GMFV). It is a huge lump sum amount that the customer will pay if he wants to retain the car. Otherwise, he may return the vehicle without paying any balloon payment.
Similarly, if a customer wants to exchange the car for a new one, he can do so by signing a new PCP contract. These three options are only available to PCP contract holders.
In an HP car finance agreement, the customer pays the entire cost of the car in fixed monthly instalments. An HP car finance agreement consists of an initial amount that should be deposited before making monthly payments. The monthly instalment amount is greater than the monthly instalments for the PCP.
A PCP contract provides more flexibility to its customers. The monthly instalments are also less than the HP contract’s monthly payments. That is why more people opt for PCP finance. In case of mis-selling, they can always make a PCP HP claim.
How to Identify Mis-Selling of PCP Contracts?
Mis-selling is a common issue in the UK. Dealers and lenders may charge an excessive amount on the car finance agreement to earn more profits. This may cause financial problems for the customers. So, if anyone who purchased a Ford on PCP or HP finance thinks that he might have been overcharged by his lender, then he can apply for a Ford PCP claim.
Other common reasons for mis-selling can be inaccurate information about the car finance agreements, inappropriate interest rates, undisclosed fees or commission arrangements. Furthermore, inappropriate selling of the financial product, improper financial checking, and pressuring potential customers to sign the PCP contract immediately are also common. Such tactics are very common among some car dealers. They pressurise the people and misinform them to sign an unsuitable car finance deal. In such cases, customers should seek a refund or claim mis-sold car finance.
After the FCA’s consideration, the authority banned the DCAs’ practice in 2021. So, if anyone purchased a car on finance before 2021 on a PCP or HP deal, they may seek a refund.
How to Make a PCP Claim?
PCP and HP contracts are complex. People need professional guidance to sign any financial contract. If they lack knowledge and understanding of the contract, they may become a victim of mis-selling. Therefore, all complex financial and legal issues should be adequately handled by professionals.
If you purchased any car on finance, for example, a Mercedes, you may start a Mercedes PCP claim with us. Our team at Goodwin Rodgers is trained to handle the PCP claim process professionally. Our PCP claim experts have extensive knowledge and understanding of the legalities involved in making PCP and HP claims.
We have formulated a simple and easy PCP claim process for all Britishers. Our online free PCP claim checker assists customers in verifying their eligibility for the claim. You just need to input some details. Then, our experts will contact you to begin the claim process. We do not charge any hidden fees.
Visit our website to learn more.