A PCP is like a long-term rental that allows you to use the car until your contract ends. You can pay a deposit and monthly repayments over a set period (usually three to five years). Once your contract ends, you have three options:
To get a personal contract purchase, you will need to pass a credit check. The company will need to make sure that you’re the type of person who pays their bills on time. You will also need to have enough money to pay the deposit upfront. You will then have a monthly payment for three to five years. At the end of the contract, you will not own the car. If you would like to keep the car, you can buy it by paying the ‘balloon payment’, which is normally a few thousand pounds. You can use the resale value towards buying a new car, however, you’ll often need to stay with the same dealer.
Please note, one in five people who take out a PCP deal say they can’t afford the final payment. Always check how big your balloon payment so you don’t feel like you’ve wasted the investment made.
Unknown to customers buying vehicles, lenders systematically incentivised brokers and car dealers to charge their customers higher interest rates. So, they could receive higher commissions themselves. It is estimated that hundreds of thousands of motorists might have been mis-sold finance packages, costing consumers up to £300m a year.
You may have been mis-sold car finance if you received poor advice about your financing options or if you were not sufficiently made aware of the various commissions being charged within your agreement.
If you've been mis-sold car finance Manchester, we can help you get your money back. Our team of experts will fight for the compensation you deserve.
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