A PCP (Personal Contract Purchase) is an agreement in which the individual can buy the car by making monthly installments. However, the ownership is not given to the buyer. It remains with the seller. In recent years, PCP plans have populated the UK as more people want to commute privately and comfortably. Though the car industry is getting expensive daily, individuals still need comfort and luxury in the form of a car. They can buy any car that suits their budget. There is a chance of misleading information about the vehicle that can result in PCP claims from the buyer. Claims for PCP plans do exist.
Mis-Sold PCP Claims
Financing a car could be tricky. An individual could be mis-sold of the vehicle. There could be several reasons that may lead to PCP claims. It may include;
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Hidden commissions
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Failure to understand ownership rights
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No other options were told about car finance
These issues lead to significant ambiguities in the PCP plans, keeping the individual confused throughout the agreement. A persuasive offer is made through a PCP plan that convinces the customer through a salesperson rather than reading the complete deal before signing it.
Things to Know About PCP
If you are thinking of making a PCP claim against the seller of the car, it is essential to know that you are making it in the right way:
Ownership Rights
Taking a car on a PCP plan does not mean that the buyer owns the vehicle. They have to make a balloon payment for the car to own its rights. A PCP claim could be made against the seller if they tried to loan the car to buyers as if it entirely belonged to the buyer.
Credit History
Every seller will ensure the buyer has a good credit history to buy a car through the offered PCP plans. Without checking the credit history, car finance plans are risky for the seller but more dangerous for the buyer. At some point, they may be unable to afford the car, leading to PCP claims.
Mileage and Charges
While making a PCP agreement for the car, there is a limit to the vehicle’s mileage to which a buyer can drive. Exceeding the mileage will result in extra charges to the driver. The borrower should read about the mileage in the agreement to avoid future PCP claims.
PCP claims are for real, but that does not mean that each time you sign a PCP agreement, you are mis-sold.
How to Manage a PCP Claim?
Making a PCP claim is a long process. It requires a lot of time to ensure that your claim is correct. The solicitor must review the case and then add their expert advice. Therefore, talking to a solicitor about PCP claims will ensure whether you must proceed with it or settle with the seller. Successful compensation is only possible if there is clear evidence of mis-selling. You can also check your eligibility for a PCP claim online.
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