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Nowadays, PCP claims are increasing in the UK’s automobile industry. Choosing a car on loan is a daunting step in today’s inflation. You never know if the vehicle was mis-sold to you. You may have been misguided about the car finance scheme. However, it is a good opportunity for individuals who cannot afford to have a car on full payment. It is advised for the new drivers to get to know about the car industry and PCP agreements to ensure that they have chosen the right deal vehicle.
How Do PCPs Work?
A PCP agreement is known as a Personal Contract Purchase. The individual is a customer who wants to drive a car, whereas the seller provides the car. The driver has to make monthly installments according to the car’s total value, during which the PCP contract is signed between the borrower and the lender. It is pertinent to the customer’s knowledge that monthly payments do not ensure the owner’s ownership as it is originally registered under the seller’s name. If the client wants to buy the car completely, they must make a balloon payment – a larger payment than the monthly installment. The client can have ownership rights once the balloon payment is made before the contract ends.
Discrepancies in the PCP Contract
A PCP contract shows a commitment to car finance. However, many issues could arise in the PCP contract, leading to PCP claims at a later stage.
Hasty Decisions
The most common mistake an individual makes while dealing with a PCP agreement is not reading the contract thoroughly. The contract could have many ambiguities, especially when a lot of technical information is added to it.
Hidden Commissions
Before signing a PCP agreement, you should know the car’s market value. There is a chance that the seller or the broker is taking commissions from you for high interest rates. You must ensure your credit score and affordability before borrowing the car.
Sales Tactics
The sellers have different techniques to get the customer to sign a PCP contract. Once the contract has been signed, the borrower has to make sure that they have agreed to the terms and conditions of the contract. You should take time to read the contract, and if you have any questions, you must ask the salesperson. Do not sign the contract unless you do not receive satisfactory answers for your car purchase. The seller has not mentioned a few things in the contract, such as the responsibility for vehicle repair in the future. You never know if you were sold a vehicle with interior repairs. They may not occur very soon but after a year. Therefore, get clarity on a few responsibilities of the car.
How Can I Claim for PCP Claims?
If you think, you were mis-sold the vehicle, especially regarding heavy finances, you can review the PCP agreement with the seller. If there is a disagreement on the PCP agreement, you must hire a solicitor to help you with your PCP claims. They are well-versed with claims in the car industry. They will ensure you get full compensation at the end of the day.
A prolific lawyer can guarantee you PCP claims.
