How Can You Get PCP Claims for Your Car?

Buying a car is a big investment. If you plan to buy a car in the UK, you will have many car finance options. One of the affordable options is Personal Contract Purchase (PCP). It allows an individual to make monthly payments to drive a car. Further, you should know that the payment made in the PCP plan is a security of the car loan. Though you do not legally own the car, you can at least take it wherever you want to. If you want the rights to the car, you must make a lump-sum payment to the seller. It is known as balloon payment in the PCP plans. If there is a breach of contract, the individual can make PCP claims against the car seller.

PCP plans are popular in the UK as it allows the individual to trade in for a new car with a new PCP agreement. A PCP agreement involves the terms and conditions of the vehicle. Many sellers miss out on the details about vehicle repairs or do not mention the commission in the agreement

Ambiguities like these can lead to PCP claims at a later stage. Before you choose a PCP plan that fits your comfort level, take a deep look at the agreement. You must thoroughly read it; ensure you understand and sign the contract.

Reasons for PCP Claims

The PCP agreements benefit people who cannot afford a car yet but want to own one for their daily commute. However, they could be misled about the car loans, resulting in PCP claims. Here are a few things you should know if you were mis-sold and eligible for the PCP claim:

Poor Affordability Assessments

You must know that you can afford a car by making monthly payments. Therefore, affordability shall be checked before you commit financially to the PCP plans. There could be red flags that will make poor affordability assessments. For example, you will be pressured by the salesman to make you sign the PCP agreement in a rush. They do not care about your affordability and push you to make high monthly payments after signing the contract.

Hidden Charges

It would help if you did not ignore the initial price on the car credit agreement. Take a deep look at the charges for accumulated costs shown to you. There could be charges that need to be explained to you clearly. Your right is to ask the seller about those charges to ensure a complete understanding.

Transparency and Communication

Communication should be transparent in any contract, whether verbal or written. The same is true in the PCP plans. The salesperson has to inform the buyer about everything related to the vehicle. Misinformation leads to PCP claims in the future. If the seller hesitates to reply to your questions, it could be a case of mis-selling.

What to do If You Were Mis-Sold?

If you are doubtful about mis-selling, you should talk to an expert who can explain it. After confirming the mis-sold vehicle, you need to take the following steps to make successful PCP claims:

Collecting Evidence: As a buyer and a victim of miss-selling, you should always have the finance agreement with you. It is also important to show the communication you and the seller had for the PCP agreement.

Talk to Your Lender: You should talk to the lender about the PCP agreement before you talk to anyone else. They might accept their mistake of mis-selling and misinforming you.

Seek Legal Assistance: A solicitor would be helpful to make a successful car finance claim. They will guide you on claiming against the seller in the car finance agreement.

Legal Help for PCP Claims

If you know the red flags in the car finance agreement, you must hire a legal expert to help you make perfect PCP claims. There should not be any hesitation in asking for legal assistance in a PCP agreement. Moreover, you should be well-informed about PCP plans before signing one. It would keep you away from PCP claims in the future.

Who can fix my car in the UK.

Whether you have a write off vehicle claim or a PCP claim, a qualified solicitor will ensure you fair compensation for your financial loss.