Mercedes-Benz is a brand synonymous with luxury, innovation, and performance. In the UK, Mercedes is considered an iconic brand as it has set benchmarks for quality, safety and cutting-edge technology. Individuals prefer buying the latest model of the car. The car financing options have eased the customer’s access to own a brand-new vehicle as desired.
The car financing options available in the UK market are PCP and HP finance. PCP stands for Personal Contract Purchase, whereas HP stands for Hire Purchase. We will highlight the basic features of both car finance options later in the article. However, if anyone wants to purchase a new or used Mercedes car, he can do so easily with this car financing option. If he is mis-sold on his car finance, he can make a Mercedes PCP claim.
Why Opt for Car Financing?
As we all know, Britishers prefer buying a car on finance to manage their cash flows. The car finance industry has grown over the years and is offering more user-friendly services to its customers. For example, if someone wants to buy the latest model of his favourite car, he can do so by choosing PCP finance.
A PCP finance is different from an HP finance. In HP finance, the customer pays an initial amount, followed by fixed monthly payments, until the total cost of the car or the vehicle is paid off. Whereas, in a PCP agreement, the customer makes an initial deposit, followed by flexible monthly payments. Each customer’s monthly payment plan is adjusted based on his financial condition. It can be spread over a two to five-year period. After that, the customer can opt from three options: either s/he can return the car, retain the vehicle or sign a new PCP deal.
If he wants to retain the car, he has to make a final deposit. It is a big amount, also known as a final balloon payment or a Guaranteed Minimum Future Value (GMFV). Once he pays off this amount, he becomes the permanent owner of the vehicle. But if he chooses to return the car, he will not have to pay anything. However, if he wishes to get a new vehicle after the end of the contractual term, he can apply for a new PCP contract.
In any case, the customer has three different end-of-term options in a PCP deal, but not in an HP deal. Alongside GMFV, customers should be aware of any additional payments that they might have to make in case of breaking restrictions. If the seller or the car dealer did not inform them about such expenses, it might be considered a mis-sold car deal.
How are PCP Contracts Mis-Sold?
PCP contracts can be mis-sold in many ways. If the dealer or the seller fails to inform the customer about the terms and conditions of a PCP or HP contract, it can be counted as a mis-sold car deal. Individuals can start a PCP mis-sold claim.
Similarly, if the dealer or the lender did not suggest the best financial product to the customer according to his needs, then it is also considered a mis-sold deal. It is the utmost duty of the dealer and the lender to educate the customer on his financial contract. Sometimes, the lender or the car dealer does not provide accurate information about the total costs of the contract and hides additional charges, which may increase the total costs for the customers. This type of practice is banned by the FCA after 2021. However, many lenders charge high commissions on PCP contracts to gain extra profits. Now, people are starting the PCP mis-selling claims process to get their refunds.
If you are one of them, you may start your PCP claim process with our PCP claims experts at Kingsley Marketing.
How to Make PCP Mis-Selling Claims?
The PCP claim process is simple if you hire a claim expert to handle your process. The claim experts are familiar with the list of lenders who might have mis-sold their customers on PCP car finance. This may include the Black Horse Finance. So, if you want to get a refund from them for your Mercedes, you may apply for a Black Horse PCP claim.
Our team at Kingsley Marketing is trained to tackle all aspects of the PCP claim process efficiently and effectively. You only need to provide some information to our claim experts to check your eligibility for the refund. If you want to verify it yourself, you can use the free PCP claim checker on our website.
It is better to gather information regarding your PCP contract, including written documents, and provide proof of your payment receipts. Then, our claim experts will proceed with your Mercedes PCP claim.