Volkswagen is a well-recognised German engineering brand. It symbolizes innovation, design, and luxury. Individuals purchase it not just for convenience and comfort but as a style statement. It is not just an ordinary car; it is a long-term investment. It is expensive, that is why the company offers car finance plans.
Britishers are blessed with various car finance schemes that help them make an expensive purchase with ease. If you want to buy a Volkswagen or a BMW car, you can easily buy on PCP finance. If you signed a mis-sold deal, you can easily make a BMW PCP finance claim. Let’s discuss everything in detail, step by step.
Understanding Car Finance:
Car finance is the most popular way to purchase a car in the UK. Most individuals choose PCP car finance as a means to own a particular car. In the case of a Volkswagen, customers can buy it on PCP and HP car finance deals. The company offers different car financing options, but the most prevalent ones are Personal Contract Purchase (PCP) and Hire Purchase (HP).
Differentiating between PCP and HP Finance:
A PCP agreement is somewhat similar to an HP agreement, but there are some major differences.
An HP car finance agreement involves a one-time payment, followed by fixed monthly deposits to pay the entire cost of the car. Once, the total cost of the car is paid off, the buyer becomes the permanent owner of the vehicle.
However, in a PCP car finance deal, the buyer does not immediately become the owner of the car. A PCP contract also involves a one-time payment at the beginning of the contract, which is then followed by lower monthly deposits. At the end of the contract, the buyer has the option to pay a final lump sum, also known as the balloon payment or a Guaranteed Minimum Future Value (GMFV). This is an optional payment, which a buyer makes if he wants to own the vehicle.
If the buyer is not interested in owning the vehicle, he can return the car without paying any extra amount. There is another option at the end of the PCP contract, which allows the buyer to exchange the current car with a new one. For this purpose, he may have to sign a new PCP contract.
So, in short, a PCP holder has three end-of-term options to choose from. He can opt to:
- Retain
- Return
- Exchange the car
People who purchased Volkswagen on PCP finance may make a Volkswagen PCP claim.
Identifying Mis-Selling:
Customers can only make PCP car claims if they have been mis-sold on their car finance deal. There are different ways to identify mis-selling. Mis-selling happens when an expensive item is mis-sold by the seller to the customer. In the case of car finance, it can happen when the seller, dealer, broker, or lender mis-sells the car finance agreement to the customer. Car finance agreements are very tricky and complex. Customers rarely understand these agreements before signing a car deal. Therefore, the seller must completely and accurately inform the customer about the PCP or HP contract. Otherwise, the customer may make a car PCP claim.
For instance, if you purchased a Volkswagen on a PCP contract but were not informed about the final balloon payment, mileage restrictions, depreciation costs and other extra expenses, then you may make a Volkswagen PCP claim. The seller did not describe the contract accurately to you. Similarly, if the seller pressured you to sign the PCP deal which was not suitable for your needs, you can make a claim.
Other than that, a recent study by the Financial Conduct Authority (FCA) has found that hidden costs or hidden commissions are one of the biggest reasons for mis-selling. According to the authority, cars that were sold between 2007 and 2021 involved Discretionary Commission Arrangements (DCAs) which were later banned in 2021. Due to this, many lenders and car dealers charged excessively high interest rates on the cars, which the customers were not aware of. As a result, it increased financial stress on the customers and they can now claim the refund. The investigation is still ongoing, but people are making claims to get their money back.
Making Mis-Selling Claims:
Unlike PCP contracts, the PCP claim process is relatively simple. All you need to do is to hire a PCP claim expert to handle your claim process professionally. PCP claim process is lengthy and time-consuming. It involves legal proceedings and one must be fully familiar with the latest updates, that is why hiring PCP claim experts at Kingsley Marketing is a wise choice.
Our dedicated PCP claim experts have the skills and expertise to tackle every complexity with ease and professionalism. We have established an online claim-checking facility to identify your mis-selling issue. You can freely check your eligibility on our website to further proceed with the claim process. This is all free of cost until you win your money back. So, visit now to get a refund.