Understanding Car Finance
Have you ever purchased a car on finance from one of the top car financiers in the UK?
If so, then you can be eligible for a mis-selling claim, but there are some implications for that. If you have purchased any car on finance between 2007 and 2021, you can be eligible for a refund. But you have to identify your mis-selling points.
Usually there are two types of car finance deals, which include PCP and HP finance. PCP finance is a personal contract purchase, and HP stands for hire-purchase. They are the most popular ways of car financing in the UK. People frequently opt for a PCP deal because of its undeniable benefits.
If we compare a PCP contract with an HP contract, we will see that they are relatively similar in nature. However, a PCP contract offers much more financial freedom than an HP contract.
In an HP contract, there is an initial deposit which is followed by fixed monthly instalment plan. At the end of the contract, which is typically two to three years, the contract holder becomes the owner of the vehicle. Whereas, in a PCP contract the customer is offered three different deals at the end of the term.
Let us say, you purchased a BMW from BMW Financial Services, you will get three end-of-term options in a PCP deal. You can either return the car, retain it or exchange it for a new one. If you want to retain it you will have to pay the final lump sum amount. It is an optional final balloon payment, also known as Guaranteed Minimum Future Value (GMFV). If you wish to return it, you can return it to the dealership without paying any amount. Lastly, if you want to get a new car, you can sign a new PCP contract. These are some benefits of signing a BMW PCP finance. But sometimes, the PCP deal can be mis-sold.
Identifying Mis-Sold Car Deals
BMW car finance can be mis-sold due to multiple reasons. Recently, the government-backed authority, the Financial Conduct Authority (FCA) has witnessed a series of mis-sold car finance complaints. They have noticed that many customers who bought BMW on PCP or HP finance between 2007 and 2021 were mis-sold on their car contracts. The customers were overcharged on their car finance deals, as part of Discretionary Commission Arrangements (DCAs). As a result, the authority has banned the practice of DCAs from January 2021. The authority is also running an investigation to verify BMW mis-sold finance deals. This process is time taking and people are working to identify mis-selling claims on different car brands.
There are some other ways to identify mis-sold car deals.
- If the lender or the broker did not educate the customer on the terms and conditions of the PCP/HP contract.
- If the lender did not properly disclose the hidden fees and commissions that were charged on the deal.
- If the seller did not offer the best solution to the needs of the customer.
- If the seller did not conduct a proper check on the financial status of the customer.
- If the car or the vehicle was not in optimal condition.
- If the customer was not aware of the final balloon payment and other additional expenses that might occur at the end of the term.
If you purchased any car on finance you can make a PCP or an HP claim. If you bought a BMW you can make BMW financial claims.
Mis-Sold Car Finance Claims
There are different ways to make a BMW mis-sold finance claim. Firstly, you have to identify your mis-selling issue. You should make a legitimate claim request following proper rules and regulations. Once you have identified the reason for mis-selling, you can contact your dealership, seller, or lender to check your claim status. It should not take a lot of time.
If you are unsure about the process, you can hire professionals to help you sort out the matter for you. There are PCP and HP claim experts in the UK who are working tirelessly to make the claim process easy and accessible to all. The PCP claim process is simple and easy. If you hire an expert to help you with your claim request, you will not have to worry about anything.
You can always opt to select the best PCP and HP claim experts online. Before that, you should have a copy of your PCP contract, and relevant marketing materials, including e-mail, receipts, and brochure. You should also have a copy of all communication materials that were shared with you. This will help you to navigate the claim process easily and professionally.