Audi is a high-end automobile brand known for its luxury, performance, and innovative technology. Many people own an Audi as a symbol of success. Some dream of owning it, but due to financial limitations, they are bound by it. Car financing options in the UK market have made it easy for car enthusiasts to get their dream car on affordable plans. This has been a long-going trend in the UK’s financial market. Many people have taken advantage of this plan, but some might have been unfair to others. Let us see how.
There are two famous finance plans to get an Audi. The most common of them is the Personal Contract Purchase (PCP). People who bought an Audi on PCP finance may also seek an Audi PCP finance claim. We will uncover it in detail.
PCP & HP Contracts
Navigating the world of car finance can be challenging, especially when it comes to Personal Contract Purchase (PCP) agreements. Typically, the two most famous car financing agreements are a PCP and an HP contract. PCP contracts offer the allure of lower monthly payments and flexible end-of-term options. In contrast, a Hire Purchase (HP) agreement has some limitations.
A Hire Purchase contract has an initial deposit and higher monthly instalments fixed for the entire term. At the end of the contract, the car’s ownership is transferred to the customer. The customer may use the car whilst making monthly payments, but the ownership status is transferred when all payments are made.
On the other hand, a PCP deal offers an initial deposit, followed by comparatively lower monthly instalments and then an optional final payment. The customer may use the car throughout the contractual period, but the ownership is not transferred at the end of the term. Instead, the customer is presented with three options:
- Pay the final amount and own the car
- Trade in for a new vehicle
- Return the car without paying anything
If you bought an Audi on a PCP deal, and now, it’s the end of your contractual term, you may own the car permanently, but for that, you need to pay the final remaining amount. This payment is known as a balloon payment or a Guaranteed Minimum Future Value (GMFV). This is a final lump sum amount that the customer makes, depending on the car’s value at that time. If you want to keep the vehicle, you must make this payment.
You have another great option to trade in for a new car. If you want to avail this option, you can sign a new PCP deal after making financial adjustments. This is a great option for car enthusiasts as they get to renew the car after every 2 to 3 years.
Furthermore, a PCP deal also offers to return the vehicle without making any balloon payment. These three options are not available in an HP deal. That is why most people prefer to use it as a source of car finance.
However, you should note that you may have to pay some additional expenses at the end in case of car damage or excessive mileage. This information should be made aware to all customers before signing the contract. If any customer remains uninformed, then it is considered as mis-selling, and the customer may make an Audi PCP finance claim.
Mis-Sold PCP Car Finance
While PCP deals offer many benefits and flexible options, it has some drawbacks as well. Many lenders or car dealers fail to inform customers about the terms and conditions of the contract. As a result, the customer lacks a basic understanding of the contract and is left uninformed of his fair rights.
The misinformation can be accounted for as a mis-sold PCP deal. Usually, a customer is mis-sold on his car finance for the following reasons.
- Misinformation or misrepresentation of the PCP contract by the lender.
- Failure to explain the accurate terms and conditions of the contract.
- Failure to inform about the excessive costs and mileage expenses in case of exceeding limitations.
- Failure to update the customer on the vehicle’s current condition and limitations.
- Failure to provide a complete breakdown of total costs and commissions.
- Charged higher interest rates and hidden fees or commissions.
- Used pressuring sales tactics to make the customer sign the deal.
- Inability to inform the customer about the optional final payment and end-of-term options.
If such is the case, the customer can claim back mis-sold car finance. For any car finance deal that is not explained properly or if it involves some hidden costs, the customer can make a claim on it. It is not specific to Audi PCP claims only. If you had a BMW on a PCP deal, you may make a BMW PCP claim.
PCP Car Claim Back with Drive Back Financial
Recently, the Financial Conduct Authority (FCA) in the UK has analysed millions of PCP deals signed from 2007 to January 2021. The findings indicate that there are chances that the lenders and the car dealers made Discretionary Commission Arrangements (DCAs) on the PCP and HP contracts during that time, which the customers are unaware of. As a result, there are high chances of them being mis-sold PCP deals.
The news for mis-sold PCP deals is surging in the UK’s financial market. Customer financial advocates, such as Martin Lewis, are marketing for PCP car claim back. Likewise, our PCP claim experts at Drive Back Financial have launched an online PCP checker to facilitate our customers. Alongside, we are providing free assessment checks and information to all PCP holders.
If you bought a car on a PCP contract between 2007 and 2021, there are chances that you might have been mis-sold on the deal. To check your eligibility, identify the reasons for mis-selling, gather evidence and then file a complaint request against your lender.
We can do it all for you. We have a team of trained PCP and HP experts, who will handle the entire PCP claim process for you. Furthermore, we may require your PCP contract, receipts, documents, and other written materials as supporting evidence. Then we will proceed with your claim process.
Here is another interesting information, we do not charge fees until you win the claim refund. So, feel free to contact our experts at Drive Back Financial.