Car financing, a beacon of relief for all car enthusiasts, has made it easier to acquire their dream car. Personal Contract Purchase (PCP) or Hire Purchase (HP) car financing agreements are the epitome of convenience. These agreements have provided buyers with much flexibility to get their desired vehicle on finance. However, they have also leveraged some customers.
Car financing companies such as MotoNovo, Black Horse and Close Brothers are known for customer car finance. They provide the best financial solutions to car buyers in the UK. However, some of them might have mis-sold on car deals. Mis-selling can have serious implications for your finances. If you’ve been mis-sold, you could be paying more than you should for your car, or you could be in a contract that is not suitable for your needs. Customers can easily apply for a refund if they think they have been mis-sold on a PCP or HP contract. For example, if you bought an Audi on a PCP contract via MotoNovo Finance, you may claim a refund on MotoNovo mis-sold car finance. Mis-sold car deals are the top trending topic in the UK’s motor finance industry. Let’s dig deeper into the car finance contracts.
Apprehending the Finance Agreements
When considering car finance, you have two good options: PCP or HP finance. Both are similar, except for some differences. In PCP finance, you have to make an initial down payment. After making the first payment, the contract is divided into 2 to 4 years of monthly instalments. Later, you have three end-of-term options to retain, return or exchange your car.
Meanwhile, in HP finance, you make a down payment, followed by monthly instalments, and then you become the owner of the vehicle. An HP deal does not offer the three options at the end of the contract like a PCP finance. It charges a fixed monthly amount, which can be higher than PCP’s monthly instalments. Once you have paid off the entire amount of the car, you become the owner of the vehicle.
In contrast, in a PCP deal, you have three options. If you want to retain the car, you have to make the final payment, which is a lump sum amount, also known as Guaranteed Minimum Future Value (GMFV). Some refer to it as a balloon payment or a residual payment.
If you are not willing to pay the amount, you can return the car without paying anything. You can also exchange it for a new one. Your lender and the car dealer will prepare a new PCP contract for it.
PCP contracts are complex and may lead to mis-selling. Mis-selling happens when brokers, lenders, or dealers mis-sell an expensive item to customers. According to the Financial Conduct Authority (FCA), MotoNovo Finance may have mis-sold PCP contracts to their customers. Thus, their customers are now making claims for MotoNovo mis-sold finance.
Identify Mis-Sold Finance Deals:
Now, you might be wondering how to detect a MotoNovo mis-sold car finance deal.
It is not as complex as a PCP contract. You can identify whether you were mis-sold on the PCP contract by the following:
- Were all terms and conditions clearly explained to you?
- Were you assessed for affordability before signing the deal?
- Were there better alternatives that were not discussed with you?
- Were you misled about the key aspects of the PCP contract, such as balloon payment or mileage restrictions?
These are some key questions to answer for a mis-sold PCP MotoNovo. The FCA has found that most lenders and car dealers were charging hidden fees on PCP deals. These Discretionary Commission Arrangements (DCAs) were banned in 2021, but before that, brokers made enough profits from them.
According to financial experts, there are great chances for refunds as millions and thousands of vehicles were bought under the PCP deals from 2007 to 2021. So, if you bought an Audi on a PCP finance from MotoNovo during that time, you may be eligible for an Audi PCP finance claim. You can easily apply for a claim and get your money back.
How to Claim for a Mis-Sold PCP MotoNovo:
Our PCP and HP claim experts at Drive Back Financial are well-trained to handle the complexities of car financing agreements. We follow a simple and easy process. We have an online claim-checking tool available on our website to make things easier for you. All you need to do is to enter the required information and get a free claim check.
It is essential to check your eligibility for the PCP claim before starting the refund process. You have to gather some details regarding your PCP contract. It can be e-mails, receipts, marketing materials or any written documentation. This may serve as an important element in making the claim. Then our claim experts will handle it professionally. It is a free-of-cost process until you get your refund. Claim procedures will take some time, but you should not waste this opportunity to claim for your mis-sold car finance.