Mercedes-Benz is a well-established international brand name. The company manufactures various automobiles, including cars, vans, SUVs, and wagons. Individuals and businesses trust Mercedes-Benz for high-quality vehicles, the latest technological advancements, and luxury and comfort. It is a popular customer choice in the UK. Many Britishers purchase Mercedes cars on finance from Mercedes-Benz Financial Services.
The company offers various financial products to meet its customer’s needs. Anyone who wants to purchase a Mercedes on finance can contact their financial service department. For instance, if you want to purchase an Audi on finance, you can purchase it on finance from Audi Financial Services.
What are Mercedes-Benz Financial Services?
There are various forms of vehicle financing. Personal Contract Purchase (PCP) and Hire Purchase (HP) finance are the widely used car finance deals in the UK. People who want to purchase a Mercedes on car finance can opt for these two car financing contracts.
A Hire Purchase (HP) agreement consists of an initial payment which is later followed by a fixed monthly payment plan. Once all monthly instalments are paid off, the HP contract holder becomes the owner of the vehicle. This process is usually covered in two to three years of time span.
Whereas in a PCP contract, the customer pays an initial amount which is followed by monthly instalments, and at the end, the customer is given three end-of-term options.
- Retain
- Return
- Exchange
If the customer wants to retain the car, he can opt to pay out the final balloon payment, which is a huge lump sum amount. This is an optional payment option only used by those people who want to retain the vehicle. If the person is not interested in retaining the exact vehicle, he may return it to the dealer without paying this amount. Furthermore, the customer can exchange it for a new car by signing a new PCP contract. These are three end-of-term options available only in a PCP deal.
How can a Motor Finance be Mis-Sold?
Mis-selling is a term used when a seller mis-sells an expensive item to the customer. PCP contracts can be mis-sold if the seller does not explain the contract fully to the customer. Recently, there has been an ongoing investigation on the PCP and HP contracts signed between 2007 and 2021 where millions of customers have applied for a refund. The government-backed authority, Financial Conduct Authority (FCA), has found a series of mis-sold car deals where the dealers charged excessively high interest rates and hidden commissions as part of Discretionary Commission Arrangements (DCAs) to the customers, which led to financial stress. As a result, the DCAs were banned in 2021. Customers who bought cars on finance before 2021 are now applying for a mis-sold car finance claim.
Furthermore, there are some other reasons for PCP mis-selling as well:
- The lender or the broker did not fully explain the PCP contract.
- The lender did not inform the customer about the hidden fees and commissions charged on the PCP contract.
- The lender did not inform the customer about the mileage restrictions and the optional final balloon payment.
- The customer was pressured to sign the contract.
- The lender did not offer the customer the best financial product suitable for his needs.
- The lender or the broker did not provide a complete breakdown of the total costs of the contract.
These are some reasons why a PCP contract can be mis-sold. If you purchased a Mercedes before 2021 from Mercedes-Benz Financial Services, then you can apply for a mis-sold car finance claim.
How to Make Motor Finance Claims?
The PCP contracts are tricky and complex. Most customers do not fully understand the PCP contract before signing the deal. They also do not get proper financial advice before signing the PCP deal. As a result, they get mis-sold on their car finance deal. In such cases, they can always make motor finance claims.
The PCP claim process is simple and easy. It is not as complex as the PCP contract itself. All you require is to identify the reason for mis-selling. If you have got a valid point you can proceed with the claim process. The claim process is time-consuming. It involves some legalities which change with time. Therefore, hiring a PCP claim expert is a wise idea.
At Drive Back Financial, we have a dedicated team of PCP claim experts who are trained and experienced to handle all sorts of PCP and HP claims. Our team of solicitors is well-versed in handling claims professionally. Our entire process is user-friendly; we gather details, paperwork, documents, and receipts, we identify the reason for mis-selling, we check your eligibility, and then we request for the refund. We do not charge any extra fees or hidden commissions. This is a no-win, no-fee service. You can get more details from our website.
Check now and make a claim request.