Why Choose Toyota Financial Services?
Have you ever purchased a car on finance?
Yes, most individuals buy a car on finance via the dealership. It is the most common practice around the globe, especially in the United Kingdom. Car finance provides easy access to your dream car. It eliminates financial restrictions and limitations. Toyota is a well-established car brand in the automobile industry. Customers buy Toyota on finance from Toyota Financial Services (TFS).
TFS offers customer-friendly and flexible financial solutions to everyone. It provides various car financing solutions that cater to different needs of all people. It offers car on Personal Contract Purchase (PCP) finance and Hire Purchase (HP) finance. Let’s dig deep to understand the basics of PCP and HP finance. Also, understand why people are seeking refunds for PCP finance, including Peugeot PCP claim.
What is the Difference Between PCP & HP Finance?
In car finance, a PCP contract is somewhat similar to an HP agreement, except for some minor differences. For instance, in an HP agreement, everyone makes an initial deposit, which is followed by a fixed monthly instalment plan until the contract holder becomes the owner of the car at the end of the contractual term. The usual contract lasts for approximately two to four years. Once the total cost is paid off by the customer, he will become the owner of the car.
However, in a PCP car finance agreement, the contract holder does not become the owner of the car at the end of the contractual term. He is provided with three different end-of-term options. The contract holder has the option to choose any one option suitable for his needs.
The PCP contract allows the customer to retain, return, or exchange the car. If he wants to retain the car, say for example, a Toyota, he has to pay an optional final payment to become the owner of the vehicle. This is known as a balloon payment, a Guaranteed Minimum Future Value (GMFV). This is a huge lump sum amount that is due at the end of the contract, and the customer must pay this to gain ownership. Otherwise, he can return it without paying this amount. Furthermore, he can also sign a new contract in exchange for a new car. This is all dependent on the customer demand.
Sometimes, customers are not familiar with these options or additional payments that occur at the end of the PCP contract. If this is the case, it can be counted as a mis-sold car deal as the customer was not informed about it beforehand. Therefore, the customer can make a mis-sold PCP claim.
Did You Purchase a Car Before 2021?
2021 was an important year as the Financial Conduct Authority (FCA) banned the practice of Discretionary Commission Arrangements (DCAs) on car finance contracts. The authority claimed that many customers might have been mis-sold on their PCP contracts that were signed before 2021 due to hidden commission arrangements. Many customers have already complained about the hidden commissions and fees that were not mentioned in the contract. They reported that they were unfairly charged excessively high interest rates on their PCP contracts that were signed before 2021. Thus, the FCA has banned the practice of DCAs and is investigating the current issue of PCP car compensation.
Furthermore, you can be mis-sold on your car finance deal if your lender, broker, or car dealer does not update you on the terms and conditions of the financing contract. You can make a claim if you were not aware of the balloon payment, mileage restrictions and additional costs at the end of the contract. If you were misled by your car dealer and were not offered the best deal, you can proceed with a claim request.
If you have purchased any car on finance before 2021, you can be eligible for a refund. If you purchased a car on finance from Toyota Financial Services (TFS), you can still make a claim against them and get a refund. You should hire the best PCP solicitors to manage your case efficiently.
Claim PCP Car Compensation
There are many PCP claim experts in the UK. However, our PCP claim experts at PCP and HP Claims are recognised for professionalism, efficiency, and top-notch customer support. We have a dedicated team of solicitors working on PCP and HP refunds to check and update our entire process.
We have an online claim-checking facility on our website to facilitate our customers. It is a free-of-cost service. You can enter your basic details, fill out the form, and submit it to get free feedback on your claim status. We will check your claim eligibility, identify your mis-selling issue and gather supporting documents to proceed with your report. Our service is a no-win, no-fee service. So you need not worry about a thing as we are all experts in handling the PCP claim processes.
We are always available for customer support. If you have any query you can contact us on our website or give us a call on our mentioned number.