It is reported that in the past ten years, almost 90% of the Mercedes car finance deals in the UK have been mis-sold. This implies that any individual who purchased his Mercedes on a PCP finance between 2007 and 2021 might have been subjected to a mis-sold car agreement. Now, thousands of Mercedes owners are filing for PCP refunds.
Whenever an individual signs up for a car finance deal, he should have a complete understanding of the PCP contract and must be familiar with his rights so that he can file a claim for it in case of mis-selling. Recently, FCA declared that most of the PCP contracts in the past ten years have been mis-sold. Therefore, any individual who purchased a Mercedes on the PCP deal should file for a Mercedes PCP claim.
As we all know, PCP contracts are tricky and might not be easily understood by all customers. Customers need proper guidance and information. Sometimes, car dealers or lenders fail to accommodate their customers on PCP agreements. This causes mis-selling of the PCP deal.
Common Reasons for a Mis-Sold Motor Finance Contract
Here are some of the most prevalent reasons for a mis-sold motor finance deal.
- Unable to pay monthly payments of the car finance deal
- Unaware of the breakdown of the total costs, interest rates and other fees
- Unfamiliar with the car’s condition, including mileage and depreciation, etc
- Pressured by the dealer to immediately sign the PCP deal
- Not given appropriate car financing recommendations by the seller
- Uninformed of the balloon payment at the end of the PCP contract
Most Mercedes buyers complain that they were not adequately explained the PCP contract. They did not know the difference between the best car financing deals. They had no idea of the end-of-term options for a PCP contract holder. Not only that, but they lacked information about excessive fees and charges for exceeding mileage.
These are some of the common problems faced by most PCP finance buyers. For instance, someone who purchased an Audi or a BMW instead of a Mercedes may also have similar complaints regarding mis-selling of the deal. He is also subjected to a mis-sold PCP Audi or a mis-sold BMW PCP claim.
Strategies to Consider for Signing a PCP Contract
All potential car buyers should consider the following information before signing the contractual agreement.
A PCP contract offers three end-of-term options: return, retain, and renew. Each option is designed to facilitate its buyers. Dealers offer these options so that customers can select the one best suited to their needs. These are:
- Return:
If you are unable to pay the final balloon payment, which is a huge lump sum optional amount to be paid at the end of the contract to own the vehicle, you may return the vehicle without any further payments. However, excessive wear and tear of the vehicle and mileage conditions may be considered for additional charges.
- Retain:
If you want to retain the car, you should pay the final payment, also known as the Guaranteed Minimum Future Value (GMFV), to permanently own it.
- Renew:
If you are interested in driving a new car model, you may renew the PCP contract. In this case, the remaining costs are adjusted for the new PCP contract. This is the most suitable option for car enthusiasts.
Once you become familiar with these end-of-term options and additional charges that may apply to you in case of excessive wear and tear of the car, you can manage your finances very well. You should also be mindful of the mileage restrictions of the PCP contract. Otherwise, heavy penalties may be levied on you.
Mercedes PCP Claim Process
As per the latest news in the UK’s financial market, mis-sold car owners are actively applying for PCP claims. Approximately 1 million of the Mercedes owners have been mis-sold on their PCP agreement. If you purchased a Mercedes on a PCP contract, you should immediately seek a refund. It does not matter if you have completed the monthly payouts or if you are paying monthly instalments. You can easily apply for a Mercedes PCP claim.
Many customers worry that they might be sued if they reclaim their PCP funds. This is not the case. Claiming for a mis-sold finance deal is your right. If you have a legitimate reason to file the claim, professional PCP claim experts will definitely help you out.
PCP and HP Claims is well-known for providing assistance with mis-sold PCP deals. Their process is free and easy to use, and they will not charge you a penny until you win your refund amount.
Foremost, they will help you identify the reason for mis-selling. It can be misinformation, misleading information, incomplete information or discretionary fees. Hidden fees or high interest rates are the top reasons for mis-selling. Therefore, identifying the reason for a mis-sold PCP contract will help you proceed with the claim process effectively.
Secondly, gather all relevant PCP documents for the claim process. Documents may include emails, marketing materials, brochures, receipts, and paperwork. Anything that supports your claim in the process should be collected as supporting evidence.
Check your eligibility with an online claim checker and escalate your complaint to the relevant authorities, including the car dealer. Our claim experts will contact the authorities to make your PCP claim process hassle-free and uncomplicated.
All you need to do is contact our claim experts at PCP and HP Claims to handle your PCP claim queries.