GAP provides a complimentary audit to determine whether you were sold car finance under misleading terms.

Have you recently purchased a new car through a Personal Contract Plan (PCP) from a dealership? If this is the case, you may have experienced a potentially improper car loan sale.

Car owners who have utilized this financing method when acquiring their vehicles from dealerships are now being alerted to the possibility of having fallen victim to a new type of mis-selling issue. This pertains to car financing known as Personal Contract Plans (PCP), which happens to be one of the most popular ways to finance a new car, potentially impacting thousands of individuals.

The National Association of Commercial Finance Brokers (NACFB) has expressed concern that the intricate nature of PCPs is being manipulated by dealers to persuade customers that they are securing a superior deal, or that the PCP arrangement being presented is a more cost-effective alternative compared to traditional hire-purchase (HP) agreements. A PCP operates somewhat like a personal loan, typically spanning from two to four years, with the loan amount matching the anticipated depreciation of the vehicle over the contract’s duration.

Whether it concerns your finances, property, or business, our team of experts is here to help you with your legal concerns. Find out if you have a potential claim today by completing our obligation-free case review.

Initiating your claim is easy. Request a commitment-free case assessment from GAP.

Our team of expert legal advisors examines your case and provides guidance.

If our expert advisors verify the merits of your case, your claim will commence.

PCPs have gained popularity due to their perception of offering a more cost-effective way to purchase a car. But is this perception accurate? According to the NACFB, buyers might end up paying significantly more interest on PCPs compared to hire-purchase deals, even if the APR (annual percentage rate) appears identical.

The key reason behind this is that a portion of the PCP deal is attributed to the balloon payment, effectively resembling an interest-only loan that doesn’t decrease during the agreement’s term. Consequently, interest charges accumulate at a faster rate. Those who opt for a PCP and later decide to buy the car outright will likely face a much higher interest cost compared to the hire-purchase route. The NACFB suggests that some dealerships may not always make this distinction clear when promoting PCPs over traditional hire-purchase agreements, potentially laying the foundation for mis-selling claims.

If you suspect you may have been subject to mis-selling of a car loan, please provide your details to request a complimentary assessment of your car finance. We will promptly get in touch to gather the necessary information