Frequently Asked Questions

Car finance is a credit agreement made between you and the lender which allows you to buy a car.

There are 4 different types of car finance, personal loan, lease, hire purchase and personal contract purchase (PCP). When purchasing a car using car finance, it is important to choose a provider that offers the best deal for your needs. 

Personal contract purchase (PCP) is essentially a loan to help you buy a car. But unlike a normal personal loan, you won’t be paying off the full value of the car and you won’t own it at the end of the deal (unless you choose to pay a final balloon payment).

PCP Can be broken  down into three main parts: 

  • The Deposit (usually 10% of the cars total value) – A typical PCP Agreement will require you to have around 10% of the total value of the car as a deposit, The higher the deposit, the less you will have to borrow. 
  • The Amount you borrow – The amount that you will need to borrow will depend on what the finance company predict the car will loose in value over the term of the deal, minus the deposit that you have agreed to.  
  • The balloon Payment (IF you want to own the car at the end) – This is how much the dealer expects your car to be worth once your finance deal ends. This sum is agreed at the start of your deal and is optional depending on you keeping the car. If you decide to keep the car, this is the amount you’ll have to pay.  

The lender has an obligation to inform you of what is involved in their car finance deal and what it can and can’t do. This allows you to pay for a deal that suits you and what you were looking for.  If they haven’t done this, then you may be eligible for compensation.

You can contact us today! Please click here to fill in our form to start your claim process.

PCP Claims Group is a team of industry experts acting as consultants alongside Veritas Solicitors, working to process your claims for any mis sold car finance within the past 8 years.