Mercedes-Benz is commonly associated with luxury, status, and innovation. The brand has the best reputation in the automotive industry. It produces one of the finest motor vehicles. The prices are relatively high, so the company offers vehicle finance agreements for the customers. Unlike other financial agreements, car finance agreements are complex and tricky; Mercedes’ PCP agreements also require great understanding.
Mercedes PCP contracts require scrutiny to ensure they are unbiased and transparent. Otherwise, customers can file for a Mercedes PCP claim. This typically happens when a customer thinks he has been mis-sold on the car finance deal.
Car finance is a convenient method to spread the total cost of the car over a specific period. However, it is essential to understand the terms and conditions of the contract before signing the deal. Customers often neglect this while making decisions, but in the case of a Mercedes PCP contract, the financial stakes are often higher.
Later, the customers may complain about the mis-sold deal. That could happen due to undisclosed commissions, misleading information or a mismatch between financial products and customers’ circumstances. Therefore, understanding the contract and your rights may help you to easily navigate the PCP claim process.
Understanding the Types of Mercedes Car Finance
Understanding the types of car finance will help you evaluate the transparency and the fairness of the contract. Usually, there are two sorts of car finance contracts: a PCP and an HP car finance agreement.
PCP (Personal Contract Purchase) typically has lower monthly payments than other finance products. It consists of an initial deposit, monthly payments and three end-of-term options. At the end of the term, you can either make a balloon payment, also known as a final lump sum, to own the car, return the vehicle or trade it for a new one.
Whereas, in the case of an HP (Hire Purchase) contract, you make an initial depository, which is followed by fixed monthly payments. After paying all, you own the vehicle.
For a Mercedes car owner, it is integral to understand the type of your finance agreement. In this way, you can easily identify the discrepancies and be ready to make a claim on your mis-sold car finance deal.
Identifying a Mis-sold Mercedes PCP Contract
There are several ways to identify a mis-sold PCP contract. Always evaluate the information provided to you. If that information was inaccurate or not clear, then you might have been mis-sold on a PCP deal. Moreover, over-charged interest rates, undisclosed commissions, and failure to provide a complete breakdown of total costs all lead to mis-selling of a PCP deal.
Here are some ways to identify a mis-sold deal:
- Incomplete Contract Information
- Inadequate Financial Affordability Tests
- Undisclosed Charges
- Pressuring Sales Tactics
Sometimes, the car dealer and the lender fail to provide all the details of the PCP contract. As a result, the customer signs the contract uninformed about the terms and conditions, mileage instructions, interest rates, commissions, and breakdown of the total costs.
It is the ultimate duty of the dealer to update the customer about the contract in detail. Customers should have a proper understanding of all the key terms mentioned in the contract, especially the final balloon payment and the interest rates. Most customers are uninformed about the final lump sum they have to pay at the end of the term.
Furthermore, the lender should run a complete affordability check on the customer to analyse his financial condition and whether he is suitable for the deal or not. Most customers are charged high on their PCP deal, unknowing of the hidden commissions. All fees and commissions should be disclosed in the contract.
Often times, the customer becomes a victim to the sales team and is pressured to sign an agreement in a hurry. This sales technique does not allow the customer to properly understand the contract and compare the best possible deal for himself. It undermines his ability to sign up for a better deal. Thus, resulting in a mis-sold PCP deal.
If any of the above-mentioned issues resonate with your Mercedes PCP experience, you should seek professional help.
Making a Mercedes PCP Claim with Auto Fund
If you think you have been mis-sold on a Mercedes PCP deal, you can contact our PCP claim experts to proceed with your claim process.
The steps for a PCP claim process are simple and easy. They are as follows:
- Identify the reason for mis-selling
- Gather evidence
- Check your eligibility
- Report to the Financial Ombudsman Service (FOS)
- Seek Professional Help
The recent investigations by the Financial Conduct Authority (FCA) state that most of the cars bought on the PCP contracts between 2007 and 2021 were mis-sold. If you bought a Mercedes on a PCP contract within this time frame, you should identify the reason for mis-selling. Once you identify that you were mis-sold on the contract, you should gather all relevant evidence.
Collect all documents, receipts, and mail that were provided to you by the lender or the car dealer. In case there is some sort of discrepancy between what they said and what was written on the contract, you can claim a refund. If you are not sure about your eligibility, you can easily check it online from our online claim checker.
Then, you should proceed with professional assistance for the claim process. You can go to the FOS to contact your lender and file for a claim refund. However, it is important to note that the claim process takes time, and sometimes, customers hire claim experts to handle everything for them. Therefore, let Auto Fund’s PCP claim experts handle your Mercedes PCP claim process. This is a no-win, no-fee service. It means that you will not have to pay anything until you win your refund amount.
Finally, all customers who bought a Mercedes on a PCP contract before January 2021 should check their claim eligibility. It is better to fully understand the financial agreement and then proceed with the claim process. PCP contracts are complex, and you might need professional assistance to manage your claim process smoothly.