Ford, the leading automotive brand, is famous for durability, performance, and technology. People love it for its traditional design and modernity. Whether you choose a Ford SUV, truck or sedan you have to consider the financial implications of buying a Ford in the UK market.
That is why, the company offers various car financing deals to reduce the financial stress on their customers. Every car financing option has its pros and cons. Many top car financing companies including MotoNovo Finance are famous for their PCP finance agreements. However, MotoNovo PCP claims are also trending in the UK and MotoNovo customers are applying for a MotoNovo PCP refund. Let us discover the reasons below.
Why Buy Ford on Car Finance?
Car finance deals are available on the market to assist buyers make an informed purchase. Buying cars is not an easy task. It involves financial planning, budget management and buyer’s desires as well. Car finance offers customised financial solutions with complete payment flexibility. So, if someone is considering buying a Ford on car finance, he will be given the two most common options, which are PCP and HP finance.
A Personal Contract Purchase (PCP) finance is similar to a Hire Purchase (HP) finance. In the HP finance agreement, the buyer pays an initial amount, which is later continued by fixed monthly instalments. The purpose of the monthly payment plan is to pay the entire cost of the vehicle in easy instalments. Then the buyer becomes the owner of the vehicle.
However, in a PCP contract, the buyer pays an initial amount, with lower monthly instalments. In a PCP deal, the monthly payments are less compared to an HP contract. It is because, at the end of the PCP contract, the buyer has the option to pay the remaining amount as a final lump sum to become the owner of the vehicle. This final balloon payment is optional and is known as a Guaranteed Minimum Future Value (GMFV). If the buyer wants to retain the car, he will pay this amount and become the owner of the Ford. Otherwise, he may return the car without paying any amount.
Likewise, the PCP contract offers another option, which is to exchange the current car with a new one. For this reason, the buyer has to sign a new PCP deal. So, the PCP contract offers three end-of-term options to its buyers. It is more user-friendly and flexible than a regular HP contract. That is why many people opt for a PCP contract to buy expensive cars. But sometimes, they are mis-sold on their car finance.
How Can a Ford Be Mis-Sold?
Mis-selling can happen in any case. It happens when the seller mis-sells an expensive item to the buyer. A car dealer, broker, or lender may mis-sell the PCP contract to the customer.
A PCP contract is a tricky and complex financial agreement. Many people are not familiar with the terms and conditions of the PCP contract. If the lender does not inform the customer about the terms and conditions of the contract and the complete breakdown of the total costs, then it can be considered as a mis-sold deal. In case of a mis-sold contract, the customer can apply for a PCP car finance compensation.
There are some other ways as well in which car finance can be mis-sold. A PCP car finance mis-sold can happen when the lender charges extra money to the customer without informing him. These hidden costs, commissions and higher interest rates will eventually affect the price of the contract. If the customer is not aware of these Discretionary Commission Arrangements (DCAs) then this can be considered as a mis-selling.
Before 2021, many lenders misused this practice and charged excessively high interest rates on the PCP contracts. The customers were overburdened with the monthly payments and now the Financial Conduct Authority (FCA) has banned the practice in 2021. If someone, purchased a Ford on PCP deal before 2021, he may apply for a Ford PCP claim.
How to Make a Ford PCP Claim?
Anyone can make a Ford PCP claim. The process is simple and easy. However, it is better to hire professionals to handle the PCP process smoothly. Our team at Auto Fund is expert at
handling PCP and HP claims across the UK. We have set up a free claim-checking tool on our website to facilitate our customers. All you need to do is provide your relevant details and check your claim status online.
Our tool will identify your mis-selling issue and our claim experts will further guide you on the process. This is all free of cost. All you need is to get in touch with our claim experts to make your claim process easy. So, gather the required documentation and apply for your claim online.