There can occasionally be some confusion surrounding car finance. If you have never bought a car before, and you are planning to do so on finance, it can be a pretty tricky subject to comprehend, yet finance sales still go ahead because the customer is still aiming to push through a sale. This has resulted in some surprising, and certainly concerning, statistics pertaining to car finance in the United Kingdom, which we will now delve into further.
According to an article on PetrolPrices.com, a study conducted in 2018 revealed that an alarmingly high number of people are jumping into major, long-term deals that they do not have a complete understanding of. More to the point, nearly 50% of those quizzed suggested that they weren’t sure exactly how much money they had borrowed in order to finance a vehicle, and what’s more, approximately 90% of the responders suggested that they had not read or did not understand the small print.
These figures are not a good sign at all. That so many people are entering a deal with what is essentially an unknown financial quantity that they are borrowing should be garnering much bigger headlines. The urge to purchase a vehicle is such that some drivers will be willing to pay anything, but if you do not know how much you will have to pay back down the road (no pun intended), this could lead to serious financial problems. Similarly, the small print of an agreement is often crucial, so if nine out of ten motorists are either ignoring or lack any understanding of this section, again this could open the door to a whole host of issues which the driver has, by the law of the land, checked over and agreed to.
Both of these provide the basis for drivers to be unknowingly ripped off and mis-sold car finance; after all, if a dealer wishes to act with misconduct, the task becomes easier if it’s clear that the driver has no idea what they are signing up to and will just agree to anything in order to have a vehicle. This isn’t to justify their behaviour at all, but if the motorist isn’t checking their documentation before green-lighting a purchase, then theoretically the financer could write in just about any figure or term and the driver would be none the wiser. It’s no wonder that car finance being mis-sold has become prevalent if the majority of motorists are giving them such a free pass to pull off such unscrupulousness.
Fortunately, the Financial Conduct Authority (FCA) are continuing their investigation to bring down instances of drivers being mis-sold car finance, and we are always here to help and advise those in need, but we stress that drivers need to be more mindful of what they are agreeing to, and if they are struggling to comprehend information, they must get another opinion rather than blindly signing up to something that could have major negative consequences in the years to come. Learn more here ==>> www.pcpmissold.co.uk/news.