The monthly payments for your car on a finance plan are not always the only costs that you would incur, since some deals include a deposit for instance. This is understandable and acceptable to drivers, but what can give them headaches and sleepless nights are the increased penalty charges that can sometimes arise from a finance plan. Today, we’ll look firstly at the various penalties that could pop up, followed by the ways that you can avoid being in a situation where you would be required to pay them.
So, by definition, penalties are a financial consequence of your vehicle being in a state that is less than adequate based on the terms and conditions of the plan. The three main areas where the finance company will be checking very closely are the vehicle having a full manufacturer service history, the agreed mileage never having been exceeded, and the vehicle as a whole remaining in a strong condition, both in terms of the outside exterior and on the inside when it comes to how the car itself operates.
How the finance company determines whether you have breached these regulations ultimately depends on what you agreed to. Was the service history extremely limited, or has the vehicle been packed with problems since day one? Was the mileage appropriate, or did you find that you couldn’t keep below the threshold for the majority of the plan’s duration? Is the vehicle as good as new from a visual and technical standpoint, or has it clearly been through the wars, so to speak? Oftentimes, they will be minor breaches which could swing their perspective on applying charges either way, but the best option is to have your car in a position where you wouldn’t have to worry about any penalties whatsoever, which we will now explain based on these particular points.
One of these is to not service with the dealer themselves. You will almost certainly need to service with a credible dealership, but it doesn’t necessarily have to be with the dealer listed as part of the agreement, so this could potentially remove one headache. Another is to give the most accurate estimate possible for your expected mileage, because it’s better paying a little extra beforehand to cover any increased miles than to end up paying much more in the aftermath because of a couple of particularly busy months on the road. As for the condition of the vehicle, try to keep the car clean and tidy as often as possible, thus removing the possibility of wear and tear that could be interpreted however the finance company feels, because there is a grey area depending on what would be classed as minor and major damage.
These are just a couple of the ways that you can avoid these unwanted finance and leasing penalty charges come the end of an agreement. Read all about these and other similar situations by checking this page www.pcpmissold.co.uk.