Motor finance mis-selling has unfortunately become more and more prominent in recent years, and it is no exception when it comes to PCP (Personal Contract Purchase/Personal Contract Plan) finance deals. Last year, there were estimated to be around 1 million PCP agreements according to the National Association of Commercial Finance Brokers (NACFB), and even if you take a low percentage of those as having been mis-sold, that still represents tens of thousands, if not more, of PCP agreements. One can only imagine how many people this would affect, and as a result just how much money was lost due to these unscrupulous agreements.
A study carried out by the Institute of the Motor Industry (IMI) in early 2017 noted that 60% of all car purchases have either financial or insurance-related products added onto them, with roughly 45% of drivers believing that they had been pressured into such add-ons. Mis-selling car finance is a big problem for drivers, and also driver confidence in the dealers themselves. Putting motorists in a position where they are persuaded to unnecessarily spend more under the proviso that they simply have to buy these undesired extras only creates further financial issues for the motorist; between a mortgage, raising children alongside their partner and the usual regular expenses, “persuading” customers to spend more money than they should be on a car finance deal is a low move for the more untrustworthy dealers to make. Yes, it is to their benefit, but what cost (quite literally) to the driver?
Therefore, it is imperative to only work with a highly reputable and credible car dealer, and to conduct thorough research on the deal that you are agreeing to, any hidden costs, and what extras may or may not be necessary for you. Do not simply take one person’s word for it; though the majority of representatives from car dealers will have your best interests at heart, at the end of the day their job is to make sure that you make a purchase, and you should never sign up to such a major agreement without reading up on what it is you are agreeing to. The more dishonest sellers are relying on the fact that you will either be desperate to obtain a car at all costs, or that you will agree to a deal by understanding the basic details, but not necessarily the more technical language that ultimately ends up with you paying more out, often for no reason.
Unfortunately, this is a situation that is only likely to continue. As with any line of work, you will find that certain people or companies do not back up what they say, and are simply looking to make a buck so to speak. If they can find a way to make more by giving the “doom and gloom” scenario if you don’t sign up to an agreement, or if you don’t comply with the recommended add-ons, then they will do so, morals be damned. The best thing that you can do to combat this is to recognise these people for what they are before signing a contract, and ignoring them entirely to go with a proper dealer who really will help you to achieve the best possible car finance deal. Those who are mis-selling car finance may never disappear completely, but as more and more people report their behaviour, they will eventually realise that the short-term financial benefits only result in long-term problems.