What is the difference between a £2,000 discount and a £2,000 deposit contribution on a new or used car? Well, maybe you should #AskTCE.
It’s clear from the number of enquiries we get that car dealerships are rubbish at explaining how a PCP works. Today we are going to address one of the most common questions people ask about a PCP car finance agreement: What if I want or need to settle a PCP early?
According to latest figures by the Finance and Leasing Association (FLA), cars brought on dealer finance grew by 25% in January compared to the same period last year. In addition consumer’s new and used car finance volumes grew by similar rates – up 24 per cent and 25 per cent.
Many people are unclear about the PCP (Personal Contract Purchase), which is offered by nearly every car manufacturer in the UK. This is usually offered by the manufacturer’s own finance company, although there are some other lenders who offer PCPs as well. The Car Expert explains how it works.
One of the growing types of sub-prime finance in the UK is what is known as a ‘logbook loan’. The lenders claim that logbook loans are “easy, fast and hassle-free”, but they represent a serious risk of you losing possession of your car.
The Car Expert is not affiliated with any car manufacturer, dealer group or finance company, and will provide you with independent and impartial advice on any aspect of car finance.
Most car finance problems arise from customers not properly understanding the contracts they are signing. You should always consider any finance offer carefully before signing any contract or agreement. If you do not understand or are not comfortable with any aspect of the agreement, do not sign until you do understand and are 100% comfortable.
Most car finance agreements in the UK are regulated by the Financial Conduct Authority, and anyone involved in the selling of car finance must be accredited by the FCA.