difference between PCP and HP finance

[spruce]

I've just read this this morning. Although the article is about a specific case, it highlights the difference between PCP and HP finance deals and how vigilant we should be if we buy a new vehicle on finance. It explains the difference in easy to understand terms.

http://www.dailymail.co.uk/money/cars/article-4469742/Why-won-t-car-finance-let-hand-PCP-vs-HP.html

 

[jason1965]

I think the simple answer to her plight was to ask the sales person what option she was buying into, Its very simple really,  rather than saying that she had been conned. She was not conned she was just being ignorant and stupid, and now wants to blame someone else for her mistake., and she had 14 days to return the car without any penalty.  

 

[spruce]

I think the simple answer to her plight was to ask the sales person what option she was buying into, Its very simple really,  rather than saying that she had been conned. She was not conned she was just being ignorant and stupid, and now wants to blame someone else for her mistake., and she had 14 days to return the car without any penalty.  

Hi @jason1965. I agree that she should have paid more attention to the detail rather than assuming she was getting a better deal. If the deal she signed went the other way and she scored more than originally expected, then she wouldn't be making a scene.

I just posted this, not to belittle the person concerned, but to highlight the differences between a PCP and an HP with regard to the final balloon payment. PCP the finance lender takes the risk with regard to the value of the vehicle where HP the owner takes the risk. The trouble is that market changes can influence the value of a car. Nobody can accurately predict a vehicles value in 2 or 3 years time.

In fact, one of our customers has just been caught out with his 2 year old Skoda Estate in 15k on the clock. They offered him £3800 which was half of the predicted value when he took on the contract. Our customer is a mechanical engineer, but he also was led to believe that he was getting another PCP as he had before on a previous Skoda, only to find that it wasn't and was an HP. Yes, again he should have checked, but when so many things are going on with a new purchase, its easy to loose focus, especially when you have lots of balls in the air.

I was going to copy it and edit it into an information post as it explains the differences in easy to understand layman's terms.

Being tricked into signing a contract is easy.

 

[jason1965]

To be honest Spruce i think it sums up this country at the moment, were allot of customers are getting bamboozled and confused about what they are actually signing up for, and sales staff not truthfully being open and honest, just have to be extra careful and pay attention to detail. 

 

[spruce]

To be honest Spruce i think it sums up this country at the moment, were allot of customers are getting bamboozled and confused about what they are actually signing up for, and sales staff not truthfully being open and honest, just have to be extra careful and pay attention to detail. 

I couldn't agree more. Dishonesty is the name of the game. Its not only in sales; its in our industry as well. Backhanders, shoddy jobs, and missing windows to name a few.