PCPs: experts warn on how wear-and-tear conditions could hit you hard in the pocket
Published 07/09/2016 | 02:30
Considering that the UK has led the way on Personal Contract Plans (PCPs) to date, it is worth noting that they are still encountering and highlighting some problems.
And one of them has to do with possible penalties for cars returned in poorer condition than a dealership/bank would expect.
According to vehicle data experts Glass's, there is growing evidence that drivers are not aware of how much they can be penalised for extra bits of wear and tear.
They say more needs to be done to educate the "rapidly rising number" of people on PCPs about the condition of motors when given back at the end of their deal.
Glass's say their feedback is that some customers have been "shocked" to find the financial implications of wear and tear.
The company's Rupert Pontin says people with cars that have "the odd small dent, scuffed alloys or a hole in the upholstery" are surprised to find they could be out of pocket by "potentially hundreds, even thousands".
He points out that most wear-and-tear guides are absolutely fair and are based on industry-recognised standards.
But he echoes what most of us know, when he says the fact is that a lot of the PCP documentation simply does not get read by customers when the deal is being done.
He is not being critical of sellers, by any means.
But he does suggest that dealerships/banks may need to do more to emphasise the point to customers about the condition that cars are expected to be in when returned.