In the UK, the vast majority of new vehicles – even for private individuals – are funded by finance or leasing. It makes a brand-new car much more affordable and gives you options to change cars regularly. However, there can be pitfalls and penalties, and if you’re dissatisfied with your car or have been charged a fee you weren’t expecting, you may need to take legal action by consulting professional car solicitors.
Our specialist team provides expert legal advice in different languages to clients who have been involved in a wide variety of legal matters, including car finance complaints. You can discuss your case with our car finance solicitors with no upfront costs. Any fees will be explained to you in advance before you need to instruct us to act for you.
How Are Cars Financed?
There are different ways to finance your car, and each comes with its own risks in terms of the disputes that may arise. The most popular forms of car finance are:
- Personal Contract Purchase (PCP) – you pay a set fee each month for a defined period of time. At the end of the contract, you can pay a final figure to buy the car outright (often known as a balloon payment) or simply hand the car back.
- Personal Contract Hire (PCH) – you pay a set fee each month (typically with a larger first payment). You never own the car and must hand it back at the end of the contract.
- Hire Purchase (HP) – you pay a set amount each month, and at the end of it, you will own the car outright. This is essentially a traditional car loan, and some customers choose this method for its simplicity.
All three methods are commonly used with brand new cars, with PCP being the most common among consumers. All three can also be used for used cars, although leasing (PCH) is a lot less common in the used car market. These different finance methods give you a wide range of different options to suit your needs.
How Do Car Finance Disputes Arise?
The main areas of dispute on car payments include:
- Termination charges – most people understand that failing to make payments can mean termination of the contract, loss of the car and financial penalties. However, some people dispute the amount of these penalties or claim that they weren’t made clear in the contract.
- Mis-selling of finance – if you were sold a particular finance method without a full and thorough explanation, you may be entitled to compensation. Before 2021, some motor traders also had the flexibility to set their own interest rates, which the FCA has now banned.
- Faulty vehicles – your rights can vary based on your finance method, the nature of the fault, and when it first arose, but you may be able to return the vehicle in certain circumstances.
- Excess mileage – PCH and PCP deals are based on an agreed annual mileage. You may be charged a fee per mile for any mileage above this figure. This too should be communicated clearly at the outset.
- Damage or excessive wear and tear – all cars show some signs of wear and tear after a few years of use. However, if your car has excessive wear and tear or damage, you can be charged for this when handing the car back.
If you’ve experienced any of the above or any other form of car finance dispute, we strongly recommend that you contact car dispute solicitors for legal advice. You should do so at the first opportunity, in case of any time limits.
We Can Help with Car Finance Complaints
Our team of experienced car purchase solicitors is dedicated to providing comprehensive assistance for individuals facing challenges with their car finance agreements. We understand the complexities and nuances of the automotive financing industry and are committed to advocating for our clients’ rights. Whether you’re dealing with issues related to misleading terms, unfair practices, or contractual disputes, our skilled car solicitors possess the legal expertise to navigate the intricacies of car finance complaints.
Our dedicated solicitors for car problems prioritise open communication, ensuring our clients are informed every step of the way, and we strive to achieve the best possible outcomes through negotiation or legal proceedings. Trust us to be your advocates in resolving car finance disputes and protecting your interests.
How Do I Get Advice for a Car Finance Dispute?
Call us on 0208 1111 911 or contact us through the website, and we’ll discuss your circumstances with you. A quick initial call usually takes about 15 minutes and will cost you nothing. From there, we can advise on the best course of action, and if we think you need legal representation, we’ll transparently outline all associated fees upfront. This way, you can make an informed decision before getting further legal assistance from our car finance solicitors.