The Hidden Danger of PCP Car Finance Deals
Personal Contract Purchase (PCP) deals are currently the most attractive in the UK car financing department.They’re a great way to get what you want by only paying monthly instalments for a fixed period of time, by the end of which you will finally own the car. But there’s a huge downside to these very sought-after PCP car finance deals. And we’re here to tell you all about it.
Are you aware of what’s going to happen if you have an accident or if your car gets stolen? That’s one of the critical things you should look into before signing any PCP agreement. Here’s the thing, if your car gets written off as an accident or it gets stolen before the completion of the car finance contract, then you’re in some serious trouble. And if you’re thinking you’ll be alright because no way is your car getting stolen or destroyed in an accident, then think again. Every year in the UK, there are almost 450,000 vehicles that have an accident and 76,356 more that are reported stolen.
If your car is stolen or written off as an accident, the insurance company will only pay you the car’s market value at that point in time. And mostly, this market value is much less than the actual finance settlement amount. This leaves the car owner in a significant loss, having more to pay finance company than what he is now receiving. Different insurance companies have even cashed in on the car owner’s financial shortfall by offering insurance to cover the huge gap between what you still need to pay the finance company versus what you will receive from the insurance company.
You’ve been warned now, so next time you look into a PCP deal, make sure you understand what will happen in case of a robbery or an accident. Don’t let them fool you twice!