If your Volkswagen finance agreement feels unfair, you could be entitled to £1000’s
Were you aware that a significant majority of Volkswagen customers opt for Volkswagen financing when purchasing new or used cars? However, not all Volkswagen finance experiences are as they seem. Some Volkswagen buyers find themselves in situations where they’ve been offered finance products that surpass their financial capabilities or involve inflated costs. With potential compensation reaching into the thousands of pounds for affected individuals, it’s crucial to review your Volkswagen finance history – whether ongoing or settled – to determine if you’re eligible to make a claim against Volkswagen for mis-selling car finance.
In Our Guide:
(1) What is car finance?
Volkswagen Financial Services provides a convenient method to drive a new or used Volkswagen without paying the entire cost upfront. Essentially, it allows you to enjoy driving a shiny new Volkswagen without a hefty initial payment.
There are various Volkswagen finance options available, such as Personal Contract Purchase (PCP), Hire Purchase, and Leasing, each with its own terms and outcomes. The industry is substantial, with figures from the Finance & Leasing Association revealing that its members facilitated new consumer Volkswagen finance agreements totalling £37 billion in the UK in 2021. Last year alone, over two million agreements were signed, covering both new and used Volkswagen vehicles.
(2). Types of Volkswagen Finance:
If you’re exploring this guide, you’re likely familiar with Volkswagen finance types, but let’s briefly outline them:
- Personal Contract Purchase (PCP): The most common form of Volkswagen finance, resembling a loan to facilitate your Volkswagen purchase. It offers flexibility at the end of the term, with options to own the Volkswagen outright or return it.
- Hire Purchase: With this option, you gradually pay off the Volkswagen’s value through monthly instalments, eventually gaining ownership.
- Leasing (also known as personal contract hire): You lease a Volkswagen for a predetermined period without the opportunity to eventually own it.
(3). How to Determine if You Were Mis-sold Volkswagen Car Finance?
Ensuring transparency and fairness in your Volkswagen finance dealings involves identifying potential mis-selling. While many individuals have smooth experiences with their Volkswagen finance agreements, some encounter challenges due to unclear terms or inadequate affordability checks during the sale process. If you find yourself affected by these issues or encounter problems with your Volkswagen after financing, you may have grounds to raise a complaint.
Here’s a breakdown of the three most common grounds for mis sold Volkswagen Car Finance claims:
- Lack of clarity on costs, commission, or the contract.
- Absence of proper affordability checks.
- Issues with a faulty or unsatisfactory vehicle.
Whether your Volkswagen finance is ongoing or resolved, you maintain the right to initiate a reclaim. It’s advisable to start the process within six years of the agreement’s conclusion. However, even if this timeframe has elapsed, the Financial Ombudsman Service (FOS) is willing to review cases where customers identified mis-sold Volkswagen finance within the past three years.
(1) Lack of Clarity on Costs, Commission, or the Contract:
When entering any financial arrangement, it’s essential to thoroughly scrutinise the fine print. The finance company bears the responsibility of ensuring that the agreement’s details are transparent and comprehensible to you.
Instances that may warrant a reclaim for mis-sold Volkswagen car finance loans are:
- Concealed commissions that may have influenced your decision-making process.
- Additional charges or fees that were not clearly communicated.
- Unforeseen terms that were not explicitly clarified, resulting in financial losses.
(2) Few, If Any, Affordability Checks:
It’s crucial for your Volkswagen finance provider to conduct affordability assessments before approving your loan. If they fail to undertake this critical measure, you have the right to raise a complaint for mis-selling and pursue a reclaim for Volkswagen finance.
Indicators that you may have been mis sold Volkswagen Car Finance loans, include:
- Difficulty in meeting your monthly payments.
- Accumulating additional debt to meet Volkswagen repayments.
- Realizing that you owe significantly more at the conclusion of the agreement than initially anticipated.
(3) Faulty or Unsatisfactory vehicle:
While not indicative of mis-selling, if the Volkswagen you purchased fails to meet the advertised standards or is faulty, your standard consumer rights come into play. If the Volkswagen was bought from an official dealer, it should be covered by the Consumer Rights Act. This legislation stipulates that a product must be of satisfactory quality, fit for its intended purpose, and as described. If it falls short of these criteria, you may be entitled to a refund or a free repair – see “How much can I get?” for detailed information.
Section 75 Protection
In addition to the Consumer Rights Act, if you used a credit card to pay the deposit for the Volkswagen finance agreement, you might benefit from FREE Section 75 protection. This means your credit card provider shares responsibility and can assist in resolving the issue. To be eligible, the goods or service you purchased – in this instance, the Volkswagen finance agreement – must have been paid for using a credit card and fall within the £100 to £30,000 cost range.
By understanding your rights and taking appropriate action, you can reclaim what’s rightfully yours and ensure a fair Volkswagen finance experience. Whether it involves reviewing your Volkswagen finance agreement for mis-selling or seeking resolution for a faulty Volkswagen, assert your consumer rights and pursue the compensation you deserve.