Car PCP on file. PCH ?

cici71

Hi
18 months ago I took out a PCP (personal contract purchase) and although I pay a fixed fee and will definitely be handing it back after the 3 years, the whole amount of the cars worth is sitting on my credit file as it's technically a loan. I have since learnt that there is a PCH option (personal contract hire). Most car manufacturers are actually denying they do this option. I have just watched dispatches where secret filming showed this. This option would have obviously suited me better. I can't do anything now but does anybody know that with this PCH - does the whole cars worth sit on your credit file? It would suit me much better not having this sitting on my file.
Thanks

The_Real_Cheddar_Bob

With a PCP the entire value of the car sits on your credit file, as that is the amount you have borrowed. Like you I was only offered a PCP deal and nothing else apart from buying the car outright, which i didn't have the money for.

I've since paid to send the car back 2.5 years early.

If you google pcp miss selling then you will see that there is currently an investigation ongoing, likely from the PPI firms who are looking for their next hit, but if it does come off, you might have a case.

The claim would be against paying interest on the whole amount of the loan, and not as so many thought the 50% they were borrowing.

Anyway, thats pie in the sky at this stage.


Oh and to answer your question about PCH, i would imagine the value of the hire contract would sit on your file.

Nebulous2

My last car was on a traditional HP agreement, because of the dealer incentives. I paid it off a few months later. The whole thing - being offered different options, taking it out and paying it off was very straightforward.

Here is a huge multi-franchise dealer (not recommending them) making it clear all three options PCP, PCH and HP are available.

https://www.arnoldclark.com/car-finance