The rip-off car finance trick

DRIVERS are being ripped off at the end of deals that allow them to pay for a car in installments then trade it in for another. When customers come to upgrade their car, salesmen go out of their way to find minor damage in order to give them less towards a new deal, an investigation by Channel 4’s Dispatches revealed.

The trick is being used on socalled Personal Contract Purchases. Around 2.7million new cars were sold last year and most were bought on PCP. A former salesman said ‘barring the odd exception’ he would find something wrong with ‘every car’. Solicitor Andrew Leakey said: ‘They go round the car with a fine tooth comb.’

And some salesmen are failing to inform buyers that some Personal Contract Hire options work out cheaper. Ex-staff said this was because commission was good on PCP.

The Society Of Motor Manufacturers & Traders said dealers explain terms and conditions in person and in writing.