Jaguar is a luxury vehicle brand of Jaguar Land Rover. A British international car manufacturer with its headquarters in Coventry, England. It was previously known as Jaguar Cars, and was responsible for the production of Jaguar cars until its operations were fully merged with those of Land Rover.
A personal contract purchase (PCP) is a form of hire purchase vehicle finance for individual purchasers. Unlike a traditional hire purchase, where the customer repays the total debt in equal monthly instalments over the term of the agreement, a PCP is structured so that the customer pays a lower monthly amount over the contract period. The customer is the registered keeper and legal owner of the vehicle, whilst the finance company retains an interest in the vehicle.
What is the issue with buying a Jaguar on a PCP finance agreement?
Government-backed watchdog, the Financial Conduct Authority (FCA), has recently banned car finance deals where the car dealers and their sales teams could earn more commission if customers were signed up for a more expensive PCP financial plan.
It has been common practice for salespersons to sign people up for a PCP finance agreement. In return for buying a car using a finance agreement, many salespeople receive a commission from the lender finance company. Car dealers and sales teams earn more commission if customers sign up for a more expensive PCP financial plan.
Consequently, customers were often not told about the amount of commission paid, even though the commission has in effect increased the cost of the car. This is known as a ‘secret’ or ‘hidden commission’ and meant customers were paying more than they should.
