How You Are Being Overcharged By Motor Finance Companies

Feb 5 at 10:10am by Personal Finance Claims

Your negotiation skills may have come handy while bargaining for the least possible rate of interest on your car loan, but if you ask me I won’t hesitate in telling you that it’s still too early to start the celebrations. I say so because I am well aware that motor finance companies may overcharge you. So, if all this time you were thinking that you have made a crucial breakthrough by negotiating the most competitive interest rates, I would recommend that you  review. 

One of the  areas to consider is signing a PPI agreement. Short for Payment Protection Insurance, a PPI agreement is basically an insurance policy that is taken out  providing cover  for non-payment risks such as those that might arise due to unforeseen events such as an accident, sickness, unemployment, etc. So, if you have  PPI on your car loan and you are unable to pay your monthly installments due to any of the above reasons, a PPI  may ensure that payments duly reach your lender and that you are not declared a defaulter.

 You  may easily get confused by the benefits of PPI and I would recommend that you  seek advice from an independent source before signing a PPI agreement. I would not say that you don’t take a PPI policy, but I would certainly recommend that you confirm the rates and charges as might be applicable on the PPI before actually signing the papers.

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motor finance, payment protection insurance, PPI, car finance, claims