VW PCP: Document states Hire Purchase

[dlawrence97]

Hi all

Quick question. I've recently taken out a PCP deal with Volkswagen Financial Services (Seat Finance).

After having a read of the documents sent through today the finance type is stated as 'Hire purchase'. I've read some finance companies consider PCP a type of Hire Purchase but I'm also concerned I'm being screwed with a HP agreement instead with a balloon payment (which I'm sure Seat don't offer).

It includes a clause stating "if the option to purchase the vehicle is excercised ...." ?

It was purchased using the recent Seat summer savings contribution.

Obviously I. have a chat to the dealer once they reopen but just wondered if this is standard practice?

Thanks

[Jonesy1972]

My first and only PCP on a VW Up stated the same, so in my opinion it is fine. Somebody explained it to me on here, but having had a few beers watching the football, I’m a bit fuzzy as to what they said.

Jonesy

[TooMany2cvs]

dlawrence97 said:

It includes a clause stating "if the option to purchase the vehicle is excercised ...." ?

It's a PCP, then.

dlawrence97 said:

It was purchased using the recent Seat summer savings contribution.

You haven't purchased it yet.

[Butter Face]

Yes, pretty standard stuff. If it’s with VWFS then it’s PCP, I’m pretty sure they don’t do any type of HP with a balloon.

PCP is basically HP anyway as you own the vehicle once all the payments are paid. Just like HP.