PCP - look out for end of contract repair costs
The issues surrounding minor damage to vehicles at the end of their lease contract, are now affecting private buyers, perhaps operating through a company scheme, too. Customers who have bought a car on PCP (Personal Contract Purchase) may find that dealers become stricter about end-of-life recharges as used vehicle values come under increasing pressure, according to Glass's.
Rupert Pontin, head of valuations, said that damage to cars was becoming more of an issue as the used market became more exacting about vehicle condition. Common repairs that will come under greater scrutiny included scuffs on the corners of bumpers, typically and single body panel repairs.
He explained: “We have been operating in a market for a number of years where stock has been in short supply. That has meant that trade buyers couldn't afford to be too choosy about minor vehicle damage. However, this is changing. There is more stock around and the choice is growing every day. Increasingly, this means that trade buyers can pass over vehicles that are a little untidy. This, in turn, puts pressure on those selling vehicles to ensure that recharges are being enforced for PCP customers. It is up to the dealer to explain to the customer exactly what is expected in terms of fair wear and tear. Plus, every time they see the vehicle - for servicing or tyres - they should highlight any damage that is likely to incur a cost at the end of the PCP. In this way, customer expectations have been controlled”.