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Coronavirus and Motor Finance: New Guidance

Coronavirus and Motor Finance: New Guidance

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With measures to help protect people from COVID-19 still well under way, many people are facing financial strain, from the self-employed, to the furloughed, and those made redundant.

Latest Motor Finance Guidance

With measures to help protect people from COVID-19 still well under way, many people are facing financial strain; from the self-employed, to the furloughed, and those made redundant.

The regulator in charge of motor finance, the Financial Conduct Authority (FCA), has issued new guidance to lenders during this time.

Credit lenders (the people who pay the initial money to the motor dealer, so you can buy your car) should now grant a 3 month deferral of a motor credit agreement upon request, if you are experiencing financial hardship as a result of the current crisis.

Whether you have a Personal Contract Purchase (PCP), Hire Purchase (HP), or Personal Contract Hire (PCH) agreement, your credit lender should not charge you for up to three months should you request this.

You can request this at any point up to the 24th July 2020.

You may end up eventually paying for the interest accrued during that payment holiday, but firms are instructed not to use the virus to take advantage of a customer’s necessity to alter agreements in their favour. This included altering the Guaranteed Minimum Future Value (GMFV) due a depression in the car market caused by the pandemic.

If you have a PCP agreement which is coming to the end of its term, and you would want to purchase the car, then contact the credit lender and see if you can work something out.

3 month deferral of a motor credit agreement upon request

Your credit lender should be noted on the finance agreement you received when you bought your vehicle. If you can’t find it, we would recommend reaching out to the dealership you purchased the car from. They won’t be able to intervene on your behalf due to data protection, but they can tell who your credit lender was.

We hope you  do not need this advice, but in case you do, we hope this will help point you in the right direction. 

Click the link for more information about new car finance guidance.

Contact details for most of our partners are below:

  • Audi Finance – 0370 010 200
  • Honda Customer Care – 01344 888 489
  • Jeep Finance – 0344 561 4738
  • Jaguar Land Rover Finance - 0344 824 4712
  • Land Rover Finance – 0344 824 4732
  • Peugeot & Citroen Finance
  • Volkswagen Financial Services – 0370 010 2022  
  • Volkswagen Commercial Vehicles Finance – 0370 010 2080 

Stay safe and well in the meantime.

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