SOME 2.5m motorists feel trapped in car finance deals they can’t afford and regret their decision to take one out, according to research from Drover.
The car subscription service surveyed 1,500 drivers who have a PCP and found that 28 per cent felt confined to the deals, as they were unable to afford the final ‘balloon’ payment.
With roughly 8.7 million UK drivers on car finance agreements, that translates to nearly 2.5 million motorists who felt ‘trapped’, and of those people some 65 per cent said they felt they had to start another PCP arrangement as they couldn’t stump up the money for the final payment and didn’t want to lose out on what they perceived as the investment that they had made so far.
Nearly half – 46 per cent – said they didn’t shop around for the best deal, while 36 per cent didn’t know their rate of interest.
Felix Leuschner, founder and chief executive of Drover, said: ‘Buying a car is a daunting prospect for many drivers. Not only is there so much choice, but car finance deals are hugely confusing.
‘We are aiming to help drivers by providing a more flexible way to run a car without the commitment of car finance.
‘Drivers sign up on a monthly basis and can swap their car for a different model or cancel at any time, and the monthly fee is inclusive of everything apart from fuel, taking the hassle out of driving.’