The company's analysts figured that the options adding on to financed cars through PCP add too much onto potential monthly auto payments.
Even with these results, the company believes this is a chance for auto retail companies to provide consumers better options and to offer add-ons as a part of standard packages.
Austin Collins, Managing Director of BuyaCar, said: “Although PCP finance has made new cars more affordable to ordinary people than ever before, there are still aspects of personal contract purchase which do not always represent the best value buyers could get for their money and option costs are one of them."
“Buyers can protect themselves though, by choosing a car with the desired equipment already installed rather than loading a basic model with expensive features."
In the fall of last year, the new WLTP car testing standard has resulted in several carmakers to reduce the options they offer.
Cox Auto's Customer Insight and Strategy Director recently discussed the changes and mentioned that this could result in the elimination of more expensive options in cars.
Buyacar looked into a £22,745 Volkswagen Golf purchased with a 48 month long PCP option for 10,000 miles per year that would end up costing £327 every month and adding £14,190 of options to the car doubled the monthly payment.
The research stated: “It costs £325 a month to finance just over £14,000 of equipment though just £2 more per month nets you almost £23,000 of car.”
The company believes the overcharged is a result of the extra cost of these optional add-ons and that at the end of the contract most financial schemes still charge the full amount for options divided into installment payments.
They also stated that the current system “ignores the fact that a car with thousands of pounds’ worth of desirable options will typically be worth much more at the end of the contract – which should reduce how much those extras add to the monthly bill”.
Collins also stated that the way to avoid these extra costs is to look into used vehicles: “Used cars represent the very best value for money when it comes to getting a car with plenty of standard and optional kit fitted, because they have already lost the bulk of their original value and that is reflected in the purchase cost – and PCP finance monthly payments – for the car.”
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