Vehicle valuation company Glass’s has warned that dealers are becoming stricter about end-of-life recharges on PCP vehicles, as used car values come under increasing pressure.
Rupert Pontin, head of valuations at Glass’s, said that damage to vehicles was becoming more of an issue as the used car market becomes more exacting about vehicle condition.
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He said: "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."
The situation mostly concerns private consumers, he said, as fleet customers tend to have a better idea of what is expected of them in terms of vehicle condition.
Pontin said: "Fleets have a pretty good idea of what rechargeable damage looks like but private motorists with PCPs are comparatively inexperienced."
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PCP has been used by manufacturers as a method of increasing customer retention, and Pontin warned that extra charges could undermine these efforts.
As such, he said: "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."
