Cazoo, an online car retailer, has been a popular choice for consumers looking to purchase Citroen vehicles through various finance agreements such as PCP and HP. While Cazoo may not currently stock Citroen models, many consumers purchased their cars from Cazoo or similar dealer groups during the period from 6 April 2007 to 1 November 2024.
Citroen Finance at Cazoo: How PCP/HP Works
When purchasing a Citroen through an online platform like Cazoo, consumers often opt for Personal Contract Purchase (PCP) or Hire Purchase (HP) finance agreements. These agreements allow buyers to make monthly payments and potentially own the car at the end of the term. Under these arrangements, dealers such as Cazoo can earn additional income from discretionary commission arrangements (DCAs), which are a source of revenue for them but do not directly benefit consumers.
Finding Your Lender
If you purchased your Citroen through Cazoo, it's important to identify the lender who provided your finance agreement. This information is typically found in your finance agreement documents or on your online account with the dealer. The dealer is not the lender; instead, they arrange financing with a third-party lender such as Santander, BMW Financial Services, or another financial institution.
If you believe that your Citroen car finance agreement through Cazoo is unfair or contains errors, you should first contact the lender directly. Many consumers have found that their agreements were affected by issues such as excessive charges or misleading terms. The Financial Conduct Authority (FCA) estimates that around 14 million agreements were impacted, with total consumer losses amounting to £8.2 billion and an average loss of £700 per agreement.
You do not need a claims management company to handle your complaint; you can complain directly to the lender for free. It is important to gather all relevant documentation, including your finance agreement and any correspondence with Cazoo or the lender, before initiating your complaint. You can also seek advice from organisations like Motorists Legal Justice (MLJ) if you need further assistance.
Sources and References
- Financial Conduct Authority: "Credit card market study interim report" (2017)
- Financial Conduct Authority: "Motor finance market study final report" (2024)
- Motorists Legal Justice: Independent motor finance information directory