CCPC Report on PCPs welcomed by SIMI

Alan Nolan Director General of SIMI commented "SIMI welcomes the release of Competition and Consumer Protection Commission (CCPC) PCP Report. This is a very well researched and detailed piece of work which we will want to take some time to read through carefully. Many of our members would have contributed to this study, and the Report provides much needed consumer insight into what is an increasingly popular option in car financing.The Report confirms that PCPs have worked well for both consumers and the Motor Industry and that overall, consumers experience of PCPs tended to be very positive. The Amárach research, contained in the Report, very clearly underlines that consumers understand the product; they felt that the salesperson had gone through the terms in a satisfactory detail and thought that they had been afforded the opportunity to get as much information as they wanted. Most thought that any gaps in their knowledge could be put down to their lack of interest rather than any slight of hand by the seller.

SIMI supports the CCPC in this project and we will work with the CCPC in seeking to improve areas highlighted in the recommendations, such as working to help consumers to have an even deeper understanding of PCP finance, through ongoing public awareness initiatives to ensure that consumers are sufficiently well informed to judge whether the product is suitable for their needs and understand any potential risks, even in cases where these may be very limited. Similarly the Industry would wish to support the CCPC in relation to the development and roll-out of the proposal for a process of affordability checks.

As highlighted in the Report, car dealers have a strong incentive to build trust with their customers and to ensure that guaranteed future values are realistic enough to ensure that the customer will be well placed to fund their next purchase. Clearly it is in the interest of our Industry that the consumer experience of PCPs continues to be positive. Overall, it is worth noting that the research underlines that "No-one appeared to have overstretched themselves financially in monthly budget terms and the PCP did not appear to have created any financial pressure in their lives".

The report 'Personal Contract Plans: the Irish Market' is available on the CCPC website