Pcp paying off early?

[Glarh]

Has anyone paid of their pcp early? By early I mean within the 14 days cooling off period? Also known as right to withdraw?

If so did you keep dealer contributions etc?

Also on my pcp agreement it states some thing called add charges? Does anyone know what this means or is?

Thanks

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[jc74]

Has anyone paid of their pcp early? By early I mean within the 14 days cooling off period? Also known as right to withdraw?

If so did you keep dealer contributions etc?

Also on my pcp agreement it states some thing called add charges? Does anyone know what this means or is?

Thanks

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Yes, but not with a Seat, however the same principals apply.
You have to be really careful how you word it. You have to 'withdraw' NOT 'settle'. As you rightly point out you have to do it within 14 days. You then have 30 days to pay the amount of credit you took out and also the interest on that credit for the number of days between delivery and withdraw. I've done it on 2x Audi, a Land Rover and a Jaguar, and in all cases have managed to keep the deposit contributions. With audi deposit contributions running at about £4000-£5000 in some cases, it'd be madness not to take that generosity...
Of course do not mention this to the salesman since he loses some commission if you withdraw this way.

So in summary you keep the deposit contribution and pay the initial amount borrowed plus about £50 of interest on that amount for the few days you had it. No admin fees etc applicable whatsoever. (They can't charge you otherwise it's a breach of the right to withdraw - who says the EU doesn't give us at least one good thing?).

 

[stu_m]

If you are paying it off then the 14 day cooling off period won't really matter!

If you dont want the car you can use the 14 day cooling off period and the right to withdraw

 

[jc74]

If you are paying it off then the 14 day cooling off period won't really matter!

If you dont want the car you can use the 14 day cooling off period and the right to withdraw

Technically paying it off outside the 14 days or 'settling' does make a difference. They will sting you with a termination charge and other admin fees which will mean you end up paying hundreds (or even thousands more).

The right to withdraw is from the finance, not the car itself. So you can't just hand the keys back - you have to find the cash for the car and keep it. If you can't find the cash (e.g. savings or another cheaper bank loan), then you're a bit screwed since you will owe them the money for the car and can't back out so you'll have to default on the car and will have to give it back to them and owe them the difference of part-ex price and your purchase price.

Assuming there's nothing wrong with the car, your only right to withdraw from the transaction and hand back the car itself is if you buy the car entirely over the phone and the Internet without having been to the showroom. This then will give you something like 14 days to just hand the car back and get a full refund if you changet your mind. However dealers are generally wise to this and have a policy where finance agreements have to be signed on site before you get the keys for the car...
Of course if you find something wrong with the car within 30 days, then now (since last october) you can get a full refund... another one of those EU things

 

[Glarh]

Technically paying it off outside the 14 days or 'settling' does make a difference. They will sting you with a termination charge and other admin fees which will mean you end up paying hundreds (or even thousands more).

The right to withdraw is from the finance, not the car itself. So you can't just hand the keys back - you have to find the cash for the car and keep it. If you can't find the cash (e.g. savings or another cheaper bank loan), then you're a bit screwed since you will owe them the money for the car and can't back out so you'll have to default on the car and will have to give it back to them and owe them the difference of part-ex price and your purchase price.

Assuming there's nothing wrong with the car, your only right to withdraw from the transaction and hand back the car itself is if you buy the car entirely over the phone and the Internet without having been to the showroom. This then will give you something like 14 days to just hand the car back and get a full refund if you changet your mind. However dealers are generally wise to this and have a policy where finance agreements have to be signed on site before you get the keys for the car...
Of course if you find something wrong with the car within 30 days, then now (since last october) you can get a full refund... another one of those EU things

Yeah the I would be buying the car out right to keep. It's not arrived yet. But I've managed to get a great pcp deal through car wow. For a well specced factory order. On the pcp quote it states some called add charges which equate go circa 2500? Any ideas what this is or do I have to pay this when settled? Or do I just pay the amount for the car?
Thanks for your input.

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[jc74]

Yeah the I would be buying the car out right to keep. It's not arrived yet. But I've managed to get a great pcp deal through car wow. For a well specced factory order. On the pcp quote it states some called add charges which equate go circa 2500? Any ideas what this is or do I have to pay this when settled? Or do I just pay the amount for the car?
Thanks for your input.

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I'm assuming that the charges are effectively the charges for the credit (ie interest and admin fees). All I paid was the initial amount of credit (total amount borrowed/on finance - so remaining balance on car after deposit and part-ex), plus about 50 quid of interest for the few days before withdraw.
Feel free to PM or post the details of the itemised lines of the pcp quote (omit any personal info) if you wish and I can try and have a look...

 

[Glarh]

I'm assuming that the charges are effectively the charges for the credit (ie interest and admin fees). All I paid was the initial amount of credit (total amount borrowed/on finance - so remaining balance on car after deposit and part-ex), plus about 50 quid of interest for the few days before withdraw.
Feel free to PM or post the details of the itemised lines of the pcp quote (omit any personal info) if you wish and I can try and have a look...

Okay mate will do I'll post it up now..Cheers

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[Glarh]

I'm assuming that the charges are effectively the charges for the credit (ie interest and admin fees). All I paid was the initial amount of credit (total amount borrowed/on finance - so remaining balance on car after deposit and part-ex), plus about 50 quid of interest for the few days before withdraw.
Feel free to PM or post the details of the itemised lines of the pcp quote (omit any personal info) if you wi

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[Glarh]

Edit

 

[Glarh]

I'm assuming that the charges are effectively the charges for the credit (ie interest and admin fees). All I paid was the initial amount of credit (total amount borrowed/on finance - so remaining balance on car after deposit and part-ex), plus about 50 quid of interest for the few days before withdraw.
Feel free to PM or post the details of the itemised lines of the pcp quote (omit any personal info) if you wish and I can try and have a look...

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[jc74]

Yes that £2500 is the interest you'd pay on the £16490 of credit over the 4 years. So you withdraw and you should just pay the £16490 and around £3 interest per day up to the point of withdraw. Typically I wait about 3-4 days and then do it so everything is all set up. Then give them a call and ask for some form of written (email) confirmation to acknowledge your request to withdraw.
Suddenly your car is £2500 cheaper than PCP
And people wonder why dealers push so hard for people to buy on finance!

 

[Glarh]

Yes that £2500 is the interest you'd pay on the £16490 of credit over the 4 years. So you withdraw and you should just pay the £16490 and around £3 interest per day up to the point of withdraw. Typically I wait about 3-4 days and then do it so everything is all set up. Then give them a call and ask for some form of written (email) confirmation to acknowledge your request to withdraw.
Suddenly your car is £2500 cheaper than PCP
And people wonder why dealers push so hard for people to buy on finance!

Appreciate your time mate. What does the 25k total amount payable mean then if the 2500 is the fees? Sorry mate don't really want to ask the dealer as they might think I'm planing to withdraw.... lol

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[Glarh]

Or better still ill call the finance company and ask them...but without my details. Just as an enquiry

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[jc74]

Appreciate your time mate. What does the 25k total amount payable mean then if the 2500 is the fees? Sorry mate don't really want to ask the dealer as they might think I'm planing to withdraw.... lol

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Cash price + charges (interest)
Or
Deposit + balance to finance + charges (interest)

Basically what you end up paying if you don't withdraw. And you're right best not ask to much with the dealer. I'm in a similar situation with a PCP agreement ready to kick off on a September delivery and just play along with the dealers push towards finance.
Though I do tend to say upfront for cost comparison purposes to negotiate a cash equivalent discount first (as it is only true way to compare car discounts between various deals) and then work out the finance terms afterwards.

I had one guy trying to convince me he had matched another dealers price pointing out that the monthly payments where the same. I then asked him why he had an extra £3000 on the payment at the end, to which he said it doesn't matter because you hand the car back at the end...

 

[jc74]

Now I've done enough posts to be able to put up links...

http://www.pistonheads.com/gassing/topic.asp?t=1422944

 

[Curtly]

Wow, that's a pretty intriguing way of going about things!

 

[Glarh]

Now I've done enough posts to be able to put up links...

http://www.pistonheads.com/gassing/topic.asp?t=1422944

Cheers mate. It's a good read that is. Again thanks for taking the time to give me your input. Appreciate it.

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[Glarh]

Wow, that's a pretty intriguing way of going about things!

Sure is mate. I found out about it about 2 weeks ago and I was like there's got to be a catch somewhere. Still all good

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[Madmcs]

Interesting read!

I had left the forums for a few years having sold my MK1 LCR, but having just got a MK3 FR a couple of weeks ago I have been watching from a far. Saw this thread and signed up again!

When we bought our 2nd hand car (6 months old) a couple of weeks ago, we took the smallest amount of finance possible to get an included Service plan. We didn't really want finance, but given it gave us the equivalent of two services, it seemed worth it. We were told that providing we made three payments before settling, we would be able to retain the service plan, thus effectively getting the plan for the cost of three months interest.

Has anyone else had experience of this? It seems strange to have to make "three" payments before you can settle and retain the service plan. The Finance T&C's don't seem to make any reference to it, nor does the service plan.

I had considered making an initial overpayment to further reduce the interest, but leaving just enough finance for the three payment requirement.

 

[Glarh]

Interesting read!

I had left the forums for a few years having sold my MK1 LCR, but having just got a MK3 FR a couple of weeks ago I have been watching from a far. Saw this thread and signed up again!

When we bought our 2nd hand car (6 months old) a couple of weeks ago, we took the smallest amount of finance possible to get an included Service plan. We didn't really want finance, but given it gave us the equivalent of two services, it seemed worth it. We were told that providing we made three payments before settling, we would be able to retain the service plan, thus effectively getting the plan for the cost of three months interest.

Has anyone else had experience of this? It seems strange to have to make "three" payments before you can settle and retain the service plan. The Finance T&C's don't seem to make any reference to it, nor does the service plan.

I had considered making an initial overpayment to further reduce the interest, but leaving just enough finance for the three payment requirement.

Hi mate. So I just got off the phone with seat to confirm what had been previously told to me on this forum. It's all correct. If you look at my quote on previous page. I've confirmed that if I did withdraw I would only be paying the 16500 sum. The guy fully agreed and stated any other charges won't be taken as I would have exercised my right. According to Google alot of people have been doing this I noticed in my search there's a few threads on the audi forums. All of which have took a massive discount/incentive/contribution then decided to exercise their right to withdraw. Keeping all incentives/servicing etc.
Sounds nuts and too good to be true but it's all legal and legit.

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