Paying off PCP

NotAGolf

NotAGolf

NotAGolf

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I've just bought a new Kia. I was going to buy in cash, but saw they offered a 2k dealer deposit for going down the PCP route. So I got the PCP deal with the aim of paying it off early, it's just a question of when.

I know I can cancel the PCP within the 14 day cooling off period with no charge, BUT I'm not sure if I do that then the dealer could potentially withdraw the 2k deposit offer?

I could just settle after the 14 day cooling off period. There's no completion fee, but I do believe I will be charged a bit of interest, although I'm not sure how this will be calculated.

I've read all the paperwork I have and it's not clear to me. I could ask the dealer and/or the finance provider, but I'm not sure if I'll get a straight answer; presumably the dealer stands to lose out on a bit of commission if I withdraw from the finance agreement?
 
bennyx_o said:
How would the dealership even know you've paid the PCP off?
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Presumably when the sales figures are updated and they realise the commission isn't coming in.

I guess it really depends where your morale compass lies.

Really I'd say this is more a dealership problem by only offering cash incentives. If they had offers on servicing included etc, then they might be able to cancel those as part of nulling the finance agreement.
 
As you've said, that's the dealerships problem. Unless the deposit contribution was conditioned on taking the PCP for x years or that it had to be repaid if the PCP was cleared in a certain time, the OP is free to clear their PCP
 
When I bought my car in February, I got some incentives for buying via PCP. The plan was just to pay cash but went with PCP just to get some freebies and money off. Settled the next day over the phone

Did get a call off the dealer a few days later asking why I did that and it was a bit of an off thing to do. I didn’t see it that way…

Crack on
 
Steedie said:
When I bought my car in February, I got some incentives for buying via PCP. The plan was just to pay cash but went with PCP just to get some freebies and money off. Settled the next day over the phone

Did get a call off the dealer a few days later asking why I did that and it was a bit of an off thing to do. I didn’t see it that way…

Crack on
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I would have asked them, who are you employed by? If the answer is anything but the finance company the PCP contract is with then I would have told them it's none of their business.
 
[TW]Fox said:
Everyone? When is the commission paid for the finance?
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Not the buyers problem.

If you've taken the PCP and they're offering incentives simply for buying via that method then it's irrelevant if you then choose to exercise your right to pay it all off early as per the terms you agreed with the finance company.

If the dealer isn't happy with their terms with the finance company that's an issue between them.
 
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Did the same a few years ago when we bought a new VW to get a higher dealer contribution and service pack included. Paid it off in full a week later.

Dealer was off with us whenever we tried to then book in for a service so we just went to a different dealer for servicing.

Do what is best for you - its not like the dealer is doing you any favours.
 
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disfunktion said:
Did the same a few years ago when we bought a new VW to get a higher dealer contribution and service pack included. Paid it off in full a week later.

Dealer was off with us whenever we tried to then book in for a service so we just went to a different dealer for servicing.
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It's entirely possible that the dealer being 'off' was just the usual demeanor for the service department.
 
[TW]Fox said:
Everyone? When is the commission paid for the finance?
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In my view.
People should not be given incentives such as decent discounts to use expensive finance packages. And adding to the debt crisis the country is facings.

If a buyer pulls out of the finance and settles it with cash, that is their choice. The dealer then suffers the consequences of their actions.
 
Remember you want to "withdraw" from the finance agreement.
This means you are cancelling as if it never existed and in effect being billed for the outstanding balance.

People argue that you shouldnt be charged interest, I was when I withdrew from mine and it was like £10, not worth worrying about.
They went through a spiel saying this was ir-reversable and should i still say I want to withdraw I would immediatly owe them £xxxxx

If you go past 14 days then its in force. You may well get a processing fee or some such from the finance company.
Depends what your agreement says. Bear in mind even at the end of a PCP agreement they will charge you a fee for buying the car.
Typically anything that involves them doing something has a fee attached once the 14 day period is up.
 
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Mercenary Keyboard Warrior said:
Remember you want to "withdraw" from the finance agreement.
This means you are cancelling as if it never existed and in effect being billed for the outstanding balance.

People argue that you shouldnt be charged interest, I was when I withdrew from mine and it was like £10, not worth worrying about.
They went through a spiel saying this was ir-reversable and should i still say I want to withdraw I would immediatly owe them £xxxxx

If you go past 14 days then its in force. You may well get a processing fee or some such from the finance company.
Depends what your agreement says. Bear in mind even at the end of a PCP agreement they will charge you a fee for buying the car.
Typically anything that involves them doing something has a fee attached once the 14 day period is up.
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Does this mean you should attempt to do it before the 14 days are up? To be clear, we'd want to keep the car and not bothered about paying a small amount of interest. Did a similar thing once before but that was on HP not PCP.
 
I settled my Skoda Octavia pcp (provided through VW Finance) just after purchase to get the incentive. I had no issues with the contribution or aftercare and even spoke to the dealer about doing that and they said that there are no issues doing so. It's since been in for a service to the same dealer with no issues.
 
HangTime said:
Does this mean you should attempt to do it before the 14 days are up? To be clear, we'd want to keep the car and not bothered about paying a small amount of interest. Did a similar thing once before but that was on HP not PCP.
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Yes indeed.
0-14 days you withdraw from the finance agreement, its as if it never existed. They cannot charge you fees by law.
14+ days you are exiting an agreement with no protection other than reasonableness. Expect typical finance company fees to be applied.
 
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