I agree that 'they' (the finance company) can't charge you in this scenario, but what's to stop the dealer effectively withdrawing the dealer contribution as you've cancelled the finance agreement that the contribution was dependent on?
Paying off PCP
- Thread starter NotAGolf
- Start date
I agree that 'they' (the finance company) can't charge you in this scenario, but what's to stop the dealer effectively withdrawing the dealer contribution as you've cancelled the finance agreement that the contribution was dependent on?
I'd like to see them try and enforce a bill after the contract of sale was completed
Soldato
The only way they could do that is if they have specifically put into your contract that their contribution is based on x criteria. They would then need to invoice you for that part.
Bear in mind, the dealer sells the car to the finance company. Its no longer their property the moment the finance company pay them for the car.
Soldato
Indeed, even though in the post above I describe how they could.
The legal thoughts I saw were that this would probably be deemed a way to get around your statutory rights to cancel, and as such highly likely to be thrown out in court.
AFAIK no one has yet found a dealer who has a clause to claw back their contribution.
but isn't the contract for sale with the finance company who are purchasing/owning the car, so, if cancelled, the dealer could just say we will negotiate a new deal, yourself, as the purchaser;
if cancellation occurred regularly maybe dealers would become more obstinate, or,if there were a line of waiting list people who might take the car in your stead.
Add-ons like free servicing, they could easily make those contingent on PCP being used for car purchase.
when lease companies buy a car they get a 'contribution' from the manufacturer too, PCP companies are no different in that respect.
Issue may become academic for new cars with more price transparency tesla/mercedes - that's the price full-stop.
Soldato
I did this on my current car. Paid the finance off within the 14 days.
Was charged a bit of money but nothing worth worrying about.
Soldato
No.
There are multiple parties to this. The manufacturer sells the car to the dealer, the dealer sells the car to the finance company. (there are not diff PCP companies in this new car arrangement, maybe in second hand)
Its possible the above is simplified when its a Finance company thats owned by the manufacturer, VW finance serves the whole VW audi group for example.
It wasn't when I bought mine, I still had an invoice from the audi garage, but that had most of the funds from the finance company.
The customer however ends up with an agreement with the finance company. Again the garage receives the money from the finance company, and has to pay the manufacturer.
Your cancelling the finance, and only the finance, not the sale. The sale from the garages perspective is complete the moment they receive the money from the finance company.
At that point its the finance companies car. (Assuming all other amounts are remitted and settled by the customer, but thats normally done well in advance, with the finance company funds drawn down on the day of pickup, which becomes the day of sale from garage to finance company)
I don't think you "withdrew" if you paid a bit of money (*depending on how much you mean/admin fees etc). You may have settled the finance and hence paid interest due up until that date.
Soldato
I withdrew for sure, and they charged interest.
Whether interest is due remains a talking point. They are not allowed to charge fees nor penalties.
IMO interest is neither of them. Which seems to be VWfinance view.
I paid something like £10 in interest for iirc 3-4 days of interest.
Not something I would be bother to argue about.
You really have to ask?
Soldato
Same. I had to pay a couple of quid interest. No fees though. I checked the outstanding finance balance online and it was significantly more to "settle" the finance than withdraw from the agreement.
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Is he a car salesmen?
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Just pointing out that it isn't true to say everyone has got their money, which is why sometimes dealers get upset, that's all.
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I'm sure they'll survive.
Soldato
Hi. I'm due to collect my new car on the 26th of this month. My plan has been to take out PCP, scoop up the deposit contribution and 2-years free servicing and withdraw within 14 days, as discussed in this thread.
Today I've been sent (and have signed) all the finance documents. But as said above I'm not collecting the car until 26th January. Does the agreement go live now? Meaning I have 14 days from now to withdraw? Or will it go live from the day I collect the car? It doesn't make it clear on the forms. It's with Skoda financial Services if it makes any difference.
Today I've been sent (and have signed) all the finance documents. But as said above I'm not collecting the car until 26th January. Does the agreement go live now? Meaning I have 14 days from now to withdraw? Or will it go live from the day I collect the car? It doesn't make it clear on the forms. It's with Skoda financial Services if it makes any difference.
Helped a relative to buy a bmw like this, we took all of the dealer discounts and incentives and then paid the car in full the next week. Cost was much less than a straight cash purchase and the car never returned to that dealer for servicing. The payment was made the week after the car was collected.
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Man of Honour
Double check the small print, but it's usually from the day you collect the car, as you will have to sign a couple of other bits and pieces when you collect the car as well