PCP Exercising right to withdraw after signing the agreement but before collection

stuey2407

stuey2407

stuey2407

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I m current looking at a used car for which they are offering a manufacturers contribution and some free servicing if we take out their finance. We are planning to take the finance to get the benefits but exercise our right to withdraw within the 14 days and paying it off in full.

The question is that I believe the 14 days kicks in when we sign the agreement however I imagine we would have to wait week to collect the car. The question is: can I withdraw before collecting the car and limit the daily interest to as little possible? Will the seller know? Will he just be a little upset with losing any kick back?

The other option is to wait until the day after collection and take the hit on a week's worth of interest.
 
stuey2407 said:
I m current looking at a used car for which they are offering a manufacturers contribution and some free servicing if we take out their finance. We are planning to take the finance to get the benefits but exercise our right to withdraw within the 14 days and paying it off in full.

The question is that I believe the 14 days kicks in when we sign the agreement however I imagine we would have to wait week to collect the car. The question is: can I withdraw before collecting the car and limit the daily interest to as little possible? Will the seller know? Will he just be a little upset with losing any kick back?

The other option is to wait until the day after collection and take the hit on a week's worth of interest.
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You might sign an agreement to purchase the vehicle in advanced and pay a deposit, but pretty sure that you don't sign for the car and hence finance until pickup/delivery day so it would be in effect from then I think? I've not done it personally for a few years so may be out of touch.
 
If you withdraw prior to collection they have no requirement to honour the benefits as you've effectively broken the deal.

You'll also peeve the dealer off as they'll lose their commission entirely. There will be some clawback if you end early, but at least they'll get something if the agreement actually starts.

Take the finance, make the first payment, then get a settlement figure and pay it off. Business is business, but it works best when both sides play the game. Yes, it'll cost you a bit of interest but I'm going to guess that as you're trying to save every penny you aren't spanking £100k on a supercar and a month's interest will cost you < £100.
 
When withdrawing from my PCP deal I was advised that I would be liable to repay any manufacturer contribution. There wasn't any on the deal I had, so it could have just been a scare tactic but worth keeping in mind.
They gave me the daily interest figure (about £50 or so) and payment details over the phone.

From what I understand the actual start date would be the day you collect the car (I signed some paperwork and it was sent over to the finance company on the day of collection).
 
Some finance companies require you to make at least 1 payment before settling if there is a manufacturer contribution.

Also - I would suspect the dealer is using the finance commission to pay for the "free" servicing so if you withdraw, and they lose the commission, they will be at a loss... And people still think its car dealers who "screw over customers".... As if it never happens the other way around...
 
Isn't it law that they cant take back any extras in such circumstances? I cant remember the actual reasoning behind it but its effectively a bribe or something else if they do, and falls under something illegal.
 
We went to see the car again at the weekend. At the time the sales man was not interested in negotiating on the price at all so we thanked him for his time and walked away. They have now come back and offered to discount to close what we were asking for. However in the email they state this would be subject to taking the finance.

If we go for it then I am now thinking that we would wait one month before settling the finance so they get their commission. I think I would feel bad withdrawing immediately even though it is unlikely they would be able to claw back the discount they offered to us.

We now just need to decide if it is the car we want.
 
One of my most hated tactics, honestly. They could have sold you it for that price on the day. Most likely they had someone else coming to see it and when they couldn't scam them into paying the price they came back to you. Guaranteed if you don't take it they'll just contact the other person. So underhanded.
 
Kaeo said:
One of my most hated tactics, honestly. They could have sold you it for that price on the day. Most likely they had someone else coming to see it and when they couldn't scam them into paying the price they came back to you. Guaranteed if you don't take it they'll just contact the other person. So underhanded.
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A customer tries to get the lowest price possible and a business tries to retain as much profit as possible... How are they so different? :confused:
 
stuey2407 said:
If we go for it then I am now thinking that we would wait one month before settling the finance so they get their commission.
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Key points

Withdrawing is a 14 day terms and means you only pay back the interest, any arrangement fees or similar are waived.

Settling is different, and will cost you the fees, which may be in the several hundred pound region.

Take the finance, buy the car, drive the car home, ring up and withdraw.

Don't feel guilty about ****.
 
Richie said:
A customer tries to get the lowest price possible and a business tries to retain as much profit as possible... How are they so different? :confused:
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It's not about the money, it's about wasting peoples time. I can't imagine any situation where I would accept a later offer after them rejecting basically the same amount a few days earlier.
 
stuey2407 said:
I m current looking at a used car for which they are offering a manufacturers contribution and some free servicing if we take out their finance. We are planning to take the finance to get the benefits but exercise our right to withdraw within the 14 days and paying it off in full.

The question is that I believe the 14 days kicks in when we sign the agreement however I imagine we would have to wait week to collect the car. The question is: can I withdraw before collecting the car and limit the daily interest to as little possible? Will the seller know? Will he just be a little upset with losing any kick back?

The other option is to wait until the day after collection and take the hit on a week's worth of interest.
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Did you do this yet?
How did it go if so

Must say I am highly tempted to do the same when my new car comes in.
I got £4k Audi contribution which is more than the interest I will suffer, but its still at twice the APR than I can borrow from elsewhere.
So I am tempted to get the loan elsewhere and then immediately request to withdraw from the finance.
 
I excerised my rights to withdraw from the PCP after about 3 days of receiving delivery of my car.

Kept the £2500 manufacture contribution and also the 2 years servicing and the £5500 ish off negotiated discount as well.

They gave me the figure have to pay off plus about £10.50 worth of interest accrued during the 3 days ownership. Sent me the account number and sort code I had to pay the balance to.

About a week after I got a confirmation that it has been all paid off and that was that. No come back from the dealer or anything.

Oh this is with the in house VW finance , VWFS.

Hope this helps
 
Lustral said:
I excerised my rights to withdraw from the PCP after about 3 days of receiving delivery of my car.

Kept the £2500 manufacture contribution and also the 2 years servicing and the £5500 ish off negotiated discount as well.

They gave me the figure have to pay off plus about £10.50 worth of interest accrued during the 3 days ownership. Sent me the account number and sort code I had to pay the balance to.

About a week after I got a confirmation that it has been all paid off and that was that. No come back from the dealer or anything.

Oh this is with the in house VW finance , VWFS.

Hope this helps
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Awesome thanks. Thats pretty much confirming the story you hear on the web.
So as long as there is no big issue in the paperwork when I get it, specifically giving them the right to reclaim the manufacturer deposit I think I will go for it.

The draft PCP contract I have even states the daily interest amount in the section regarding right to withdraw. What I don't have yet is the complete full paperwork from the dealer, so i cant check yet if there is anything anywhere else, such as on the order itself that gives them the ability to charge the deposit back.
 
Lustral said:
I excerised my rights to withdraw from the PCP after about 3 days of receiving delivery of my car.

Kept the £2500 manufacture contribution and also the 2 years servicing and the £5500 ish off negotiated discount as well.

They gave me the figure have to pay off plus about £10.50 worth of interest accrued during the 3 days ownership. Sent me the account number and sort code I had to pay the balance to.

About a week after I got a confirmation that it has been all paid off and that was that. No come back from the dealer or anything.

Oh this is with the in house VW finance , VWFS.

Hope this helps
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Had the same experience on my last two cars with VWFS. Completely painless experience and on both occasions I paid off their crazy 10.9% APR with a sub 3% personal loan. Kept the deposit constribution and free services.

The 14 day period commenced from when I collected the car as that was when the finance commenced.

No need to feel guilty. This is the same company that currently offer a £7k scrappage scheme against the outgoing A7 or a £10k deposit contribution using their finance (you can't do both) . So on the scrappage scheme you are giving them £3k to take your old car off your hands.
 
im a little confused reading this, so i have a silly question for you all..

Why are you taking a car out on Finance and then paying it off immediately afterwards , paying a little more on top ?
why not get the best deal of them as possible and buy it out right?
 
Because you can get cheaper deals when taking out a dealer finance package. Cash is sadly no longer king. I might be looking to do something similar if there's a deal to be done on a used or AUC car.
 
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