PCP to get incentives then paying off early?

Soldato
Joined
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So a few years back my mum got a 66 plate new car, the guy at the showroom was very helpful, my mum wanted to buy it outright but he wanted her to buy it on PCP because he made more commission and could give my mum a better deal. He also told her that she could phone up and pay it off in full within 30s days and she would only get a £50 admin fee and keep all the benefits so she did that and everything is fine.

Now 3 years later I'm about to buy a new used car, a 2015 plate and the VW dealer has said if I get the car on PCP I get 2 years extended warranty and 3 years servicing for free. Now my question is can I do similar to what my mum did, get the PCP agreement and then pay it off within 30 days/a few payments will I keep all the benefits or nowadays do you lose the benefits if you do this?

Thanks
 
Soldato
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I thought the thing to do was cancel it completely within the cooling off period. You get the benefits and they get nothing.
 
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Yes, you have 14 days to withdraw from the finance agreement, up to this point they are restricted in what they can do, basically they can charge you minimal interest (up until you withdraw) then you need to reimburse the amount plus this minimum interest. No admin fees or anything.
After 14 days you are electing to withdraw from a contract, and they can apply any reasonable fees.

As stated above, read all your paperwork just to check you do not have to repay any contributions made to eg deposit, this could be on your invoice from the dealer, its highly unlikely but its a possibility. This is about the only option they have, if thats not in there then you should withdraw. They like you to go 30 days as by that time they will get the first payment and earn commission, at this point you have lost your statutory right to withdraw, and your asking to be allowed to exit an in force contract.

You need to be very specific that you are withdrawing from the finance, and not cancelling it. You then owe them the money (the finance company) and you will have something like 30 days to pay.
 
Soldato
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When I bought my last new car back in 2011, I had a loan from my mum, so was ready to buy outright.
Skoda dealership said that if I took the vehicle on finance I'd get 3yrs of servicing thrown in and the metallic paint would be a no-cost option.
Took the finance and settled it a few weeks later.
 
Soldato
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given that there are few companies offering PCP contracts at main deaalers, seems surprising if there is not now a standard clause in these contracts clarifying benefits that would be lost on withdrawal,
if not, and the dealer had nonetheless verbally said these benefits were contingent on the PCP they could fallback on that. ?
 
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The PCP contract itself cannot have these terms, its against the law in regards the rights to withdraw from finance (they cannot include penalties in order to get round the legislation)

The penalty needs to be included in the sale document from the garage, these are typically just short sales notes they would need to amend them a fair bit.
 
Soldato
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There must equally be standardisation of sale documents, so surprising dealerships have not clarified this issue;
today, I would not be going through the hassle of initiating a PCP for this benefit, without, having explicitly clarified this, with a dealer - killing the golden goose

OK - maybe you could have got just as good a car deal with the servicing thrown in without considering a PCP deal at all.
 
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I found this was a valuable site when I was initially looking at PCP and PCP withdrawl

https://www.thecarexpert.co.uk/expert-advice/car-finance-advice/

had a bit of a play around and a few people mentioned being given free services but them not being on any documentation. This may be how some garages are trying to get around the withdrawl from PCP thing.

I would make sure you get it in writing they are included (even if your not planning to get out of the PCP)
 
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didn''t see a great deal about withdrawing from contract or the issues .. maybe i missed it.

google, as ever, threw up earlier quasi identical thread here
https://forums.overclockers.co.uk/t...the-agreement-but-before-collection.18795209/
... never know if google prioritizes OC site .. incestiously

Yeah it was on the forums not his main articles, as ever the forums are hit and miss

I remember that thread well, it was when I was first made aware of the withdrawing thing :)
 
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