You don't need to be an 'investor' to invest in Singletrack: 6 days left: 95% of target - Find out more
Similar to a previous recent thread,
Looking to buy VW Tiguan and over and above any discount I negotiate they are offering £2k additional for PCP.
Can i take PCP and after month 1 pay off the PCP and balloon payment entirely or is it usual there is a early cancellation clause that will claw back the £2k?
Thanks
I'd be asking for a copy of the pcp t&c's from the dealership.
or is it usual there is a early cancellation clause that will claw back the £2k?
You would expect so, unless they're stupid, or maybe it's just so unusual they don't mind the odd one.
Yes you can, I did exactly that with my Passat keeping the £1,250 discount and two free services no problem at all - I just rang up and paid it off by debit card, no questions asked. The figure you owe on the paperwork makes no reference to a discount, it's just a nett figure. This was via VW financial services which presumably yours will be too, though you can settle any PCP, whoever the lender is. You pay a small amount of interest for the few weeks before you settle it but other than that no issues. There's quite a few threads on the net about it - search 'settling PCP straightaway' or sililar.
You would expect so, unless they’re stupid, or maybe it’s just so unusual they don’t mind the odd one.
Yep, the 99% who carry on with a PCP at 8.9% APR more than cover the 1% who settle early.
Just watch for any difference between cancelling and settling - I seem to remember two different clauses, the cancelling one being more punitive in terms of charges, though it was 2 years ago so I might not be recollecting that tremendously accurately!
Yes but pay it back within the 14 days to avoid higher interest charges. The interest is charged daily when settlements are calculated.
Yes but pay it back within the 14 days to avoid higher interest charges. The interest is charged daily when settlements are calculated.
Ah, I think that's the difference between cancelling and settling that I alluded to - you have a two week cooling off period to cancel with no charges at all, but you've cancelled the PCP altogether if you do that. I didn't do this, but settled after the two weeks, my concern being that if I cancelled the PCP it would cancel my discount too, because I'd then be paying for the car entirely via another method altogether - the PCP agreement would in effect not exist. I may have been overthinking this, but for the sake of ~£20 interest i decided to wait, keep the PCP agreement in place, and simply settle.
My partner was actively encouraged to do this four years ago by the VW salesman. Signed the documents, picked up the car, drove it home and settled the next day. Cost about £8. Kept the then £1200 discount and the two year service package.
My brother did the same 18 months ago with his VW.
I have done this on the last two cars I bought. Saved a total of £2.5k. I settled the finance a week or so after receiving the finance paperwork. I just rang up the number on the paperwork and asked for an early settlement figure, which I then paid. I have never got so far as making a monthly payment. I am sure when I looked into it the law is on your side as they aren't allowed to penalise you more than the amount sat out in law (which I think is two months interest) for an early settlement.
I think the only person who misses out is the salesman who won't get the commission for selling you the finance.
Yep did this last year - think it was 2 or 3K discount plus 2 services, phoned them almost immediately and got a figure to pay, kept all the benefits.
I don't think early repayment charges are legal anymore.
I paid off my PCP early.
Just registered on Ford finance website and got an repayment figure and paid it off.
you have a two week cooling off period to cancel with no charges at all
It depends when you give them the notice of your intention to cancel, if for example you leave it three days they will charge you three days interest, not a huge amount of money but something to be aware of.
I didn't end up buying a VW, but was told by the dealer that this would be fine.
Reminds me of a loan my wife once had and wanted to pay off. There was a fee equal to some percentage of the outstanding balance if you wanted to pay it off in full early, but you could make unlimited overpayments with no fee. We double checked with the bank that that really was right, and then did the obvious thing.