PCP / Early Settlement

[mike597]

I've always been a cash purchase chap. On the car I'm looking at currently, I'm being persuaded to consider taking out PCP as it has a couple of benefits:

- A dealer deposit contribution of £600

- Included 3 years servicing parts + labour

The saleman has assured me I can pay a 30% deposit and pay off the balance after a month. Does anyone have any idea what the settlement figure is likely to include if I go this route? I have the cash for outright purchase but assuming the settlement figure just includes a bit of interest on the balance for the month or so I hold the PCP open then it seems to make very logical sense as I'm getting £1k of benefits in return.

It's VW finance btw. Any thoughts on gotchas?

[Kevin G]

OPC offered me similar deal with VW Finance when i bought my current Box. I was offered a £2k dealer contribution if I took out a £25k loan and was assured I could settle immediately after one month payment, and he was correct. All it cost was one months interest which TBH was low. There wasn't an early settlement penalty and you need to make sure this is the case if you go down this route. I'm sure others on here have used this offer.

[m500mol]

If you settle within 14 days european law prevents the finance company levying any charges so you pocket the dealer contribution and walk away (Did this with my Merc and yes it is correct, can pi55 the dealer off a bit as they will lose their kickback from the finance.

[mike597]

Thanks for that I was wondering what the 14 day cooling off period would result in. I asked the question of the finance guy at the dealership today directly and he confirmed the same, if you back out of the finance early you keep the discount and the service plan, which they factored into the cost of the car anyway I guess.

So triggered duly pulled.

[Stuart21UK]

what about admin fee in month one? I think mine included a £195 fee...

[topradio]

Mike, I'm with you on the paying for it outright.

If you're not sure the salesmen always tell you to take the finance and pay it off straight away. I suspect that they are hoping that you will forget or find something else to spend the money on.

[mike597]

Just to finish this off, I took the finance.  As a result got a grand off the sticker price, 3 years servicing- all fluids and labour included and 2 years warranty.

Pleased with the deal, asserted my right to withdraw after seven days, paid off the balance and it cost me only a few quid in interest.

Less pleased with the car but that's a different story.

[Araf]

2 minutes ago, mike597 said:

Just to finish this off, I took the finance.  As a result got a grand off the sticker price, 3 years servicing- all fluids and labour included and 2 years warranty.

Pleased with the deal, asserted my right to withdraw after seven days, paid off the balance and it cost me only a few quid in interest.

Less pleased with the car but that's a different story.

Good result, but I feel for your unhappiness.

Chop it in for what you desire, as soon as possible.