Cancelling PCP deal

[Silverage]

Just in the process of buying a new car from VW. Although I actually have the cost to change money in the bank, it was advantageous to take the car on their "Solutions" PCP scheme as this brings a fair deposit contribution and a free servicing deal.

I plan to cancel the finance within the 14 day cooling off period and I know this will give me a virtually full interest rebate whilst being able to keep the incentives. I also think I will be entitled to a rebate of the £125 setting up fee and the £60 option to purchase fee, but can anyone confirm this?

[onesickpuppy]

I'd be very careful and check the agreement line by line. It may be better to settle it in full after you've made a payment or two, rather than cancel during the cooling off period. Won't cost you much in interest to do so, but I'd be surprised if you can keep the deposit contribution if you 'back out' so to speak.

[Silverage]

I know it sounds crazy and they naturally don't encourage it, but they have to allow it after a law change a year or so ago. I guess they rely on most people not being able or bothered to do it.

I'm 99% sure on the rebate of the fees too, but just wondered if anyone could confirm.

[RSoovy4]

Silverage said:

I know it sounds crazy and they naturally don't encourage it, but they have to allow it after a law change a year or so ago. I guess they rely on most people not being able or bothered to do it.

I'm 99% sure on the rebate of the fees too, but just wondered if anyone could confirm.

Good luck. You seriously think that VW's lawyers haven't thought of this one, you know giving you a load of money towards the deposit, and then just letting you keep that deal if you try to terminate?



Read the terms and conditions very carefully.

[Capt Bravz]

14 day right of "withdrawl". You are "withdrawing" from the agreement.
Cancels finance, all interest, all fees. You pay the money instead.
It's a cooling off period, that's all, and basically as if the finance never existed. Any 'perks', deposit contributions, free servicing etc etc will be lost.
The salesman will also lose his commision on the handling fee/finance penatration.

As has been said, let the agreement become 'active', make a payment or two then phone up and pay it off under the terms of "early repayment". That way you'll get the interest rebated and keep any bonuses the PCP entitled you to.

It will cost you a little in fees and interest but this is no doubt outweighed by the deposit contribution so you be up overall.

Cake and eat it springs to mind.

[rehab71]

RSoovy4 said:

Silverage said:

I know it sounds crazy and they naturally don't encourage it, but they have to allow it after a law change a year or so ago. I guess they rely on most people not being able or bothered to do it.

I'm 99% sure on the rebate of the fees too, but just wondered if anyone could confirm.

Good luck. You seriously think that VW's lawyers haven't thought of this one, you know giving you a load of money towards the deposit, and then just letting you keep that deal if you try to terminate?



Read the terms and conditions very carefully.

Yes you can, but don't 'withdraw' from the finance, you have to settle it, I'd do it after the 14 days (which starts from the after you sign the agreement) and you can keep the deposit allowance. Happy days!

[KTF]

You dont cancel the agreement, you pay it off. Under VW solutions you can do this any time you want and still keep any of the kickbacks. Just call them up and ask for a settlement figure.

Some dealers have been known to point this out to people before they sign up to a 'cash' sale as they get a nice bonus from VW from a solutions sale.

[Ari]

RSoovy4 said:

Good luck. You seriously think that VW's lawyers haven't thought of this one, you know giving you a load of money towards the deposit, and then just letting you keep that deal if you try to terminate?



Read the terms and conditions very carefully.

Yup, you can just settle it.

Worked for Ford once, Ford Finance actively encorouge salesmen to sell minimum finance to cash buyers to trigger incentives and then settle.

All it is is a way to give big discounts on hard to shift cars under the table.

[onesickpuppy]

Ari said:

RSoovy4 said:

Good luck. You seriously think that VW's lawyers haven't thought of this one, you know giving you a load of money towards the deposit, and then just letting you keep that deal if you try to terminate?



Read the terms and conditions very carefully.

Yup, you can just settle it.

Worked for Ford once, Ford Finance actively encorouge salesmen to sell minimum finance to cash buyers to trigger incentives and then settle.

All it is is a way to give big discounts on hard to shift cars under the table.

The key difference is in the words 'terminate' and 'settle'. Those 14 days are very important and could cost the OP a big chunk of cash. Like I said earlier, read the agreement VERY carefully and play the game by the rules.

[Ari]

onesickpuppy said:

The key difference is in the words 'terminate' and 'settle'. Those 14 days are very important and could cost the OP a big chunk of cash. Like I said earlier, read the agreement VERY carefully and play the game by the rules.

Agreed absolutely. Settling is the way to do it.

[rfoster]

If you want to pay it off within 14 days then that is within the cooling off period, and you will pay a daily rate of interest which will be shown on your agreement. If you wish to pay it off after the 14 days then the finance company will calculate your settlement figure in accordance to the regulations in the consumer credit act - it will be more expensive than withdrawing from the finance in the cooling off period.

Whether you would still benefit from any dealer contribution if you clear the finance within the cooling off period, I'm not sure but I can't see how they could enforce you to pay any contribution back.

[Silverage]

Well we'll find out in a few days. I'm collecting the car on Friday. I'll give it a week for the finance dust to settle and then go for the full settlement.

[ATM]

Silverage said:

Just in the process of buying a new car from VW. Although I actually have the cost to change money in the bank, it was advantageous to take the car on their "Solutions" PCP scheme as this brings a fair deposit contribution and a free servicing deal.

I plan to cancel the finance within the 14 day cooling off period and I know this will give me a virtually full interest rebate whilst being able to keep the incentives. I also think I will be entitled to a rebate of the £125 setting up fee and the £60 option to purchase fee, but can anyone confirm this?

What kind of incentives / amount of money are we talking about?

If these are just a small percentage of the retail price then surely this is just equivalent to a firm haggle.

[Capt Bravz]

Silverage said:

Well we'll find out in a few days. I'm collecting the car on Friday. I'll give it a week for the finance dust to settle and then go for the full settlement.

Which won't be a 'settlement' it will be a 'withdrawl'!!!
You'll still be within the 14 day right to withdrawl period after a week.

Give it a month, at the least, make a payment and then 'settle'.

[Silverage]

If you wait any longer than the 14 days you get stung for the £125 acceptance fee with the first payment, so that's definitely not the right way to go.

Incentives are £500 deposit contribution and 2 years free servicing. Not worth fortunes in the overall scheme of things, especially when you work out the total of interest and fees they would charge if you let the thing run for the full three years.

[ATM]

Silverage said:

Incentives are £500 deposit contribution and 2 years free servicing.

If you offered straight cash and rang around couldn't you get a similar deal?

[Roo]

ATM said:

Silverage said:

Incentives are £500 deposit contribution and 2 years free servicing.

If you offered straight cash and rang around couldn't you get a similar deal?

Not exactly a massive saving. Probably less than the doc fees so it won't matter if he withdraws from the agreement or settles early.

[rehab71]

ATM said:

Silverage said:

Incentives are £500 deposit contribution and 2 years free servicing.

If you offered straight cash and rang around couldn't you get a similar deal?

No! The offers are from the manufacturer NOT the dealer, ergo if you want them you HAVE to take the finance.

[Capt Bravz]

Silverage said:

If you wait any longer than the 14 days you get stung for the £125 acceptance fee with the first payment, so that's definitely not the right way to go.

Incentives are £500 deposit contribution and 2 years free servicing. Not worth fortunes in the overall scheme of things, especially when you work out the total of interest and fees they would charge if you let the thing run for the full three years.

OP, I've been selling Solutions (albeit with Skoda) for a while now so I know how they work.

For someone who NEEDS the finance anyway the deposit contribution and free servicing are nice additions and can be an incentive to purchase the car because of this.

You appear to be fortunate enough to be an otherwise cash buyer who does NOT need the finance but would still like to benefit from the £500 deposit contribution and 2 year free servicing. Who wouldn't, I would guess rough benefit in total of about £800.

You are not being 'stung' for the £125 setup fee, it's there, plain to see in the T&C's. As is the interest rate, as is the option to purchase fee, as are any penalty fees for late payments.
If you settle early you get an interest rebate but will still be liable for the fees and a tiny portion of interest. This will reduce the net worth of your benefits but you are still 'up'. Let's say you've spent £200 to gain £800.
Worth while, yes?

Or.... you can WITHDRAW within 14 days, pay the full amount for the car and not receive the £500 deposit contribution or the free servicing because you are WITHDRAWING from the fiance agreement- you don't want it, or it's perks!It's being cancelled.
Foolish, no?

When you go the the supermarket and there is a BOGOF do you think,
"I know I'll buy one of these, I'll get an extra one free."
And then once at the check out ask for a refund of the item you've paid for but still want to keep the freebie?

No, because that's not how it works.

All the best with your new VW but please don't fk yourself over by trying to be clever or play the system.

[rehab71]

Capt Bravz said:

Silverage said:

If you wait any longer than the 14 days you get stung for the £125 acceptance fee with the first payment, so that's definitely not the right way to go.

Incentives are £500 deposit contribution and 2 years free servicing. Not worth fortunes in the overall scheme of things, especially when you work out the total of interest and fees they would charge if you let the thing run for the full three years.

OP, I've been selling Solutions (albeit with Skoda) for a while now so I know how they work.

For someone who NEEDS the finance anyway the deposit contribution and free servicing are nice additions and can be an incentive to purchase the car because of this.

You appear to be fortunate enough to be an otherwise cash buyer who does NOT need the finance but would still like to benefit from the £500 deposit contribution and 2 year free servicing. Who wouldn't, I would guess rough benefit in total of about £800.

You are not being 'stung' for the £125 setup fee, it's there, plain to see in the T&C's. As is the interest rate, as is the option to purchase fee, as are any penalty fees for late payments.
If you settle early you get an interest rebate but will still be liable for the fees and a tiny portion of interest. This will reduce the net worth of your benefits but you are still 'up'. Let's say you've spent £200 to gain £800.
Worth while, yes?

Or.... you can WITHDRAW within 14 days, pay the full amount for the car and not receive the £500 deposit contribution or the free servicing because you are WITHDRAWING from the fiance agreement- you don't want it, or it's perks!It's being cancelled.
Foolish, no?

When you go the the supermarket and there is a BOGOF do you think,
"I know I'll buy one of these, I'll get an extra one free."
And then once at the check out ask for a refund of the item you've paid for but still want to keep the freebie?

No, because that's not how it works.

All the best with your new VW but please don't fk yourself over by trying to be clever or play the system.

What he said.

OP, please listen to the people who do this everyday (I don't want to sound big headed, but I've done this for nearly 11 years and would consider my self an expert in car finance) and the above is bang on, if you listen to the people throwing in their 2 pence worth without any knowledge you will loose the benefit of taking the finance.