Settling/withdrawing BMW PCP within 14 days

[GR_TVR]

This question probably comes up often, but please indulge me for my own peace of mind...

I'm looking to buy an approved used BMW from a main dealer, and was looking to pay cash.
However, they have a £1500 deposit contribution if you take out their PCP finance at the moment.

Obviously the APR is eye watering, but is it possible to take the PCP, receive a £1500 contribution from the dealer, "withdraw" (is that the right terminology?) from the deal within 14 days of signing, settle in cash and only pay a small interest charge, whilst still retaining the £1500 contribution?

Thanks!

[eybic]

It's unlikely as that contribution is for you taking out the finance.

[ED209]

eybic said:

It's unlikely as that contribution is for you taking out the finance.

I’ve done this with Ford and Skoda HP. Paid off in full after a couple of weeks, no issues with the deposit contribution each time.

[pavarotti1980]

eybic said:

It's unlikely as that contribution is for you taking out the finance.

Is he not taking out the finance and then settling? therefore benefitting from deposit contribution at the time of getting the vehicle

[msport123]

pavarotti1980 said:

Is he not taking out the finance and then settling? therefore benefitting from deposit contribution at the time of getting the vehicle

That is exactly what the OP is doing - and there is nothing wrong in doing so.

Its worth checking the T&C's directly with BMW finance (not the dealership). When I was involved in these types of agreements, it was a legal right that the consumer could settle the finance at whichever point they saw fit, interest would be added for the time the loan has been outstanding. I cannot see why it would be any different now. Maybe there could be some early redemption/settlement charges to take into account.

I've heard of salesman stating to consumers that you have to keep the finance for X amount of months. This goes against the above and it wouldn't surprise me if this is a tactic/mild threat in order to protect the salesman/dealership commission.

Long and short of it - check with the finance house and go from there.

[AlwynMike]

Not done it with PCP or on a used car.
But in the past 2 years I've done this with straight finance through BMW finance. Once for SWMBO Mini, and once on my 4 series.
Just phone up and say you don't want the finance any more. No questions asked apart from your card details.
Both times I told the sales person what I was going to do, (different dealerships) and neither were bothered.
Think over the two cars it cost me about £4 in interest, "saving" around £1500 on the Mini and between £4000 and £6000 on the 4GC (can't remember offhand! )

[was8v]

I've done exactly that with VW (£500 off and 2x free services) rang up a day later and paid it off.

Also done with a Nissan, but iirc that needed the first payment to get free service vouchers.

Don't take the salesman word, check the wording of anything you sign. The VW saleman even pointed out the appropriate paragraph for me, clearly lots of people do this.

[jjr1]

I bought my second hand BMW i8 a few months back and received a £1000 dealer deposit contribution. Checked the paperwork from BMW financial services and saw that the dealer could not claw back the contribution.

Withdrew from the agreement over the phone, within 14 days and paid around £80 in interest payments.

Don't go past the 14 days or you will pay a large penalty interest.