Paying off a PCP ASAP

[Lily the Pink]

What is the current situation regarding taking out a PCP to take advantage of a manufacturer's deposit contribution and then repaying the loan straight away ? Can that be done with modern agreements, what costs would you incur and should you be up front with the dealer that that is your plan - or does it make no difference to them ?

[ukpolak]

I did it on a BMW in 2017 - you need to exercise your right to withdraw and within 14 days of taking ownership of the car. No fees or interest to pay, it’s like you cancel the agreement. Be careful to use the right terminology, ie you don’t want to “settle the loan” as then it may incur fees / interest.

I checked all my finance paperwork ahead of time so I knew this was possible. I also called BMWFS before purchase who confirmed all discounts etc would still stand and wouldn’t be impacted.

I also did it on HP rather than PCP so I knew exactly how much I’d have to pay (car sticker price less discounts, less deposit)

Just check the paperwork and look for right to withdraw / cancel.

[AlwynMike]

Done it twice.
I was up front with Sales persons - some don't like it in case it affects finance company kickbacks.
I think on the last one, I paid about a fiver in interest!
No quibble on the phone from the finance company.