Best way to pay off PCP?

[TooLateForAName]

Quick question on paying off PCP.

My parents have just bought a new car - to get the deal they got they had to take out PCP (£3K contribution from mfr) with the suggestion that they pay it off after 1st payment.

Reading around though I've seen it suggested that the best way is to first make one large payment, leaving £100 or so outstanding and then request settlement shortly after. This is supposed to avoid any penalty for early payment.

Whats the situation or does it depend on the exact contract? They picked the car up 2 weeks ago.

cheers

[RammyMP]

Just ring the finance company and ask for a settlement figure, then pay it off by transferring the cash to them from their account. It's quite easy, I've done it twice.

[TooLateForAName]

Yeah, I get that.

The question was more will they save by paying off in 2 stages.

[RammyMP]

The interest is calculated monthly so I doubt it?

[marcg]

If you cancel within the cooling off period (14 days?) Then there is no penalty.

[Butter Face]

Depends on the individual terms from the finance company and if they even charge a penalty.

Nothing on the VWFS site about early payment penalties.

https://www.vwfinance.co.uk/en/privatecustomers/ma...

Normally just getting a settlement includes any interest due and then you’re all done.