Immediately settling PCP

[HustleRussell]

Sheepshanks said:

HustleRussell said:

It transpires that Mum would be happy to pay off the PCP ASAP. I will obviously read the bumf but are there any ‘gotchas’ here to your knowledge?

There's two things:
Withdrawing, which you have to do within 14 days of signing the docs, so watch out if you sign them some time before delivery. If you Withdraw the interste charge is only for the days you had the loan, so it'll be a few £. VW give you 28 days to pay them.

Settling - you can do that any time. Generally you have to pay two months interest, so it'll be maybe a couple of hundred pounds. Plus any fees, but they're often zero now, or maybe £10.

We’re collecting Mum’s new car tomorrow and the start date for the purpose of the PCP finance is today.

Mum would like to settle up ASAP but would also like the nice man at Drive the Deal to get paid his commission.

What is the best way to go about this?

[stevemcs]

Ask the dealer, with jaguar we need to leave it for 4 months otherwise the dealership and salesman lose the commission and we could possibly lose the deposit contribution.

[tickedon]

Within 14 days you technically withdraw as if the finance never existed. Increased chance they try to clawback any deposit contribution etc.

After 14 days you’re settling early, which is when I’d do it (although you’ll pay more interest). Dealer may ask you to wait X payments so they get their commission.

[HustleRussell]

This car was ordered via Drive the Deal, who immediately ported me through to a nice chap in a Kent VW dealership. The same guy handed over the car. The handover experience was great, which was a relief after the perfunctory and not at all ‘special’-feeling process of e-mail form tennis.

I asked him about when we can settle up without risk of losing out dealer contribution and him losing his commission and he basically said we can do it tomorrow if we want.

I suppose I should’ve enquired further about DtD’s commission?

[ashleyman]

I think. If you take a car then Drive the Deal get their commission right away. It’s if you go through them and then cancel before taking delivery that fees are payable.

5. If you change your mind and cancel your order once we have passed it to a dealer, then we will suffer loss because we will have incurred all of the expense in acting upon your instructions to order the car, yet the dealer will not pay us a commission. As such, we would charge you a fee of £354.00 (£295 + VAT) which we are legally entitled to do under Clause 36 (4) (b) of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013.

[HustleRussell]

Thanks very much by the way.

One more consideration- am I right in saying that it may be better for my Mum's credit rating if she settles the finance after a few payments rather than withdrawing from the agreement?