buying a new car. simple nope

[garymmmmmm]

So I've gone to lexus as I want a new car, have funds to buy it outright but the guy selling me the car is telling me to do it via PCP?! now his reason for this is if I buy it via pcp he will take 6 grand off the car which if I was to buy outright they won't do? buy he's telling me buy it on pcp get money off then on month 2 pay thr pcp off. Why do they want me to do it like that I can't help but feel that 'deal' will somehow make me lose out on that 6 grand discount. Can anyone get or explain ?

[snoopy25]

Standard procedure, take the 6 grand discount on PCP and then pay it all off.....or not up to you.... Jeez I would love to afford a car that's 6 grand let alone have it as a discount lol

[The spinner of plates]

The dealer will get a commission for selling the finance product.

Check the small print.. so long as you can pay it off in month 2 with no penalty fees or front loaded interest... do it.

[S54B32]

They make money on you going through PCP.

They aren't knocking 6k off, it'll just move to a GFV (a guess, but educated somewhat. They aren't making 6k by you taking out PCP)

Seems like white lies to me

[leyorkie]

Very common practice.
The discount is provided by the finance arm.
Just do and cash it in after a couple of months.
Done this with some Audi /VW cars and commercials. VW T vans.
Just check the cancellation terms and conditions

[Monkeylegend]

They are not selling you a car, they are selling you finance, the car is just the "vehicle" for doing this.

[anonymous-user]

As you are taking out credit and then paying off early, does doing this have any impact on your credit rating good or bad?

It seems like a well worn strategy to game the system a bit for a discount so I would assume the rating agencies are probably wise to it.

Edited by anonymous-user on Friday 17th December 17:43

[Seb27]

As said above, there will be nothing dodgy about this.

I work for a 'premium' manufacturer and the finance company would often give us 'contributions' of up to £10k if the car was financed (regardless of HP or PCP) If you paid cash, there would only be a small discount, if any.

Many customers need finance, and the finance company does this in order to make the PCP deals attractive. Many customers don't want or need finance, and they would take the finance, and pay off straight after. We had so many people doing this, our manufacturer has now stopped this process, and give the contribution for cash AND finance deals, but I am aware many still ONLY give them for financed deals, and the dealership will have no control over this, so if you really don't want the finance, set it up and pay it off, the salesperson will just be trying to make the deal as attractive as they can for you, and if it means jumping through a hoop or two then so be it.

[mikeiow]

snoopy25 said:

Standard procedure, take the 6 grand discount on PCP and then pay it all off.....or not up to you.... Jeez I would love to afford a car that's 6 grand let alone have it as a discount lol

Curious about this one.
Are you *always* able to do this - ie, pay it off WITHOUT any interest?
Will the garage lose their commission if you do, & is so, will they be 'cagey' about telling you the detail of being able to cancel it?

[GregK2]

It's a ridiculous practice that needs clamping down on but probably never will be. Just play the game, get the discount and pay it off as advised.

[The spinner of plates]

mikeiow said:

Curious about this one.
Are you *always* able to do this - ie, pay it off WITHOUT any interest?
Will the garage lose their commission if you do, & is so, will they be 'cagey' about telling you the detail of being able to cancel it?

All different - as the norm with car buying, ignore everything which is said to you and read the small print.

[ZX10R NIN]

It's standard practice & he's telling the truth, take advantage of it & clear it at the end of two months.

[Fonzo]

garymmmmmm said:

Why do they want me to do it like that

They get commission on finance. It seems to be pretty standard practice to buy on PCP and then pay off the finance, I've seen other people in the forums say that they will ask the dealer how soon they can pay off the finance and for him to still get his commission.

[fflump]

mikeiow said:

Curious about this one.
Are you *always* able to do this - ie, pay it off WITHOUT any interest?
Will the garage lose their commission if you do, & is so, will they be 'cagey' about telling you the detail of being able to cancel it?

Anything other than full disclosure of all T+Cs is illegal under FCA regulation. They have no wiggle room on this it all has to be there in black and white and you need to sign to say you are aware of all T+Cs.

[HTP99]

Sign the finance docs and withdraw within 14 days of date of signing, you will only pay a few days interest, there is no need to wait 2 months to do it, the salesman has said 2 months because he will still be paid his finance commission, if you withdraw he will not, but that is not your problem.