PCP Withdrawal Question

[117]

Hi Guys,

Recently financed a Porsche via their own finance. (1 week ago) however since my situation has changed slightly and I am considering using the 14 day withdrawal to pay off the balance and ideally pay less interest. Within the Ts and Cs I notice however that it states if the balance is over £60.560 (which it is) then there is no right to withdraw. Is that true? Or does the legal cooling off period stand anyway?

[AdamIM]

[redacted]

[PositronicRay]

I thought right to withdrawal only applied to regulated agreements?

[AdamIM]

PositronicRay said:

I thought right to withdrawal only applied to regulated agreements?

Correct. There is one caveat, if the amount of credit exceeds £60,260-OP said 'balance' which implied credit+interest.

[The Rotrex Kid]

PositronicRay said:

I thought right to withdrawal only applied to regulated agreements?

Certainly sounds like the OP has signed an unregulated agreement (the amount tallies up as well)

Was it a business purchase OP?

If you have signed an unregulated agreement, then no, you do not have a right of withdrawal.

[PositronicRay]

You agreement will state if its regulated.

[RUSTILLDOWN]

Unbelievable that someone can afford a car like that but can’t read a contract.

[bad company]

RUSTILLDOWN said:

Unbelievable that someone can afford a car like that but can’t read a contract.

Really! Do you read all of the small print on every contract you agree?

If true that’d be VERY impressive.

[LooneyTunes]

Have you asked them for a settlement figure?

Usually possible to pay off part way through a PCP.

[Dimebars]

LooneyTunes said:

Have you asked them for a settlement figure?

Usually possible to pay off part way through a PCP.

Paying via settlement figure is different to withdrawing

[Sheepshanks]

bad company said:

RUSTILLDOWN said:

Unbelievable that someone can afford a car like that but can’t read a contract.

Really! Do you read all of the small print on every contract you agree?

If true that’d be VERY impressive.

I read mine. The salesman (very experienced with Merc, BMW and VW) insisted that I owned the car from collection. He looked genuinely gobsmacked when I pointed to the bit in the contract that said VWFS owned it.


OP - was yours done in a business name? I thought all VWFS consumer agreements were regulated now.

[LooneyTunes]

Dimebars said:

LooneyTunes said:

Have you asked them for a settlement figure?

Usually possible to pay off part way through a PCP.

Paying via settlement figure is different to withdrawing

I am aware of that. What the OP wants to do is pay off the balance. A settlement would allow him to do so and potentially save him the interest (his other objective). Entirely possible that the OP used the wrong word and/or wasn't aware of options...

[Sheepshanks]

LooneyTunes said:

Dimebars said:

LooneyTunes said:

Have you asked them for a settlement figure?

Usually possible to pay off part way through a PCP.

Paying via settlement figure is different to withdrawing

I am aware of that. What the OP wants to do is pay off the balance. A settlement would allow him to do so and potentially save him the interest (his other objective). Entirely possible that the OP used the wrong word and/or wasn't aware of options...

I've done it a couple of times (with regulated agreements) and I think you can only Withdraw for the first couple of weeks, but they still call the balance the Settlement payment.

If you Settle after 14 days then there's a couple of months interest to pay, which could well be £1K+ in the OPs case. Withdrawing means the interest payment is negligible - did one a few weeks ago and VWFS waived it, which was a surprise.

[117]

Thanks for the input all. The agreement is a personal one and also states at the top of the agreement ‘regulated under the consumer credit act 1974’ however the amount outstanding is just over 70k (excluding interest) so looking further online it appears when over the 60,260 limit any rights to withdrawal are waived legally. No big deal, may aswell let it run a few months as I will have to pay a minimum 2 months interest if choosing early settlement.

[Jon39]

If the Porsche you are driving is a Taycan, when the PCP contract ends, you might be pleased that you did not pay cash.
The arithmetic is of course fixed and possibly in your favour.

[Sheepshanks]

[redacted]

[Mark V GTD]

It’s VWFS and I can’t see you having any problems either way. As some have said earlier though if it’s a Taycan think carefully before jettisoning the hand back facilty that a PCP deal provides.