PCP - right to withdraw

DailyClicker · 23 April 2017 at 5:54PM

Hi,

From what I understand, a PCP contract comes with a 14-day right to cancel with no penalty (only a daily rate of interest)?

Would taking out a PCP and cancelling within 14 days, have any impact on my credit rating?

If I was unable to cancel within the 14 days, and could only pay the full amount after the first months payment in order to keep the benefits, how would this impact my credit rating?

Thanks,

Nearlyold · 23 April 2017 at 6:53PM

When you refer to the keeping the "benefits" are you referring the any discount the dealer gave you as encouragement to take the PCP?

Once you give notice to withdraw you have 30 days to repay the amount borrowed to the finance company.

Withdrawing from the agreement has no effect on your credit rating though there could be an overlap before the loan stops showing on your credit file ditto if you cancel after one months payment - remember the latter will more than likely cost you 2 months additional interest

DailyClicker · 23 April 2017 at 9:37PM

Nearlyold wrote: »

When you refer to the keeping the "benefits" are you referring the any discount the dealer gave you as encouragement to take the PCP?

Once you give notice to withdraw you have 30 days to repay the amount borrowed to the finance company.

Withdrawing from the agreement has no effect on your credit rating though there could be an overlap before the loan stops showing on your credit file ditto if you cancel after one months payment - remember the latter will more than likely cost you 2 months additional interest

Thanks for your reply.

Sorry for not being clear, it's a used car so I'm referring to the 2 years warranty/service/MOT.

Any idea if VW revoke this if you cancel within 14 days?

bazzyb · 23 April 2017 at 10:34PM

DailyClicker wrote: »

Would taking out a PCP and cancelling within 14 days, have any impact on my credit rating?

Your credit rating doesn't matter as it is something that is only visible to you.

In terms of what will be shown on your credit report/credit history, then if you use the right to withdraw and cancel within the 14 days, the credit agreement should not show on your credit history at all, whereas if you settle after a month the agreement will show on there but will show that it has been settled.

PCP - right to withdraw

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