PCP plan

13

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  • neilmcl
    neilmcl Posts: 19,460
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    t45 wrote: »
    i have only put down a deposit
    I feel really stupid
    I had no idea but it's not good
    I am goiung to see what I can ref this deposit and purchase the car on cash
    The deposit is simply to secure the car nothing to do with the finance deal. Just tell them you're no longer going for the PCP deal and you'll be paying cash, which means you should pay a further £6,300.
  • flashg67
    flashg67 Posts: 3,993
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    If you want an easier life, forget all the exras - they'll likely be overpriced. I've certainly found this with gap insurance.

    Unless you're confident enough to make sure you cancel the finance afterwards then I'd go in, pay cash, stand firm. They will give in as they won't want to lose a sale, even without the commission earning extras.
    As already suggested, it's likely the extras have been added on the the sticker price.

    I hope this doesn't come across as rude, but you seem a bit naive in dealing with car buying - have you a friend you can take along for back up? Car dealers are hard nosed by default and you have to be the same yourself sometimes (easier said than done, I know)
  • t45
    t45 Posts: 119
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    Thank you all so much for this.
    Update - I went through with the purchase - the car is lovely and I am now planning to withdraw from the PCP contract within the 14 day period (I assume that the 14 days includes Saturdays and Sundays as opposed to working days) - thank you all ever so much for such brilliant advice and information.
  • neilmcl
    neilmcl Posts: 19,460
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    Let us know how it goes.
  • t45
    t45 Posts: 119
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    thank you -
    Hope tp settle this today and withdraw from the PCP - thank you to all for advising and helping me understand this. I will pay for the car in one swoop!
    However, in my plan there were additional products added including car/tyre cover, paint cover which I would like to keep.
    However there is a product called GAP COVER which someone has advised me to not keep ie to have this refunded and do not keep active.
    I have to admit gap cover seems a bit complicated but the person I spoke to said that if you are going to own your car (which i will when I pay the finance company and withdraw from PCP) there is no point in having PCP as gap cover is really of use to those who have a car on finance.
    So went back to dealer and asked for clarificationon this added product and they said that I shoud still keep the GAP COVER but if I own the car surely I dont need to have a dealer's gap cover policy?.....
    Does anyone have any ideas about this or experience of gap cover.
    On a positive I am still within my 14 days cooling off period so though i would like to settle this today i could wait until next week - I'm only incurring pennies of daily interest....
  • neilmcl
    neilmcl Posts: 19,460
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    edited 22 October 2016 at 9:46AM
    t45 wrote: »
    thank you -
    Hope tp settle this today and withdraw from the PCP - thank you to all for advising and helping me understand this. I will pay for the car in one swoop!
    However, in my plan there were additional products added including car/tyre cover, paint cover which I would like to keep.
    However there is a product called GAP COVER which someone has advised me to not keep ie to have this refunded and do not keep active.
    I have to admit gap cover seems a bit complicated but the person I spoke to said that if you are going to own your car (which i will when I pay the finance company and withdraw from PCP) there is no point in having PCP as gap cover is really of use to those who have a car on finance.
    So went back to dealer and asked for clarificationon this added product and they said that I shoud still keep the GAP COVER but if I own the car surely I dont need to have a dealer's gap cover policy?.....
    Does anyone have any ideas about this or experience of gap cover.
    On a positive I am still within my 14 days cooling off period so though i would like to settle this today i could wait until next week - I'm only incurring pennies of daily interest....
    Looks like the dealer saw you coming ;)

    GAP insurance is designed to pay off the shortfall between an insurance payout for a total loss/write off and the amount you'd still owe the finance company. As you're settling the PCP then you don't really need the GAP, so you shouldn't have taken it out in the first place. Your best bet is to cancel it and get a refund.

    What may be a complication is if the GAP payment is included in the total amount borrowed, or did you pay for it separately? If it's the former I'm not sure how you go about getting it refunded, hopefully the finance co. can answer this.
  • Mobeer
    Mobeer Posts: 1,851
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    edited 22 October 2016 at 5:13PM
    Gap insurance can still be useful to have, as there are various versions of it. Some are limited to the difference between insurance payout and outstanding finance, other policies cover the difference between insurance payout and original invoice. The later type of policy is still useful even if you own the car with no finance involved.

    Remember though that you can shop around for GAP policies, you don't have to buy from the dealer.

    Also note there is a difference between settling and cancelling a PCP deal. The 14 day cool-off period relates to cancelling a PCP deal. You should not pay any interest (as the PCP was cancelled) but might lost any incentives related to your taking out a PCP (again as the PCP was cancelled). At that point you need some alternative means to pay the price of the car. The alternative is to settle the PCP, paying a sum of money to the finance company to complete the PCP deal.
  • t45
    t45 Posts: 119
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    Neil and Mob, thanks so much...to update you. I called the finance company – used my RIGHTS OF WITHDRAWAL and have 30 days to pay the sum of money.
    Unfortunately the GAP cover was included in the original finance and is part of that so I have to take it up with the dealer and ask for a refund. I have been advised to ask for refund. I have looked into it and believe that I have 30 days to write a NOTICE OF CANCELLATION to the company I have taken out the Gap with – this is all done via the dealer but I have an address for the insurer company and their procedure is to actually write to them and not the dealer.
    The only thing i will lose will be a £35 admin fee.
    To give you an idea of the cost of the Gap it was just under £300.
    I agree I should not have taken it out but this has been an steep learning curve for me. I take full responsibility but I kept saying to the dealer I can make this purchase in cash and don’t need the finance but I feel that they persuaded me with a lot of talk. And of course i was quite an easy customer with no knowledge of PCP and purchasing a car.
    I cancelled the PCP under the 14 days of right to withdraw so i did not lose any of the benefits.
    Thank you very much – i could not have sorted this out without you all offering brilliant advice and guidance. Much appreciated
  • t45
    t45 Posts: 119
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    to give you an idea of the produccts that were added to the overall car deal:


    Tyre cover
    Gap cover
    Paint cover
  • Mercdriver
    Mercdriver Posts: 3,898
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    Lessons for the future:

    If you can't be firm with the dealer don't go alone. Ask for a fully itemised invoice before signing anything. If you had a fully itemised costed invoice you would have noticed the extras weren't thrown in but added.
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