Early settlement of Audi PCP

djd68

Hello,

I took out and Audi PCP in December last year. I have now come into some money and would like to settle early and buy the car outright. I figured that the 6.9% I would be saving is better than any post tax return I would get on my money.

My question is - is this something that they allow and if so, what kind of admin charge will they add?

As an aside I have just spent 20 minutes listening to Greensleeves on the Audi Finance customer service line!

Thanks,

Djd

motorguy

Sadly, you're going to have to listen to greensleeves again

You need to ring the finance company and get a settlement figure. this should be lower than the total amount owed (amount paid monthly * number of payments remaining) as they are obliged not to charge all of the interest (but they will charge some)

Ask them how you would then go about that - should be a simple matter of transferring the money to their account with a reference number or something.

oscarward

I did the same with a Jaguar PCP which used BMW finance (Alphera?) bizarrely. Got made redundant so decided to keep the car by using redundancy lump sum to pay off the loan.

Basically it came down to balance/balloon payment outstanding less payments due with a small fee on top (£25?). Saving something like £2k interest for the 16 months left to pay. Spoke to someone on the phone, who was very helpful, got a figure and then paid it off there and then with a debit card.

Got another job a few months later :beer:

InsideInsurance

You need to read your finance agreement as there will be clauses in there for early settlement. Normally it is similar to loans as in there is a couple of months extra interest charged and a small admin fee. Assuming there is more than a couple of months of payments outstanding it generally it will in the long term be better to early settle