PCP (car finance) paying off early advice

nicolanicola

I'm about to sign up for a PCP agreement to buy a one year old VW Golf. With the finance, I get £500 worth of servicing and £500 deposit contribution. I only get the servicing package if I keep the PCP agreement at least 6 months.

My plan is to remortgage in time for the 6 months, and pay off the finance. However, I cannot find any t&cs online for VW to see if there's a fee to exit, and how much I'll have to pay back. The loan quote shows me borrowing £18920 (the cost of the car), with a GFV of £7357.50. I can't figure out in 6 months, what I'll have to pay back in order to own my car. Will I have to pay the loan back and the GFV?

saverbuyer

Can I ask what model of Gold you are getting, you might be able to get the same model for cheaper using an online broker.

I was able to buy a new Audi for less than some deals were offer on the same 1 year old model. I paid the PCP off before the 14 days were up without charge.

Also VW are offering £750 off and £199 for 3 years servicing with new golfs.

RDG

OP if you look at my previous threads you will see that I posted a link to a PCP calculator where you can see what you have actually paid back after each month of the agreement, in interest and capital so you should be able to work it out from there.

By the way in a PCP you borrow the full amount but the payment of the GFV is deferred until the end, thus reducing the monthly repayments, but increasing the interested paid over the term as the capital does not reduce as quickly as it would if the GFV was lower.

As saver says there maybe a better deal on a brand new car as the interest rates are usually better as are the finance incentives. It just depends how much of a saving a one year golf gives over a new one and how much you can haggle down.

chanz4

Research vw golf gearboxes, they are shed on wheels and overpriced at that. Also they will give you the package even if you with draw within the 14 days cooling off. Never believe a car sales person, he wants his commission for the finance sale