Pcp finance-immediate cancellation

paisleybuddy

Want to pay cash for new Dacia car but discovered can get a £650 dealer contribution if I opt for the PCP finance.
Would I be able to opt for the finance and pay outstanding amount within the 14 days cooling off period without incurring any interest/charges etc.
Looking to purchase through Arnold Clark.
Interested to see if anyone else has previous experience in buying a new car this way, paying off outstanding amount ASAP.
Thanks

Inner_Zone

paisleybuddy wrote: »

Want to pay cash for new Dacia car but discovered can get a £650 dealer contribution if I opt for the PCP finance.
Would I be able to opt for the finance and pay outstanding amount within the 14 days cooling off period without incurring any interest/charges etc.
Looking to purchase through Arnold Clark.
Interested to see if anyone else has previous experience in buying a new car this way, paying off outstanding amount ASAP.
Thanks

It was £500 here:
https://forums.moneysavingexpert.com/discussion/5512804

Are the winter evenings drawing in?

neilmcl

paisleybuddy wrote: »

Want to pay cash for new Dacia car but discovered can get a £650 dealer contribution if I opt for the PCP finance.
Would I be able to opt for the finance and pay outstanding amount within the 14 days cooling off period without incurring any interest/charges etc.
Looking to purchase through Arnold Clark.
Interested to see if anyone else has previous experience in buying a new car this way, paying off outstanding amount ASAP.
Thanks

C'mon mate, stick to the one thread, and the same facts.

paisleybuddy

Posted another thread as on the first one dealer told me £500 contribution and only through loskie replying on this thread and telling me about carwow.co.uk I discovered Dacia finance were offering contribution of £650 though PCP finance which I didn't know anything about before and just wanted to know if anyone had experience of paying PCP Finance off immediately as I don't want credit I want to pay off asap but paying off in full in cash doesn't get me anything off towards new car.

bazzyb

paisleybuddy wrote: »

Want to pay cash for new Dacia car but discovered can get a £650 dealer contribution if I opt for the PCP finance.
Would I be able to opt for the finance and pay outstanding amount within the 14 days cooling off period without incurring any interest/charges etc.
Looking to purchase through Arnold Clark.
Interested to see if anyone else has previous experience in buying a new car this way, paying off outstanding amount ASAP.
Thanks

My understanding is that if you use your right to withdrawal (within the 14 day cooling off period) then it is a straightforward reversal so you would lose any dealer contribution or other perks.

If you waited until 1 day after the cooling off period and settle in full, you would keep the contribution as you are settling rather than withdrawing. However, any fees (if applicable) would become due and the costs of settling this way (2 months worth of front-loaded interest, for example) are likely to outweigh any benefit from the dealer contribution.

neilmcl

bazzyb wrote: »

My understanding is that if you use your right to withdrawal (within the 14 day cooling off period) then it is a straightforward reversal so you would lose any dealer contribution or other perks.

Actually, that rarely happens. I've even had dealers, and their finance guys, tell me (unofficially) that you wouldn't lose anything by cancelling.

billn

Cannot comment on Dacia but Audi/VW do not claw back the Deposit Contribution but I have read that they may do in the future? I have never got my head round this but I can only assume that not many people are in a position to pay back that amount of money.

neilmcl

billn wrote: »

Cannot comment on Dacia but Audi/VW do not claw back the Deposit Contribution but I have read that they may try to do in the future? I have never got my head round this but I can only assume that not many people are in a position to pay back that amount of money.

Corrected that for you.

Unless the sales contract/finance agreement specifically states that dealer/manufacturer contributions will have to be repaid on cancellation then there is nothing they can do about it.

bigadaj

neilmcl wrote: »

Corrected that for you.

Unless the sales contract/finance agreement specifically states that dealer/manufacturer contributions will have to be repaid on cancellation then there is nothing they can do about it.

I'd be very surprised if such a clause wasn't in the pages of the agreement that would be signed, the lawyers would need a bollocking if it wasn't.

neilmcl

bigadaj wrote: »

I'd be very surprised if such a clause wasn't in the pages of the agreement that would be signed, the lawyers would need a bollocking if it wasn't.

Why would it? The finance company couldn't care less about dealer/manufacturer contributions, it's nothing to do with them.

bigadaj

neilmcl wrote: »

Why would it? The finance company couldn't care less about dealer/manufacturer contributions, it's nothing to do with them.

There wouldn't be a specific clause, but there would be generic clauses stating that any incentives may need to be repaid if any conditions of the sale or contract were not fulfilled, cancelled or completed.

Whether such a clause would be enforced is a very different matter but it would be surprising if it weren't present.