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PCP or Cash?
JamesHuntingdon1
Posts: 2 Newbie
in Motoring
Hi all,
After a little advice. I'm looking to buy a used car, for £11,000, from a main dealer. I have the cash to pay for the vehicle in full right away.
The dealership currently has an offer on, whereby you get £500 deposit contribution, 2 years free warranty, breakdown cover, MOT insurance and 2 free services IF you take out one of their PCP plans to finance the car. Search for VW used car event in google to see the offer as I'm not allowed to paste the link
The dealer suggested that if I take out the plan, and then pay it off in full after 6 months, that I will be able to take advantage of all of the benefits and pay comparatively little to end the PCP finance.
He said that I will simply need to pay 6 months worth of interest on the monthly payments (the normal monthly payment is £150ish, rate 10%, so around £15x6). This would mean that I could enjoy these benefits worth ~£1000 for around £100.
I know he's probably on commission...but does this sound too good to be true? There's not much in the pre-contract information document about paying it off early - just that you are free to do so whenever you want.
I'm not sure if this would work out very expensive/worthless or actually be a good deal and a genuine example of a 'good' salesman...(I must point out the dealership has also won multiple trading standards awards)...
Any thoughts VERY much appreciated! Has anyone done something like this before?
Thanks!
After a little advice. I'm looking to buy a used car, for £11,000, from a main dealer. I have the cash to pay for the vehicle in full right away.
The dealership currently has an offer on, whereby you get £500 deposit contribution, 2 years free warranty, breakdown cover, MOT insurance and 2 free services IF you take out one of their PCP plans to finance the car. Search for VW used car event in google to see the offer as I'm not allowed to paste the link
The dealer suggested that if I take out the plan, and then pay it off in full after 6 months, that I will be able to take advantage of all of the benefits and pay comparatively little to end the PCP finance.
He said that I will simply need to pay 6 months worth of interest on the monthly payments (the normal monthly payment is £150ish, rate 10%, so around £15x6). This would mean that I could enjoy these benefits worth ~£1000 for around £100.
I know he's probably on commission...but does this sound too good to be true? There's not much in the pre-contract information document about paying it off early - just that you are free to do so whenever you want.
I'm not sure if this would work out very expensive/worthless or actually be a good deal and a genuine example of a 'good' salesman...(I must point out the dealership has also won multiple trading standards awards)...
Any thoughts VERY much appreciated! Has anyone done something like this before?
Thanks!
0
Comments
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You don't have to wait 6 months, you can settle the finance at any time, immediately if yo so wish.0
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The salmon is probably saying 6 months so the clawback on his commission doesn't kick in.0
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straighttalker wrote: »The salmon is probably saying 6 months so the clawback on his commission doesn't kick in.
Sounds fishy to me.You can pick your friends and you can pick your nose but you can't pick your friend's nose.0 -
"Salmon" ?straighttalker wrote: »The salmon is probably saying 6 months so the clawback on his commission doesn't kick in.0 -
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Yep, pretty much what's been said above. The sales exec's I worked with used to have their commission clawed back if a customer paid in full within 6 months. There's nothing stopping you phoning up & paying a day after you physically get the car.Dwy galon, un dyhead,
Dwy dafod ond un iaith,
Dwy raff yn cydio’n ddolen,
Dau enaid ond un taith.0
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