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Changing PCP for Personal Loan
I recently bought a second hand car from a main dealer (took delivery yesterday).
I signed up for a PCP deal but have since realised that I have made a moneysaving error and I could borrow the money much cheaper from my bank (8.9% APR on the PCP vs 3.3% APR from my bank).
If I apply for a bank loan, is there a chance I'll have a problem having so recently taken out a PCP? Is it worth speaking to a human at my bank telling them what I intend to do?
I have good credit so getting the loan wouldn't necessarily be a problem.
Thanks for any advice.
I signed up for a PCP deal but have since realised that I have made a moneysaving error and I could borrow the money much cheaper from my bank (8.9% APR on the PCP vs 3.3% APR from my bank).
If I apply for a bank loan, is there a chance I'll have a problem having so recently taken out a PCP? Is it worth speaking to a human at my bank telling them what I intend to do?
I have good credit so getting the loan wouldn't necessarily be a problem.
Thanks for any advice.
"If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair
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Comments
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Possible flaw in your plan is if you do not get offered the banks cheapest rate.
Humans in banks do not make decisions anymore, computers do so by all means apply for the loan and see how you get on.
Good lucks0 -
Hm. I didn't think of that. I did get the headline rate last time I took a loan with them three years ago.
Food for thought."If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair0 -
You should have a cooling off period of i believe 14 days to cancel the finance and pay off the outstanding so yes you will be able to do this. Look in your PCP contract for the terms.
Just apply for the loan and see what rate they offer is what i would do.0 -
Will my bank be able to see the PCP on their system?"If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair0
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No not so soon after taking out the agreement, at least 28 days depending on update cycle the finance company use, the bank may see the finance company search but that will depend on which agency they use.
I'd just go for it and see what happens. Worst case two searches.
John0 -
Personally, I would not simply cancel the finance agreement under the cooling off rule, because if you do then any incentives that you got (such as deposit contribution, free servicing etc) will be revoked.
It would be better to make a single payment, then get a settlement figure from the finance company.
Get your personal loan, then settle the finance with the loan funds.
If you didn't manage to get any incentives for taking their finance, well what's wrong with you?!0 -
Personally, I would not simply cancel the finance agreement under the cooling off rule, because if you do then any incentives that you got (such as deposit contribution, free servicing etc) will be revoked.
It would be better to make a single payment, then get a settlement figure from the finance company.
Get your personal loan, then settle the finance with the loan funds.
If you didn't manage to get any incentives for taking their finance, well what's wrong with you?!
Yes, this is what I decided to do. I did get an incentive of £2000 so will wait until I've made the first payment.
Hope that it doesn't ball$-up my loan rate.
Thanks for all the advice."If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair0 -
Like others have said... I would apply for a loan now as it will not be set up on your credit report. They will only see a search..
The make the first payment and the get a settlement figure and pay off with loan.0 -
Personally, I would not simply cancel the finance agreement under the cooling off rule, because if you do then any incentives that you got (such as deposit contribution, free servicing etc) will be revoked.
It would be better to make a single payment, then get a settlement figure from the finance company.
Get your personal loan, then settle the finance with the loan funds.
If you didn't manage to get any incentives for taking their finance, well what's wrong with you?!
Incorrect. You can cancel the PCP and any incentives offered will still be there. They cannot revoke these, unless there was something in the contract you signed specifically states you must have the PCP to receive them. And I'm not sure on the legality of those statements if they are there.0 -
Incorrect. You can cancel the PCP and any incentives offered will still be there. They cannot revoke these, unless there was something in the contract you signed specifically states you must have the PCP to receive them. And I'm not sure on the legality of those statements if they are there.
Not incorrect.
The last PCP agreement I took specifically said that incentives would become repayable at full market value in the event the finance agreement was cancelled within the cooling off period.
That was RCI bank, who provide finance for Nissan and Renault in the U.K.0
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