Changing PCP for Personal Loan

JJG

bearcat16 wrote: »

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.

Interesting. My last PCP with Audi Finance had no such clause. I kept all incentives with no penalty when I cancelled 2 days after signing.

Nebulous2

bearcat16 wrote: »

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.

I received a financial incentive through RCI and also got a free extended warranty (from 3 years to 5) The girl who sold me the finance told me I must make 4 payments to get the extended warranty. There was very limited information about the warranty - nothing in my written material at all. I phoned both the garage and RCI a couple of times to ask about it. I was promised they would look into it and send it out but it never arrived. Two days after the fourth payment a warranty certificate arrived by email.

One day after that I paid it off!

pimento

Thanks everyone!

I received my cash back yesterday and this morning applied for a loan from my bank. They've confirmed I can borrow £12000 over 54 months at 3.3% so as soon as the funds are in my account I will call Mercedes and clear the PCP.

I reduced the term from 60 to 54 as the re-payments are still affordable and it just gives me a few more options.

pimento

Wow! That was fast. The money from my bank is in my account already.

Called Mercedes, they are sending me a letter confirming that I have withdrawn from the finance deal and explaining how to pay it off. No charge.

wisevik

Hi, I have read through this thread and I have a couple of questions:

What are the benefits of getting the PCP and then applying for a bank loan to clear it within days?
Why did you have to get the PCP in the first place?

Please be nice to me as I'm in the process of buying a new car and currently contemplating whether to use PCP, HP or simple bank loan.

Many thanks,

System

wisevik wrote: »

Hi, I have read through this thread and I have a couple of questions:

What are the benefits of getting the PCP and then applying for a bank loan to clear it within days?

Many dealers and manufacturers offer incentives like deposit contribution, free insurance, extended warranties on PCP deals that aren't available to people who buy cash which is effectively what you are when you buy a car with a bank loan. Also in many cases the PCP interest is higher than a bank. Many PCP deals with low interest rates are actually "flat interest rates" so to compare them to the type of interest of a bank loan you can basically take the advertised interest rate of a flat rate and double it so a flat rate PCP deal interest rate of 4% would mean you repay roughly the same amount as borrowing the same money from a bank at 8%.

So you take out a PCP deal to get the benefits then get a bank loan to lower the amount you repay or pay in cash.