PCP contribution

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Get cheap gap insurance, you can get a 3 year deal if you look around, I know someone who was well chuffed with a brand new car after 2 years. (No doubt they paid for it in increased premiums, but on paper they got 2 years depreciation back).

Looks like a cast iron get-out clause to me. If you kept the pcp, the finance company would get the replacement car, and usually kindly allow you to swap it for the old one on the original agreement. As you will be the second owner, you won't get the benefit of the brand new replacement cover.

jacobi1

Hmmm
But

1) I understand 'registered keeper' (registered by DVLA), but what's a 'registered' owner?

2) if the PCP is cancelled witthin the 14 day period, is it not as if it never existed (as a legal contract)? So I'd still be the 1st owner....?

There's be a few days risk between taking out the PCP and cancelling it, but after that shouldn't the insurance clause apply? Happy to take out a 3rd party Gap if necessary, just want to understand. (and the insurer customer adviser was useless to say the least!)

neilmcl

jacobi1 wrote: »

Hmmm
But

1) I understand 'registered keeper' (registered by DVLA), but what's a 'registered' owner? - There is no such thing, although people and some insurers seem to be confused about this.

2) if the PCP is cancelled witthin the 14 day period, is it not as if it never existed (as a legal contract)? So I'd still be the 1st owner....? - You will remain the 1st registered keeper, as identified on the V5, which is all that matters.

There's be a few days risk between taking out the PCP and cancelling it, but after that shouldn't the insurance clause apply? Happy to take out a 3rd party Gap if necessary, just want to understand. (and the insurer customer adviser was useless to say the least!)

See my comments in red.

Up until you settle/cancel the finance you would need to tell the insurer that you are the keeper but the finance co are the owner, if they ask for both. Some insurers simply mention "registered owner" so you will have to clarify what they actually mean by this. I think Admiral used to do this, don't know if they still do, and when I spoke to them the advisor told me it was whoever was on the V5, therefore the keeper not owner. He may well have got this wrong but I took it on face value and insured it as such.

iolanthe07

I am doing the same as the OP suggests, but leaving it a few months before paying off the PCP. Interest will be minimal, and hopefully there won't be any hassle with the dealership.

neilmcl

iolanthe07 wrote: »

I am doing the same as the OP suggests, but leaving it a few months before paying off the PCP. Interest will be minimal, and hopefully there won't be any hassle with the dealership.

Any particular reason you're wanting to leave it a few months rather than settle straight away?

jacobi1

iolanthe07 wrote: »

I am doing the same as the OP suggests, but leaving it a few months before paying off the PCP. Interest will be minimal, and hopefully there won't be any hassle with the dealership.

What are you doing re insurance?

* taking out GAP?
* accepting the risk of a write-off resulting in you getting re-imbursed just the 'market value' (way below what you paid a couple of months previously)?
* relying on an insurerer's 'new-for-old' clause as in my post 11 above?

Just interested.

facade

jacobi1 wrote: »

2) if the PCP is cancelled witthin the 14 day period, is it not as if it never existed (as a legal contract)? So I'd still be the 1st owner....?

Yes, so if the PCP never existed, then the manufacturers contribution into the PCP never existed either, as they can hardly contribute to something that didn't exist, so you would be liable for the unsubsidised cost of the car.

(Rather like buying two pairs of shoes on "Buy one, you get one free" and taking back only the pair that you bought, and expecting a full refund but still getting to keep the "free" pair)

Which is why we are advising you to "settle" the finance = pay it off, rather than "cancel" = reject it outright, along with any "contributions" that were part of the package.

iolanthe07

neilmcl wrote: »

Any particular reason you're wanting to leave it a few months rather than settle straight away?

The dealer told me that if I cancelled within the first four months I would forfeit their contribution.

neilmcl

iolanthe07 wrote: »

The dealer told me that if I cancelled within the first four months I would forfeit their contribution.

But you're not "cancelling", you are settling the finance. Unless specified in the T&Cs of your finance agreement you will no be liable to pay back any contributions if settling the finance at any time.

jacobi1

iolanthe07 wrote: »

The dealer told me that if I cancelled within the first four months I would forfeit their contribution.

Forget what the dealer told you. Read the contract. Does it distinguish between paying off the finance after a month or 4 months? Mine certainly does not, in fact it uses the phrase "at any time".

hopefully there won't be any hassle with the dealership.

Once you've signed up and driven off the forecourt, your relationship is with the finance company, not the dealership.