Skoda city go PCP question

meat_n2_reg

Hello
Currently looking for a new car , looks likely to be a Skoda Citigo
Never PCP always pay cash


However Skoda are doing a £1750 contribution for PCP deal , I am wondering if I can take the PCP and then request a settlement figure after a few months and pay off in full

Have looked @ Finance website and states :-
The settlement figure is calculated using the rules set out in the Consumer Credit (Early Settlement) Regulations 2004 which is used by all creditors for regulated credit agreements. This rule states that the settlement figure should be calculated assuming a settlement date which is 28 days after the date on which the customer requests a settlement figure, or a later date if one is specified by the customer. Volkswagen Financial Services (UK) Limited also adds one month’s further interest to give the final settlement figure as allowed by the relevant legislation.

• Whilst your monthly rental / repayment will be fixed, the make-up of that monthly amount will vary; some CAPITAL & some INTEREST – with the interest amount decreasing each month
• At the point in which you request a settlement figure, we will calculate how much CAPITAL is remaining and then apply ONE month and 28 days (effectively 58 days in total) interest to that figure
• That combined amount will be your SETTLEMENT FIGURE
• The difference between the SETTLEMENT FIGURE and the TOTAL OUTSTANDING BALANCE will be displayed as the 'Rebate of charges' on your settlement quotation

I don't really under stand the above



Any advice appreciated



Thanks

DrEskimo

Yes, you can settle the finance in full at any time and still get the benefit of the finance contribution.

Check you are getting the best discounted price by using online brokers like CarWow, drivethedeal, broadspeed, coast2coast and orangewheels.

marlot

meat_n2_reg wrote: »

Never PCP always pay cash

Your plan will work. Or if you're happy to pay cash you can withdraw from the finance in the first 14 days, and keep the finance contribution.


I've done it a couple of times.

Ectophile

What they are saying is that you are taking out a loan. Every month, you make a payment. That payment covers that month's interest, and also pays off some of the loan.


If you ask for an early settlement, they will charge you the amount outstanding on the loan, plus 58 days interest on that loan.

meat_n2_reg

Many thanks have pulled the trigger on new 1.0 SE citigo @ 8k