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PCP settlement
I'm looking at buying a car and the manufacturer has an incentive to buy on a PCP (they give you money towards the deposit). I have the funds available and I don't want to run the deal for 4 years and pay the 10% interest. Could I take it out and run for a month, get a settlement figure and pay it off? Would I get penalised i.e. be charged all the interest I would have paid if I let it run the whole term? I did this once with another make of car (the dealer told me I could - to take advantage of the deal being given by the car maker). Any experience?
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Comments
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You can clear it whenever you want.
Interest is never front loaded.0 -
Yea I did this in Feb on a used car with deposit contribution.
Read the T&Cs carefully and check for any early settlement charges or optional purchase fees, but from most I've seen, there is usually no penalty for settling early.
Do it the next day if you want to.0
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