Paying off PCP early (within 14 days)

Highland76

If you want to pay off a PCP almost immediately (within 14 days) after collecting the car, are you supposed to tell the finance company that you want to cancel the agreement or withdraw from the agreement, to avoid paying any interest? Reason for asking is that I have taken out PCP for a factory ordered new car (original plan was to buy car on cash purchase), as the discounts were greater than paying outright cash (£6000 v £4000). So I plan to pay off the financed amount within 14 days of collecting the car.

Any pitfalls to be aware of? Obviously I haven't told the dealer about this.

Thanks.

AdrianC

The 14 day period is your right to early cancellation of the finance deal. What you call it doesn't really matter - the legislation that allows it is what's important.

http://www.legislation.gov.uk/ukpga/1974/39/part/V/crossheading/cancellation-of-certain-agreements-within-coolingoff-period

foxy-stoat

What is your interest rate? Do you know how much 56 days interest is going to cost?

DavidT67

Who was funding the additional discount ? The dealer, manufacturer or finance company? If the latter, you may find the discount is contingent on taking out the finance agreement. Cancelling may negate that discount.

marlot

I've done it a few times. I've always asked to withdraw, but it doesn't really matter.

born_again

DavidT67 wrote: »

Who was funding the additional discount ? The dealer, manufacturer or finance company? If the latter, you may find the discount is contingent on taking out the finance agreement. Cancelling may negate that discount.

Plenty of people do this. As it's a legal requirement that you have 14 days cooling off. I can't see any of the above contesting it.

Only people that lose out are sale people who will not get the commission.