Withdraw or settle HP?

DD265

I've acquired another car, and took the HP to get a better deal on it. Now I'm trying to work out whether I am best to withdraw from the agreement or settle it.

The amount financed was £9823.99, which inclues £349 worth of asset protection (gap) insurance. The interest rate is 4.81% p.a/9.2% APR. The first direct debit will be paid in March. I paid an additional £1500 deposit (£99 reservation fee on credit card and £1401 on debit card).

1. When I cancel the gap insurance, where does the refund typically go? Appreciate I might need to ring and ask them.

Cancellation within the cooling-off period
You have the right to cancel this policy and to receive a full refund of Premium provided no claims are known or reported by giving notice of cancellation
within 30 days of the date You receive Your policy documents. Please quote the number that appears on Your Certificate of Insurance.

2. Am I better to withdraw from or settle the HP agreement?

We'd be leaving ourselves at risk in terms of emergency funds if we paid it off before the 28th January but obviously not expecting anything to go wrong between now and then. The dedicated cash available right now to pay it off is £8854.47, £9203.47 including the gap insurance refund whether that goes direct or via me.

Your right to withdraw from the agreement
If you wish to withdraw from the agreement, you can do so within the first 14 days from the day after the day on which we advise you that the agreement has been made. [got a text 19/01/2020 to say the agreement is active, signed the paperwork and collected the car yesterday]. If you wish to exercise this right [...]. If you do with to withdraw, you will need to pay the advance of £9823.99 to us plus daily interest of £2.39 interest acrruing from the date the credit was provided to the date of repaying it to us, without delay and not later than 30 calendar days after giving notice of withdrawal.

Early Repayment
You have the right to repay the credit early at any time in full or partially. If you do make a partial settlement, we will re-schedule your future payments to reduce your monthly payments from the next payment date (unless a direct debit has all ready been requested in respect of the payment due on the next payment date, in which case the payments will be reduced from the next payment date after that). Any part settlement will be used to clear arrears and associated charges before reducing future payments.

My settlement figure as of this morning is £9958.82, and that figure stands until the 16th February.

TIA

Mercdriver

Why did you put only £99 on credit card when £100 is required for section 75 protection?

YorkshireBoy

Mercdriver wrote: »

Why did you put only £99 on credit card when £100 is required for section 75 protection?

As little as 1p will provide section 75 cover. It's the price of the goods or services that needs to be over £100 (and IIRC less than £30,000).