Car finance change

Diazsprite

Hello girls and guys! I will share my short story and I would like your advise if I can do this. I've just ordered over a month ago a new car, factory order, for delivery in September/October and we agreed over the phone for a PCP, I just sign a proposal for finance to see if the company will accept my application . Now "post covid" if I can say this at this stage, they financial terms improved and they have better offers for less interest per year. Now I still wan't to keep the car order but what chances to I have to change the finance options? Can I cancel this finance PCP and take the new PCP with lower interest which will save me at least £1000 over 3 years. Regards

[Deleted User]

You can take out a new loan if you can get one and settle the first, bearing in mind you'll need to pay early settlement fees. If you haven't actually taken out finance, then you can go anywhere you want 

New rates may be a little higher, depending on your profile, so don't cancel anything until you have a guaranteed alternative way of funding the car.

Diazsprite

The finance that I have now will start only when the car will be delivered which is end of September, and because actually it didn't started yet I want to cancel with them and due another one with the same company (it is the car finance company). Mmmm... ??

SuperAllyB

Phone the dealer and/or the finance company and ask?

[Deleted User]

Diazsprite said:
 Mmmm... ??

Mmmm???

Diazsprite

Deleted_User said:

Diazsprite said:
 Mmmm... ??

Mmmm???

thinking

Diazsprite

SuperAllyB said:

Phone the dealer and/or the finance company and ask?

dealer most likely not willing to change the deal as they will loose money, wondering if I am covered to push for a cancellation and make a new one

Penguin_

Diazsprite said:

SuperAllyB said:

Phone the dealer and/or the finance company and ask?

dealer most likely not willing to change the deal as they will loose money, wondering if I am covered to push for a cancellation and make a new one

Dealer won't lose money as they will still get the screen price (via your deposit(s)) & amount from the finance house.

Grumpy_chap

Is the total cost the same with the new, cheaper finance?
I know that sounds like a dumb question, but what I mean is..
1. New car at £15k list, sell at £14k but finance at x% so total over 3 years = £18k
2. New car at £15k list, sell at £15k but finance at lower y% so total over 3 years still £18k

DrEskimo

Diazsprite said:

SuperAllyB said:

Phone the dealer and/or the finance company and ask?

dealer most likely not willing to change the deal as they will loose money, wondering if I am covered to push for a cancellation and make a new one

In my experience from reading various car forums, dealers will give the updated PCP parameters if it leads to a reduction in cost. Similarly they will allow the customer to get a previous PCP deal if that is better than the new deal.

The typically adjust the GFV, deposit contributions and sometimes APR. As above, it would be advisable to look at the whole cost when determining which is better, rather than just the monthly cost.

A lower GFV can increase the monthly cost, but it will reduce the total amount of interest payable, s be cheaper over the whole cost of ownership. Even better is a GFV of £0..i.e. a standard HP. That will save you lots on interest in lieu of higher monthly payments. A personal loan might even give you a lower APR to boot.

Diazsprite

With the new deal they offer now the first 3 month paid by them. My monthly payments will increase to max £10 but overall in 3 years I will pay £1000 less. The GFV will stay the same. This is all because in the new deal even they reduced their financial contribution towards a credit, the APR in lower and they pay the first 3 months. I discuss over email with the dealer but not keen to change as the deal was done in May and this is a June offer. I can push more for this but do not know if I still have the right to cancel my finance deal now. The deal is with Audi.