Pcp rebate?

humey86

I recently sold my pcp car to a dealer who cleared the finance. I recieved a letter stating that it had been paid off and there is a interest rebate of £2400. Is this correct, ive never settled early so wasnt expecting this. Be a nice surprise if it is!

Car_54

There should certainly be an interest rebate. However, I'd have expected that to have been used in calculating the settlement figure.

Read the letter carefully!

facade

Is the letter asking for bank details or for you to pay some sort of fee to get it?

They could easily have sent you a cheque for any rebate, £2400 is a huge adjustment, they ought to sack whoever calculated the settlement figure!

I doubt if it is true, but you could always ring your finace company and check- don't use the number on that letter though, use the real one.

humey86

I will do. I was only a year into a 4yr pcp deal. I know somethings are too good to be true!

doningtonphil

Could it be the case that the dealer that settled the finance just paid the 'outstanding balance' (which includes the interest that will be paid over the whole term) figure rather than requesting a settlement figure (which obviously removes the interest you will no longer be paying) therefore the dealer has 'overpaid' and you have received back the value of the interest that you will no longer be paying

humey86

Could well be..

neilmcl

doningtonphil said:

Could it be the case that the dealer that settled the finance just paid the 'outstanding balance' (which includes the interest that will be paid over the whole term) figure rather than requesting a settlement figure (which obviously removes the interest you will no longer be paying) therefore the dealer has 'overpaid' and you have received back the value of the interest that you will no longer be paying

The question really is who gets the rebate, the dealer or the OP. At the moment all the OP has is the account balance, there's no indication that they'll be getting anything back.

Grumpy_chap

The OP won't get anything back - that is just a presentation thing on the statement:

• Opening balance £16.6k
• Less five payments £1.25k
• Less the dealer payment £13k
• Leaves the interest £2.35k not accrued.  

Do the maths with actual numbers and the reduction of interest not accrued at £2,422.58 gets the zero balance required.

facade

Now I see the statement, there is no rebate to be paid out.

If you add it all up, it comes to the figure at the top, and the balance is zero.

It is just how the sums are broken down.

There was £16,628.99 to pay under the agreement, including interest. The payments already made, plus the settlement figure, plus the rebate total the original £16,628.99. The dealer paid £12937.66 as the settlement figure, the remainder 2422.58 is the interest that isn't charged. The confusion comes from them showing the 2422.58 as a credit to the account, rather than as a deduction from the opening balance.

humey86

Ah well! Thanks for the help everyone!