Clarity required on paying off PCP instantly

Nearlyold

DrEskimo said:

I imagine these are restricted to main dealerships. In which case, once you have been accepted for the finance and drive off, you will typically get a log-in to the finance portal. Here you can overpay or ring the company to get a full settlement figure. It's just a case of paying that settlement, getting a confirmation through the post and then you're done.

In order not to pay any set up fees and/or early settlement fees, you must contact the lender within 14 days and inform them you wish to withdraw from the agreement under the Right to Withdraw rules -  probably best not to refer to a "Settlement Figure" so there can be no confusion.

DrEskimo

Nearlyold said:

DrEskimo said:

I imagine these are restricted to main dealerships. In which case, once you have been accepted for the finance and drive off, you will typically get a log-in to the finance portal. Here you can overpay or ring the company to get a full settlement figure. It's just a case of paying that settlement, getting a confirmation through the post and then you're done.

In order not to pay any set up fees and/or early settlement fees, you must contact the lender within 14 days and inform them you wish to withdraw from the agreement under the Right to Withdraw rules -  probably best not to refer to a "Settlement Figure" so there can be no confusion.

Yea good point.

Although fees on car finance agreements like these are rare. Maybe an option to purchase fee of like £10.

Flight3287462

OP go and check the brokers rates (carWow, Drive the Deal etc) on new cars`depending on the brand you may be pleasantly surprised especially when to price in the full 3-7 year warranty (depending on brand).  There are savings of up to around 25% at the moment (biggest savings on bigger cars).

luiza8

Hi all. An update for you.

I've selected a vehicle and waiting on it being transferred from another branch to a local one. I've received the PCP terms and conditions from the dealership. The finance is through Nissan Finance.

After speaking with the dealership, they said if I cancel within 7 months I will loose my 2 years worth of free services. This is not in the terms and conditions, however neither is the fact that I receive 2 years worth of services.

I've spoken with the Nissan Finance directly to discuss the terms and conditions before signing, but they are only giving me generic information rather than information regarding my individual application (as it's not live). Catch 22 here, I want to get info on the specific terms and conditions for my deal, but can only get those once signed up and agreed.

I have also asked Nissan Finance if I will loose the deposit contribution of £400 if I settle the PCP in the first 14 days, and they said I would. I've looked into the terms and conditions and can see the following which does back up what they say. 

12.2 You have the right to withdraw from this Agreement in accordance with the rights set out under the heading "Right of Withdrawal" on page 2. If you wish to do so, you must repay the amount set out in this section together with any [other allowances we have made in relation to this Agreement, including, without limitation, any finance deposit allowance or contribution and/or any other sums or allowances together with interest within 30 days beginning from the day after you provide us with notice that you wish to withdraw.

Has anybody settled a Nissan Finance PCP deal within the 14 days and not had to return the deposit contribution?

Can they do either of these things if it's not in the terms and conditions?

DrEskimo

luiza8 said:

Hi all. An update for you.

I've selected a vehicle and waiting on it being transferred from another branch to a local one. I've received the PCP terms and conditions from the dealership. The finance is through Nissan Finance.

After speaking with the dealership, they said if I cancel within 7 months I will loose my 2 years worth of free services. This is not in the terms and conditions, however neither is the fact that I receive 2 years worth of services.

I've spoken with the Nissan Finance directly to discuss the terms and conditions before signing, but they are only giving me generic information rather than information regarding my individual application (as it's not live). Catch 22 here, I want to get info on the specific terms and conditions for my deal, but can only get those once signed up and agreed.

I have also asked Nissan Finance if I will loose the deposit contribution of £400 if I settle the PCP in the first 14 days, and they said I would. I've looked into the terms and conditions and can see the following which does back up what they say. 

12.2 You have the right to withdraw from this Agreement in accordance with the rights set out under the heading "Right of Withdrawal" on page 2. If you wish to do so, you must repay the amount set out in this section together with any [other allowances we have made in relation to this Agreement, including, without limitation, any finance deposit allowance or contribution and/or any other sums or allowances together with interest within 30 days beginning from the day after you provide us with notice that you wish to withdraw.

Has anybody settled a Nissan Finance PCP deal within the 14 days and not had to return the deposit contribution?

Can they do either of these things if it's not in the terms and conditions?

Then don't withdraw, settle it. There are no other fees so all you will pay is for the small amount of interest for having the loan for a day or two.

They make up any number of months that you need to have the loan active for to receive X. It's nonsense. I had 2 yrs free servicing on my Renault and it gets recorded on a central database (forgot what the number they refer to is). There's no mechanism for knowing if you settle early that you get removed from this. The same way there is no mechanism to ask you to pay more than the amount you finance, which will be the total cost, less any deposit contributions or upfront payments from yourself.

If you are worried, just pay the loan amount down to a minimum amount and let it run for a few months. It won't cost much.

Robbo66

surely if you can afford to buy the car outright then that's the best thing to do and just negotiate a deal to do so, saves all the hassle and worry of paying off finance and the arguing the toss because they want you to pay back any incentives. As previously said why not use carwow, you can get a great deal through them and other similar sites

NaughtiusMaximus

Robbo66 said:

surely if you can afford to buy the car outright then that's the best thing to do and just negotiate a deal to do so, saves all the hassle and worry of paying off finance and the arguing the toss because they want you to pay back any incentives. As previously said why not use carwow, you can get a great deal through them and other similar sites

Because in many (but not all, it depends on the car) cases the price you can negotiate with a PCP deal is significantly better than a straight cash purchase. This is also reflected through Carwow where they return 2 price options, one for cash and another for PCP. We bought a new Kia via Carwow last year and the difference was over £1,000 IIRC.

DrEskimo

NaughtiusMaximus said:

Robbo66 said:

surely if you can afford to buy the car outright then that's the best thing to do and just negotiate a deal to do so, saves all the hassle and worry of paying off finance and the arguing the toss because they want you to pay back any incentives. As previously said why not use carwow, you can get a great deal through them and other similar sites

Because in many (but not all, it depends on the car) cases the price you can negotiate with a PCP deal is significantly better than a straight cash purchase. This is also reflected through Carwow where they return 2 price options, one for cash and another for PCP. We bought a new Kia via Carwow last year and the difference was over £1,000 IIRC.

Exactly. Even with used cars this is the case.

The dealer negotiated £300 off the sticker price for the car I wanted, but there was no way he was going to knock another £1,000 off (particularly as I knew it was well priced given I was searching for around 6-months, including going to public auctions). Getting it on finance first to get this additional 'discount' did not involve arguing or much hassle at all.

Of course dealers told me all kinds of things about having to have the deal for [insert random number] months, but it's all nonsense. Ignore them, settle it the next day, enjoy the discounted car and free services.