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CREDIT HISTORY

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Hi,  
Does anyone here  know - if I purchase a used car on PCP and then pay the whole outstanding amount in the next or following payment due, would that affect my credit history? Not sure of the actual process  - do I have to pay a deposit in the first instance and then followed by my full payment?  Will appreciate a response asap.  Thank you.

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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    The account will show as settled in the relevant month.
  • marcia_
    marcia_ Posts: 3,405 Forumite
    Sixth Anniversary 1,000 Posts Photogenic Name Dropper
     Why not just pay in cash if you have the money? 🤔 
  • 400ixl
    400ixl Posts: 4,482 Forumite
    1,000 Posts Third Anniversary Name Dropper
    If it is to get the manufacturer discount etc, don't you just cancel the PCP within 14 days and pay it off? Seems to be what people do in this circumstance.
  • s45
    s45 Posts: 26 Forumite
    Ninth Anniversary 10 Posts Combo Breaker
    because this way I get 2 year warranty,service,roadside asstt instead of 1
  • s45
    s45 Posts: 26 Forumite
    Ninth Anniversary 10 Posts Combo Breaker
    400ixl said:
    If it is to get the manufacturer discount etc, don't you just cancel the PCP within 14 days and pay it off? Seems to be what people do in this circumstance.
    Does that affect my credit history
  • s45 said:
    400ixl said:
    If it is to get the manufacturer discount etc, don't you just cancel the PCP within 14 days and pay it off? Seems to be what people do in this circumstance.
    Does that affect my credit history
    If you take out credit, it will be shown as a debt on your credit record, then it will be shown as settled in full when you pay it off. It would look fine on your credit record as it shows you are a responsible borrower
  • s45
    s45 Posts: 26 Forumite
    Ninth Anniversary 10 Posts Combo Breaker
    s45 said:
    400ixl said:
    If it is to get the manufacturer discount etc, don't you just cancel the PCP within 14 days and pay it off? Seems to be what people do in this circumstance.
    Does that affect my credit history
    If you take out credit, it will be shown as a debt on your credit record, then it will be shown as settled in full when you pay it off. It would look fine on your credit record as it shows you are a responsible borrower
    Same as ZX81. .thank you both.  very helpful. 
  • s45 said:
    Hi,  
    Does anyone here  know - if I purchase a used car on PCP and then pay the whole outstanding amount in the next or following payment due, would that affect my credit history? Not sure of the actual process  - do I have to pay a deposit in the first instance and then followed by my full payment?  Will appreciate a response asap.  Thank you.
    you can do a right of withdrawal within the first 14 days, one thing i learned with Audi finance if you ask for a settlement figure the amount was different to a right of withdrawal figure - possibly to do with an early settlement penalty
  • MrFrugalFever
    MrFrugalFever Posts: 1,301 Forumite
    1,000 Posts Fourth Anniversary Photogenic Name Dropper
    If you cancel your PCP agreement within 14 days during cooling off period you are likely to not retain any manufacturers deposit contribution and they have the right to charge daily interest from the first day up until the day you pay in full (max 30 days to settle once cancelled). These charges are ALWAYS outlined in either the SECCI / PCCI or main contractual agreement. It is normally advisable to pay 1st DD then settle.

    If this is done fairly often the lender may well log this and decline future finance.

    It will show on your history as hard credit search, opened and then settled a month or 2 after, doubt there will be any negative from this.
    If you believe you can, you will. If you believe you can't, you won't.

    Secured/Unsecured loans x 1 
    Credit Cards x 8 (total limit £55,050)
    Creation FS Retail Account x 1
    Creation Credit Sale 0% x 1 = £112.50pm x 20 mths
    0% Overdraft x 1 (£0 / £250)
    Mortgage Outstanding - £137,707.00 (Payment 13/360)
    Total Debt = £7,400 (0%APR) @ £100pm - Stoozing

  • s45
    s45 Posts: 26 Forumite
    Ninth Anniversary 10 Posts Combo Breaker
    Another quick question.  
    If the used car we are buying is in my son's name and the HP finance agreement also in my sons name, would it be OK to pay the finance company by a parent (transferring the money from my bank to the finance company)?
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