CREDIT HISTORY

s45

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.

[Deleted User]

The account will show as settled in the relevant month.

marcia_

 Why not just pay in cash if you have the money? 🤔 

400ixl

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

because this way I get 2 year warranty,service,roadside asstt instead of 1

s45

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

[Deleted User]

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

Deleted_User said:

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. 

martinbainbridge1975

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

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.

s45

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)?