Withdrawing from PCP, or early settlement? 24 February at 4:10PM in Loans 2 replies 186 views

Dave_5150

DW recently ordered a new car via PCP to secure a manfacturers deposit contribution. The car has now arrived and we intend to end the PCP once the vehicle is collected.

My recollection is you can either withdraw from the finance by "giving notice" witin 14 days and only incur interest charges, or settle the finance anytime after the 14 day period which is likely to incur additional fees for up to 58 days interest, or document fees etc.

I just wanted to double check that withdrawing from the finance was the cheapest way to clear the debt and retain the deposit contribution.

MorningcoffeeIV

Withdrawing is cheaper - and better from a CRA perspective.

poppy10_2

Just remember to read the T&C's of the manufacturer deposit contribution deal. Some will be dependent on you taking out the PCP - if you withdraw from it/cancel (rather than just terminating early) you could conceivably have to pay back the deposit contribution