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  • FIRST POST
    • sunnypopsta
    • By sunnypopsta 7th Dec 19, 4:52 PM
    • 16Posts
    • 6Thanks
    sunnypopsta
    Car PCP Agreement - cancellation?
    • #1
    • 7th Dec 19, 4:52 PM
    Car PCP Agreement - cancellation? 7th Dec 19 at 4:52 PM
    I have signed to buy a car today on PCP - does anyone know if there is a cooling off period for PCP's - don't know if I will cancel just want to know if it possible (freaking out a bit here as I can't believe I have done it without loads of investigation first!!)

    Thanks
Page 1
    • DrEskimo
    • By DrEskimo 7th Dec 19, 4:59 PM
    • 869 Posts
    • 641 Thanks
    DrEskimo
    • #2
    • 7th Dec 19, 4:59 PM
    • #2
    • 7th Dec 19, 4:59 PM
    Yes there is, although it will require you to find alternative ways of paying for the car.

    Do you have the car, or are you waiting for it to be built?

    Feel free to post the exact details of the car and the finance terms and I'll be happy to look over it for you if you like? I spend an inordinate amount of time researching cars and finance so might be able to help...!
    • sunnypopsta
    • By sunnypopsta 7th Dec 19, 5:05 PM
    • 16 Posts
    • 6 Thanks
    sunnypopsta
    • #3
    • 7th Dec 19, 5:05 PM
    • #3
    • 7th Dec 19, 5:05 PM
    So I can't cancel the actual buying of the car as well? I put down 100 and signed a used vehicle order

    Car is 9811,I have paid 100 deposit
    10.9% - over 4 years
    185.58 per month
    Guaranteed value at the end 3596
    8k miles per year (we run less miles)
    Part exchange of a car 4700 - this is the amount they are going to give us in a cheque.
    price also includes gap insurance and autoglym life shine
    Obviously this is not a brand new car!
    I haven't picked up the car yet - just agreed this today
    Last edited by sunnypopsta; 07-12-2019 at 5:45 PM.
    • DrEskimo
    • By DrEskimo 7th Dec 19, 5:51 PM
    • 869 Posts
    • 641 Thanks
    DrEskimo
    • #4
    • 7th Dec 19, 5:51 PM
    • #4
    • 7th Dec 19, 5:51 PM
    That's a hell of a lot of interest you will be paying...it amounts to 3668.84 to borrow 9,700.

    My advice is to use some of the part exchange money and get a personal loan from your bank. Depending on the rate you get offered you could slash those interest charges to <1000, saving you thousands. Alternatively, you could use all of the Part ex money (4700) and then use a 0% credit card over 27months for similar monthly payment and pay no interest. The car will be fully paid off and yours by the end too.

    Also cancel the autoglym protection. It's borderline scam and not even worth it even for free. If you are paying for GAP, then cancel that too. I would bet my mortgage on it being overpriced and offering poor protection. You can use companies like ALA or totallossgap (who I use) to eat much cheaper and much more comprehensive cover.
    • sunnypopsta
    • By sunnypopsta 7th Dec 19, 5:57 PM
    • 16 Posts
    • 6 Thanks
    sunnypopsta
    • #5
    • 7th Dec 19, 5:57 PM
    • #5
    • 7th Dec 19, 5:57 PM
    Are we honoured to still buy the car? - Or would we just lose the deposit and they would leave us alone?
    • DrEskimo
    • By DrEskimo 7th Dec 19, 6:01 PM
    • 869 Posts
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    DrEskimo
    • #6
    • 7th Dec 19, 6:01 PM
    • #6
    • 7th Dec 19, 6:01 PM
    Not too sure to be honest. It's a question to ask. You should be able to get the deposit back, but it's possible they might withhold it.

    Do you think the car is not worth the price?
    • sunnypopsta
    • By sunnypopsta 7th Dec 19, 6:05 PM
    • 16 Posts
    • 6 Thanks
    sunnypopsta
    • #7
    • 7th Dec 19, 6:05 PM
    • #7
    • 7th Dec 19, 6:05 PM
    we like the car, but have done this all so fast and are struggling to understand the PCP. We might just cancel and take the old one to 'we buy any car' to get the deposit and try to buy again.
    • sunnypopsta
    • By sunnypopsta 7th Dec 19, 6:07 PM
    • 16 Posts
    • 6 Thanks
    sunnypopsta
    • #8
    • 7th Dec 19, 6:07 PM
    • #8
    • 7th Dec 19, 6:07 PM
    Just having a discussion with hubby now - he says the guaranteed value at the end of the 4 years would be used as a deposit for another car - I say it would only be any value over and above the guaranteed value which would be used as a deposit - does that make sense? can you tell us who is right? Thanks for all your knowledge by the way and taking the time to answer us
    • DrEskimo
    • By DrEskimo 7th Dec 19, 6:19 PM
    • 869 Posts
    • 641 Thanks
    DrEskimo
    • #9
    • 7th Dec 19, 6:19 PM
    • #9
    • 7th Dec 19, 6:19 PM
    Just having a discussion with hubby now - he says the guaranteed value at the end of the 4 years would be used as a deposit for another car - I say it would only be any value over and above the guaranteed value which would be used as a deposit - does that make sense? can you tell us who is right? Thanks for all your knowledge by the way and taking the time to answer us
    Originally posted by sunnypopsta
    Pleasure.

    Whilst I would hate to create a domestic and take sides, I'm afraid you are correct and your husband is mistaken....!

    PCP is just a loan. Rather than pay the entire amount off over the 48months, a portion of is deferred to the end as a final payment. This is a predicted value of what the finance company think the car will be worth in 4yrs time with an additional 32k miles on it. If the finance company is right, then you have a final payment of 3,596 to make, and you have a car that has a value of 3,596. You can either pay the final payment and keep the car, or hand the car back to the finance company and pay/get nothing more. If the finance company were wrong and it's worth more (say 4,000), then you could, exactly as you say, trade the car in and get a cheque for the difference (404).

    The whole premise of deferring some of the payment to the end is to reduce the monthly cost. That's it. But in doing so, you incur more interest. which is why your PCP will end up costing you the same as though you were to borrow 9,711 over 48months at a rather eye-watering 16.5% APR....It's very expensive way to buy a car...consider that you can get a loan from the bank at 3% APR, which for 9,711 over 48months would cost just 306 in interest! Less than 10% of the cost of that PCP loan! Of course, the monthly amounts are higher, but it's important to look beyond the monthly cost. It's why the dealer wants you to focus on it, as you lose sight of the actual cost overall.


    If you are happy with the car, I would decline the PCP finance and decline the autoglym protection and GAP, and seek finance and GAP elsewhere. I pay 249 for 5yr cover for mine (and it's a very comprehensive protect). The autoglym amounts to nothing more than a fancy carwash. I'm guessing they were charging in the hundreds for it? If you want, you can find a local 'detailer' and get a very nice job for similar money. Just don't pay a dealer. They simply don't have the time or expertise to do anything worth that sort of money.

    Hope that helps!
    Last edited by DrEskimo; 07-12-2019 at 6:22 PM.
    • sunnypopsta
    • By sunnypopsta 7th Dec 19, 7:09 PM
    • 16 Posts
    • 6 Thanks
    sunnypopsta
    We have a lot to talk about tonight and its a relief to think we can stop the PCP. Thanks for all your advice it has helped tremendously.
    • Terry Towelling
    • By Terry Towelling 7th Dec 19, 8:53 PM
    • 2,222 Posts
    • 1,893 Thanks
    Terry Towelling
    What Dr Eskimo says about things such as paintwork and upholstery protection are worth taking on board and you always need to check dealer paperwork because they often add these things on without telling you and try to distract you with the monthly repayment figures.

    Many's the time I've enquired about buying a car and found the paperwork they prepare includes these things (that I've never asked for) and I have to get them to redo it all. Now when I approach a dealer for figures, I always tell them up front not to add these things and never to try and sell me GAP insurance, or I will simply walk away.
    • DrEskimo
    • By DrEskimo 7th Dec 19, 9:34 PM
    • 869 Posts
    • 641 Thanks
    DrEskimo
    What Dr Eskimo says about things such as paintwork and upholstery protection are worth taking on board and you always need to check dealer paperwork because they often add these things on without telling you and try to distract you with the monthly repayment figures.

    Many's the time I've enquired about buying a car and found the paperwork they prepare includes these things (that I've never asked for) and I have to get them to redo it all. Now when I approach a dealer for figures, I always tell them up front not to add these things and never to try and sell me GAP insurance, or I will simply walk away.
    Originally posted by Terry Towelling
    Absolutely. They have such an incredible mark up on them, it's no wonder they push them so hard.

    The paint protection is typically a 40 sub optimal sealant product, where they spend around 10mins quickly applying it during a 5 standard valet wash. Then charge you 350 for the pleasure....

    On a used car in particular, it's generally so ineffective that you wouldn't even know anything was applied. Complete waste of money.
    • Mutton Geoff
    • By Mutton Geoff 7th Dec 19, 10:52 PM
    • 1,879 Posts
    • 2,225 Thanks
    Mutton Geoff
    And GAP insurance on a used car is not worth the money. It's barely acceptable on a new car (where it's supposed to cover some of the huge loss on a car the moment you drive it out of the showroom) but on a used car, the depreciation will be linear until it hits a floor level (1,000 with a years MOT) so I'm not sure what the gap insurance will cover?
    Compensation/Refunds - 4,655 | Stooz Profits - 7,636 | Quidco - 4,365 | Tax Avoidance - 107,000
    All with a big thank you to Martin and MSE.com from Mutton Geoff!
    • DrEskimo
    • By DrEskimo 7th Dec 19, 11:10 PM
    • 869 Posts
    • 641 Thanks
    DrEskimo
    And GAP insurance on a used car is not worth the money. It's barely acceptable on a new car (where it's supposed to cover some of the huge loss on a car the moment you drive it out of the showroom) but on a used car, the depreciation will be linear until it hits a floor level (1,000 with a years MOT) so I'm not sure what the gap insurance will cover?
    Originally posted by Mutton Geoff
    I think you are thinking of GAP insurance that specifically covers the shortfall between the insurance pay out and the finance owed against it.

    There are more comprehensive types of GAP, like return to invoice and replacement vehicle. This covers the difference between what the insurance pays out and what you originally paid for the car (or with vehicle replacement, the amount needed to get into a car similar to the day you bought it, which can be needed with new models increasing prices). Whether new or used, these policies can be worth thousands, and cost relatively little (50 per year in my case).
    • chanz4
    • By chanz4 9th Dec 19, 6:19 PM
    • 10,103 Posts
    • 3,007 Thanks
    chanz4
    The wont be any value at the end, it will just be what the car is worth. Get a Tesco loan for the remainder and pay the px valve straight off the car. No savings will get you 10%
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
    • sunnypopsta
    • By sunnypopsta 11th Dec 19, 1:00 AM
    • 16 Posts
    • 6 Thanks
    sunnypopsta
    Thanks everyone for the advice - especially Dr Eskimo. I can't believe I was so taken in by it all when it wasn't for me at all. I went back to the showroom and cancelled the sale and the pcp - needed more time to think about getting a new car after doing it so quickly. After reading the terms I had signed I really thought the car showroom would be funny about it but they were actually very nice. They brought out the sales manager and tried to work around my arguments but I stuck to my guns and they said the money would be back in my account in a few days. Phew! It was a close one and I am so normally not like this at all - Can't believe I did it but thanks again to everyone for the good advice
    • molerat
    • By molerat 11th Dec 19, 3:07 PM
    • 21,815 Posts
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    molerat
    What is worse was how they managed to effectively lend you 4700 at 10.9% over 4 years
    https://www.helpforheroes.org.uk/give-support/donate-now/
    • sunnypopsta
    • By sunnypopsta 17th Dec 19, 11:06 AM
    • 16 Posts
    • 6 Thanks
    sunnypopsta
    Totally - they are so smooth and I normally am so careful about only taking out interest free! Deposit is now back in my account - well it just proves you are never too old to learn!
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