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  • FIRST POST
    • pimento
    • By pimento 24th Mar 17, 11:33 AM
    • 5,377Posts
    • 7,009Thanks
    pimento
    Changing PCP for Personal Loan
    • #1
    • 24th Mar 17, 11:33 AM
    Changing PCP for Personal Loan 24th Mar 17 at 11:33 AM
    I recently bought a second hand car from a main dealer (took delivery yesterday).
    I signed up for a PCP deal but have since realised that I have made a moneysaving error and I could borrow the money much cheaper from my bank (8.9% APR on the PCP vs 3.3% APR from my bank).

    If I apply for a bank loan, is there a chance I'll have a problem having so recently taken out a PCP? Is it worth speaking to a human at my bank telling them what I intend to do?

    I have good credit so getting the loan wouldn't necessarily be a problem.

    Thanks for any advice.
    "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair
Page 1
    • foxy-stoat
    • By foxy-stoat 24th Mar 17, 11:56 AM
    • 1,682 Posts
    • 909 Thanks
    foxy-stoat
    • #2
    • 24th Mar 17, 11:56 AM
    • #2
    • 24th Mar 17, 11:56 AM
    Possible flaw in your plan is if you do not get offered the banks cheapest rate.


    Humans in banks do not make decisions anymore, computers do so by all means apply for the loan and see how you get on.


    Good lucks
    • pimento
    • By pimento 24th Mar 17, 1:03 PM
    • 5,377 Posts
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    pimento
    • #3
    • 24th Mar 17, 1:03 PM
    • #3
    • 24th Mar 17, 1:03 PM
    Hm. I didn't think of that. I did get the headline rate last time I took a loan with them three years ago.

    Food for thought.
    "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair
    • mrmagooooooo
    • By mrmagooooooo 24th Mar 17, 2:56 PM
    • 93 Posts
    • 66 Thanks
    mrmagooooooo
    • #4
    • 24th Mar 17, 2:56 PM
    • #4
    • 24th Mar 17, 2:56 PM
    You should have a cooling off period of i believe 14 days to cancel the finance and pay off the outstanding so yes you will be able to do this. Look in your PCP contract for the terms.

    Just apply for the loan and see what rate they offer is what i would do.
    • pimento
    • By pimento 24th Mar 17, 3:38 PM
    • 5,377 Posts
    • 7,009 Thanks
    pimento
    • #5
    • 24th Mar 17, 3:38 PM
    • #5
    • 24th Mar 17, 3:38 PM
    Will my bank be able to see the PCP on their system?
    "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair
    • john1002
    • By john1002 24th Mar 17, 7:55 PM
    • 910 Posts
    • 379 Thanks
    john1002
    • #6
    • 24th Mar 17, 7:55 PM
    • #6
    • 24th Mar 17, 7:55 PM
    No not so soon after taking out the agreement, at least 28 days depending on update cycle the finance company use, the bank may see the finance company search but that will depend on which agency they use.

    I'd just go for it and see what happens. Worst case two searches.

    John
    • bearcat16
    • By bearcat16 25th Mar 17, 12:54 AM
    • 324 Posts
    • 387 Thanks
    bearcat16
    • #7
    • 25th Mar 17, 12:54 AM
    • #7
    • 25th Mar 17, 12:54 AM
    Personally, I would not simply cancel the finance agreement under the cooling off rule, because if you do then any incentives that you got (such as deposit contribution, free servicing etc) will be revoked.

    It would be better to make a single payment, then get a settlement figure from the finance company.

    Get your personal loan, then settle the finance with the loan funds.

    If you didn't manage to get any incentives for taking their finance, well what's wrong with you?!
    • pimento
    • By pimento 28th Mar 17, 10:22 AM
    • 5,377 Posts
    • 7,009 Thanks
    pimento
    • #8
    • 28th Mar 17, 10:22 AM
    • #8
    • 28th Mar 17, 10:22 AM
    Personally, I would not simply cancel the finance agreement under the cooling off rule, because if you do then any incentives that you got (such as deposit contribution, free servicing etc) will be revoked.

    It would be better to make a single payment, then get a settlement figure from the finance company.

    Get your personal loan, then settle the finance with the loan funds.

    If you didn't manage to get any incentives for taking their finance, well what's wrong with you?!
    Originally posted by bearcat16
    Yes, this is what I decided to do. I did get an incentive of 2000 so will wait until I've made the first payment.
    Hope that it doesn't ball$-up my loan rate.

    Thanks for all the advice.
    "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair
    • sivs
    • By sivs 28th Mar 17, 12:24 PM
    • 228 Posts
    • 55 Thanks
    sivs
    • #9
    • 28th Mar 17, 12:24 PM
    • #9
    • 28th Mar 17, 12:24 PM
    Like others have said... I would apply for a loan now as it will not be set up on your credit report. They will only see a search..

    The make the first payment and the get a settlement figure and pay off with loan.
    • JJG
    • By JJG 30th Mar 17, 11:38 PM
    • 274 Posts
    • 326 Thanks
    JJG
    Personally, I would not simply cancel the finance agreement under the cooling off rule, because if you do then any incentives that you got (such as deposit contribution, free servicing etc) will be revoked.

    It would be better to make a single payment, then get a settlement figure from the finance company.

    Get your personal loan, then settle the finance with the loan funds.

    If you didn't manage to get any incentives for taking their finance, well what's wrong with you?!
    Originally posted by bearcat16
    Incorrect. You can cancel the PCP and any incentives offered will still be there. They cannot revoke these, unless there was something in the contract you signed specifically states you must have the PCP to receive them. And I'm not sure on the legality of those statements if they are there.
    • bearcat16
    • By bearcat16 31st Mar 17, 12:15 AM
    • 324 Posts
    • 387 Thanks
    bearcat16
    Incorrect. You can cancel the PCP and any incentives offered will still be there. They cannot revoke these, unless there was something in the contract you signed specifically states you must have the PCP to receive them. And I'm not sure on the legality of those statements if they are there.
    Not incorrect.

    The last PCP agreement I took specifically said that incentives would become repayable at full market value in the event the finance agreement was cancelled within the cooling off period.

    That was RCI bank, who provide finance for Nissan and Renault in the U.K.
    • JJG
    • By JJG 31st Mar 17, 1:17 AM
    • 274 Posts
    • 326 Thanks
    JJG
    Not incorrect.

    The last PCP agreement I took specifically said that incentives would become repayable at full market value in the event the finance agreement was cancelled within the cooling off period.

    That was RCI bank, who provide finance for Nissan and Renault in the U.K.
    Originally posted by bearcat16
    Interesting. My last PCP with Audi Finance had no such clause. I kept all incentives with no penalty when I cancelled 2 days after signing.
    • Nebulous2
    • By Nebulous2 31st Mar 17, 7:43 AM
    • 1,871 Posts
    • 1,126 Thanks
    Nebulous2
    Not incorrect.

    The last PCP agreement I took specifically said that incentives would become repayable at full market value in the event the finance agreement was cancelled within the cooling off period.

    That was RCI bank, who provide finance for Nissan and Renault in the U.K.
    Originally posted by bearcat16
    I received a financial incentive through RCI and also got a free extended warranty (from 3 years to 5) The girl who sold me the finance told me I must make 4 payments to get the extended warranty. There was very limited information about the warranty - nothing in my written material at all. I phoned both the garage and RCI a couple of times to ask about it. I was promised they would look into it and send it out but it never arrived. Two days after the fourth payment a warranty certificate arrived by email.

    One day after that I paid it off!
    • pimento
    • By pimento 31st Mar 17, 9:08 AM
    • 5,377 Posts
    • 7,009 Thanks
    pimento
    Thanks everyone!

    I received my cash back yesterday and this morning applied for a loan from my bank. They've confirmed I can borrow 12000 over 54 months at 3.3% so as soon as the funds are in my account I will call Mercedes and clear the PCP.

    I reduced the term from 60 to 54 as the re-payments are still affordable and it just gives me a few more options.
    "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair
    • pimento
    • By pimento 31st Mar 17, 10:46 AM
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    • 7,009 Thanks
    pimento
    Wow! That was fast. The money from my bank is in my account already.

    Called Mercedes, they are sending me a letter confirming that I have withdrawn from the finance deal and explaining how to pay it off. No charge.
    "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair
    • wisevik
    • By wisevik 8th Mar 18, 11:02 AM
    • 11 Posts
    • 1 Thanks
    wisevik
    Hi, I have read through this thread and I have a couple of questions:

    What are the benefits of getting the PCP and then applying for a bank loan to clear it within days?
    Why did you have to get the PCP in the first place?

    Please be nice to me as I'm in the process of buying a new car and currently contemplating whether to use PCP, HP or simple bank loan.

    Many thanks,
    • Tarambor
    • By Tarambor 8th Mar 18, 3:27 PM
    • 2,865 Posts
    • 2,073 Thanks
    Tarambor
    Hi, I have read through this thread and I have a couple of questions:

    What are the benefits of getting the PCP and then applying for a bank loan to clear it within days?
    Originally posted by wisevik
    Many dealers and manufacturers offer incentives like deposit contribution, free insurance, extended warranties on PCP deals that aren't available to people who buy cash which is effectively what you are when you buy a car with a bank loan. Also in many cases the PCP interest is higher than a bank. Many PCP deals with low interest rates are actually "flat interest rates" so to compare them to the type of interest of a bank loan you can basically take the advertised interest rate of a flat rate and double it so a flat rate PCP deal interest rate of 4% would mean you repay roughly the same amount as borrowing the same money from a bank at 8%.

    So you take out a PCP deal to get the benefits then get a bank loan to lower the amount you repay or pay in cash.
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