Settling PCP early?

**Daglass** · 03-01-2015,06:51 PM

I'm in the process of ordering up an A6 Avant and have been fortunate enough to sell my current car privately (and well above what the dealer was offering).
This has left me in the position that I was looking to do a cash deal for the new car.
However, the salesman...or should that be accounts manager...has advised that a much better deal can be got by taking out a PCP.

Granted the initial cost through the PCP is much lower but the overall cost is off putting.

Is it possible to settle the PCP early and avail of the lower price or do you have to settle the full amount that would be incurred through the monthly payments?
I've heard conflicting reports on this.

Can anyone help?
Thanks

**M1tchy** · 03-01-2015,06:55 PM

Yes you can settle early - defiantly.

Take the deal out, give it a month or two until the paperwork has all turned up and then ring up for a settlement figure and pay it all off. Easy. You won't pay the interest in the outstanding balance either, only to the day you have the agreement out.

Sent from my iPhone using Tapatalk

**bingodingo** · 03-01-2015,08:41 PM

You have the right to cancel within the first 14 days. I did this recently. Took out the car on finance due to the extra 4k off being offered by the dealer for taking finance. A couple of days after getting the car I called VWFS to cancel. They were very helpful and it was very straight forward.

Sent from my iPad using Tapatalk HD

**robes401** · 03-01-2015,11:15 PM

I did this after 1 week of ownership using the right to withdraw within 14 days. Very easy way to save £2250 and all done via emails as I initially emailed audi finance outside of phone opening hours. In my case I did have to take out a bank loan to help settle the amount at much better rate than the audi finance rate. As above only had to pay the 1 week of interest accrued. I was a bit worried about doing this, but would do the same again in the future.

**belly buster** · 04-01-2015,12:47 AM

As above, yes you can definitely do this. Call Audi (VW) finance and ask for a settlement figure within 14 days (don't leave it too late). This is a legal right. You should have no problems.

**Whippy53** · 04-01-2015,01:48 AM

Easy, 1 call. Saved thousands.

**Daglass** · 04-01-2015,12:19 PM

Thanks for all the replies.
this is great news.
looks like i will be signing on the dotted line tomorrow.

**chesterfield** · 04-01-2015,07:01 PM

I've been advised that if you settle the finance in the first 6 months, then the commission that the dealer would have earnt on the finance deal, will not be paid.

Therefore its great for the buyer as you get the deal and can settle finance. The dealer may lose out though, so wouldn't expect them to be too happy.

Though I don't know what penalties/charges are incurred if you leave it 6 months before settling the finance.

**newA6** · 05-01-2015,08:02 PM

i did exactly that, took out pcp to get additional discount then within 14 days asked for a settlement figure to pay it off and it was finance amount plus a few days interest, so cost me just a few quid - well worth doing, I would say even if you needed a decent bank loan as amount payable would be less than pcp

**belly buster** · 06-01-2015,12:33 AM

Originally Posted by chesterfield

I've been advised that if you settle the finance in the first 6 months, then the commission that the dealer would have earnt on the finance deal, will not be paid.

Therefore its great for the buyer as you get the deal and can settle finance. The dealer may lose out though, so wouldn't expect them to be too happy.

Though I don't know what penalties/charges are incurred if you leave it 6 months before settling the finance.

You can always a debt early - again that is another legal right. There may be charges / levies after 14 days - this will depend on the small print of the contract.

Also don't ever feel bad for the dealer. For them it's just a numbers game; they know a % will settle early and they make hay on the rest.