Pay off PCP but keep discount

[Statiker]

Audi are offering a good PCP deposit contribution at the moment. I don’t usually buy with PCP but the discount cannot be ignored.
Is it possible to take out a pcp deal but then pay it off more or less straight away but keep the discount?
I’ve read it is important to say the right thing to the finance company, either “I want to cancel” or “I want to settle” or “I want to withdraw” and what you say leads to a different outcome. So what is the correct way?
Help appreciated. Thanks

 

[itf]

As far as I know you just ask for a settlement figure and pay it.

 

[Terminator x]

As far as I know you just ask for a settlement figure and pay it.

Need to just cancel it and pay it off within 14d to avoid interest. If you ask for a settlement they will add interest afaik.

TX.

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[engies]

You have right to withdraw from finance agreement within 14 days of signing contract you will only pay interest on how many days between signing and using your right to withdraw you need to do it over the phone and pay it off using bank transfer Easy I have done it now on 2 Audis and 1 vw golf r No problem and Yes you keep any discount etc


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[Statiker]

You have right to withdraw from finance agreement within 14 days of signing contract you will only pay interest on how many days between signing and using your right to withdraw you need to do it over the phone and pay it off using bank transfer Easy I have done it now on 2 Audis and 1 vw golf r No problem and Yes you keep any discount etc


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Thanks for the feedback on your experiences. I’ve read a number of posts (not on Audi-sport) that mention timescales of 14 days or 30 days. Also they have said if you ask to withdraw or cancel or settle will give different outcomes depending on what you ask for and in some cases interest has to be paid. I find it a bit confusing. How did you go about it in order to avoid problems? Thanks

 

[-Ju-]

This is how it's worked for me in the past.
If you ask to cancel the finance before the 14 days, which is your right, they give you a figure that includes interest for the number of days since you took the finance out to that point. This is valid for 30 days and you must pay it off within that time frame as the finance is cancelled.
If you ask for a settlement after the 14 days then you will pay substantially more as it's worked out using a recognised early settlement formula, you then have 30 days to settle it or the finance will roll on as if nothings happened.

 

[engies]

As J u above


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[engies]

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[Jason1987]

Ah so I wonder if I can take advantage of this as my bank will offer me pcp for 6.4% where as Audi is about 11%. Wonder if my bank will let me swap on to their pcp and pay off Audi. Sounds messy though

 

[-Ju-]

Ah so I wonder if I can take advantage of this as my bank will offer me pcp for 6.4% where as Audi is about 11%. Wonder if my bank will let me swap on to their pcp and pay off Audi. Sounds messy though

I'm not sure you can swap from one PCP to another tbh. I think you can only take one out at the point of sale. I stand to be corrected but that's what I've always thought?

 

[Statiker]

As J u above


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Thanks everyone for the feedback.
What I’m taking for this is that I can buy the car on an Audi pcp deal and get their deposit contribution, then within 14 days call Audi Finance and tell them I want to cancel. I then have 30 days to pay them and I do not have to return their deposit contribution. Is my understanding correct?

 

[engies]

Certainly is I called after 3 days and said I want to use my right to withdraw I payed £18.66p in interest charges it’s a No Brainer


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[Spike107]

PCP has always intrigued me, especially paying off the loan early but how does all this work against your credit history etc... Maybe applying for multiple finance products within short space of time?

Say you buy into Audi PCP financial services to get the dealer contribution and loan £40k. Clearly going to be a crap rate as discussed above. .. You then source a better rate from your bank... Should you have the bank loan in place before signing PCP ready to pay off within 14days.

 

[Statiker]

I understood I have a 14 day ‘right to withdraw’ and only pay a few days interest but I contacted Audi Finance and they say I have a 30 day right to withdraw. After 30 days I’d pay interest to the date of withdrawal plus 58 days interest as a penalty. I want to pay it off asap without penalty so is it 14 days or 30 days? I’m now confused again about what I should do!

 

[Frizzley]

I understood I have a 14 day ‘right to withdraw’ and only pay a few days interest but I contacted Audi Finance and they say I have a 30 day right to withdraw. After 30 days I’d pay interest to the date of withdrawal plus 58 days interest as a penalty. I want to pay it off asap without penalty so is it 14 days or 30 days? I’m now confused again about what I should do!

Simple - if you have the money pay it off asap taking into accountif it’s more than £25k then it will 3 days to reach them unless you send them a CHAPS payment which your bank will charge you for + if you have the cash it won’t be earning much if anything in interest .

 

[Jcbmally]

I understood I have a 14 day ‘right to withdraw’ and only pay a few days interest but I contacted Audi Finance and they say I have a 30 day right to withdraw. After 30 days I’d pay interest to the date of withdrawal plus 58 days interest as a penalty. I want to pay it off asap without penalty so is it 14 days or 30 days? I’m now confused again about what I should do!

As per this (14 days);

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[engies]

Just phone and use your right to withdraw as soon as possible ie 1-2 days after.


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[Statiker]

When does the clock start on the 14 days? When I sign and return the finance paperwork to Audi or when I take delivery of the car? I assume I will have to sign and return the paperwork a few days before I get the car.

 

[monkeyhanger]

When does the clock start on the 14 days? When I sign and return the finance paperwork to Audi or when I take delivery of the car? I assume I will have to sign and return the paperwork a few days before I get the car.

When you take delivery - your finance hasn't officially started until you drive away.

I withdrew a month ago when I picked up my new S3, 20 hours after collection - I got charged 2 days interest (the day of collection and the following day).

Terminology matters. You can ask for a "settlement" online, you have to call and speak to a human to "withdraw".

I asked for a settlement statement online the evening of collection, but realised something wasn't right with the balance shown to settle, it was about £600 more than expected.

I called the next day to "withdraw" and the balance was closer to expectations, just £18 out - £9 a day in interest. Settlement is the term that should be used after 14 days, and includes 58 days penalty interest that can't be applied when you withdraw within 14 days, but the computer that made the calculation online didn't know that.

Ask to withdraw, do it as early as possible, because once you do, they don't add further daily interest and you have 30 days to settle up at that point.

 

[Trojan]

I just did the same 2 weeks ago, got a nice £4k deposit contribution and withdrew after 72 hrs.
I then immediately paid them a bank transfer of the balance Plus 3 days interest.

 

[ptf]

Audi are offering a good PCP deposit contribution at the moment. I don’t usually buy with PCP but the discount cannot be ignored.
Is it possible to take out a pcp deal but then pay it off more or less straight away but keep the discount?
I’ve read it is important to say the right thing to the finance company, either “I want to cancel” or “I want to settle” or “I want to withdraw” and what you say leads to a different outcome. So what is the correct way?
Help appreciated. Thanks

It can be complicated to work out the best deal - like you I didn't wish to lose the Audi contribution so I got the dealer to tweak the PCP finance with a chunky deposit to shrink the loan as much as I could and to minimise the final payment so as to keep the interest down as well. I could have done slightly better on 3rd party financing (in terms of the overall cost) but only by a few quid so it didn't seem worth the hassle.

 

[Jason1987]

So if the pcp calc says total amount of credit £35600 and say a year into the 3 year pcp I decide to get a bank loan to clear the whole lot, how would that work? How much off the £35600 would I have to pay to keep the car? Bearing in mind I’ve paid 12x £520 payments. Second question, if I took this pcp out and then wanted to get a bank loan to clear it all like people are doing, it would be £35600 id have to pay off yeah? Same as it says on the pcp calc of total amount of credit?

 

[Sparks43]

So if the pcp calc says total amount of credit £35600 and say a year into the 3 year pcp I decide to get a bank loan to clear the whole lot, how would that work? How much off the £35600 would I have to pay to keep the car? Bearing in mind I’ve paid 12x £520 payments. Second question, if I took this pcp out and then wanted to get a bank loan to clear it all like people are doing, it would be £35600 id have to pay off yeah? Same as it says on the pcp calc of total amount of credit?

You would have to get a settlement note and they would also reimburse some of the interest you've paid and you then get a bank loan to cover that amount

If you do it straight away from what others have said you just pay a nominal amount of interest for each day within the first 14 days, so then you would only need to borrow the price of the car without the credit charges and just pay the daily interest - I'm sure someone said it was about £22 for a couple of days