Paying off HP

[juan27]

On 3/11/2018 at 09:45, silver1011 said:

This is why more of us are signing up to the PCP to benefit from the discounts, only to pay the balance off in full immediately after signing the paperwork using a regular unsecured bank loan which more often than not attract a lower APR.

 

 

Maybe better to say that at the moment you can get a bank loan with a lower APR.....as recently as 2016 Skoda were offering a 0% APR PCP and as the base lending rate is only going to go up bank loans will surely become more expensive again in the next few years.

 

Not sure if Skoda are now offering the deposit contribution and higher APR having found that has more showroom appeal or if we can expect 0% deals again soon? 

[silver1011]

I've just secured a loan via Sainsbury's bank at 3.1%.

 

A 0% PCP from Skoda would have been better but you can't wait around from quarter to quarter hoping Skoda's next deal will be better.

 

I am now fully expecting Skoda to offer 0% from April 1st 

[Den4iks99]

Hello everyone,

just one question which is not clear for me. As I understand PCP finance should create a hard check in credit report, so how it is possible to take PCP finance and bank loan at once? (sorry if it is a stupid question)

 

[Mr Statto]

I've bitten the bullet, told Skoda Finance we want out & secured a loan at 2.8% from M&S. Haven't yet had confirmation from Skoda that this is acceptable though - did it through their website contact form (it's in Mrs Statto's name, but she leaves financial wizardry to me.

[juan27]

1 hour ago, Den4iks99 said:

Hello everyone,

just one question which is not clear for me. As I understand PCP finance should create a hard check in credit report, so how it is possible to take PCP finance and bank loan at once? (sorry if it is a stupid question)

 

 

Hard check doesn't necessarily stop you taking out another loan, especially if the second one is to pay the first one off.  Its about affordability rather than number of agreements.  Someone could have a single PCP costing £1000/month for a McLaren or similar, but another person with the same income could have a £250/month PCP for an Octavia and a £250/month loan repayment for financing their daughter's wedding.  Obviously the second person has more affordable payments despite having two loans.

 

People try to avoid unnecessary hard checks as they could count against you in a borderline lending decision which may be based on a points based system with no discretion, but if you've got a good credit rating the scenario discussed should be fine .

 

Edited 13 March, 2018 by juan27

[SunsetZed]

51 minutes ago, Mr Statto said:

I've bitten the bullet, told Skoda Finance we want out & secured a loan at 2.8% from M&S. Haven't yet had confirmation from Skoda that this is acceptable though - did it through their website contact form (it's in Mrs Statto's name, but she leaves financial wizardry to me.

 

Sounds good, enjoy the discount. Try not to spend it all on car goodies!

[Mr Statto]

16 hours ago, SunsetZed said:

 

Sounds good, enjoy the discount. Try not to spend it all on car goodies!

 

Far bigger things to spend it on - there's a new house & a puppy in the pipeline!

[silver1011]

On 3/13/2018 at 15:30, Den4iks99 said:

Hello everyone,

just one question which is not clear for me. As I understand PCP finance should create a hard check in credit report, so how it is possible to take PCP finance and bank loan at once? (sorry if it is a stupid question)

 

 

I've done just that, secured a £25,000 loan from Sainsbury's bank, and the very next day had a Skoda Solutions PCP approved for a similar amount.

 

I'm assuming that by using the Sainsbury's loan to pay off the PCP in full will be looked upon favorably in terms of the credit score, as a large debt has been cleared early.

[MattChr]

May depend on individual lender - like you say some may see it as clearing off debt early so definitely able to afford repayments. Some may see that as terminating an agreement too quickly, seen as less likely to make profit from you with all those monthly interest payments.

 

May take a couple of months for those to settle down, clearly showing debt has been repaid.

 

[EddGee]

Can anyone advise what the procedure is to settle early. 

 

By early I mean within 14 days. 

 

Got my settlement figure this evening from Skoda Financial service. Basically it’s costing about £25 in interest to settle this quickly. 

 

The advisor on the phone didn’t sound too clued up to be honest. He said that a bank transfer is the way to sort it. 

 

Has anyone done this and how did you check it went through ok?

 

Also a little paranoid that I’ll end up liable for the £3000 Skoda deposit contribution and losing the two ‘free’ services. 

 

Advice appreciated. 

 

 

[SC03OTT]

29 minutes ago, EddGee said:

Can anyone advise what the procedure is to settle early. 

 

By early I mean within 14 days. 

 

Got my settlement figure this evening from Skoda Financial service. Basically it’s costing about £25 in interest to settle this quickly. 

 

The advisor on the phone didn’t sound too clued up to be honest. He said that a bank transfer is the way to sort it. 

 

Has anyone done this and how did you check it went through ok?

 

Also a little paranoid that I’ll end up liable for the £3000 Skoda deposit contribution and losing the two ‘free’ services. 

 

Advice appreciated. 

 

 

 

The answers are on the last two pages. 

 

You phone up. Ask for a settlement figure. They provide. You transfer them the money. Services are still valid. 

[EddGee]

3 minutes ago, SC03OTT said:

 

The answers are on the last two pages. 

 

You phone up. Ask for a settlement figure. They provide. You transfer them the money. Services are still valid. 

I did read them but I guess I wanted reassurance. 

 

Im paranoid like that. 

[Mr Statto]

12 hours ago, SC03OTT said:

 

The answers are on the last two pages. 

 

You phone up. Ask for a settlement figure. They provide. You transfer them the money. Services are still valid. 

 

I'll second that - phoned up, quick chat, they gave me a figure. Letter arrived a couple of days later with the figure confirmed & bank details for transfer. Sorted the loan elsewhere, waited for the money to arrive & transferred online (or you can send a cheque). Really straightforward

[EddGee]

22 hours ago, Mr Statto said:

 

I'll second that - phoned up, quick chat, they gave me a figure. Letter arrived a couple of days later with the figure confirmed & bank details for transfer. Sorted the loan elsewhere, waited for the money to arrive & transferred online (or you can send a cheque). Really straightforward

Did you discuss the Skoda deposit contribution? 

 

I was concerned that I’d have to pay back the £3000. 

 

I cant find anything in the t&c’s regarding this though. 

 

Salesman said pay 6 months and settle and it would be fine. Not sure he knew what he was talking about to be honest. 

 

Reading back through this thread seems to confirm that Skoda don’t ask for the deposit back. 

 

 

Edited 24 March, 2018 by EddGee

[threadbear]

On 12/03/2018 at 19:56, silver1011 said:

I've just secured a loan via Sainsbury's bank at 3.1%.

 

A 0% PCP from Skoda would have been better but you can't wait around from quarter to quarter hoping Skoda's next deal will be better.

 

I am now fully expecting Skoda to offer 0% from April 1st 

Your lucky to get a Sainsbury’s loan at 3.1%. I applied for one February last year at 2.8%. When the paperwork came through to sign off it was 6.8%. I refused to sign and asked why the difference? Only a limited number of loans available at the lower rate. 

 

So went to my own bank, a slightly higher rate at 3.8 but no hassle. After 3 years, the cars mine. 

[daveface]

I got a good rate when buying my vRS (2.8%) at https://www.zopa.com great service, interest is calculated daily and you can make over payments when ever you want via their website 

[silver1011]

6 hours ago, EddGee said:

Did you discuss the Skoda deposit contribution? 

 

I was concerned that I’d have to pay back the £3000. 

 

I cant find anything in the t&c’s regarding this though. 

 

Salesman said pay 6 months and settle and it would be fine. Not sure he knew what he was talking about to be honest. 

 

Reading back through this thread seems to confirm that Skoda don’t ask for the deposit back. 

 

 

 

Trust us!

 

As soon as you collect the car and sign the paperwork, drive home, enjoy the car for a day or two, ring up Skoda Financial Services, ask for the settlement figure, tell them you want to settle and follow their instructions, which will likely be that they'll send you the figure through the post and request you do it via a balance transfer.

 

Job done. The £2,000 Skoda contribution, £1,000 fuel card and 2x services remain unaffected.

[silver1011]

5 hours ago, threadbear said:

Your lucky to get a Sainsbury’s loan at 3.1%. I applied for one February last year at 2.8%. When the paperwork came through to sign off it was 6.8%. I refused to sign and asked why the difference? Only a limited number of loans available at the lower rate. 

 

So went to my own bank, a slightly higher rate at 3.8 but no hassle. After 3 years, the cars mine. 

 

That's why the percentage is called a 'representative APR', a little cheeky but the use of the word representative means that:

 

"A Representative APR is an advertised rate that a minimum percentage of customers will pay. This minimum percentage is 51% of the people who are accepted for the loan."

 

Unfortunately is this instance you were part of the other 49%.

 

Edited 24 March, 2018 by silver1011

[Mr Statto]

On 3/24/2018 at 08:35, daveface said:

I got a good rate when buying my vRS (2.8%) at https://www.zopa.com great service, interest is calculated daily and you can make over payments when ever you want via their website 

 

I got 2.8% - "this isn't just a loan, it's an M&S loan"

[juan27]

1 hour ago, Mr Statto said:

 

I got 2.8% - "this isn't just a loan, it's an M&S loan"

 

+1 for M&S....but don't expect these rates to last.