Is this Kodiaq PCP offer contract OK to sign??

[AitchT]

Hello All;

 

Expecting to collect my first Skoda next week after an 8 month wait (don't ask!).

 

It's also my first PCP deal - I usually use my savings however I wanted to take advantage of the current deposit contribution + servicing offer.

 

The electronic contract arrived today for signing. The sub-heading entitled 'Type of Finance' says 'Hire Purchase' - Is that right?

 

The dealers says 'It's OK' however Skoda Finance wouldn't comment but said 'Sign and then we can check'!!  FFS Is that any way to do business. - The APR and excess mileage are also different to the current offer on the Skoda UK website which is odd.

 

I'm probably worrying over nothing but it would be good to know if this is all kosher

Edited 11 July, 2018 by AitchT

[Sabertooth]

From what you are saying, it sounds more of HP - Hire Purchase contract than a PCP. 

The major difference would be if there is a balloon payment at the end of your contract, which could be anything as high as 30% of the OTR price, otherwise I would say that is HP which means equal payments until the end of the contract. 

I dont know if the skoda finance (about £2k) and services are offered under HP but last i checked it was for PCP.

I would take a good look at that contract before I'd sign it if I were to be in your position. 

[lowedb]

4 hours ago, AitchT said:

Hello All;

 

 

It's also my first PCP deal - I usually use my savings however I wanted to take advantage of the current deposit contribution + servicing offer.

 

If you are in the UK, you can cancel the PCP deal and repay from your savings, so you will get the discounts but not pay the interest.

[AitchT]

Thanks for the feedback on both aspects  - there is a balloon payment so I guess that makes it a PCP contract.

 

I think an early termination is definitely on the cards if I can keep the deposit contribution and free servicing deal

 

Cheers for the good advice   

[KKB24]

My brother's contract read the same. I do wonder from the same dealer?? He enquired under PCP but paperwork said HP.  He was also told the same.

[WaterMelonMan]

12 hours ago, lowedb said:

If you are in the UK, you can cancel the PCP deal and repay from your savings, so you will get the discounts but not pay the interest.

.... ^ This - just be sure to notify skoda finance within 14 days (the cooling off period under the consumer credit act) of the inception of contract if you do as it saves quite a bit in any accrued interest.

[AitchT]

Cheers everyone  for the reassurance about the type of contract and for the good advice on tactics - looks like a win/win now

[DryAsSticks]

Just thought I'd check the paperwork I signed recently. I'm on a PCP as well but the contract calls it Hire Purchase where the last payment is the balloon. Sounds like it's the standard VWFS form.

[silver1011]

Don't worry, my PCP online signatory paperwork said the same.

 

As has been mentioned, as soon as you sign online ring Skoda finance and ask to exercise your 'right of withdrawal' (it can take a 24 hours for them to see your agreement number on their system). They will then give you a settlement amount right there and then (as well as confirming via the post) that is valid for 30 days. The sooner you do this the less interest you'll pay as interest is accrued daily.

 

I signed online and settled the next day using a pre-arranged bank loan with a significantly lower APR (there is no rush though as the settlement figure is frozen / held for 30 days from the moment Skoda Finance issue it to you).

 

This does not affect any finance contributions you qualified for at the time of ordering (i.e. deposit contribution, fuel card, test drive incentive, free services etc.)...

 

 

 

Also, if you haven't already, create an account on Skoda Finance's portal here.

 

This allows you to view and manage all your finance documents...

 

https://www.skodafinance.co.uk/en/private_customers.html

 

 

 

Edited 12 July, 2018 by silver1011

[AitchT]

Thanks again everyone - loving this forum. 

 

What seemed to to be an issue has become a master class in handling VWFS  documentation - I now feel back in charge of the situation.

 

Very much looking forward to collecting my first ever Skoda - an Edition 2.0TSI next week 

[Dr_Pepper]

PCP is a type of hire purchase, so nothing untoward there (ie regardless whether baloon payment or not you only hire the car until you've paid off the balance then it becomes yours)

 

Shocking that whoever you spoke to didn't know that though. And telling you to sign an agreement you aren't sure about when you've asked for more information is just unacceptable. If you have that in writing and you can be bothered you could report them to the FCA for that. They're breaking all kinds of 'treating customers fairly' rules. 

[AitchT]

Just a quick update.......

 

i followed the advice above and as predicted when I cancelled the PCP contract on Day 2, I paid a grand total of £7.80 interest and kept the £2K deposit contribution and free servicing.

 

You also get 30 days to settle the balance - Result!!

 

Thanks to everyone for your great advice

[WaterMelonMan]

On 03/08/2018 at 16:59, AitchT said:

Just a quick update.......

 

i followed the advice above and as predicted when I cancelled the PCP contract on Day 2, I paid a grand total of £7.80 interest and kept the £2K deposit contribution and free servicing.

 

You also get 30 days to settle the balance - Result!!

 

Thanks to everyone for your great advice

 

......... and the 30 days is interest free credit as well !