Hi All,

 

I've recently ordered a new Octavia, for which I got a great dealer discount as well as the PCP deposit contribution. Like, I suspect, a number of others, I'm taking the finance for the discount on offer, not because I need or otherwise want it.

 

I know I can withdraw from the finance within the 14 day cooling off period and pay very little interest. However I'm considering settling the finance instead for a couple of reasons:

 

a) Because if I can make partial payments by credit card the points return potentially outweighs a couple of months interest and

b) Because I doubt the dealer is making a lot beyond the finance kick-back and, everything else being equal, I'd rather not screw them over (yes, I know they'll make their money elsewhere, but still...)

 

Having looked at the finance website and browsed the forums I have a few unanswered questions... So does anyone know:

 

1. Is there any limit to the number of times I can phone and put a partial payment of up to £3000 on a credit card to pay it off over a short period?

2. Whether I can make partial payments against the FGV / balloon payment, or am I limited to the total of the monthly instalments prior to requesting a settlement statement?

3. What's the earliest I can request a settlement statement? Do I have to wait until after 14 day cooling off period?

4. Could I make one or more partial payments and still withdraw within the 14 days?

 

Any information from those who've been through the process gratefully received.

 

Thank you!

Welcome.

 

Sorry not an answer to your questions.

But IMO do not worry about Car Dealership groups / Dealerships.

They do OK.  Pay the car off in the 14 days.

I think you just treat it like any other loan. If you are overpaying lump sums you are paying toward the credit borrowed and the interest (first, as this is front loaded) and not the baloon payment, as this you haven't borrowed

Thanks for the responses.

 

From the perspective of the numbers the total interest payable accounts for the fact that I'm not paying the balloon payment until the end of the term, based on the stated 5.5% APR. Aside from the fact that I could hand the car back instead of paying the balloon payment, and I don't own the car until the finance is settled, it otherwise works out exactly as if I borrow the cash price of the car, less the deposit, at that APR and pay off monthly payments over the term and a lump sum at the end.

 

I'm a bit confused therefore about the statement that the balloon payment doesn't form part of the credit borrowed (though arguably perhaps until it's settled and I own the car I'm lending them money in return for the use of it!). I understand though that making partial payments towards the balloon payment probably doesn't make sense, because until the finance is fully settled and I own the car I could still choose to hand it back.

 

My assumption here is that:

• If I withdraw I pay the quoted cash price (with the £2,500 finance discount) plus a few days interest and it is then as though I'd never signed up to the PCP agreement;
• If I settle I pay the same base amount with 2 months+ interest, but it is completely settled in that timescale. i.e. I don't have to wait until the end of the term to pay the balloon payment and that is reflected in the amount of interest payable, but I also lose the right to hand the car back.

Correct?

17 hours ago, SoonToBeOctaviaOwner said:

Thanks for the responses.

 

From the perspective of the numbers the total interest payable accounts for the fact that I'm not paying the balloon payment until the end of the term, based on the stated 5.5% APR. Aside from the fact that I could hand the car back instead of paying the balloon payment, and I don't own the car until the finance is settled, it otherwise works out exactly as if I borrow the cash price of the car, less the deposit, at that APR and pay off monthly payments over the term and a lump sum at the end.

 

I'm a bit confused therefore about the statement that the balloon payment doesn't form part of the credit borrowed (though arguably perhaps until it's settled and I own the car I'm lending them money in return for the use of it!). I understand though that making partial payments towards the balloon payment probably doesn't make sense, because until the finance is fully settled and I own the car I could still choose to hand it back.

 

My assumption here is that:

• If I withdraw I pay the quoted cash price (with the £2,500 finance discount) plus a few days interest and it is then as though I'd never signed up to the PCP agreement;
• If I settle I pay the same base amount with 2 months+ interest, but it is completely settled in that timescale. i.e. I don't have to wait until the end of the term to pay the balloon payment and that is reflected in the amount of interest payable, but I also lose the right to hand the car back.

Correct?

You're right you have borrowed the balloon payment as the dealer is paid off in full , that's why you pay interest on the whole amount, sorry about my previous answer I wasn't thinking clearly.