(Apologies if this has already be covered recently - I did search but could not find an answer)

 

I ordered a new Superb Estate SE L 2.0 190 TSI DSG in March using the PCP deal (with the pre-price rise £3k contribution) and it should arrive later this month (hopefully). Since we ordered, we now have the funds to payoff the car so I plan to call the Finance Company to cancel (withdraw?) with the 14 days cooling off period provided by the Consumer Credit Act, once we collect the car. I then came across a couple of car finance related sites that make this claim:

 

https://carplus.co.uk/faq/general/cancelling-car-finance-within-14-days/

 

Quote

Those 14 days in the cancelling terms apply to every car financing agreement worth £25,000 or less. If your contract is of a higher total value, check its terms and conditions to learn if you can cancel it. Moreover, bear in mind that there is no withdrawal for any loan agreement over £60,260.

 

https://www.mycarcredit.co.uk/cooling-off-period-car-finance/

 

Quote

Under the Consumer Credit Act, you should have 14 days to withdraw from a credit or loan agreement. This is applicable to all finance agreements, regardless of whether you made it in person with the lender, over the phone or on via an internet process.

The 14-day period begins on the day you sign/agree to the contract, when you receive a copy of the agreement or from when you get a notification from your bank records that you have received the loan.
This applies to any Hire Purchase, Personal Loan or Personal Contract Purchase that amounts to below £25,000. Any higher amount will be susceptible to the terms and conditions of the agreement and/or the lender’s decision. In addition, the right to withdraw does not apply to any loan above £60,260.

 

I looked at the Consumer Credit Act 1974 (https://www.legislation.gov.uk/ukpga/1974/39/section/66A) and I can only see the reference to the  £60,260 figure. Our finance amount is approx £32k so I am wondered if this is a real world issue? I plan to ring Skoda Finance and ask for clarification on this but I wondered if anyone else has come across this > £25k scenario?

So my understanding is...  you're not cancelling.  You're settling (paying off the loan).  Cancelling would be saying that you no longer want the deal and pulling out without paying anything or taking delivery of a vehicle.

4 hours ago, SC03OTT said:

 You're settling (paying off the loan).  Cancelling would be saying that you no longer want the deal and pulling out without paying anything or taking delivery of a vehicle.

Also @ianch99 Settlement of a loan is always possible; the issue is in whether or not the loan arrangement imposes penalties on an early settlement, and to answer that you have to read the original document in full.

20 hours ago, SC03OTT said:

So my understanding is...  you're not cancelling.  You're settling (paying off the loan).  Cancelling would be saying that you no longer want the deal and pulling out without paying anything or taking delivery of a vehicle.

 

That's correct, I am paying off the loan, or in their language, exercising my right to withdraw with the 14 day cooling off period. BTW, I did ring Skoda Financial Services to clarify this and they said that the only limit in play here is the  £60,260 figure which is reassuring. Not sure why these websites have the (confusing) £25,000 figure.