PCP settlement

[tris179]

Hello all

 

I know there are quite a few posts on this, but some not so recent, but looking for some last minute advice,  looking to pull the trigger on a used Kodiaq tomorrow to join the Skoda family, from a Group 1 dealership.  I am considering it is still worth signing up to PCP and then settling in the first 14 days to get the extra warranty etc.

 

I noticed that the finance paper work references group 1 rather than vwfs, but assuming they act as broker.

 

Is this still a safe practice to go ahead with?

 

Many thanks

 

 

 

[Yogi-Bear]

Check the terms and conditions carefully. VWFS provide the finance on new cars, but not sure about used ones. Dealers will often provide their own finance deals for used cars, which have nothing to do with VWFS.

 

Regardless, you should have 14 days to withdraw from any credit agreement (legal cooling off period), but you may lose any credit incentives like free services / warranty etc. that comes with the finance. The T&Cs could be completely different to those that VWFS have for their agreements.

[MarkTB]

I bought a MY20 Kodiaq from the main dealer in Sheffield last month, and the PCP agreement was with VWFS - cancelled within 14 days to maintain the perks per the OP. Can't comment on the PCP provider you've been given tbh - just make sure that if you cancel, any additional perks are maintained, I must have asked my sales guy about 10 times!

[Houthakker]

Same as MarkTB here. Cancelled straight away and kept the perks. Get it confirmed in in an email from the dealer just to be sure.

[kodiaqsportline]

Sorry, might be too late for this to have any affect if OP was going to the garage on Friday, but just for the record....

 

😲   After everything that's been written, why are people still getting this sooooo wrong?

 

If there's a Briskoda Admin person reading this, perhaps it would be a good idea to have a post re: early PCP settlement that people can refer to rather than folk like me having to correct misleading information.

 

Everyone:   If you CANCEL a PCP arrangement then as with any finance agreement, under UK law, the Consumer Credit Act allows 14 days to withdraw without penalty ( commonly known as the  cooling off period ).

 

But the OP does not want to cancel the agreement ( few people do ), he want's to SETTLE the agreement, that's to say he want's to fulfill it. Under a PCP arrangement, you can settle the agreement at anytime - forget all about the 14 days cooling off, it does not apply to settlement, only to cancellation.

 

If you cancel an agreement then any incentives would have to be paid back. If however you settle an agreement, you keep the incentives, regardless of when you settle.

 

OP - check with the dealer who the finance is with, but if it's a VW Group dealership then there's a good chance it's VWFS.  And yes, VWFS provide PCP finance on used cars...

 

https://customer.vwfs.co.uk/car-finance-options/helping-you-choose/financing-used-vehicles.html

 

I haven't used VWFS to settle an agreement since 2020 and I believe they still work in exactly the same way:

 

1. Take out a PCP agreement,

2. Give it a couple of days, couple of weeks, couple of months, couple of years - whatever you want then log in to your online account with VWFS and request a settlement figure.

3. If it's after a few days, the only additional payment should be an administration fee of around £20-£30.

 

Now I say should be, but I'm not up to speed with current T&C.  The reason I'm hesitant is I bought a Toyota back in August and did exactly the same as I've always done with VWFS however they hid behind some ambiguous statement in their T&C that said a charge may be applied according to government rules.   Well a charge was applied - about £600, but nobody could tell me those government rules or how the figure was calculated. ( I'm still waiting to hear back from the financial ombusman on a ruling). Basically Toyota are saying we may charge whatever we like and don't have to show you how the sum was arrived at. They kept referring to the government website buy never divulged where on that website it mentioned anything about max. charges that can be applied. 7 months on and I've still never found them!    Toyota Finance are the only company that I've come across who charge this fee for setttling a PCP agreement but I've a hunch if they get away with it, others may also apply a charge, so whatever finance agreement you're asked to sign, pay particular attention to the section on early settlement.

 

Hope that helps.

 

 

 

 

 

[silver1011]

That’s a lot of words when all that was required was to simply replace the word ‘cancel’ with ‘settle’.

[Yogi-Bear]

17 hours ago, silver1011 said:

That’s a lot of words when all that was required was to simply replace the word ‘cancel’ with ‘settle’.

 

Aye - I was reading 'cancel' to mean 'settle' and was guilty of conflating the two things, but it is an important distinction to make as they are two very separate things. With one, the 14-day legal cooling-off period applies, with the other, it's irrelevant.

[kodiaqsportline]

On 31/03/2024 at 20:31, silver1011 said:

That’s a lot of words when all that was required was to simply replace the word ‘cancel’ with ‘settle’.

 

It's a lot of words because other people coming here to read these things get it wrong. And the reason they get it wrong is because people do not explain things.

 

 

Regardless, you should have 14 days to withdraw from any credit agreement (legal cooling off period), but you may lose any credit incentives like free services / warranty etc. that comes with the finance. The T&Cs could be completely different to those that VWFS have for their agreements.

 

The OP is clearly asking about settlement. You've replied with an answer about cancellation.  That's confusing as hell for anyone wishing to know about settlement.

 

 

 

[silver1011]

On 03/04/2024 at 10:54, kodiaqsportline said:

The OP is clearly asking about settlement. You've replied with an answer about cancellation.  That's confusing as hell for anyone wishing to know about settlement.

That’s not my reply…

 

The OP was clear in their question, but hasn’t provided enough information for any of us to provide the correct answer.

 

Nevertheless, it’s clear to me that those claiming to have ‘cancelled’ their agreements meant to write ‘settled’, ultimately confirming to the OP that they were able to keep the incentives after clearing the finance in full. Far from confusing.

[tris179]

Hello All,

 

Apologies for not being back online sooner, I went ahead and purchased the car on finance.

 

Within the 14 day period, I used my right to withdraw, which meant I had to pay the outstanding amount and a few days intertest.  I kept all my perks.

 

Hope that helps, and thank you all for your assistance.

 

Thanks again