I'm thinking of buying a nearly new Skoda Karoq and am tempted to take it on PCP with Skoda Finance because of the benefits, ( 2 x services, 2 year recovery etc) and then cancel within 14 days. This is a tactic I genuinely would usually avoid as unethical but in this case, I resent the fact that they push people into debt for the sake of some commission. Has anyone done this recently, and did they retain the benefits that came with it after cancellation?

Edited 4 September, 20254 Sep by skoda998

Yes, keep the benefits, just pay a token amount of interest for few days before you settle the outstanding balance.

For clarity, not cancelling the deal (which sort of puts everything back to where it was as if it hadn't happened). This is allowed under a 14 day cooling off period by law.

Settling the balance early is not really advertised, and in blunt terms the benefits are subsidised by the poorer in society who can't afford to pay it off, and end up paying more in interest than they ever saved on the deal. I guess paying off early tends to be kept low key because morally it is reverse Robin Hood, take from the poor to benefit the rich.

Quite why so many people take the dumb approach of only looking at the monthly payments (having chosen to exclude any deposit, or final payment, or penalties for damage/excess mileage) from their thoughts is completely beyond me. Only ever had a couple of lessons in basic household finance, but first rule was look at cash price and compare to total payable under a deal, to decide if it is a good deal that suits you.

Ultimately someone is going to make a profit from a finance deal, otherwise wouldn't offer them or encourage them. So if don't want to line their pockets take the gifts, but don't give back twice over by paying loads of interest.

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Edited 5 September, 20255 Sep by SurreyJohn

I've done this recently and so has a friend.

Just be aware that if you cancel within the 14 days you have cancelled the finance and potentially all the benefits.

Skoda now include the commission charges so paying up early after the 14 day cool off period does include some charges as well as the interest.

For myself and my friend were both charged around £300 in charges and interest and both paid off 2 weeks after purchase.

It was still worth it for the deposit contribution, the 2 year service pack and in the case of my friend the two year warranty.

Edited 5 September, 20255 Sep by logiclee

More confused now, whether it's better to cancel or withdraw. At what point are you registered for the the free services?

Just now, skoda998 said:

More confused now, whether it's better to cancel or withdraw. At what point are you registered for the the free services?

If you want the benefits then you settle the finance after the 14 day cooling off period. Pay the charges and a small amount of interest.

If you cancel during the 14 day cooling off period then the finance and all benefits are cancelled and you have to go back to the dealer with some cash.

Edited 5 September, 20255 Sep by logiclee

The problem I have is that I can't find the terms and conditions of the PCP agreements anywhere online

On 05/09/2025 at 21:17, skoda998 said:

The problem I have is that I can't find the terms and conditions of the PCP agreements anywhere online

Go to dealer, ask for a copy so you can consider your options.

Finance is regulated, so all finance companies have to give you contract terms.

9 hours ago, Monkhai said:

Go to dealer, ask for a copy so you can consider your options.

Finance is regulated, so all finance companies have to give you contract terms.

I got the dealer to send me a copy of the terms and conditions. No indication how long it takes to get a settlement figure, no description of any charges, no mention of rescinding of any perks. Still a bit confused as to whether I should cancel or settle.

42 minutes ago, skoda998 said:

I got the dealer to send me a copy of the terms and conditions. No indication how long it takes to get a settlement figure, no description of any charges, no mention of rescinding of any perks. Still a bit confused as to whether I should cancel or settle.

So you only get the perks if you don't cancel the Finance. So you can't cancel during the 14 day cooling off period.

You will get an online account with Skoda finance, on day 15 you can click on settlement figure and bank transfer the funds instantly to pay off the finance. This way you keep all the perks.

What has changed since the older thread is there are now admin charges, commission charges and a small amount of interest to pay. This will come to around £300

2 hours ago, logiclee said:

So you only get the perks if you don't cancel the Finance. So you can't cancel during the 14 day cooling off period.

You will get an online account with Skoda finance, on day 15 you can click on settlement figure and bank transfer the funds instantly to pay off the finance. This way you keep all the perks.

What has changed since the older thread is there are now admin charges, commission charges and a small amount of interest to pay. This will come to around £300

Thank you for that. It being a newish car the only perk is the two free services and frankly it doesn't seem worth the hassle. I'll probably end up paying cash. Thank you for the feedback, I've had all sorts of conflicting advice, but yours seems the most likely outcome.

8 minutes ago, skoda998 said:

Thank you for that. It being a newish car the only perk is the two free services and frankly it doesn't seem worth the hassle. I'll probably end up paying cash. Thank you for the feedback, I've had all sorts of conflicting advice, but yours seems the most likely outcome.

I've done this numerous times, the last time 6 months ago.

My last car was only 8 months old so the warranty and recovery didn't bother me but there was a £500 deposit contribution and the service pack so well worth the £300 charges.

2 hours ago, logiclee said:

So you only get the perks if you don't cancel the Finance. So you can't cancel during the 14 day cooling off period.

You will get an online account with Skoda finance, on day 15 you can click on settlement figure and bank transfer the funds instantly to pay off the finance. This way you keep all the perks.

What has changed since the older thread is there are now admin charges, commission charges and a small amount of interest to pay. This will come to around £300

But they should be in the contract…

Quick afterthought. What if you don't "cancel" the finance, but settle after, say a week?

5 minutes ago, skoda998 said:

Quick afterthought. What if you don't "cancel" the finance, but settle after, say a week?

You can't get a settlement figure until after the 14 days cooling off period.

The perks are offered by finance. If you cancel the finance in the 14 day cooling off period then the perks are cancelled as well.

One more issue is:

You can haggle when providing your own finance the pcp is at a set price (that’s my understanding anyway).

Happy to be proved wrong. The 2 dealers I asked both said the same, different franchises and cities.

On 31/12/2025 at 19:22, Trickiejohn said:

One more issue is:

You can haggle when providing your own finance the pcp is at a set price (that’s my understanding anyway).

Happy to be proved wrong. The 2 dealers I asked both said the same, different franchises and cities.

Incorrect. The dealer dictates the price, the only input VWFS have is to provide finance. Have a look at DriveTheDeal.co.uk They generally have the lowest prices but it's still VWFS who provides the finance from whatever UK Skoda dealer the broker uses.

According to the posts above, things have obviously changed since I last purchased a Skoda, but can assure you the above doesn't hold true with Audi today ( still VWFS ) as they work exactly as I'd expected. I settled at the end of December, a week after purchase, which cost me £35.

Terminology - Never ever CANCEL a PCP. I request a settlement figure within 7 days of purchase and the most I've had to pay is either the interest or an admin fee, whichever is greatest. Costs me around £30 to SETTLE the agreement. I recently heard from a sales friend that if it's outside 14days, then they'll charge commission, but I have no personal experience of this. ( Sales people are usually ignorant of settlement, or at least they play ignorant ).

Not sure what this 'you can't do it within 14days' is all about - read the T&C. PCP allows you to settle AT ANYTIME. Since the online portal system was available, I've always had the option to request a VWFS settlement figure as soon as my account was setup. Prior to online, it was simply a case of phoning up VWFS and saying you've changed your mind, can I have a settlement figure. As SurreyJohn says above, it's vital you don't ask to CANCEL the agreement.

I'm pretty sure if you call VWFS and ask them to explain potential charges, they'll give you correct information. I can't speak highly enough of VWFS, they've always been very helpful to me.

Hope that helps

Edited 8 February8 Feb by kodiaqsportline

I tried this, however I’d negotiated a heavy discount, the dealership then wouldn’t co-operate saying, the price would revert to sticker price.

I just borrowed from elsewhere at a very good rate and paid it off direct from the bank.

Just as an update I did this on my Used Approved Skoda Superb. I took the £99 deal (only available with PCP) which included 2 years warranty/servicing/mot/roadside. It was clear in the paperwork that as long as I withdrew/settled in the first 14 days all I'd pay was £5 interest per day. I got the car on Tuesday and withdraw today (Friday) at an additional cost of £20. I checked in the dealership first and they confirmed no problems with this. Interestingly all the benefits are logged against the car on the Skoda system. You get a separate "voucher" for the two MOT tests. The servicing is shown in the Finance portal. The warranty/roadside are logged on the system as well.

I think you'll only pay an increased amount IF you wait until after 14 days at which point I think you can be charged an additional admin/interest charge.