So I'm 8 days into a PCP agreement and want a settlement figure. Skoda will not give me a figure until the 14 days cancellation period is up. I'm informed that on the 25th I'll get a settlement figure, which will have 58 days interest added. Not the end of the world but I've read the terms and conditions and there is no mention of this. I expect to pay a daily interest rate and that's it. I'm not arguing the point until the 25th, as there's no point. Anyone have any better information on this or thoughts?

It is a withdrawal/ cancellation figure you want , not a settlement figure, and withdrawal can be done in the first 14 days with minimal interest, and no loss of any perks from the deal.

2 hours ago, Kenny R said:

It is a withdrawal/ cancellation figure you want , not a settlement figure, and withdrawal can be done in the first 14 days with minimal interest, and no loss of any perks from the deal.

I keep getting conflicting information on this. A few have said cancellation loses the perks, settling does not because I would have kept to the terms of the agreement rather than cancelling it.

3 hours ago, Kenny R said:

It is a withdrawal/ cancellation figure you want , not a settlement figure, and withdrawal can be done in the first 14 days with minimal interest, and no loss of any perks from the deal.

Kenny, do you know this from recent experience? Things have a habit of changing. Thanks

3 hours ago, Kenny R said:

It is a withdrawal/ cancellation figure you want , not a settlement figure, and withdrawal can be done in the first 14 days with minimal interest, and no loss of any perks from the deal.

The "Perks". Warranty, Breakdown Recovery, Deposit Contribution and Service Pack all sit on your Finance Agreement and are visible in your online account.

Withdrawing from the agreement in the first two weeks cancells everything. You have to go back to the dealer and pay them the full money. In most cases VW finance will remove all items from your online account.

@skoda998

On your other thread I did say there are now increased charges to cover how the dealers comission is now paid. In my case that was around £300 over the sum financed.

Logiclee, is this based on a recent experience?

Not sure if the rules have changed, but the small print of the finance agreement that was signed will be binding.

Check :

1) Interest charges, does it say how frequently it will be charged

2) commission to broker/dealer, does it state an amount

3) payment clause (eg direct debit etc), does it refer to any minimum notice period etc

4) settlement clause, does it mention any fee and/or interest penalty

5) Early termination clause, again any fee and/or min interest period

6) Gifts, services, offers. Is there any clauses on this, minimum periods to not have to repay etc

7) Any catch all clauses near start or end, subject to lenders terms etc.

I only ask, because it can be easy to miss something, if there are dozens of clauses in very small font.

Without wanting to state the obvious, you might have two contracts, a purchase contract, and a loan/finance agreement. Did Op check the clauses in both (and I mean full version, not a selected key facts summary). It can be easy to miss things if you are expecting them to be in a different section.

For clarity.

Cancelling in the 14 day cooling off period, in legal terms unwinds the transaction, and puts everything back to where it was as if it had never happened.

Settlement is paying off remainder of loan early, and subject to any early repayment fees and interest.

.

Edited 19 September, 202519 Sep by SurreyJohn

Have a look at this: How to Get out of a PCP Agreement Early | Leasing Options

If you've bundled additional services with the PCP contract and you wish to keep them then you'll need to pay whatever the cost of those services was when you ordered the car. Or "buy" those services on a new finance agreement. Note: some services can only be purchased at the time of placing the vehicle order. This is a complication.

Is this Skoda PCP or third party?

Was there a "deposit contribution" from the dealer? Generally this is paid out of the commission the dealer gets when selling you the PCP contract but it can be paid, indirectly, by the finance company. Potentially, the loss of interest to the finance company means the dealer won't get their commission. So both parties will seek to claw back the money from you.

Why did you enter into a PCP contract if you didn't want one?

On 18/09/2025 at 18:28, skoda998 said:

Logiclee, is this based on a recent experience?

Back in April this year but a friend also did the same in July and paid a similar amount.

17 hours ago, Aldfort said:

If you've bundled additional services with the PCP contract and you wish to keep them then you'll need to pay whatever the cost of those services was when you ordered the car. Or "buy" those services on a new finance agreement.

Never been the case with VW finance.

If you get, Deposit Contibution, Service Pack, Warranty, Breakdown Cover etc bundled in you retain them if you settle early. (Not cancelling in the first 14 days)

Edited 20 September, 202520 Sep by logiclee

17 hours ago, Aldfort said:

Was there a "deposit contribution" from the dealer? Generally this is paid out of the commission the dealer gets when selling you the PCP contract but it can be paid, indirectly, by the finance company.

Again not the case with VW finance.

The dealer commision is clearly identified in the agreement.

Sorry @logiclee we are at cross purposes. Yes if you obtain an early settlement figure you can keep the additional services. If you think you get to keep them for free you are living in another world. The residual cost is calculated and taken account of in the settlement figure.

If you cancel a PCP contract, as the OP seems to want to do, you'll lose these additional services. Try reading the info I linked for the OP

7 minutes ago, Aldfort said:

Yes if you obtain an early settlement figure you can keep the additional services. If you think you get to keep them for free you are living in another world. The residual cost is calculated and taken account of in the settlement figure.

There didn't used to be any charges, just one months interest.

There are now costs in the settlement figure but it still can be beneficial.

My charges were just over £300 but PCP offer at the time was for £1500 deposit contribution, 2 years warranty, 2 services and 2 year breakdown cover.

3 hours ago, logiclee said:

There didn't used to be any charges, just one months interest.

There are now costs in the settlement figure but it still can be beneficial.

My charges were just over £300 but PCP offer at the time was for £1500 deposit contribution, 2 years warranty, 2 services and 2 year breakdown cover.

What there was in the past, doesn't automatically mean it is in latest agreements.

The recent scandal about commission and interest has forced these to be transparent. It does not surprise me that they have tightened up on covering a minimum amount as part of early repayment fees.

2 hours ago, SurreyJohn said:

What there was in the past, doesn't automatically mean it is in latest agreements.

The recent scandal about commission and interest has forced these to be transparent. It does not surprise me that they have tightened up on covering a minimum amount as part of early repayment fees.

Yep.

I've done this 5 times now.

First 3 I was only charged a months interest.

The last 2 I've paid a few hundred extra but stil well worth it. Especially if there is a decent deposit contribution.

On 18/09/2025 at 17:30, logiclee said:

Withdrawing from the agreement in the first two weeks cancells everything. You have to go back to the dealer and pay them the full money. In most cases VW finance will remove all items from your online account.

This is incorrect. If you're reluctant to get into a PCP VW Group dealers will tell you to do it and then cancel so that you get the incentives.

You do not go back to dealer. You contact VWFS and send the money to them. You have 28 days (interest free) to pay after cancelling. You will pay a nominal daily interest charge based on the number of days elapsed before you cancel the agreement. Last time I did it (on a new Skoda) they even waived the interest charge.

I've done it multiple times. Last time was a new Skod in late 23. It's possible things have changed but it's so commonly done with VWFS that there'd be uproar if it changed.

12 minutes ago, Rory said:

This is incorrect. If you're reluctant to get into a PCP VW Group dealers will tell you to do it and then cancel so that you get the incentives.

You do not go back to dealer. You contact VWFS and send the money to them. You have 28 days (interest free) to pay after cancelling. You will pay a nominal daily interest charge based on the number of days elapsed before you cancel the agreement. Last time I did it (on a new Skoda) they even waived the interest charge.

I've done it multiple times. Last time was a new Skod in late 23. It's possible things have changed but it's so commonly done with VWFS that there'd be uproar if it changed.

It's changed. The way commission to dealers is charged and the minimum settlement fee's are different.

But if you are paying the finance company in the first month you are settling.

Cancelling only happens in the first 14 days and the agreement with VW finance is null and void. This is not what you did.

Edited 24 September, 202524 Sep by logiclee

1 hour ago, logiclee said:

Cancelling only happens in the first 14 days and the agreement with VW finance is null and void. This is not what you did.

Nope. I Withdrew from (which is cancelled) all of the agreements within a few days after collection.

Paid a nominal interest charge in two previous cases (£20-£30), inc a used Skoda in mid 23. It was waived on the third one.

If I'd settled then the interest charges would have been several hundred pounds as you have to give 28 days notice and finance companies can (and always do) charge 30days penalty. This is nothing to do with T's and C's etc- it's in the Consumer Credit Act 1974.

I've always been bemused by why, if you cancel, there's still a daily interest charge because it's supposed to be like the agreement never exisited. However it did alarm me when VWFS waived in on the last car and I wondered if that might lead to the deposit contribution being reclaimed but it didn't. Indeed that dealer paid us another £250 for messing up the handover (we turned up, the salesman was off sick, and they weren't expecting us). By the time they actually paid us they'd have been well aware we'd Withdrawn from the finance.

Quite why VW doesn't claw back the incentives I have no idea but they don't. On our Tiguan the deposit contributon was £2750 and there was a free service pack. I can only guess it's because if they did claw them back then they could be in trouble for charging different prices for cash and credit, which is suposed to be illegal.

Edited 24 September, 202524 Sep by Rory

Pretty sure the days of getting the money off and then cancelling the PCP are long gone. Others may take a different view.

When I bought my Kamiq in February (for March delivery) i was actually encouraged by the dealership to apply for Skoda PCP finance (£2000 deposit contribution, plus another £1000 deposit contribution and a cheap servicing package available only for a few weeks at that time). I was told by the dealer sales manager to ensure that I did not cancel it for at least a few days after delivery to ensure the servicing package was fully set up, but otherwise I could do so at any time and not lose the deposit contribution which, I I said, came to £3000. Without the service package I could have cancelled the day after delivery. Both the car finance and the service package were covered by one agreement but detailed separately on my account on the Skoda Finance website.

I cancelled after 14 days or so and was only charged the interest to that date. If I had waited a few more days I would have been charged an additional 28 days interest, but even that would have been a bargain compared to the deposit contribution. My service package was set up as a separate agreement from the car finance (although both fully settled on day 14). The service agreement still shows on the Skoda Finance website with two services yet to be redeemed (but with all monies paid) whereas the car finance element has been removed.

Things change all the time and so I expect that Skoda Finance are constantly changing the "rules".

1 minute ago, JB25 said:

I cancelled after 14 days or so

It's terminology that gets many confused. You got a settlement figure and settled the agreement early after the 14 day cooling off period.

Yes, the terminology is confusing. If I recall cancelling within 14 days is actually termed "withdrawing" whereas after 14 days it is "settling". I am pretty sure I was within the 14 days hence only paying interest to date whereas after 14 days the extra days interest applied. However, both the dealer and Skoda Finance (whom I spoke to by phone) said that either withdrawing or settling would not affect the deposit contribution. As I said the only caveat was to ensure that the service agreement was fully in place before "withdrawing".

Correct - you Withdrew, so just paid a daily rate of interest costing you maybe £50. If you'd Settled beyond 14 days it would have cost you several hundred pounds extra.