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PCP paying off early

5 replies

Exhausteddog · 03/12/2022 19:14

Please can anyone advise. Myself and DH were looking at a car earlier in the week and said we wanted to buy it, The salesman was keen for us to take a finance package even though we said we would prefer to pay upfront (not intended to be a stealth boast, we are using some inheritance money - our old car 17 years old)

It was advertised online and we called the day before to establish if it was available. They said it was, but when he presented us with the figures it was around 20% more than advertised. We said the advertised price was basically our top budget and we werent interested in buying at the price he gave us. He then said he would honour the price but not on the car we saw, we would have to order another one. He also said we could take out a PCP finance package, pay the first monthly instalment and take advantage of some offer they had, and then pay off after month one. We asked if there would be an early repayment charge and he was very vague and said he thought it would be about £50. Does anyone know if this is the case?
We are having second thoughts as he has given us no written info or Ts and Cs, just a receipt for a £500 deposit. I have emailed and asked for all the details and terms and conditions of the finance packages, and am waiting for a reply.

OP posts:
Regretsandregrets · 04/12/2022 09:40

I would much prefer buying a car without a PCP, if at all possible. I might borrow some money from my own bank, if needed,at a lower interest rate with no penalties for an early payment.

Exhausteddog · 04/12/2022 13:20

Yes we ideally don't want the pcp package and he hasn't given us any written info about it. Some offers seem to have the car at a cheaper price if you had it with pcp but I don't understand how that works if you're paying interest. We've set aside some money and been planning for a few years so would rather pay in full.

OP posts:
thankyouforthesun · 05/12/2022 07:14

He gets more commission selling the finance than selling the car, most likely.

bloodyeverlastinghell · 05/12/2022 07:16

More commission for him with PCP. Lots of dealers seem to do this now and offer the first two services free with pcp.

superdupernova · 05/12/2022 07:20

Unless the PCP is 0% interest (very unlikely), they'll want you to pay the interest they would have otherwise received if you pay early.

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