Should I cancel my car purchase? Or just finance? PCP

chippyteaforme

Well-known Member
Hi all,

So I thought I'd give a dealer (no names) a call about a car. I was looking, but not really looking to make a purchase immediately. After all at this point I'd not even seen the car (thanks to the current situation) but it's nearly new and under warranty, and have used the dealer twice before with no real issues.

The salesperson offered me a deal that seemed very good on a car that matched what I was after, and made a suggestion that seemed to good to be true - basically they'd give me £10k cash back within a couple of days (my car is worth about £12,500 part-ex, but they've offered £13,500), and then 49 months at £220p/m. Their car is very competitively priced. It's a big name so not expecting anything shady other than the usual ex-lease type thing.

I've now discovered that the deal is probably at 9.9% APR, which is a bit daft as I was quite willing to pay cash, and have access to much cheaper credit (2.9% APR or better).

Interest, either total cost of finance, or rate, wasn't discussed at the time, in fact no interest was. I know, I should have asked, so I'm an idiot (or gullible), but surely they have to tell you what the APR is?

I've used the Black Horse calculator (that is the finance provider) and 9.9% seems to match up.
I have no paperwork or anything, I can only imagine that goes direct to the dealer?

Now... I've paid a reservation on the car (on card), only a small figure and refundable if I don't go ahead. Due to finalise the deal next week.

Should I :

A) Cancel the deal entirely before collection,
Or
B) Take them up on it (assuming their car is good upon inspection) and cancel the finance within the 'cooling off' period? After all, they seem to have over-valued mine and theirs is very competitive.

P.S. I did email the salesperson asking about interest but got no reply - I'm thinking they are probably commission based and don't want to scare me off the finance.
 

mjn

Distinguished Member
Take the finance, get the cash back, pay off the finance.
 

chippyteaforme

Well-known Member
Take the finance, get the cash back, pay off the finance.
Cheers! Never done anything like this before, I've always either put on a 0% credit card, used savings, or done a low-rate money transfer or similar, where it's 'as good as cash', rather than going through a 3rd party.

I'm assuming I just contact the finance provider once I've got the car, only pain will be insurance as I believe I have to put the finance company down as the 'legal owner' of the vehicle, so will have to give my insurer a call to see how that works.
 

depot

Well-known Member
I’d want to see the deal and terms and conditions in writing or emailed before I made a final decision.
 

chippyteaforme

Well-known Member
I’d want to see the deal and terms and conditions in writing or emailed before I made a final decision.

I'm quite surprised that I never received anything showing a full financial breakdown yet. I've got a 'sales order' showing the value of my part-ex, value of their car, and the £10000 that I'll be getting back (it's 'retained equity' on my part-ex, rather than a straight cashback, since my part-ex is so close to the value of their car), as well as the value of finance, but nothing about interest.

Finance was approved a few days ago.

Presumably they'll present me with it at the time, probably so I (and other customers) don't have a chance to dwell on it or shop around?

I've never bought a car on finance before, so just to check - if I go ahead with the deal as it stands, and am happy with the car, do I just call the finance company and ask to settle, or would that incur fees? Or do I call them and tell them the finance is no longer required, so I'd like to cancel the finance under the cooling off period?

I plan on doing it ASAP, ideally the same day as the deal goes ahead.
 
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gangzoom

Well-known Member
Call the finance company have a debit card ready, it took me 5 minutes to pay off/cancel the PCP deal on my wifes car after we took delivery.

You can either cancel or settle the outstanding balance. Settling the balance incurs a small fee - two months interest from memory.
 

un1eash

Distinguished Member
Should be 1 months interest fee now if outside the cooling of period.
 
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depot

Well-known Member
Evans Halshaw did me out of about £250 in finance fees because of my naivety, I’d still want to see and read through the contract before collecting the car.
 

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