RS246.com Forum :: The World's #1 Audi R, S and RS Enthusiast Community

Hi All.

I am starting a new PCP, for a new car, in the next few days. It is via Audi Finance, so allowed me to get a further discount. Has anyone paid off their PCP in the first few weeks? Was there any penalty or issue doing so?

Thanks.

I haven't but have read about others on here that have and had no issue doing it.

You need to make sure you cancel it as part of the cooling off period, rather than because you want to pay it off early. Might seem the same but j believe there is a legal difference.

It's something like 14 days I think.

You have a 14 day cooling off period where you can repay full financed amount as per your invoiced finance amount, you may have a small documentation fee for making the payment though (usually £20-25) but this is part of your finance contract as a tri-partite afreement.

Anytime after the 14 days you can still settle but will receive a rebate of remainder of interest, usually most of it minus interest accrued.

A lot of people are currently doing this due to Manufacturer deposit contributions on PCP agreements, perfectly legal to do but just a bit of work to then make the payment and cancel the agreement. Shot in the foot though for the dealer as they may then receive a claw back of finance commissions or manufacturer bonuses payable to them for a customer early settlement, but that's the gamble they take.

hope this helps!

In addition to TobyRS4, as per most finance agreements it's settlement figure + rebate of interest minus interest accrued and early settlement fees.

A lot of people go for PCP (Purchase) and typically hand the car back which 9 out of 10 times, is an expensive way to finance your car. As the name suggests, intention should be to purchase the vehicle. If there is a chance that you're going to hand the car back then PCH (Rental) maybe a more favourable and cost effective route.

If you also want some further clarification then why not give Martin Robinson a call at Future Vehicle Leasing, who are based in Billesdon, Leicester on 01162 398999. There's no pressure from them and could get you a more competitive deal?

Also if you pay off inside the 14 days the stealer doesn't get their kick back from Audi finance which would be a shame......

zebede wrote:Also if you pay off inside the 14 days the stealer doesn't get their kick back from Audi finance which would be a shame......

Depends if you want to buy another car from that dealer. If you <beep> on their desk, don't expect the big discount next time. What goes around....

Brad_vs_Vin wrote:In addition to TobyRS4, as per most finance agreements it's settlement figure + rebate of interest minus interest accrued and early settlement fees.

A lot of people go for PCP (Purchase) and typically hand the car back which 9 out of 10 times, is an expensive way to finance your car. As the name suggests, intention should be to purchase the vehicle. If there is a chance that you're going to hand the car back then PCH (Rental) maybe a more favourable and cost effective route.

If you also want some further clarification then why not give Martin Robinson a call at Future Vehicle Leasing, who are based in Billesdon, Leicester on 01162 398999. There's no pressure from them and could get you a more competitive deal?

You'd be surprised how few people actually don't hand cars back on PCP actually more like 5 out of 10 will Part Exchange on a PCP as finance companies will nearly always low ball a GMFV and as a result nearing the end of the term you can have positive equity which you can use as deposit into your next deal. Don't get me wrong there are always exceptions i.e heavier depreciating cars, variation by manufacturer or people that do excess mileage to name just a few.

The PCH (Personal Contract hire) will nearly always be cheaper as there's heavier discounts on purchase prices from the finance provider but it is purely a rental of the vehicle.

doodlebug wrote:

zebede wrote:Also if you pay off inside the 14 days the stealer doesn't get their kick back from Audi finance which would be a shame......

Depends if you want to buy another car from that dealer. If you <beep> on their desk, don't expect the big discount next time. What goes around....

I wouldn't worry about this too much on a brand new car there's not always any kick back at all, and trust me in 3 years time they wont remember you settled the finance id probably even go as far to say they may not even know you have done or be informed by the finance company.

This comes from experience!

DrB I told the dealer I would likely pay off in the 14 days and they were 'its your right' . Car looks likely to arrive quicker than expected and now I am scrabbling to find the deposit let alone pay it all off so they will get some interest but I think the rate is reasonable.

Thanks for all your advice. I probably will pay it off ASAP. I will save £10000 doing so.

DrB wrote:Thanks for all your advice. I probably will pay it off ASAP. I will save £10000 doing so.

My point would be. What if you invested the £80 odd grand cash into your business or a even a property to receive rent revenue. You would earn more than the £10,000 plus depreciation you are gonna lose on the car.