Hi Guys,
I was wondering if anyone has experience with taking out PCP to appease the car dealership then paying it off in a lump sum? I understand that the dealerships get a "kickback" when you take out PCP and I don't mind helping them out if it means I make it to their good books. However, if I pay it off, will they get their "kickback" revoked? Could I wait a few months before paying it off?
Thanks
Varies by manufacturer, Audi told me to wait six weeks if possible think it was otherwise they'd lose the commission, someone else BMW I think told me two.
Just speak with them to confirm, they'll appreciate you're playing nice to get them their cut.
If you took out manufacturer scheme PCP to get an FDA Finance Deposit Allowance (extra discount) on a new car it will make no real difference to dealer if you settle early....Originally Posted by luckyhands
If you pay off either HP or PCP early that the dealer has done where they have made a commission say a Used car then the dealer is subject to debit back of commission and Volume Bonus....however nowadays commission is drip fed to dealer as you make payments and debited back pro-rata.....
It happens quite often don’t lose sleep over it, we always accepted it as part of the job, it only hurts the dealers who have based their rates on maximising profit through finance ...
Last edited by TKH; 4th July 2020 at 15:45.
I did it on a BMW motorcycle. I only took the PCP to get the best deal. As soon as the paperwork came through I called BMW finance and settled it. The interest accrued over a few days and it cost me about £18, I think.
I did not involve the dealership in this at all - although they were fully aware I was going to do it, and didn't care.
I did it to get the free service package on a nearly new VW, and cancelled after a month or two. I was hit with a legally enforceable penalty (a %age of the finance fee) that I wasn’t expecting. Did a lot of research and found out such is standard and supported by case law. It was still worthwhile replacing the finance with a much lower apr loan - just be advised it’s unlikely you’ll be able to walk away without some cost.
Sent from my iPhone using TZ-UK mobile app
Last edited by Halitosis; 4th July 2020 at 17:06.
Very common just make sure you pay it off at the corect time...most seem to be within 14 to 28 days of collecting the vehicle.
Yep did it with our Lexus as soon as the paperwork arrived we asked for a settlement figure which was about £60 more than we borrowed/financed . We had recieved a £1000 contribution for taking out the finance so was well worth while
Did it with my Skoda - £8k discount and 2 free services for taking out the finance, paid it off a few days after picking the car up.
Paid a small amount of interest for the few days of the loan.
The dealer were quite happy with it and knew all about it.
I read about this years ago. I’m surprised that the car companies haven’t clamped down on it - not the paying it off bit, but then presumably being aware that people are doing this almost with the dealers blessing to get the bonus. You’d think that the commission clawback would be a lot longer than 2 or 4 weeks.
Or maybe there’s so much PCP that a few paying it straight off is comparatively minute in the grand scheme of things.
Liz owed £366 on her Toyota Aygo which was to finish in November. She saw a Yaris newish second hand and they credited the money against it plus knocking another £100 off.
That is your actual answer - the number of punters willing or capable of doing this is tiny in the scheme of things.
Cheers guys, To be honest I don't expect that I'll be able to get any discount on the car even if I get a PCP but perhaps they'll throw in some free servicing or get me in their good books. I think I'll speak to the dealership (Porsche) and see what the manager says.Obviously pictures to follow once I get it...
Posting Permissions
Reply With Quote