[kitster]

Evening all,

Today I put down a deposit for a used G31. Dealer has offered me an "extra" £250 off the car, if I take it out on PCP @ 10.9% The interest over the term is mental.

I have the means to pay in cash, but I'm thinking, of just taking the PCP and then withdrawing from the deal the next day. The only niggling point is taking the finance for such a small amount...I've not worked the daily interest, must be only a few quid.

The tight git inside, says do it.

Any advice would be appreciated.

Note: PCP doesn't normally work for me as I keep my cars for around 6 years.

[robbiep]

Yes, you legally can, as you have a 14 day cooling-off period.

But £250 is a pittance, I'd be pushing for far better deal. Car sales are currently in the shitter.

[kitster]

Agreed. The amount is bugger all.

I'm quite happy with the car and price. It's done 900 miles and is fairly well specced: Vis Pack, Tech Pack, MSport+ Pack, Panoramic Sunroof and Comfort Seats. Compared to RRP, it's about 40% off list. 21% was the best for new car.

Plus they are throwing in rubber mats (front and rear), boot liner, full tank of diesel.

[ossi1]

Negotiate the screen price.

Then say you will take finance and ask for an Incentive. I don't think there are many incentives on used but they will try and work one in that will probably be more off the screen price when they get down to the nitty gritty (I got a further £1000 off) then cancel it within 14 days.

Don't let on..they will take you for a mug if the APR is quite high, just let it go and let them ride with it and try and work some more stuff in ..last laugh is on you..

Then cancel the agreement. You pay Interest from the day the finance is approved until cancellation... mine was £5.40 a day on £20K...its easy, they don't question why, do it over the phone...no problems

[kitster]

£5.40 a day! Oh I'm defo doing it.

I've read somewhere, that you need to ask to withdraw rather than ask for settlement figure.....don't they do the same thing?

Finally does the 14 days tick from when the agreement is signed (could be 1 week before collection)? or when you take possession of the car?

[ossi1]

Originally Posted by kitster

£5.40 a day! Oh I'm defo doing it.

I've read somewhere, that you need to ask to withdraw rather than ask for settlement figure.....don't they do the same thing?

Finally does the 14 days tick from when the agreement is signed (could be 1 week before collection)? or when you take possession of the car?

I did it last Friday and his first words on the phone were 'I presume you want a settlement figure' nothing about withdrawing..just did it, added up the Interest and sorted.

To be fair you can cancel at any time outside of the 14 days, you still pay the same daily Interest up until cancellation although you will have gone into the contract there are no early settlement fees. The 14 days is from the date the finance is agreed. BMW finance are bang on it and very fair. No messing, quick response and letters to follow up within a day or two,

[robbiep]

Originally Posted by kitster

£5.40 a day! Oh I'm defo doing it.

I've read somewhere, that you need to ask to withdraw rather than ask for settlement figure.....don't they do the same thing?

Finally does the 14 days tick from when the agreement is signed (could be 1 week before collection)? or when you take possession of the car?

No, you do NOT ask for a settlement figure. You are withdrawing from the agreement.

[r654321]

As above if you do it quick enough this would fall inside your CMA right to cancel window.

[T8y]

Originally Posted by robbiep

No, you do NOT ask for a settlement figure. You are withdrawing from the agreement.

Yes what Robbiep said. To clarify further if you ask for a settlement figure, or they ask do you want a settlement figure? and you agree then you will pay the amount borrowed, interest and the final payment to own the vehicle. If you simply state you have the money and have decided to withdraw from the finance agreement then you will pay the amount borrowed and the number of days interest. I did this with bmw finance last month on an amount of £24,500 the interest charges were £4.10 a day. So I paid £24,504.10 back in order to get the extra incentives the dealer had offered to tell the finance. It is a bit of a shit move to pull on the sales man but at the end of the day you work hard for your money why go giving it away for free!

[kitster]

Really good stuff thanks all.

Can I just clarify, when the 14 days begins?

If I signed the agreement today (16th Oct) , but I don't collect the car until 1st Nov, the time lapsed will be 16 days.

Does the 14 days start from 16th Oct or 1st Nov?

[kzg1969]

this is what I did - told the dealer upfront I was going to cancel within 14days and legally he cant do anything about it (I was distance buying so you may hae to check that). He said that it gives him bad press with the management/credit company and so struck a deal with me on 3/4 of the money as a discount so that I wouldn't do it!

saved me a lot of hassle and get pretty much the same deal.

I'd be surprised if he don't have more than £250 to play with though.

[NotGotABimmer23]

40% off sounds like a good deal, but you can always push for a bit more, especially at 11% apr!

[kitster]

Originally Posted by kylemacca01

40% off sounds like a good deal, but you can always push for a bit more, especially at 11% apr!

Do people actually go through with these 11/13% APRs? OK, I'm doing it just to get the £250. I'm think about people who do the whole term!

[NotGotABimmer23]

Originally Posted by kitster

Do people actually go through with these 11/13% APRs? OK, I'm doing it just to get the £250. I'm think about people who do the whole term!

Some people have absolutely no clue about interest rates, they simply have a monthly budget and assume the car on the used forecourt at 20k will be cheaper than the new car costing 30k, often thats not the case.

[ossi1]

Originally Posted by kitster

Really good stuff thanks all.

Can I just clarify, when the 14 days begins?

If I signed the agreement today (16th Oct) , but I don't collect the car until 1st Nov, the time lapsed will be 16 days.

Does the 14 days start from 16th Oct or 1st Nov?

There are two parts. The finance application and then the agreement a few days later usually. You can now sign the agreement electronically so no need to go back into the dealership. Its the second date they calculate the 14 days from as its the date you entered into the agreement. Its normal to collect the car within a day or two of the deal...not 16 days later. If thats the case hold fire on signing the application, if you've paid a deposit it shouldn't be an issue.

[E60MKF]

You can do it at any point surely? Once we had paid enough off on our Audi, we cleared the finance about 2 years into the 4 year PCP. On new cars Audi were charging 6.4% which was too much after we got to a point whereby a standard loan wouldnt have too high a payment over 3 years.

[NotGotABimmer23]

Originally Posted by E60MKF

You can do it at any point surely? Once we had paid enough off on our Audi, we cleared the finance about 2 years into the 4 year PCP. On new cars Audi were charging 6.4% which was too much after we got to a point whereby a standard loan wouldnt have too high a payment over 3 years.

Withdrawing and settlement are different. You dont pay the 1 month additional interest when you withdraw.

[RobUK]

Originally Posted by kylemacca01

Some people have absolutely no clue about interest rates, they simply have a monthly budget and assume the car on the used forecourt at 20k will be cheaper than the new car costing 30k, often thats not the case.

Case in point - local dealer has an ex-demo M3 CP on his lot just shy of £60K and with BMW PCP finance on it the total amount payable is over £71K. You could alternatively buy a brand new M4 CP with Ultimate Pack for £64½K at 0% saving yourself six and a half grand.

[Alice Coupe]

Originally Posted by RobUK

Case in point - local dealer has an ex-demo M3 CP on his lot just shy of £60K and with BMW PCP finance on it the total amount payable is over £71K. You could alternatively buy a brand new M4 CP with Ultimate Pack for £64½K at 0% saving yourself six and a half grand.

Of course buying new is crazy. You'd be nuts not to buy a second hand car. And whatever you do never finance it. Especially with a PCP. Doing so could trigger a cataclysmic eruption of stupid comments in the on topic section.

[RobUK]

Originally Posted by Alice Coupe

Of course buying new is crazy. You'd be nuts not to buy a second hand car. And whatever you do never finance it. Especially with a PCP. Doing so could trigger a cataclysmic eruption of stupid comments in the on topic section.

I am washing my moush out wish shoap as we shpeak!

[sahajesh]

Originally Posted by Alice Coupe

Of course buying new is crazy. You'd be nuts not to buy a second hand car. And whatever you do never finance it. Especially with a PCP. Doing so could trigger a cataclysmic eruption of stupid comments in the on topic section.

Only if ZeroFX gets involved.

[ZeroFx]

Originally Posted by sahajesh

Only if ZeroFX gets involved.

So the OP doesnt prove exactly what me and others were talking about?