Vitara - Cheaper price on new car taking pcp

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Thu 3 Jun 2021 10:43
Vitara - Cheaper price on new car taking pcp - Glen007

A dealer has suggested that i buy a new car on pcp to take advantage of a lower price and then pay this off straight away and keep the advantage of the lower price. Anyone done this?

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Thu 3 Jun 2021 11:26
Vitara - Cheaper price on new car taking pcp - Cris_on_the_gas

As long you you read and understand the T&C's of the PCP contract an excellent way of saving money.

Remember if purchase price is less than £30k then you have added protection of Consumer Credit Act 1974.

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Thu 3 Jun 2021 11:34
Vitara - Cheaper price on new car taking pcp - _

Did that with the purchase of my Sportage in march 2020 and got total £4500 off list.

Paid off a few weeks later.

Zero problem, but make sure you can do that before.

Read the terms and conditions of the pcp.

looking back, I also negotiated the metallic paint upgrade for free for taking the pcp, that was £600 off.

The sportage had a charge of £1.46 p a day if i remember correctly.

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Thu 3 Jun 2021 11:38
Vitara - Cheaper price on new car taking pcp - efad2

I took the discount offer for pcp then paid it off a couple of days later plus a couple of pounds in interest

Done this tree times now with different makes no problems at all

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Thu 3 Jun 2021 12:08
Vitara - Cheaper price on new car taking pcp - SLO76
Common thing. I was offered almost £10,000 off a new Volvo XC60 via a PCP deal last year with the intention of taking a low rate bank loan to pay it off. I still couldn’t bring myself to pay in excess of £30k for a car though and bought used instead at less than half the money.
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Thu 3 Jun 2021 12:54
Vitara - Cheaper price on new car taking pcp - daveyK_UK
To the OP

This is a perfectly fine set up and arrangement to get a bigger discount.

The dealer gets a bigger cut from the finance company , the finance company factor in customers who pay off fast vs the remainder who don’t and have priced it into the pcp offer.

Of course, they ‘lose’ in terms of not getting the full potential income from your PCP but overall they are considerably better off.
With the government printing so much make believe £££s, PCPs are a good hedge for a finance firm against moderate inflation.

Edited by daveyK_UK on 03/06/2021 at 12:54

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Thu 3 Jun 2021 16:06
Vitara - Cheaper price on new car taking pcp - Will deBeast

Done it several times. Paid off a few days later - you just phone them up and ask to withdraw from the finance within the first 14 days.

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Fri 4 Jun 2021 18:15
Vitara - Cheaper price on new car taking pcp - Marlin1

I did this recently.

No problems paying it off in 14 days and keeping the discount.

However, re section 75 and other protections, the contract made it clear that it was a balloon payment cash loan and therefore the right to hand the car back when over half the payments were made did not exist.

I was not clear if section 75 applied but I also paid the deposit by credit card just in case.

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