# Paying Off PCP in first Month ?



## Pat27 (Nov 24, 2016)

Has anyone done this, given that the discount is greater on a pcp over cash ?


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## phazer (Apr 2, 2018)

Do it within the first few days if you can it'll save you a chunk of interest. It's quite common on the VW related forums I frequent - they do it to get the finance contributions, pay it off and everyone's happy. There's no claim on the discount you were given.


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## mark_tts (Feb 16, 2011)

yep, i did this.

worked just as phazer describes.


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## Pat27 (Nov 24, 2016)

When you say first few days, is that from delivery ?


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## phazer (Apr 2, 2018)

Pat27 said:


> When you say first few days, is that from delivery ?


Yes go collect the car, sign the paperwork. If it's a weekend ring on the Monday or Tuesday and pay it off. Sorted.


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## Pat27 (Nov 24, 2016)

Cheers Guys.


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## zooks (Sep 15, 2017)

Yes I did this too.
Paid it off 6 days after collecting the car and paid about £30 interest. Kept the Audi and dealer 'incentives' 

VWFS even have a dedicated phone menu option for ending pcp early when you call them


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## mark_tts (Feb 16, 2011)

when you call to cancel the pcp, they give you a settlement cost that includes the interest up to that point. you then have something like 30 days to make the payment *whilst accruing no further interest*. it doesn't have to be a single payment either, i did mine over several as the bank's online daily single transaction limit was a lot lower than the total due.


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## Shug750S (Feb 6, 2012)

mark_tts said:


> when you call to cancel the pcp, they give you a settlement cost that includes the interest up to that point. you then have something like 30 days to make the payment *whilst accruing no further interest*. it doesn't have to be a single payment either, i did mine over several as the bank's online daily single transaction limit was a lot lower than the total due.


+1.

Bought last three cars on pcp and called within a couple of days to get settlement figure. They quote the figure, last on on the R was financed sum +£7 interest. 30 days to pay, so transferred money to them on day 28. Deposit contribution was £1500, so saved an extra £1,493 

VW sales guy wasn't keen on idea, but Ford salesman on daughters car actually suggested it to get extra discount and highlighted number to call to settle on the paperwork.

They can't claw back the deposit contribution, so win/win


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## Ruudfood (Apr 9, 2018)

Can someone explain the benefit of this to me? If you can afford to pay off the PCP, why not just buy the car outright? Is it just that the dealer will only give you a discount if you take PCP? And what you're paying off is actually the "Optional final payment" figure?


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## Ben-S (Dec 24, 2016)

There is very often a dealer/manufacturer 'contribution' that is only available if the car is taken on finance.


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## zooks (Sep 15, 2017)

Ruudfood said:


> Can someone explain the benefit of this to me? If you can afford to pay off the PCP, why not just buy the car outright? Is it just that the dealer will only give you a discount if you take PCP? And what you're paying off is actually the "Optional final payment" figure?


Best discount I could get for a straight cash buy was £2500 off list price offered by the dealer with no incentive from Audi. 
By buying it on PCP finance I got a £4500 incentive from Audi and £4000 from the dealer. I paid £30 in interest to buy on PCP and then pay it off so I was £5970 better off buying on PCP and cancelling.

When you cancel the PCP you owe VWFS what you actually paid for the car after contributions or incentives were deducted. Nothing more. Audi don't seem to care as its probably only a small percentage of customers who do this, not sure about the dealership though!


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## Ruudfood (Apr 9, 2018)

Thanks zooks.

Is that £4500 what would be listed on the Audi website as "centre deposit contribution"? And the individual Audi dealer itself would offer you the additional £4000?


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## zooks (Sep 15, 2017)

Ruudfood said:


> Thanks zooks.
> 
> Is that £4500 what would be listed on the Audi website as "centre deposit contribution"? And the individual Audi dealer itself would offer you the additional £4000?


Yes, I used carwow to get their price down


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## Shug750S (Feb 6, 2012)

Ruudfood said:


> Can someone explain the benefit of this to me? If you can afford to pay off the PCP, why not just buy the car outright? Is it just that the dealer will only give you a discount if you take PCP? And what you're paying off is actually the "Optional final payment" figure?


Yep, I had cash, and negotiated the best deal I could, using carwow as the base price. Then I asked the dealer about pcp he financed the car on that after the deposit, so i got another £1500 off, as the pcp contribution.
Paid up the plan the day after the car arrived. Three minute phone call saved me £1500.

Only £1500 available on the R at the time as new facelifts just out. Can get a shedload more off different cars depending on offers at the time.

No brainer really.


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## MClaine55 (Feb 16, 2018)

If you pay off the interest through settlement, and you want to buy the car outright, do you have to make the balloon payment at the same time, or can this wait until later, say the end of the original finance period?


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## phazer (Apr 2, 2018)

MClaine55 said:


> If you pay off the interest through settlement, and you want to buy the car outright, do you have to make the balloon payment at the same time, or can this wait until later, say the end of the original finance period?


No it's all or nothing (either pay it off or continue with the PCP arrangement). You're basically exercising your right under the Financial Regulations to terminate an agreement.


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## Shug750S (Feb 6, 2012)

Balloon payment doesn't exist, this is basically the end of term interest.

In base terms, say you agree a deal at £35k, pay £5k deposit and take the pcp deal to get the (say) £3k depsosit contribution, and you then pcp (finance) the £27k balance.

When you get the car, call them, withdraw from the deal and offer to settle. They then advise you owe them £27k plus £10 interest for the few days, so you then have 30 days to bank transfer the £27,010.

Just under £3k in your pocket for signing a bit of paper and making a phone call :lol:

Isn't the financial system wonderful


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## ZephyR2 (Feb 20, 2013)

Shug750S said:


> Balloon payment doesn't exist, this is basically the end of term interest.
> 
> In base terms, say you agree a deal at £35k, pay £5k deposit and take the pcp deal to get the (say) £3k depsosit contribution, and you then pcp (finance) the £27k balance.
> 
> ...


Yep, must be the easiest way of making £3k (or £5k in my case). 
Apart from that there's no sense leaving your money in the bank earning just 1.+% interest while you are paying 6.4% to Audi Finance.


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## RobinHelsby (Mar 24, 2018)

The sales man who sold me my TT told me this one. Finance incentive £4,500 off the price...thank you!


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## MClaine55 (Feb 16, 2018)

Thanks for the replies guys


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