PCP rules ?

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This topic contains 1 reply, has 2 voices, and was last updated by Stuart Masson Stuart Masson 3 years, 2 months ago.

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    I am about to purchase a factory order new car which takes 8-12 weeks delivery. The Salesman has advised to take manufacturers PCP finance with a deposit contribution of £2000, and says that the agreement can be cancelled within the ‘cooling off period’ and the deposit contribution cannot be removed. He describes this as a no brainer and says this is a regular method.
    Is that correct and when does the ‘cooling off period’ apply ?

  • #50006 Reply
    Stuart Masson
    Stuart Masson

    Hi Adrian. Yes, this is usually possible and does happen a lot, although the dealers and finance companies don’t really like to admit it. The cooling off period starts once the finance contract is activated (which will be a day or so before you pick up your car, most likely). You have 14 days to cancel the finance agreement, which means the finance company will immediately invoice you for the amount financed. There are no penalties, no fees and no charges. The only downside is that the same finance company is unlikely to agree to another finance application from you in future, however this should not affect your credit score or ability to get finance elsewhere.

    The only way it would not work is if your vehicle contract specifically stated that the deposit contribution was subject to maintaining the finance for a minimum period, and I don’t know any dealers or finance companies that include that wording in their contracts. Even if they did, it would be a lot of hassle for them to chase you to claw back the deposit contribution after the event so they are unlikely to bother unless it was for a really significant amount of money.

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