cancelling a pcp before delivery

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  • This topic has 22 replies, 1 voice, and was last updated 1 year ago by mycarforum.com.
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    • #130760

      hi I signed a contract for a Skoda thinking I had the future monthly payments prepared for. however it turns out there has been massive hit to my finances and the car has been signed for. possibly over the 14 day cancellation period. I have yet given my deposit which is my current car. please can you tell me what is likely to happen.


    • #130944
      Stuart Masson

      Hi Chris. If you haven’t taken delivery of the car and you haven’t paid your deposit, there’s not an awful lot the dealer can do about it.

      The 14-day cooling-off period for your finance agreement should not start until the finance company activates the contract and pays the dealer for the car, so if you have not taken delivery of the new car then it’s unlikely that the finance company has paid the dealer yet.

      There is usually no cooling-off period on the car itself, so in theory the dealership could insist that you pay for the car and take delivery. But the chances of them being able to achieve that, especially if you can no longer afford it, are slim.

    • #134803

      Hi, I intended buying a second hand vehicle on PCP and have signed the forms which has been only 5 days ago. After much thought I’ve decided I would rather buy it outright. Would there be any repercussions on this, I haven’t yet collected the vehicle nor do I think any monies have changed hands.

      • #135244
        Stuart Masson

        Hi Alan. Your finance contract is simply a means of paying for the vehicle and is separate from the contract to actually buy the vehicle.

        You are able to cancel your finance contract within 14 days with no penalties and choose to pay for your car via another method.

    • #136129
      Martyn James

      Is it possible to lump all you pcp payments into one large payment and pay all the 36 monthly payments in one go ? still keeping the car for the 3 yr term
      Would i still have to pay the interest

      • #136313
        Stuart Masson

        Hi Martyn. Yes, you can usually pay a lump sum overpayment, although there may be a fee to do so.

        You will save on interest for those monthly payments, as you have repaid a large chunk of the loan sooner. However, you will still have to pay interest on the balloon amount, as you are not making any repayment on that until the end of the PCP.

    • #138854

      Hi There,
      I bought a new mercedes a class on a PCP.
      Car value £31000
      part exchange my car £14500 rest on PCP £16500– £ 120 x 48 and balloon payment of £14300.
      I have not taking delivery of the car yet. The car will be ready around mid October, and still have my car I just put down £ 1000 deposit.
      Now I would like to pay the £16500 with a bank loan at 3.4 % rather than using PCP at 6%.
      Is this a good idea?
      Also is that possible to stop the PCP even though I already signed documents 17 days ago?
      I have emailed the dealer but they are taking long time to reply!
      Any help appreciated, Thanks!!

    • #139700
      Stuart Masson

      Hi Luis. If you haven’t taken delivery of the car, the finance agreement should not have been activated. Talk to the finance company directly to cancel the agreement.

      The dealer won’t be too helpful because they get a fat commission from selling you finance – sometimes more than they get for selling you the car.

    • #144856

      The PCP agreement isn’t signed so there is no PCP contract to cancel.

      Check the document she signed with respect to the deposit for the small print.

    • #145441

      I ordered a Kia Picanto through PCP etc, when we were at the dealership they estimated the 05/12/18 for delivery, on the paperwork she has put the 21/12/2018, she never told us this date at all but its my fault as I should have rechecked the paperwork when I was signing it.
      Rang them yesterday, and the estimated delivery date is now the 27/12/2018.
      I really need a car now as I’m borrowing a family members. Any advice would be greatly appreciated.

    • #145670
      Louise chivers

      We signed the documents for a new nissan quashqai, we are 5 days after that signing and we have done our finances and we just cannot afford it at £350 a month. We have not arranged a pick up date yet as the juke we are trading in is having bodywork damage repaired before we handover. The dealer are adiment we cannot cancel? I’m beside myself with sorry. I would be grateful for your opinion please

    • #145701

      Hi, this seems to very all very useful, just one query, In my case deposit has been paid, finance agreed in form of PCP, apparently contract executed on 1st of November but no monies on Dealership account as yet (3 days later), therefore no car delivery either. Unfortunately I have noticed better deal, is there a way of persuading dealership to invoke incoming payment and cancel PCP contract with finance company? If payment made to my personal account was made this would so much easier to return but if is paid to dealership this seems to be a bit difficult Many thanks in advance as this is my first PCP contract

      • #146206
        Stuart Masson

        Hi Tom. The dealer is highly unlikely to be interested in cancelling your order so you can go and buy another car elsewhere.

    • #152962

      Hi Stuart, my wife signed a Pcp with Arnold Clark yesterday and trading her car in too, we have done some homework and the millage doesnt add up and monthly payments might be unmanageable, she wants to cancel today, she has paid £300 deposit what is her rights, she has been up all night with worry.

    • #170834

      Hi Guys, I was wondering if anyone can help? I am trying to cancel my PCP deal with Honda, as I have just been told this morning that my job is at risk. I have not paid the full deposit (£1500) only a £500 fee to secure the deal. The car has been delivered to the dealer and already registered and taxed under my name (according to the dealer). How they have done this, I don’t know! I have just phoned up Honda finance and they have not released the funds and they are going to contact the dealer directly.

      The dealer keeps on phoning me to pay the deposit and come collect the car. He also said that I am liable for the car now.

      I’m quite worried and not really sure what to do. Any help would be greatly appreciated.

    • #171017

      I placed a deposit for a car over the weekend and the total outstanding deposit was 7000k. I made a bank transfer of 3k and hoped to pay the rest of the deposit with my credit card(yet to be done)

      The dealer send me the finance document online and I electronically signed. I’ve since reflected and do not want to go on a pcp plan as it’s too expensive. The remainder of deposit still needs to be paid.
      I am allowed to cancel the deal and get a refund on deposit I paid


    • #175543

      Hi I’ve payed £200 deposit on a pcp on a new motorbike, I was due to pick the bike up today a week after I went in the shop I phoned up the bike shop to see if it was ready for me to pick it up, I was told the bike wont be ready as they need to order a new part for it under warranty . They said that they have all the documents for me to sign when the bike is ready. I’ve been on the internet and people who have ordered
      part on warranty are still waiting 2 to 3 weeks later for their parts to arrive. How do I stand about changing my mind about having the bike and walking away from the deal.

    • #175682
      Elizabeth Jordan

      I went to my local car dealership to look at some second hand cars and I saw and test drove a car. I was explained everything and I told the sales guy that I wasn’t sure about the PCP as I’ve never had credit or loans or even a credit card before. The car is still at the garage. When I got home, I checked out my finances and found that I couldn’t really afford the car. Can I cancel the PCP and if so is there a 14 day cooling off period?

      • #176843
        Stuart Masson

        Hi Elizabeth. You can cancel a finance agreement within 14 days, but that doesn’t cancel the purchase of the car itself – all you’re doing is changing your mind about how you want to pay for it.

    • #183778

      Hi, I bought a Vauxhall On a PCP today but after getting home and reflecting I feel I may have rushed into the decision. I have signed a vehicle order form but I believe I have not signed the finance documents yet. Is there anyway to stop the deal or am I stuck?

    • #199751

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