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Changing from pcp to bank loan to finance car

TCE home 2021 Forums Car finance Changing from pcp to bank loan to finance car

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    • #142387
      Jen
      Guest

      Hi, I’ve just bought a car on pcp 4 days ago. Have also just had a loan offer from the bank which is a significantly better interest rate than pcp, so will save much more with monthly repayments. Am I able to take that loan and pay the finance company for the original price of the car or terminate the contract as within 14 days? Would I expect any additional costs with that or would it be the loan amount?
      Also does the car dealer get involved if doing that or is it all directly via the finance company which I would prefer to avoid confusion dealing with sales. We got 24 month warranty with the car dealer as part of the deal also.
      Finally are there any advantages to keeping in the pcp deal rather than paying cash. I appreciate any advice, thanks

    • #143113
      Stuart Masson
      Moderator

      Hi Jen. Firstly, it’s all handled between you and the finance company. Once the dealer waves goodbye to you on the forecourt, they have no involvement in the vehicle’s financing.

      If you are still within the original 14 days, you can cancel your PCP and not pay any termination fees. All you’d be paying is a few days’ worth of interest on top of the amount borrowed.

      After 14 days, the finance company can charge you an early termination fee.

      You’ll need to do all the sums to work out what’s best for you and your circumstances.

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