PCP 14 day termination

TCE home 2021 Forums Buying a Car PCP 14 day termination

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    • #131292

      I took out a car PCP 7 days ago and due to unforeseen circumstances I will no longer be able to afford it and I need to cancel it. The document says that I have 14 days to withdraw. It then says should I withdraw I will need to be responsible for the payment of the credit and interest calculated on a daily basis on each clear day between the date of this agreement and the date on which the payment is recived. What does this mean?

    • #131302
      Stuart Masson

      Hi Catriona. The law provides you with 14 days to withdraw from any finance or insurance agreement. However, this doesn’t cancel the vehicle purchase – only the method of paying for the car.

      If you cancel the finance agreement, the finance company will invoice you for the full amount borrowed, plus interest on however many days you had borrowed the money (so somewhere between 7 and 14 days, depending on when you cancel, which will probably be no more than several pounds). So you’ll be getting a very large bill, which you presumably won’t be able to pay.

      You don’t have the automatic right to cancel the agreement and give the car back. If you want to end your agreement now, it will be very expensive.

    • #144487

      Hi, I need some advice. I took out a pcp finance deal yesterday and I signed documents and paid £500 deposit and I have to pay £2700 today and then collect my car. I received a call from another dealer which saves me £1200 on the deposit total and saves me money on the monthly instalments.
      I called to cancel my agreement and was told I cant as the finance has been agreed and signed.
      I haven’t collected the car yet and nor have I paid the remaining balance of the deposit (which I was going to pay this afternoon) What can I do to get this cancelled and get my deposit back?

    • #145348
      Stuart Masson

      Hi Tj. You are entitled to cancel your car finance agreement within 14 days, but this does not cancel the car purchase itself. And the dealer is not going to refund your deposit just so that you can go and buy another car elsewhere.

    • #196228

      Hi I have had a pcp car delivered for 3 days but I have not signed any agreement contract
      I think the company signed an agreement as me so this will be fraud
      I’m not happy with vehicle and wish to send it back
      What are my rights

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