Buying on finance for discount then paying full amount

[Handydave]

It depends on the terms and conditions of the particular finance deal.

My wife was intending to pay cash for a new VW Golf. VW finance were offering £500 discount if finance was taken out. Salesperson assured us there was no penalty for early settlement. That's what she did, immediately after the first payment. No issues whatsoever.

 

[tylerdurden]

Fascinating comments

To clarify I'm referencing the face that a W213 priced on carwow can come with a cash and finance price. The latter being way cheaper.

I was talking about taking a finance deal but paying it all off within the 14d cool off period.

A personal loan via my bank is way cheaper than the 5-6% dealers seem to be offering.

Was in Canada recently and a mate was telling me car dealer finance interest rates are way lower than uk.

 

[markjay]

...I was talking about taking a finance deal but paying it all off within the 14d cool off period....

The interest rates MB charge are obviously immaterial if you cancel the finance within the 14 days.

 

[Rory]

Was in Canada recently and a mate was telling me car dealer finance interest rates are way lower than uk.

I expect some are, some aren't. We've just finished a 2yr PCP on a HOnda that was 0% - and Honda contributed £500 to get us to take the PCP. Of course, as expected, the dealer called at 18mths and tried VERY hard to get us to switch to a new PCP.

 

[Rory]

The interest rates MB charge are obviously immaterial if you cancel the finance within the 14 days.

Absolutely. I've always been a cash buyer and I wasn't happy about being "forced" to take the PCP on the Honda above, as I was buying the car for my daughter, and it's a bit off to buy someone a present that's on finance!

However buying wife's VW Tiguan, with its £2750 PCP contribution, and then withdrawing, was quite the best and most pleasant car purchasing experience I've ever had. No need to argue about interest rates as I wouldn't be paying any, and I think the salesman would have turned himself inside out to get us to sign up. It became ridiculous - everything I asked for he just said "yes".

 

[ashenfie]

Thanks Mark

I was relying on advice given by the dealer regarding the 14 day rule. It seems that this is just a ploy by the dealer to protect their kick back if you do cancel.

It does seem that the manufacturers contribution cannot legally be recovered if you cancel in most cases.

Agree. No commission if you don't make the 14 days

 

[Bonecho]

16 months ago I went through a broker who put me in touch with a main dealer. My C Class was bought on HP with a £3000 loan over 2 years paying £152.40 in interest, which secured a further £1500 discount on top of the broker discount.

12 days after picking the car up I called MB finance and asked to pay off the outstanding balance. As the car was less than 2 weeks old the balance was the sum borrowed. I paid the balance off there and then by debit card and never heard a word of complaint by the dealer or MB.

 

[JattAmg]

I've read a few threads on here suggesting it's quite possible to negotiate a new car finance deal and once the car has been picked up, cancel, settle the full amount and effectively keep the discount. A few q's about this 1. Is this correct? 2. Presumably if the finance is via another legal entity, this makes no odds to the dealer and would not result in a poisoning of the relationship? 3. Anyone actually done this? Ta

1 Yes
2 No
3 Yes.

 

[gr1nch]

When I ordered car the main dealer (Listers group) they sent me a "What We Do" PDF which states:
If you purchase a vehicle by way of an off-premise or distance
contract, and subsequently decide the vehicle is not suitable,
you will have 14 days from receipt of the vehicle in which to
notify us of your decision to cancel the contract.
This Distance Sales protection with 14 day cooling off period is very powerful - seemingly the car can also be handed back by the customer and get all monies returned.

Are there any members who have invoked the "cancel finance clause within 14 days, pay in cash, with no financial penalties" when purchased from a dealer in person? Or hand the new car back with full refund? I'm guessing not unless the dealer was feeling generous.

 

[ashenfie]

When I ordered car the main dealer (Listers group) they sent me a "What We Do" PDF which states:
If you purchase a vehicle by way of an off-premise or distance
contract, and subsequently decide the vehicle is not suitable,
you will have 14 days from receipt of the vehicle in which to
notify us of your decision to cancel the contract.
This Distance Sales protection with 14 day cooling off period is very powerful - seemingly the car can also be handed back by the customer and get all monies returned.

Are there any members who have invoked the "cancel finance clause within 14 days, pay in cash, with no financial penalties" when purchased from a dealer in person? Or hand the new car back with full refund? I'm guessing not unless the dealer was feeling generous.

Good old Sales goods act Distant Selling as amend, so that from June 2014,

THE DEALER
I have highlighted and italicised part of the above deliberately as the inclusion of the bold part changes the entire definition. If the law makers had not added the part in bold, dealers would be legally discouraged from taking deposits over the phone and delivering vehicles to a customer’s home as any sale whereby the customer had not visited the showroom would become a distance contract subject to the normal 14 day cancellation rights.

However, the inclusion of the bold part leaves it open to dealers to assist customers in this way as a one-off. Quite how many one-offs it will take over what period to add up to an ‘organised distance sales scheme’ is yet untested so dealers need to bear that in mind but for now, if your main business is showroom based, helping the occasional customer by taking a deposit over the phone and delivering a vehicle to them, should not require you to provide all the distance contract information and cancellation rights.

FINANCE
Under the Consumer Credit Act you have 14 days to withdraw from a credit or loan agreement. The legislation applies to all credit agreements, whether made in person, on the internet or over the phone.
Your right to withdraw from a loan agreement is extended to all agreements falling within the Directive, as well as hire purchase agreements, pawn broking agreements, and business loans below £25,000. The right to withdraw doesn't apply to loans above £60,260.

Now this second one I have done. I changed my mind about using credit and purchased a second car cash with my company bonus. I simply had to settle with the finance company. I lost an £100 arrangement fee. I not sure as i didn't chase it, if they should have refund that also.