Mercedes finance on nearly new car

[Dabthesaab]

Hi all.Anyone paid the bulk of their finance early and what penalties?
I have been advised to take finance on the car i am having to get a further 1K off and get a extra years warranty and to pay all finance off in 30 days less £800 the interest i pay on the 800 will be 300 but get !k off 1yr warranty and car ceramic coated.
Grateful for any comments

 

[markjay]

As far as I know you can cancel the finance deal within 14 days, against full refund of all sums paid to the finance provider so far (possibly less admin fee).

You can then pay the dealer for the car in cash based on the finance deal price, i.e. you get to keep any discounts or contributions that were applied to the (now cancelled) finance deal.

Ask the dealer and see what they say...

 

[Deleted member 149005]

£300 interest on a loan of £800??

my calculator doesn't have enough digits to display that APR ...

 

[Tramper]

You are kidding right?
Your not getting a grand off if your paying £800 surely. That ceramic if that's what they call it a worth tuppence.
Personally I'd tell them to poke it.

 

[MrRight]

on a car I PCPd, if I paid cash , it was 4k more expensive than if I took out pcp on Time 0, ofcourse the finance company then charges interest so net net the money comes back to MB one way or another unless you can pay off the pcp early ... I'm planning to do that in Dec on one of my cars provided I get an interest rebate

 

[Deleted member 149005]

What type of finance?
-PCP where you rent the car for a fixed period and make a final balloon payment to then own the car
- HP, where you repay the loan in equal, monthly, install menus

 

[Deleted member 149005]

Duplicate post...

 

[Deleted member 6183]

And some people still say that dealers explain finance deals sufficiently?

 

[Deleted member 149005]

As far as I know you can cancel the finance deal within 14 days, against full refund of all sums paid to the finance provider so far (possibly less admin fee).

You can then pay the dealer for the car in cash based on the finance deal price, i.e. you get to keep any discounts or contributions that were applied to the (now cancelled) finance deal.

Ask the dealer and see what they say...

Surely the dealer has already been paid by the finance company prior to delivery?

 

[markjay]

Surely the dealer has already been paid by the finance company prior to delivery?

The consumer has the legal right to cancel any financial product within 14 days (aka 'cooling-off period').

So as long as it's still within the 14 days... the dealer and the finance provider will just have to work it out between themselves.

See also:

Is there a 14 day Cooling Off Period for Agreeing Car Finance?

 

[Deleted member 149005]

Argh ! That deals with HP; presumably the same applies to PCP?

If nothing else that article suggests (a subset of) people don’t know what they are signing up for - but that is debated on another thread.

I hope the OP gets a clear answer from their dealer.

PS - I wonder what happens if a finance agreement is signed but delivery is more than 2 weeks later...

There again as I don’t have debt on my car it doesn’t really bother me.

 

[st13phil]

PS - I wonder what happens if a finance agreement is signed but delivery is more than 2 weeks later...

ISTR that while approval of the agreement happens prior to delivery, the agreement is actually “entered into” at the time of delivery and that is the date of signature for the purpose of the cooling off period.




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[Dabthesaab]

£300 interest on a loan of £800??

my calculator doesn't have enough digits to display that APR ...

I understand that the finance [hp ] that if i cancel in 30 days but leave £800 on finance the deals ie money off and years warranty and ceramic coating stay but over 3 years it will mean interest over original loan of 18K will be £300 .not had The paperwork yet

 

[Dabthesaab]

What type of finance?
-PCP where you rent the car for a fixed period and make a final balloon payment to then own the car
- HP, where you repay the loan in equal, monthly, install menus

3 years HP

 

[ash59fifty-uk]

Ceramic coating they apply won’t be worth ten percent of this interest quoted

 

[JBD]

As far as I know you can cancel the finance deal within 14 days, against full refund of all sums paid to the finance provider so far (possibly less admin fee).

You can then pay the dealer for the car in cash based on the finance deal price, i.e. you get to keep any discounts or contributions that were applied to the (now cancelled) finance deal.

Ask the dealer and see what they say...

If you cancel before the 14 day period, you will not get the deposit contribution, as you’re essentially exercising your right to withdraw from the agreement.

You can cancel in full at any point after 14 days and still retain the extra discount


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