Question on paying off PCP early

[Sharpe]

You have 14 days from the date you sign the agreement to withdraw. You will be charged interest daily from the date you sign the agreement, to the date you request to withdraw. Once you request to withdraw, the interest is ‘frozen’ but you still have 30 days to make the payment to clear the agreement.

[GTI_for_her!]

As above is completely right.
You've got 14 days, I phoned VW finance to withdraw from my PCP (no reason required but they usually ask why) and have 5 days interest added which was around £5 per day.
I'm just waiting on the letter arriving to confirm all the details and will then pay it off.

Also, got to see you decided on your next car. I really liked my '71' plate M340d. It was so smooth and could shift with the torque it had. Only sold as value was back to what I paid for it 8 monyhs later. You'll defo enjoy it.

[BillSan]

I've looked into this a bit more and apparently the 14 day cooling off period only applies if you sign the agreement away from the dealership.  You don't get a cooling off period if you sign the agreement on their premises. 

There may not even be a cooling off period if they can prove the agreement was explained at the dealership, even if you then sign it later at home.

It's more complicated than everyone getting 14 days!!

[jme63]

Here's  the wording from the PCP agreement that I signed remotely and withdrew from in a couple of days after picking up the car. Note there no mention of signing in the dealers or not. You even get 30 days grace to make the payment, so a chance for you to earn a bit of interest. Whilst the only interest they charge you, is for the number of days between picking up your car and informing them you are withdrawing

4. Other important legal aspects
 Right of withdrawal.
 Early repayment.
 Consultation with a Credit Reference Agency.
 Right to a draft credit agreement.
 The period of time during which the creditor is
bound by the pre-contract information.
 You have a right to withdraw from the finance agreement without giving any reason if the
credit that you take out is for £60,260 or less. You will have 14 days beginning with the day
after the date of the credit Agreement to notify us that you want to withdraw. You will need to
notify us orally or in writing in the manner detailed below. Should you withdraw you will still
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 received
by us as cleared funds and must pay these in full without undue delay and no later than 30
days beginning with the day after the day that you gave us notice. You will not own the
Vehicle until these payments have been made in full to us.
 Should you wish to withdraw from the credit agreement please contact us at VOLKSWAGEN
FINANCIAL SERVICES (UK) LIMITED, Brunswick Court, Yeomans Drive, Blakelands, Milton
Keynes, MK14 5LR. Telephone Number 0870 0102022
 If you do not exercise your right to withdraw, the credit agreement will remain in full force and
effect and its terms and conditions will bind you.
 You have a right to repay the credit early at any time in full or partially. You must notify us and
make the payment before the end of the period of 28 days beginning with the day following
the day that we receive the notice, or on or before any later date specified in your notice.
 If
we decided not to proceed with the prospective credit agreement on the basis of
information from a credit reference agency we must, when informing you of the decision,
inform you that it has been reached on the basis of information from a credit reference
agency and of the particulars of that agency.
 You have a right, upon request, to obtain a copy of the draft credit agreement free of charge,
unless we

[Sharpe]

I've looked into this a bit more and apparently the 14 day cooling off period only applies if you sign the agreement away from the dealership.  You don't get a cooling off period if you sign the agreement on their premises. 

There may not even be a cooling off period if they can prove the agreement was explained at the dealership, even if you then sign it later at home.

It's more complicated than everyone getting 14 days!!

My Golf agreement was signed at the dealership in person, my Audi I did online. Both the same process for withdrawing - just phone up VWFS. They didn’t ask why, just explained that the interest is calculated daily and I will be charged X amount. Email came through straight after the call, with their bank details and exact amount due. About 10 days after paying it off, you get a letter in the post from VWFS saying we no longer hold a financial interest in this vehicle.
They dealers may try to steer you away from doing it, as I guess they don’t receive their commission if you withdraw

[fredgroves]

AFAIK the dealer still get their vwfs commission although even if they didn't it's actually little more than a token payment...

[BillSan]

Thanks for the replies everyone.

Quite possibly the law about signing finance agreements at the dealers (where they strictly may not have to offer a cooling off period) isn't seen as commercially viable by franchised car dealers and they are offering 14 day withdrawals regardless.   Otherwise they'd probably just be involved in legal disputes and end up pissing off car buyers.

Anyway I went to BMW yesterday and carefully read their finance agreement.  It gives a 14 day withdrawal option, so I'll be using that and keeping the £600 incentive that they've offered.

The best advice is just to be careful about this and read the terms to ensure you can withdraw wherever you buy from.

[davo245]

I have done it both ways signed in dealers and signed at home makes no difference at all when you call vw financial services within 14 days keep all the contribution to finance service pack if included or whatever.
3 times I have done this now very easy process done thru VFFS they are very helpful.