Toyota finance
Discussion
Hope someone can put my mind at rest please. Am about to buy a Toyota but need to sign up to a pcp to get the big dealer contribution discount.
Salesman said I can pay off the finance in full after 2 payments. No fees or admin fees. Just the interest element . He still gets his comm no ok with him.
He wasn't able to send me this is writing though .
Not taken a pcp before so looking for assurance that will be ok to pay off.
If not I will call Toyota finance on Monday.
Thanks.
Salesman said I can pay off the finance in full after 2 payments. No fees or admin fees. Just the interest element . He still gets his comm no ok with him.
He wasn't able to send me this is writing though .
Not taken a pcp before so looking for assurance that will be ok to pay off.
If not I will call Toyota finance on Monday.
Thanks.
Yes, I'd definitely check with Toyota FS before placing the order. You're effectively requesting an early settlement figure on an agreement that doesn't yet exist.
Not sure what "just the interest element" means, but the settlement figure is unlikely to be the total amount financed less payments made to date.
Not sure what "just the interest element" means, but the settlement figure is unlikely to be the total amount financed less payments made to date.
Ha. Don't get excited. It's an aygo x pure .manual.
It's my family runaround car. Trips to the station/supermarket/sch runs etc.
I have a mii which I've had from new . Nearly 8 years old. Has done fine service but just getting a bit tired and creaky now. Like me!
The small cheap car is nearly an extinct thing now. A real shame as that's what alot of people need.
The aygo I will keep again for many years and my daughter and son can both use it when they learn in 2 and 4 years time.
The mii cost me 6650 new. And I reckon its still worth 5k maybe. So thats not bad I think!
Boxster spyder is in the garage for other driving!
It's my family runaround car. Trips to the station/supermarket/sch runs etc.
I have a mii which I've had from new . Nearly 8 years old. Has done fine service but just getting a bit tired and creaky now. Like me!
The small cheap car is nearly an extinct thing now. A real shame as that's what alot of people need.
The aygo I will keep again for many years and my daughter and son can both use it when they learn in 2 and 4 years time.
The mii cost me 6650 new. And I reckon its still worth 5k maybe. So thats not bad I think!
Boxster spyder is in the garage for other driving!
Worth checking the paperwork, some manufacturers put a clause in that if you pay off within 6 months then they can withdraw the contribution.
Also, you may not have to finance the whole amount to get the contribution so can just take the minimum to reduce your interest charges.
You could get a 5 year service plan and 5 year warranty for free on a Honda recently with their finance. You had to keep the finance for 6 months, but only had to finance £5k of the total cost to get it.
Also, you may not have to finance the whole amount to get the contribution so can just take the minimum to reduce your interest charges.
You could get a 5 year service plan and 5 year warranty for free on a Honda recently with their finance. You had to keep the finance for 6 months, but only had to finance £5k of the total cost to get it.
Whataguy said:
Worth checking the paperwork, some manufacturers put a clause in that if you pay off within 6 months then they can withdraw the contribution.
Also, you may not have to finance the whole amount to get the contribution so can just take the minimum to reduce your interest charges.
You could get a 5 year service plan and 5 year warranty for free on a Honda recently with their finance. You had to keep the finance for 6 months, but only had to finance £5k of the total cost to get it.
was that 6 months in the finance document ? Also, you may not have to finance the whole amount to get the contribution so can just take the minimum to reduce your interest charges.
You could get a 5 year service plan and 5 year warranty for free on a Honda recently with their finance. You had to keep the finance for 6 months, but only had to finance £5k of the total cost to get it.
thats usually a dealer line to make sure there get there commission as if its paid off before 6 months it gets clawed back.
Had not heard of a finance company enforcing people to keep it for that long for contributions
davidc1 said:
Thanks! I was worried there might be hidden admin fees or some crazy small print charge! I will order the car.
Fair enough, but really you still don't know if there'll be any fees or charges relating to either the early settlement or the dealer (manufacturer?) contribution. And the dealer won't confirm in writing what they've verbally told you?Dan W. said:
was that 6 months in the finance document ?
thats usually a dealer line to make sure there get there commission as if its paid off before 6 months it gets clawed back.
Had not heard of a finance company enforcing people to keep it for that long for contributions
Yes, I'd heard that was the term written in the Honda finance documents.thats usually a dealer line to make sure there get there commission as if its paid off before 6 months it gets clawed back.
Had not heard of a finance company enforcing people to keep it for that long for contributions
Quite a few members of the Jazz owners club were doing the 5k minimum finance then paying it off just after the 6 months were up.
Whataguy said:
Dan W. said:
was that 6 months in the finance document ?
thats usually a dealer line to make sure there get there commission as if its paid off before 6 months it gets clawed back.
Had not heard of a finance company enforcing people to keep it for that long for contributions
Yes, I'd heard that was the term written in the Honda finance documents.thats usually a dealer line to make sure there get there commission as if its paid off before 6 months it gets clawed back.
Had not heard of a finance company enforcing people to keep it for that long for contributions
Quite a few members of the Jazz owners club were doing the 5k minimum finance then paying it off just after the 6 months were up.
It's a bit of a grey area if you Withdraw (within 14 days) as it's supposed to be like the finance never existed. However I was therefore surprised to have to pay a small amount (like £30) interest when I did it on a VW to get a £2750 depositi contribution and nothing was said and it wouldn't be like VW to let something go if they didn't have to.
The thing I have heard with Toyota is they sometims do free servicing which is conditional on having the PCP running and they control that by sending a voucher out just before the service is due.
A salesman told me the reason they say three mths / six mths is people get used to the payments and they just let the deal run. He said lots of people say they're going to withdraw or settle but don't.
Sheepshanks said:
I don't believe they can do that - it's a legal right to be able to settle finance at any time and the penalty is set in law as 1 mth interest You do typically have to also give a month's notice so effectively it's 2mths interest.
It's a bit of a grey area if you Withdraw (within 14 days) as it's supposed to be like the finance never existed. However I was therefore surprised to have to pay a small amount (like £30) interest when I did it on a VW to get a £2750 depositi contribution and nothing was said and it wouldn't be like VW to let something go if they didn't have to.
In the first 14 days you have the option to withdraw OR to settle the agreement early, not just to withdraw (because as you say it is a legal right to be able to settle finance at any time, including the first 14 days). If somebody says they want to exit the finance agreement within the first 14 days in circumstances where they are still contractually bound to buy the car then it makes sense for dealers to assume that the customer means to 'settle', as it's pretty clear that if the customer properly understood their CCA rights then that's what they'd do. If dealers clawed back incentives just because the customer said 'withdraw' when they could have kept the incentives if they'd said 'settle' well...that's pretty sharp practice, apparently too sharp for even car dealers!It's a bit of a grey area if you Withdraw (within 14 days) as it's supposed to be like the finance never existed. However I was therefore surprised to have to pay a small amount (like £30) interest when I did it on a VW to get a £2750 depositi contribution and nothing was said and it wouldn't be like VW to let something go if they didn't have to.
You can pay off anytime, but lose the incentives if you do so within the first 6 months.
The Honda T&C's for their finance were minimum 5k finance taken to qualify for free 5 year servicing and 5 year warranty BUT they included an extra term that you have to pay at least 6 monthly payments before paying off the finance or they will cancel the 5 year extras.
The Honda T&C's for their finance were minimum 5k finance taken to qualify for free 5 year servicing and 5 year warranty BUT they included an extra term that you have to pay at least 6 monthly payments before paying off the finance or they will cancel the 5 year extras.
Roger Irrelevant said:
In the first 14 days you have the option to withdraw OR to settle the agreement early, not just to withdraw (because as you say it is a legal right to be able to settle finance at any time, including the first 14 days). If somebody says they want to exit the finance agreement within the first 14 days in circumstances where they are still contractually bound to buy the car then it makes sense for dealers to assume that the customer means to 'settle', as it's pretty clear that if the customer properly understood their CCA rights then that's what they'd do. If dealers clawed back incentives just because the customer said 'withdraw' when they could have kept the incentives if they'd said 'settle' well...that's pretty sharp practice, apparently too sharp for even car dealers!
The only time I've done this was with VW but I imagine they're all the same in that you're not dealing with the dealer, you go to the finance company, in my case VWFS.I Withdrew and I think they assumed that was the case as it was within 14 days. I made sure to get them to confirm the payment was full and final because I really didn't want to lose the £2750 deposit contribution! Once you confirm you're going ahead the amount is frozen and you get 28 days to pay it. As I said earlier, my only surprise was a small interest charge (~£30). so although they say it;s like the deal never existed that can't be quite right or they wouldn't be able to charge any interest. If you Settle then on a typical car cost the interest charge is going to be a couple of hundred pounds, perhaps more now interest rates are higher.
I have done PCP with Honda too but that was 0% so just let it run. I only took it as there was an extra £500 discount - the salesman said Honda wanted everyone on PCPs so they were prepared to bribe people to take them.
Gassing Station | Car Buying | Top of Page | What's New | My Stuff