Toyota finance.

[Jeremiah.]

Has anyone taken the toyota finance contribution £1750 and then pay off the loan with in the 14 days. 

[Mojo1010]

Planning to, end of year when my car arrive. 

[Bob66]

2 hours ago, Jeremiah. said:

Has anyone taken the toyota finance contribution £1750 and then pay off the loan with in the 14 days. 

Yes....last week.....I did it within a week of buying my YC .

[RonYarisX]

3 hours ago, Jeremiah. said:

Has anyone taken the toyota finance contribution £1750 and then pay off the loan with in the 14 days. 

Have you bought a car this way before? Do you have any questions about the process? Toyota finance works in the same way any other lender works selling PCP.

I'm curious why you specifically mention 14days?   If it's because you've read that legally you have 14days to cancel an agreement then that's not what you're asking.  If you pay off the loan ( i.e. you're buying the car from Toyota finance ) then with PCP you are not cancelling the agreement, you're settling it.  You can settle the agreement at anytime - 3days, 14 days, 44 days 144 days, 400 days, whenever.

If someone isn't paying off the loan and just wants to cancel, that's where the 14 day limit kicks in.

 

[TonyHSD]

Thanks for clarifying that.
If I buy a new Toyota through Carwow or other broker and go with what’s deal they have to get the best price on pcp and then any time after I can settle, pay in full and get v5 on my name? Is that correct? And do you know how much it’s the early settlement charge % or set amount? 
Here for example a Corolla design hatchback I am looking at , will I keep the Toyota deposit contribution £2500 if I settle earlier ? Can anyone done this exactly help me what would be the exact amount to pay for early settlement and take the car as fully mine so I no need to worry about paying anyone from the pcp and no mileage restrictions? 
Many thank 

 

 

[Hybrid21]

Hi Tony, the answer to your questions depend on what the terms and conditions of the Carwow agreement is.

Probably differs from the Toyota Finance agreement 👍

[Mojo1010]

On 3/14/2023 at 11:43 AM, TonyHSD said:

Thanks for clarifying that.
If I buy a new Toyota through Carwow or other broker and go with what’s deal they have to get the best price on pcp and then any time after I can settle, pay in full and get v5 on my name? Is that correct? And do you know how much it’s the early settlement charge % or set amount? 
Here for example a Corolla design hatchback I am looking at , will I keep the Toyota deposit contribution £2500 if I settle earlier ? Can anyone done this exactly help me what would be the exact amount to pay for early settlement and take the car as fully mine so I no need to worry about paying anyone from the pcp and no mileage restrictions? 
Many thank 

It's the same, they are just brokers, the main terms are with the manufacturer.  Interest are calculated daily, so sooner settle then less to pay. I'm looking to settle a day after receiving the car, so one day of interest to pay. Check drivethedeal, they had a better price than carwow on my yaris.

@Cyker I remembered someone said I will cause someone a big financial mistake because they say the contribution will be claw back if settling the finance?

[TonyHSD]

On 3/14/2023 at 12:03 PM, Mojo1010 said:

It's the same, they are just brokers, the main terms are with the manufacturer.  Interest are calculated daily, so sooner settle then less to pay. I'm looking to settle a day after receiving the car, so one day of interest to pay. 

@Cyker I remembered someone said I will cause someone a big financial mistake because they say the contribution will be claw back if settling the finance? 

Thanks. That’s important to understand. If the terms are really like that and if I loose the contribution then those brokers also do a cash sales which aren’t as good as the pcp but less complicated. At the end what matters is how much in total I need to pay for the car, the cheapest is the best. Why we can’t buy cars of Amazon pay full or equal monthly payments and next day delivery?! 😉🫢

[RonYarisX]

On 3/14/2023 at 11:43 AM, TonyHSD said:

If I buy a new Toyota through Carwow or other broker and go with what’s deal they have to get the best price on pcp and then any time after I can settle, pay in full and get v5 on my name? Is that correct?

 

Mojo1010 is absoultely correct in what he says. I've still to take delivery of the Toyota but with any other PCP agreement I've taken what happens is you contact the finance company ( with VW financial services you don't have to speak to anyone as it can be done via your online account ) and as soon as you indicate your wish to settle, you have 4weeks to transfer the balance to their account without any interest.  The only additional cost with them is an administration fee, but that's only around £20-£30.

You mention the V5 and that's something that used to confuse the hell out of me when I first started looking in to this method of buying a car.

What I failed to appreciate was a V5c does not indicate the owner of the vehicle, it only tells you who the registered keeper is.

So when you initilly take out a PCP, although the owner is Toyota Financial Services, the V5c is already in your name.

Boring fact of the day warning:  Next time you look at used car adverts and someone tells you how many previous owners the car has had, if that's what's displayed then the number isn't worth the paper it's written on. What they actually print and what everyone actually wants to know, is how many keepers the car has had.

When bought on PCP, when you come to sell your car, you'll have been the only driver yet it will have had two owners. Of course the reverse is true, a company car may have had just one owner but several registered keepers.  It's all very confusing when you sit down and think about it. 🤣

[Gray86]

8 hours ago, Hybrid21 said:

Hi Tony, the answer to your questions depend on what the terms and conditions of the Carwow agreement is.

Probably differs from the Toyota Finance agreement 👍

When you get a deal through Carwow they put you in touch with a Toyota dealer who you buy the car from (at the much cheaper Carwow rate) there is nothing to lose as you still use Toyota financial services, just lop a massive chunk of dealer margin out. I did the deal via Carwow and they put me in touch with the most local dealer to me - Johnson’s Toyota in Liverpool who I visited, test drove & completed the paperwork. Saved a big chunk from Joe Bloggs who walked into a dealer & paid full price. 

[Bob66]

On 3/14/2023 at 12:03 PM, Mojo1010 said:

@Cyker I remembered someone said I will cause someone a big financial mistake because they say the contribution will be claw back if settling the finance? And also call you all sorts of names? Mmmh.....

What was actually pointed out.....was the fact that it's written in Toyota's finacial terms and condition...that they could claw back the inducement contribution money......is a figment of your imagination.

[Max_Headroom]

[YarisHybrid2016]

I was told by two dealers not to settle prior to 14 days or I could get a call demanding the finance contribution back.

I never got as far as the PCP paperwork as I worked out the same deal for cash, but at the end what matters is what the small print says. Read carefully. YMMV.

[RonYarisX]

13 hours ago, YarisHybrid2016 said:

I was told by two dealers not to settle prior to 14 days or I could get a call demanding the finance contribution back.

I never got as far as the PCP paperwork as I worked out the same deal for cash, but at the end what matters is what the small print says. Read carefully. YMMV.

But as for the 14 days reference...  You say you've never got as far as the PCP paperwork then tell us to carefully read the smallprint.  Question - Have you read the small print or are you trusting the word of a salesman? ( never a good idea 🤣 )

Perhaps someone can post the specific wording of the smallprint that talks about 14days so we can be clear about it.

PCP is very very simple - assuming you understand it that is. The lender offers an incentive if you buy their product. On the day you collect the car, as soon as you sign on the dotted line, you've bought their product. You have therefore satisfied every requirement to receive their incentive. End of story.

As said above - the 14days is a 'cooling off' period ( by UK law). If you want to cancel the PCP then you have 14 days to do so.

Lots of people do not understand the difference between 'settling' and 'cancelling' a PCP - I'd include many salesmen in that. What I strongly suspect the wording actually infers is that if you cancel the PCP, then you are NOT entitled to their incentive therefore you have to pay it back. Which is only common sense. If you haven't taken out their product then why should they give you a bonus?  On the otherhand if you 'settle' the PCP, then you did take their product. All it means is you've finished with it.

Bottom line is many people have real trouble understanding the difference between 'settling' and 'canceling'.

 

On a different topic - if the same deal was available for cash as it was for PCP then it sounds like you've paid too much for the car.  PCP is a completely seperate product. It doesn't dictate the price of the car. PCP is just a 3rd party loan.

If a car costs £30,000 and the saleman says it's yours for £28250 cash, all that means is you could have had the car for £28250 and then receive a further £1750 off buying thru PCP. Sales still getting their £28250, it just they're being paid by the finance company rather than by you.

If I were a salesman, I'd still want you to take out a PCP on the £28250 price as that'd mean I receive an additional bonus for introducing you to the finance company. A cash buyer is the last thing these guys want - they want commision from the PCP finance company, they want commission from the insurance company who's offering alloy wheel and tyre protection, they want commision from the company who's offering paint protection and interior protection products, and they want commision from the company selling GAP insurance. 

I wouldn't listen to anything salesman say.  🤣

 

[TonyHSD]

Thanks Ron. 
That make sense to me. 
Buying the car on pcp agreed to all t&c to obtain all the benefits and lower price, then 2-3 months later I call them and request early settlement.
Pay all I owe them by the contract plus the early settlement fee and then I will  have full ownership without been worried about anything. I believe this is what someone suggested previously. I never tried myself, but seems like a good idea. 

[Mojo1010]

If you have the money don't wait 2-3 months, settle next day or so. It's over £100 interest a month on my PCP. 

@RonYarisX  I got accused of causing someone a big financial mistake by saying settling the finance the next day and will keep the Toyota contribution. Also cyker said the same. 

 

[FROSTYBALLS]

Can we just return to the topic subject.

[Bob66]

3 hours ago, Mojo1010 said:

If you have the money don't wait 2-3 months, settle next day or so. It's over £100 interest a month on my PCP. 

@RonYarisX I got accused of causing someone a big financial mistake by saying settling the finance the next day and will keep the Toyota contribution. Also cyker said the same.

 

The simple facts are;  it's in the terms of Toyota finacial agreement, that they can claw back their contribution... if they want to.

[Yugguy1970]

Ok so to me here are the questions.

If you settle the agreement then doesn't everyone just walk away, you with the car and them with the settlement figure?  

If you cancel then don't you just get your deposit back, and everyone walks away?

Isn't the Toyota £1750 contribution just paper money, like the trade in figure, the dealer discount figure, all of it really?

[Mojo1010]

2 hours ago, Bob66 said:

The simple facts are;  it's in the terms of Toyota finacial agreement, that they can claw back their contribution... if they want to.

I want to stay within topic, guess this is within topic from the other thread. 

Not when the finance is 'settled', only when it's cancelled. Clear enough for you? 

[FROSTYBALLS]

The topic has now been cleaned up.

Any further posts regarding name calling, etc, will be deleted, and possibly warnings issued. 

At the end of the day, this is a forum for adults so please behave as such.

[TonyHSD]

4 hours ago, Mojo1010 said:

If you have the money don't wait 2-3 months, settle next day or so. It's over £100 interest a month on my PCP. 

@RonYarisX  I got accused of causing someone a big financial mistake by saying settling the finance the next day and will keep the Toyota contribution. Also cyker said the same. 

 

 

 

 

 

 

So in that case it’s 100% guaranteed that I am not loosing the deposit contribution even if I settle my payment in full the very next day.? 
Of course I am not cancelling the sale. I will wait for you to go through it and share experience, not in a rush for a new car to place an order, not before the current one goes bang. 🫢

[Mojo1010]

36 minutes ago, TonyHSD said:

So in that case it’s 100% guaranteed that I am not loosing the deposit contribution even if I settle my payment in full the very next day.? 
Of course I am not cancelling the sale. I will wait for you to go through it and share experience, not in a rush for a new car to place an order, not before the current one goes bang. 🫢

Yes. Ron above wrote a very detailed post with his own experience and understanding of it, and already been through a few. 

[AntonyU21]

I thought I'd do it secretly hahaha

[Bob66]

48 minutes ago, TonyHSD said:

So in that case it’s 100% guaranteed that I am not loosing the deposit contribution even if I settle my payment in full the very next day.? 
Of course I am not cancelling the sale. I will wait for you to go through it and share experience, not in a rush for a new car to place an order, not before the current one goes bang. 🫢

I think Toyota finance  have been quite cute with the wording....their deposit contribution payment has nothing to do with the interest, or the interest charged on early settlement, it is shown quite differently on the agreement...within the agreement there is a clause that clearly states that they can claw back that contribution.      I actually paid off my PCP within a week and they didn't claw back their contribution....but they could have if they so wanted to.