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I am considering purchasing a new Kia Picanto Wave, part-exchanging my 2-year old Picanto. The salesman has gone as low as he can. (I've checked this with another Kia dealer and they can't match it)
I have got the cash to pay for it, but he is saying that he can allow me an extra £1000 if I take out a PCP, then pay this off in a month and the settlement figure will have saved me around £900.
1) is there a catch to this?
2) is it relatively simple to do?
Thank you in advance
Chris
 

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I am considering purchasing a new Kia Picanto Wave, part-exchanging my 2-year old Picanto. The salesman has gone as low as he can. (I've checked this with another Kia dealer and they can't match it)
I have got the cash to pay for it, but he is saying that he can allow me an extra £1000 if I take out a PCP, then pay this off in a month and the settlement figure will have saved me around £900.
1) is there a catch to this?
2) is it relatively simple to do?
Thank you in advance
Chris
I just done the same thing, only the salesman told me to wait for 2 payments to go by, then phone Hyundai Finance and ask to pay it all off, they give you a settlement figure and you pay there and then, i actually saved a total of £877.27 and out of that I still have to pay income tax out of that so am left with £693.04 to the good, and no strings attached, that I have discovered as of yet....


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You'll save even more if you withdraw from the finance within 14 days.

I've done this a few times, including with my current Sorento.

The salesman loses his commission (though I'm upfront with them when negotiating).
 

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I am considering purchasing a new Kia Picanto Wave, part-exchanging my 2-year old Picanto. The salesman has gone as low as he can. (I've checked this with another Kia dealer and they can't match it)
I have got the cash to pay for it, but he is saying that he can allow me an extra £1000 if I take out a PCP, then pay this off in a month and the settlement figure will have saved me around £900.
1) is there a catch to this?
2) is it relatively simple to do?
Thank you in advance
Chris
The salesman is telling a lie.

If you pay off within 14 days you pay no charges other than daily interest on the loan. 14 days on £7000 @ 5% would cost you about £13.42.

We have done this 4 times now and saved over £8000.

They cannot stop you from doing it, its the law.
 

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Yep I,ve done it,cancelled the finance after four days,cost only £9 in interest, but kept Kia,s £750 contribution.Win, win all the way.
 

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I just done the same thing, only the salesman told me to wait for 2 payments to go by, then phone Hyundai Finance and ask to pay it all off, they give you a settlement figure and you pay there and then, i actually saved a total of £877.27 and out of that I still have to pay income tax out of that so am left with £693.04 to the good, and no strings attached, that I have discovered as of yet....


:thumbsup:
? Income tax - I no understand how income tax comes into it?
 

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? Income tax - I no understand how income tax comes into it?
I am self employed and if i sell an asset (my vehicles are regarded as assets) that has a tax liability on it and if i sell it for more than the depreciation the tax man allows (sell as in the p/x value of my 2016) then any value over is classed as selling for a profit and any profit has a tax liability to me of 21% of the value, that`s why i didnt argue when the salesman came up with a p/x price, which was the exact price i wanted to hear, then he added another £1k to it in the way of KIA contribution, which i have a 21% tax liability as i then sold my 2016 for a £1k profit!!! To avoid paying income tax i needed to sell for a loss!

:thumbsup:
 

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? Income tax - I no understand how income tax comes into it?
I am self employed and if i sell an asset (my vehicles are regarded as assets) that has a tax liability on it and if i sell it for more than the depreciation the tax man allows (sell as in the p/x value of my 2016) then any value over is classed as selling for a profit and any profit has a tax liability to me of 21% of the value, that`s why i didnt argue when the salesman came up with a p/x price, which was the exact price i wanted to hear, then he added another £1k to it in the way of KIA contribution, which i have a 21% tax liability as i then sold my 2016 for a £1k profit!!! To avoid paying income tax i needed to sell for a loss!

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How was the £1000 listed? Unless it's linked to p/x increase, it shouldn't affect the value of your old vehicle, just reduce the cost of the replacement. You'll still lose the benefit of offsetting the £1000 somewhere in your accounts but I'd be surprised if it had to go down as profit.
 

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Another side to this argument is that the PCP payments are fixed i.e. no inflation, and you can keep your lump sum locked away in a higher interest rate account (Poss as much as 5%) thereby reducing the overall interest to approx 0.9% over 3 years.
 

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Another side to this argument is that the PCP payments are fixed i.e. no inflation, and you can keep your lump sum locked away in a higher interest rate account (Poss as much as 5%) thereby reducing the overall interest to approx 0.9% over 3 years.

Please tell me where I can invest at 5%
 

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Nationwide – 5% up to £2,500 for 12mths
TSB – 3% up to £1,500
 

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Nationwide – 5% up to £2,500 for 12mths
TSB – 3% up to £1,500

Fair enough but the balance limits mean you can only invest a fraction of the principle, and both accounts require you to transfer your banking to them. This means the claimed savings are in fact negative.
 

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If you follow Money Saving Expert, he will show you how to open multiple current a/cs with only one principle sum, drip feed the accounts & open mutiple high interest A/c's. Not saying it's easy, but where there's a will...!! We have 2 x 5% interest a/cs with our bank but they have just cut the rate in 1/2 for new investors.
 

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Is the PCP cancellation within 14 days purely something more suited to a purchase of a new car? Can it be done on a second hand one with similar proportional savings?
 

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Another side to this argument is that the PCP payments are fixed i.e. no inflation, and you can keep your lump sum locked away in a higher interest rate account (Poss as much as 5%) thereby reducing the overall interest to approx 0.9% over 3 years.

Except for the fact you have no car at the end of the 3 years. Unless you shell out a large payment or take a new PCP at a possible higher price.
 

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Is the PCP cancellation within 14 days purely something more suited to a purchase of a new car? Can it be done on a second hand one with similar proportional savings?
Yes you can get PCP on 2nd hand cars.
It is a legal right to cancel any finance within 14 days.
 

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Is the PCP cancellation within 14 days purely something more suited to a purchase of a new car? Can it be done on a second hand one with similar proportional savings?
The saving on a new car comes because the manufacturer offers a substantial "deposit contribution" on the purchase of the car using their PCP scheme. I doubt that you would get such a contribution on a second hand car, but I may be wrong.
 

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I am thinking of ordering a brand new kia rio 2, with £1750 deposit contribution. Will the 14 day clock start upon delivery? so just cancel it when I get home after picking it up?
 
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