Am I able to close a finance deal after a month and pay off the balance in whole or would there be any penalties?

I'd like to buy a car on 0% finance. Am I able to close the deal after a month and pay off the balance in whole or would there be any penalties? Both Skoda dealers I have asked have said this is fine.

Asked on 10 February 2017 by Peter

Answered by Honest John

It's dishonest, using finance regulations that are supposed to protect you to breach a contract. The manufacturer supports sales of cars with low cost finance and 'deposit contributions' that effectively discount the car. If someone cancels the finance deal after the benefit of the 'deposit contribution' the manufacturer loses what it would have made on the finance.

Tags: buying a new car buying and selling outstanding finance finance consumer advice

Dear Honest John,

Please help me choose my next car. I would like it to have:

Similar questions

Ford's finance plan looks too good to be true - what's the catch?

I'm looking to buy a new Ford, and I'm normally a cash buyer, but their Options Cashplan seems like a win-win. I pay no more overall, I pay the balance three years later - when I get the option to keep...

What questions do I need to ask an internet dealer?

Why can't I get the full customer savings on a Clio through Renault's scrappage scheme?

Your scrappage scheme guide quotes a total discount of £4250 off a new Renault Clio, irrespective of whether cash, HP or PCP is used. However, I can get nothing better than an offer of £3500 - which includes...