Author Topic: Existing Car Finance Agreement Extended... Without Consultation  (Read 872 times)

Offline richwade80

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Hi Everyone,

i have a new GTi on order from June. The plan was to trade in the current one, but then everything got delayed etc.

my current GTi finance should end in December, and so i was expecting to pay the balloon payment - i was okay with this (as it gave me selling options), but was aware that VW might offer an extension to the finance.

i called VW finance to check, only to be told that the agreement has been extended by the dealership by 3 months without my knowledge. If true, this appears to be an interest free extension - i make more monthly payments and the balloon goes down by the same. While this might be fine - all of this has happened without any consultation so i have zero paperwork confirming what the new arrangement is, or who the arrangement is now with.

anyone else had this?

can they just amend your agreement without your confirmation?
2012 Mk5 Polo 1.2 TSI - Deep Black Pearl
2015 Mk7 Golf 1.4 TSI - Carmen Red
2017 Mk7.5 Golf 2.0 TSI GTI - Isaac Blue / No Frills
202? Mk8 Golf 2.0 TSI GTI - Moonstone Grey / Sunroof / Winter Pack

Offline Sootchucker

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Re: Existing Car Finance Agreement Extended... Without Consultation
« Reply #1 on: 22 November 2021, 13:13 »
Pretty sure that if either VWFS or VW UK make any changes to an existing finance agreement, you must be notified in writing before said changes come into effect.

In any case, if you still want to pay off your balloon payment in December, there's nothing stopping you from doing that anyway.
2022 Tiguan R-Line 2.0 TSI 4-Motion. Nightshade blue, pano roof, IQ lights, Nav Pro, Harmon Kardon, Heated Windscreen, Heated rear seats, Wireless charging, Heads up display, dual height boot floor, Keyless with electric tailgate, Electronic TPMS, underbody protection, Area View Cameras

Offline BillSan

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Re: Existing Car Finance Agreement Extended... Without Consultation
« Reply #2 on: 22 November 2021, 13:16 »
I'd be amazed if they can vary the contract unilaterally.  I've had VW PCP in the past and I can't recall seeing anything which would have allowed that to happen.

If it's interest free and there are no penalties then I suppose there's no harm.  If you want to settle the finance, for example to sell the car on, you would still have that option.
Pure White Mk8 Clubsport
TD Motorsport Pro Y Spoke Wheels
1899 Software but new s/wheel & no bongs since 4/1/24

Gone: Mk7.5 GTE

Offline richwade80

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Re: Existing Car Finance Agreement Extended... Without Consultation
« Reply #3 on: 22 November 2021, 13:30 »
i am told that the deal is completely flexible, so i can pay it off whenever i want etc. all i am missing is paperwork, so i have asked for that. i can't imagine how they can vary it without making you aware, but it seems to have happened. i would not have known until i made regular monthly in December.

the three month extension is unlikely to be enough, so after that it might just keep going. i am all for this so long as it is interest free.... i want to see that in writing though.

i sincerely hope the new car is going to be worth it.....
2012 Mk5 Polo 1.2 TSI - Deep Black Pearl
2015 Mk7 Golf 1.4 TSI - Carmen Red
2017 Mk7.5 Golf 2.0 TSI GTI - Isaac Blue / No Frills
202? Mk8 Golf 2.0 TSI GTI - Moonstone Grey / Sunroof / Winter Pack

Offline fredgroves

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Re: Existing Car Finance Agreement Extended... Without Consultation
« Reply #4 on: 22 November 2021, 14:05 »
They will extend it up to 6 months.

I did this on my last golf.... all of the extra payments are capital, there is no interest - ie you make 6 x £100 payments and the balloon payment comes down by £600.

You are basically driving the car for "free".

Current: Mk8 GTI DSG, Adelaides, DCC, HUD, HK, Winter Pack, Rear Camera.. Aka "HMS Weasel"

Gone: 2017 Mk7.5 GTD,manual, NavPro
Gone: 2014 Mk7 GTD, manual, NavPro, DCC

Offline monkeyhanger

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Re: Existing Car Finance Agreement Extended... Without Consultation
« Reply #5 on: 22 November 2021, 15:08 »
They will extend it up to 6 months.

I did this on my last golf.... all of the extra payments are capital, there is no interest - ie you make 6 x £100 payments and the balloon payment comes down by £600.

You are basically driving the car for "free".

It's interest free, but it's not free if you end up simply giving it back rather than paying off the balloon payment or using the equity towards another car (which are unobtainable at the moment).

The real downside to this arrangement is that if you were wanting to be in a new car, right now you're riding around in a car whose warranty has expired. If something big goes bang in the meantime...

In that situation I'd hope VW would offer you a warranty extension while you wait for a new one, once an order is placed.
Whey ya bugger! It's finally arrived after an 8 month wait....
MK7 R 5 door, manual, Lapiz Blue, Prets.

Offline BillSan

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Re: Existing Car Finance Agreement Extended... Without Consultation
« Reply #6 on: 22 November 2021, 15:12 »
I've had my Mk8 for 6 months now and I love it.  I wish the software was more reliable, but the plusses outweigh that problem.

I hope they'll have sorted it by the time you get yours Rich, but even if they haven't, I don't think you'll regret it.

 :smiley:
Pure White Mk8 Clubsport
TD Motorsport Pro Y Spoke Wheels
1899 Software but new s/wheel & no bongs since 4/1/24

Gone: Mk7.5 GTE

Offline richwade80

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Re: Existing Car Finance Agreement Extended... Without Consultation
« Reply #7 on: 22 November 2021, 16:41 »
I've had my Mk8 for 6 months now and I love it.  I wish the software was more reliable, but the plusses outweigh that problem.

I hope they'll have sorted it by the time you get yours Rich, but even if they haven't, I don't think you'll regret it.

 :smiley:

Cheers, my thoughts / hopes exactly.
2012 Mk5 Polo 1.2 TSI - Deep Black Pearl
2015 Mk7 Golf 1.4 TSI - Carmen Red
2017 Mk7.5 Golf 2.0 TSI GTI - Isaac Blue / No Frills
202? Mk8 Golf 2.0 TSI GTI - Moonstone Grey / Sunroof / Winter Pack

Offline fredgroves

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Re: Existing Car Finance Agreement Extended... Without Consultation
« Reply #8 on: 22 November 2021, 16:47 »
They will extend it up to 6 months.

I did this on my last golf.... all of the extra payments are capital, there is no interest - ie you make 6 x £100 payments and the balloon payment comes down by £600.

You are basically driving the car for "free".

It's interest free, but it's not free if you end up simply giving it back rather than paying off the balloon payment or using the equity towards another car (which are unobtainable at the moment).

The real downside to this arrangement is that if you were wanting to be in a new car, right now you're riding around in a car whose warranty has expired. If something big goes bang in the meantime...

In that situation I'd hope VW would offer you a warranty extension while you wait for a new one, once an order is placed.

Well you can only get the extension if you are buying another VW normally...and you have an order number.

As for warranty extension, if you PCP for 4 years you don't get a 4th year warranty for free!
Current: Mk8 GTI DSG, Adelaides, DCC, HUD, HK, Winter Pack, Rear Camera.. Aka "HMS Weasel"

Gone: 2017 Mk7.5 GTD,manual, NavPro
Gone: 2014 Mk7 GTD, manual, NavPro, DCC

Offline fredgroves

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Re: Existing Car Finance Agreement Extended... Without Consultation
« Reply #9 on: 22 November 2021, 16:51 »
I've had my Mk8 for 6 months now and I love it.  I wish the software was more reliable, but the plusses outweigh that problem.

I hope they'll have sorted it by the time you get yours Rich, but even if they haven't, I don't think you'll regret it.

 :smiley:

Cheers, my thoughts / hopes exactly.

Yes by and large its a nice car to drive and maybe sometime soon the annoying software problems will go away.
Current: Mk8 GTI DSG, Adelaides, DCC, HUD, HK, Winter Pack, Rear Camera.. Aka "HMS Weasel"

Gone: 2017 Mk7.5 GTD,manual, NavPro
Gone: 2014 Mk7 GTD, manual, NavPro, DCC