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General => General discussion => Topic started by: clubsport on 22 July 2015, 15:54

Title: Paying off finance quickly on new car?
Post by: clubsport on 22 July 2015, 15:54: I have been told by the VW salesman that I can take out the finance to earn current rewards, yet pay it off immediately without incurring penalties.

As I haven't ordered the car yet, I have yet to see the small print of the finance agreement.

Has anybody on here paid off the finance as soon as they have bought a new car through VW?

Thanks.
Title: Re: Paying off finance quickly on new car?
Post by: matchboy on 22 July 2015, 16:12: I believe there is no penalty for paying off your VW finance early. So yes, you could take out a PCP for example to gain any financial discounts, then pay it off with your own cash/a lower rate of interest personal loan once you pick the car up :smiley:
Title: Re: Paying off finance quickly on new car?
Post by: clubsport on 22 July 2015, 16:15: Tks Matchboy, I also believe this to be the case.

I appreciate your response, I would be grateful to hear from anyone who has actually done this.

Cheers.
Title: Re: Paying off finance quickly on new car?
Post by: Beddie on 22 July 2015, 16:20: You have 14 days from signing the finance docs to 'withdraw' from the agreement, you will then only incur daily interest charges from the time of signing to the time of withdrawal, VWFS will then give you a further 30 days to pay the outstanding balance by other means :smiley:

Make sure you act within the 14 days and don't allow the agreement to start and then subsequently settle the agreement as you will be hit with much higher interest and early settlement figures, I've withdrawn from 2 VWFS agreements in order to gain finance related incentives without any issues
Title: Re: Paying off finance quickly on new car?
Post by: robtt on 22 July 2015, 17:18: I cannot pay off in full straight away .Can you make overpayments though ?
Title: Re: Paying off finance quickly on new car?
Post by: clubsport on 22 July 2015, 21:03: My initial post relates to my interest in purchasing a mark 7 Gti under the current "Golf event" finance offer.
Title: Re: Paying off finance quickly on new car?
Post by: monkeyhanger on 22 July 2015, 21:22: Will be doing the cooling off period withdrawal to get the £500 contribution available on the missus' A1 on order.
Title: Re: Paying off finance quickly on new car?
Post by: mb on 24 July 2015, 03:30: Quote from: clubsport on 22 July 2015, 15:54
I have been told by the VW salesman that I can take out the finance to earn current rewards, yet pay it off immediately without incurring penalties.

As I haven't ordered the car yet, I have yet to see the small print of the finance agreement.

Has anybody on here paid off the finance as soon as they have bought a new car through VW?

Thanks.

Yes. As stated above, you have a cooling off period so just need to request a settlement figure from VWFS. I've done this on the last two cars I bought from VW.