GolfGTIforum.co.uk
Model specific boards => Golf mk7 => Topic started by: maczi on 07 March 2016, 17:45
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Can anyone confirm that they got an extra 58 days interest added to their balance once an early settlement was requested?
It's a bit annoying when you go to close the finance off after 2 months and get charged 4 months interest in total.
It doesn't state this in the t&c's but VW say it is implied as part of the consumer credit act.
Cheers.
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Yes, they do that. They can't do that if you settle in the first 14 days, but after that 2 months of interest in "penalty" for an early settlement is industry standard and i'd be amazed if if isn't smewhere in the full VW finance text of your agreement.
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Ive just paid my VW pcp off(I had it for the £1000 deposit contribution)-when I phoned up after 5 days to give 14 days notice, she said now you have given us your notice you have got 30 days to pay it off without accruing any further interest,(they were charging me interest of £5 odd a day,so it added £27 pound odd onto the settlement) but she did stress once you have given notice there is no going back (not that that really mattered to me) to the deal.
So the moral is I suppose, give your 14 day notice as soon as poss after picking it up and you will pay less interest.
I have not received the confirmation of my payment yet so I hope its all gone through ok!
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When does the interest start to accrue? Is it the day the finance documents are signed, or is it the day you pick up the car? And if the former, how does that work if you're having the car delivered to you at home - when do you actually sign the finance agreement if you're not visiting the dealership?
Bubba.
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Thanks for the replies. It's really annoying because I was told by the dealer that I was best to pay it off after a few months and that when I did there would only be a £10 admin fee. That was clearly incorrect and I have been stupid not to pay it off in the first 14 days. I've read the t&c's in detail and there is nothing stated about adding 58 days interest. I know it is a feature in the consumer credit regulations but it's not on the vw paperwork.
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When does the interest start to accrue? Is it the day the finance documents are signed, or is it the day you pick up the car? And if the former, how does that work if you're having the car delivered to you at home - when do you actually sign the finance agreement if you're not visiting the dealership?
Bubba.
The day you pick up the car - that is the day your debt to VW financial services starts.
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Thanks for the replies. It's really annoying because I was told by the dealer that I was best to pay it off after a few months and that when I did there would only be a £10 admin fee. That was clearly incorrect and I have been stupid not to pay it off in the first 14 days. I've read the t&c's in detail and there is nothing stated about adding 58 days interest. I know it is a feature in the consumer credit regulations but it's not on the vw paperwork.
Not surprised the dealer told you to wait a few months - they get a kickback from VWFS, if you don't settle in the 14 day cooling off period, probably just protecting their interest in that kickback by lying to you or being economical with the truth.
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Ive just paid my VW pcp off(I had it for the £1000 deposit contribution)-when I phoned up after 5 days to give 14 days notice, she said now you have given us your notice you have got 30 days to pay it off without accruing any further interest,(they were charging me interest of £5 odd a day,so it added £27 pound odd onto the settlement) but she did stress once you have given notice there is no going back (not that that really mattered to me) to the deal.
So the moral is I suppose, give your 14 day notice as soon as poss after picking it up and you will pay less interest.
I have not received the confirmation of my payment yet so I hope its all gone through ok!
The wait for the confirmation of payment seems like eternity! Mine took a fortnight to come through. It feels like VWFS are trying to keep you in suspence, almost like a punishment for paying up early :whistle:
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Ive just paid my VW pcp off(I had it for the £1000 deposit contribution)-when I phoned up after 5 days to give 14 days notice, she said now you have given us your notice you have got 30 days to pay it off without accruing any further interest,(they were charging me interest of £5 odd a day,so it added £27 pound odd onto the settlement) but she did stress once you have given notice there is no going back (not that that really mattered to me) to the deal.
So the moral is I suppose, give your 14 day notice as soon as poss after picking it up and you will pay less interest.
I have not received the confirmation of my payment yet so I hope its all gone through ok!
The wait for the confirmation of payment seems like eternity! Mine took a fortnight to come through. It feels like VWFS are trying to keep you in suspence, almost like a punishment for paying up early :whistle:
Is that how long they keep you hanging?
Also the dealer owed me circa £5k cashback from my trade in and said I would definately have it in my account in 3 to 5 days of picking the new one up-took 2 weeks and a threat to leave the car parked outside the main doors of the stealers. Talk about dragging their heels-I think I heard it will be in tomorrow half a dozen times!
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Can they take back the PCP incentive if you pay it off too quick? I'm in the process of buying a Ford for the wife and again the dealer has advised to leave it 2-3 months to ensure the incentive isn't clawed back...
Possibly BS??
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So I am planning to take out PCP soon for the incentives. At the same time, I have also arranged a personal loan with the bank for 3.5% and so will use the lump sum to pay off the full ocp within 14 days. Can anyone think of a reason why this might not be a good idea?? Why do more people not do this??
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No good reason not to, better APR = less interest to pay. It muddies the waters a bit when you chop it in as some salespeople look at what you owe (to VWFS) rather than what the car is worth (which is the wrong way to go about things IMO). I aim to get 85% of the used forecourt sticker price in p/x (they need a margin to sell anything).
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It seems a lot do this, and with the incentives around I will be doing it too hopefully on a Clubsport, as the drop in used Mk7 GTi prices means the cost to change has grown more than I wanted with my normal expected discount from list and cash to change level.
As far as I have seen and read, it is not stated in any Terms and Conditions that if paid in full within 14 days, the deposit contribution is re-claimed by VW. Need to check that myself in person, but never heard of anyone having to pay that back and I'm sure we would if that was the case.
All the brokers I have spoken too when saying it will be a cash purchase have told me to go for PCP for the incentive and pay off within the 14x days.
The bank loan sounds a good bet, if you can get lower APR and not have the cash in savings to pay off, think there was a thread on this before.
Dave
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Ive just paid my VW pcp off(I had it for the £1000 deposit contribution)-when I phoned up after 5 days to give 14 days notice, she said now you have given us your notice you have got 30 days to pay it off without accruing any further interest,(they were charging me interest of £5 odd a day,so it added £27 pound odd onto the settlement) but she did stress once you have given notice there is no going back (not that that really mattered to me) to the deal.
So the moral is I suppose, give your 14 day notice as soon as poss after picking it up and you will pay less interest.
I have not received the confirmation of my payment yet so I hope its all gone through ok!
I got the same info from my dealer when pricing up an R estate.
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They said this to me, I didn't do it, although the original front of house salesman said I should wait a few months
In reality I probably could have saved quite a bit, and probably will risk it next time, but I had never brought a new car before so I wasn't prepared to take the perceived risk as even paying just a few months of interest would have soon negated any benefit
All the brokers I have spoken too when saying it will be a cash purchase have told me to go for PCP for the incentive and pay off within the 14x days.
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The wait for the confirmation of payment seems like eternity! Mine took a fortnight to come through. It feels like VWFS are trying to keep you in suspence, almost like a punishment for paying up early :whistle:
Really? 14 days?
I paid off my A1 last week to Audifinance which is the same company and it cleared within 2 hours.
I transferred the money via internet banking late on a Thursday afternoon (4pm) and by 6pm the account had been settled.
.... she did stress once you have given notice there is no going back (not that that really mattered to me) to the deal.
Gtiless, do you not just pay it off? I'm not sure what you mean re notice. When I paid off the A1 I never even told them or gave them any notice I just paid the money into their account with my agreement number as a reference and it just cleared the account. I kept getting a settlement figure every other month as I wanted to know how much it was going down by. Is that what you mean by notice?
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The wait for the confirmation of payment seems like eternity! Mine took a fortnight to come through. It feels like VWFS are trying to keep you in suspence, almost like a punishment for paying up early :whistle:
Really? 14 days?
I paid off my A1 last week to Audifinance which is the same company and it cleared within 2 hours.
I transferred the money via internet banking late on a Thursday afternoon (4pm) and by 6pm the account had been settled.
.... she did stress once you have given notice there is no going back (not that that really mattered to me) to the deal.
Gtiless, do you not just pay it off? I'm not sure what you mean re notice. When I paid off the A1 I never even told them or gave them any notice I just paid the money into their account with my agreement number as a reference and it just cleared the account. I kept getting a settlement figure every other month as I wanted to know how much it was going down by. Is that what you mean by notice?
Purchased the car on PCP on Jan 12th, settled the finance on Jan 14th and payment left my bank account same day. Received comformation of payment letter from VWFS on Jan 28th.
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They don't take back financial incentives like deposit contribution. If you buy a £25k car, put down £3k (or use £3k of discount in lieu of deposit) and get a £1k deposit controbution, you owe VWFS £21k on day one. If you settle within 14 days then you owe £21k. Did this with the wife's Audi A1 to net a £500 deposit contribution.
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Do you have to officially inform them, or can you just pay a lump sum by transfer?
Dave
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As above - you need to get a settlement figure and then you simply transfer the amount by CHAPS and it clears with them within 2 hours. You can ask them to send an e-mail confirming the amount has been settled and they have no claim on the vehicle.
However - note the following:
You have to settle it all in one transaction
Debit cards have a 3k limit
The account will not be formally closed down for a further ten days (I don't know why thats the case)
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This post couldn't have come at a better time guys. Im picking up my new GTI hopefully later this week and I was planning on taking the finance option and paying it off after month one as recommended by my dealer. It sounds like I need to do this as soon as I leave the showroom. Thanks for the info guys I guess I will sound well informed when running the numbers later this week.
https://www.vwfinance.co.uk/content/sites/vwbank/vwfinancecouk/en/privatecustomers/manage_agreement/ending_agreement_early.html (https://www.vwfinance.co.uk/content/sites/vwbank/vwfinancecouk/en/privatecustomers/manage_agreement/ending_agreement_early.html)
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Can they take back the PCP incentive if you pay it off too quick? I'm in the process of buying a Ford for the wife and again the dealer has advised to leave it 2-3 months to ensure the incentive isn't clawed back...
Possibly BS??
Definitely BS. The dealership won't get their finance kickback if you pay it off very early. You can pay it off in the first 14 days and retain the deposit contribution, it isn't part of the settlement.
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Thanks for the info guys you have just saved me a few pounds!
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I left paying off the finance for 4 months due to laziness but also because the dealer said to hold off for 3 months. But as far as I recall, that was because they thought I would lose my 3 years servicing that was part of the finance deal, not the deposit contribution. Can't complain, still came out comfortably on top, would've been better though if I'd got my finger out :rolleyes: Does anyone know for sure if they were right or could I have paid it off in the first 14 days?
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Thanks for the info guys you have just saved me a few pounds!
Same here!!
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I left paying off the finance for 4 months due to laziness but also because the dealer said to hold off for 3 months. But as far as I recall, that was because they thought I would lose my 3 years servicing that was part of the finance deal, not the deposit contribution. Can't complain, still came out comfortably on top, would've been better though if I'd got my finger out :rolleyes: Does anyone know for sure if they were right or could I have paid it off in the first 14 days?
Well, I gave notice after 5 days and paid it after 15 days and I have not heard anything about having to give my deposit contribution or my 2 year service pack back. I think the dealer will probably try to BS you if he can if it means it runs long enough to get his kickback, I told my salesman I intended paying the PCP off straight away and he didnt seem the slightest bit surprised and said we have had a few people do it.
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Thanks Gtiless, so probably a load of rowlocks. Nevermind, not going to dwell on it but will keep it in mind for any future purchase.
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Do you have to officially inform them, or can you just pay a lump sum by transfer?
Dave
No.
I just paid the full amount into the bank details they provide giving my account number as a reference.
You can access your account online and see what your settlement figure is.
I received the letter through today saying that was the account closed and they no longer had any financial interest in the car. Not bad 6 days all in although just the 2 hours online.
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Careful though. I was under the impression that right of withdrawal is different from just settling early. I think just paying the amount you owe would be like settling early. Ideally people should be exercising right to withdrawal to cancel the deal within 14 days as per the contract that someone attached above!
But it seems everyone's has worked out anyway! I will be doing this in a few days time. 😀