Purchasing on PCP

[karlak]

So,

I have been to my local dealer who has given a very nice discount off a GTD.  We then went thru the PCP "solution" finance on offer, which again seems reasonable.

However, I have been told that even if I put down a deposit and order the car now, the PCP quote for today would not be valid for when the car is delivered.  Apparently any PCP quote is valid for 30 days, so any change in incentive interest rates or such like will not be applicable.  It will be whatever is on offer at delivery time.....

Does this sound right ?  Seems a heck of a risk to take if in 6 months time VW finance decide to up the rate from 6% to 10%.  I had assumed that if I put a deposit down, then that would "lock in" the agreement from today ?  Same goes for the £199 service agreement.


Can anyone confirm if the above is correct 

[2014GTi]

Your dealership is mistaken.
Your order and PCP agreement should stand until your cars arrival if you wanted it to.
I had my PCP re-done a few days before collecting with no problems.

[KyleB]

Yep as soon as the PCP is agreed the deal stands. Whether you get the car today or next week.

[monkeyhanger]

Unless VW's standard APR% for your model goes down in the meantime - then you can get them to draw another agreement up. If it goes up though, you stick with the agreement you have.

[karlak]

Thanks for the replies.

I think I will go in Monday, pay the deposit and get them to do the finance check there and then. Then I would argue I have formed a contract.

[Mark V GTD]

Not sure its quite as simple as that - you pay a deposit the the dealer and you have a contract with them to supply the goods (the car). The 'contract' with VW Financial Services only starts when you sign the PCP agreement and the dealer counter-signs it on their behalf.

[karlak]

Not sure its quite as simple as that - you pay a deposit the the dealer and you have a contract with them to supply the goods (the car). The 'contract' with VW Financial Services only starts when you sign the PCP agreement and the dealer counter-signs it on their behalf.

Yep, I see your point.

So, could I not do the PCP signing on Monday, or is that at delivery time only ?


I will see what the dealer says anyway.

[V5Ade]

Dealers can sometimes set the rate earlier, however they need to agree this with the finance company first.

I paid a deposit last week, my dealer would only guarantee a finance rate if I signed a finance contract then, if I did it at delivery I would only have what the current (in June, when the car is delivered) deal was\is. The only reason I didn't sign is that I will probably not use any dealer finance.

I hope your deal is really good, I've heard that 10-12% is easy to achive at the moment, even with such a long waiting list.

[p3asa]

Some PCP % rates only last for a set time and you must collect the car before this date or you can be liable to the new rate.
Its the exact same with the dealer contribution.

However this should just be when it is on some sort of promotion but the end date will be known.

If its bog standard PCP not on any special rate then you should get the rate agreed at the time of the sale.

I only know this as I phoned VAG finance direct as my car was on a special rate up until the end of December and if it wasn't delivered by then then I had to pay the new rate so wanted to know what the new rate would be. However they wouldn't tell me the the new rate, just saying it handed been decided yet!!!

[evo1986]

As long as the finance is proposed and accepted the finance/deal agreed is guaranteed until the end of the following quarter. The car must be sold and registered by the end of following quarter. However if the same rate and deal is available in Q2 for example then all they have to do is put through the proposal again and it will again be valid till the end of Q3.

Simples ; )