Boring VW finance question...

[maczi]

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.

[monkeyhanger]

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.

[Gtiless]

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!

[Bubba Nutkin]

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.

[maczi]

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.

[monkeyhanger]

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.

[monkeyhanger]

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.

[shiners]

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

[Gtiless]

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

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!   

[wantmygti]

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??