Boring VW finance question...

[golfguyuk]

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??

[monkeyhanger]

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).

[HA54SYM`]

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

[Mk7-GTD]

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.

[Garynovis]

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.

[p3asa]

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

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?

[shiners]

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

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.

[monkeyhanger]

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.

[HA54SYM`]

Do you have to officially inform them, or can you just pay a lump sum by transfer?

Dave

[Mark V GTD]

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)