GTI Performance - New or Used?

[mistac]

you can pay the whole thing off straight away apparently, many on here have done that.

Thanks     

Speaking of which, I have stopped dithering and just verbally placed the order via DTD - best PCP price I could find and all being well it will be a late March delivery (my choice). I asked DTD about the option to pay VW finance off within 14 days and they said be careful and suggest you wait a couple of months after finance commences before paying off in case the deposit contribution is withdrawn. However, unless the T&C's say the deposit contribution is on condition of having the finance for any period or for at least 2 months, I think DTD are just saying that to make sure they (and dealer?) keep any commission involved? Does anyone have any experience of ordering through DTD and paying off PCP VW finance immediately/within 14 day right to withdraw period ? If so, did you lose any deposit contribution/deal sweeteners etc? I don't  think you do but just want to confirm others experience.

[Andy198]

I think DTD are wrong. They just 'organise' the deal, the contract is between you and the Dealer, wherever in the UK they may be.
As always, check the Finance agreement carefully before you sign and unless it mentions paying back deposit contributions & sweeteners within a certain time, then you're fine.

You have the RIGHT (UK Consumer Law) to withdraw from a credit agreement within 14 days. Day 1 is the day after you sign the finance paperwork which should be the day you collect the car. Interest is charged on a DAILY basis, and once you withdraw you have 30 days to settle the balance with VW Financial Services. The balance is frozen from the date you withdraw. One snag is that once you withdraw, you can't go back to the credit arrangement so ensure you have the funds in full to settle it.

I've no idea if VWFS will still offer it, but I got 2 years servicing for £199 (1 minor and 1 major service) which I think is good value as I paid over £200 for a minor on my Mazda. If you're not offered that by the Dealer - its worth a mention.

[mistac]

I think DTD are wrong. They just 'organise' the deal, the contract is between you and the Dealer, wherever in the UK they may be.
As always, check the Finance agreement carefully before you sign and unless it mentions paying back deposit contributions & sweeteners within a certain time, then you're fine.

You have the RIGHT (UK Consumer Law) to withdraw from a credit agreement within 14 days. Day 1 is the day after you sign the finance paperwork which should be the day you collect the car. Interest is charged on a DAILY basis, and once you withdraw you have 30 days to settle the balance with VW Financial Services. The balance is frozen from the date you withdraw. One snag is that once you withdraw, you can't go back to the credit arrangement so ensure you have the funds in full to settle it.

I've no idea if VWFS will still offer it, but I got 2 years servicing for £199 (1 minor and 1 major service) which I think is good value as I paid over £200 for a minor on my Mazda. If you're not offered that by the Dealer - its worth a mention.

Many thanks - Glad I seem to have understood it correctly. Currently they are still offering the £199 deal so I just need to decide whether to get it at the confirmed order point or gamble that it will still be available and at that price on collection or afterwards, as I believe you can purchase it ay any point prior to its first service.

[Mark V GTD]

You have the RIGHT (UK Consumer Law) to withdraw from a credit agreement within 14 days. Day 1 is the day after you sign the finance paperwork which should be the day you collect the car. Interest is charged on a DAILY basis, and once you withdraw you have 30 days to settle the balance with VW Financial Services. The balance is frozen from the date you withdraw. One snag is that once you withdraw, you can't go back to the credit arrangement so ensure you have the funds in full to settle it.

Hi Andy, I think the actual point is not the customers option to withdraw from the credit agreement - thats very clear as you point out. Its the ability to withdraw and retain the discounts/benefits that were obtained as a condition of taking out the finance agreement. Perhaps, surprisingly, it does seem that VWFS do not have any issue with this (at least according to the numerous posts here over the years from people who have withdrawn within a few days and not been asked for the deposit contribution to be returned) - but I do think Drive the Deal were right to be cautious in their advice IMHO as if they said 'go ahead, its no problem' and VWFS decided they did want their deposit contribution returned the customer would likely look to them for rectification. I say this as although the terms may be absent from the actual VWFS agreement t's & c's it does say (on the Drive the Deal website) that the deposit contributions are subject to taking out the dealer finance.

[fredgroves]

Outside of the first 14 days its "early settlement", which basically attracts 2 months interest.

2 months on 30k over 3 years is a fair amount if you don't have to pay it.

Most people gaming the deposit contribution end it in 14 days and I've never heard of the deposit contribution getting pulled back. I suspect thats down to who in VW UK actually pays the money for it.

[jv]

Would need to be in the terms of your contract that if you withdraw from the agreement you have to return the incentive/contribution. Is it?

[Andy198]

@JV - there's no wording to that effect in the contract I signed, but I made sure I checked...

@Mark GTD - absolutely understood. I suppose VWFS won't really care if 1 in 50 customers withdraw early and retain VW deposits/sweeteners, but if 49 out of 50 did it then it would be a different story. Its an exploit that is fully legal and the Dealers don't seem to care because its not their money and the contribution means they get a sale in a tough market where they wouldn't ordinarily.
As regards Drive the Deal,  it looks like they're sitting on the fence a bit..? Take Finance and save about £2k but keep the agreement for 3 months so everyone gets their commission? Not sure to be honest

[mistac]

Thanks for the replies below. It would be good to hear from anyone who has actually ordered through DTD in the last few months and paid off PCP VW finance immediately/within 14 day right to withdraw period? If so, did you lose any deposit contribution/deal sweeteners etc?

[mistac]

Order placed - have my order number now - the long wait until Mar commences (my choice)   - guess it will be one of the last batch to be made prior to build slots/production ceasing?

[Andy198]

@mistac - great news.