Settle or cancel VW PCP deal?

TheDean

TheDean

TheDean

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Hi all,

Signed a VW finance deal to get a £2k contribution and 2 x free services. The plan is to pay it off on Monday, but unsure if I 'withdraw' from the agreement within the 14 day cooling off period if I will lose the incentives? Would I be better to 'settle' early?

Keen to hear if anyone else has done a similar thing recently with VW financial services?
 
Eh? So you have taken out a PCP with the intention of paying the whole thing off immediately?

Why? If you have the money, why did you need a PCP?
 
Armageus said:
Presumably because of the "free" incentives mentioned.
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Which you would easily be able to get those and more by being a cash buyer.

My sister was looking at a nearly new Renault on finance, but got a bank loan and as a cash buyer got £1k off the price and a 3 year service plan thrown in.
 
Armageus said:
Presumably because of the "free" incentives mentioned.
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Yep. £2k + next two services. I'm told this is fairly common.

Skeeter said:
Which you would easily be able to get those and more by being a cash buyer.

My sister was looking at a nearly new Renault on finance, but got a bank loan and as a cash buyer got £1k off the price and a 3 year service plan thrown in.
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Simply not true in this situation. No way on earth you are going to get £2k discount on a '15 plate Passat estate.
 
You can do this, I did it on two previous cars. I paid one instalment and then asked for a settlement figure, paid about £40 in interest.
Never lost any of the incentives.
 
Skeeter said:
Isn't that exactly what you just did?
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PCP has deposit contributions which are on top of any discount the dealer provides. That deposit contribution isn't from the dealer, so they can't offer that out of their own pocket.

If the dealer does knock a further £2k off, you can still get that £2k deposit contribution by paying by PCP.

So for example, I requested quotes for a Scirocco recently.

The dealers all offered various discounts from 8 to 12% as the cash price. However, the PCP price was always exactly £2k lower.

Even if you go via a Broker, the PCP price will always be a further £2k off.
 
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I'm going to do exactly what the OP is doing when I get my new Golf , getting a settlement figure straight away.

I wouldn't have the extra £2K off if I was a cash buyer. In total I got almost £7K off the listed RRP price. Or if I was doing a straight cash purchase , it would only be £5K off RRP.
 
Best bet is to call VW financial services on Monday. They are pretty helpful.

From memory I believe you have to make three monthly payments and then can call to get a settlement figure and pay off in full over the phone. This was the case with my Polo and I kept the PCP incentives - years free insurance, deposit contribution and service pack.
 
5 years ago there were similar incentives for me taking out finance on my Octy vRS.
It was 0% finance over 12 months. My mum had leant me the money to buy outright. However by taking the finance I got a years free insurance and my first 3 variable services thrown in for free.
So a no brainer really - money my mum gave to me I put in the bank and then let the 12 months 0% finance just take it.
 
Assuming the ts and cs haven't changed since I bought my Audi you just need to exercise your right to withdraw. The dealer has no ability to claim back any incentives offered.

Settling will just cost you more money by having to pay interest.

I just rang up, asked to withdraw and was given the bank details to make the payment to.

Agree with other posts that you can't always negotiate down to the same figure cash only, even sites like drive the deal and broadspeed state you have to take out PCP to get the figure they are quoting on quite a few of the VAG cars.
 
Skeeter said:
Which you would easily be able to get those and more by being a cash buyer.

My sister was looking at a nearly new Renault on finance, but got a bank loan and as a cash buyer got £1k off the price and a 3 year service plan thrown in.
Click to expand...

Simply not true in all cases. The deposit contribution is often group funded and can make it a lower price than a cash purchase.

Dealers make money out of finance, so you are very rarely better off as a cash buyer unless you are buying older / cheap cars from small garages.
 
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Skeeter said:
Which you would easily be able to get those and more by being a cash buyer.

My sister was looking at a nearly new Renault on finance, but got a bank loan and as a cash buyer got £1k off the price and a 3 year service plan thrown in.
Click to expand...

They often prefer you to take finance as they get a kick back
 
Did exactly this with the A4 I bought last year, after being advised to do so on here....even received a letter, after we had paid the balance off over the phone, stating that the incentives were still mine ;)
 
Abyss said:
Simply not true in all cases. The deposit contribution is often group funded and can make it a lower price than a cash purchase.

Dealers make money out of finance, so you are very rarely better off as a cash buyer unless you are buying older / cheap cars from small garages.
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This almost always applies to new cars only - approved used cars from main dealer networks rarely have sizeable deposit contributions available.

The amount of money the specific dealer makes from a finance deal is massively exaggerated on the internet. You'd think they are getting 2k in commission the way people go on about it, off the back of flogging a 15k loan which probably yields 2k tops profit max for the lender themselves, let alone the retailer.
 
hlxbravo said:
Did exactly this with the A4 I bought last year, after being advised to do so on here....even received a letter, after we had paid the balance off over the phone, stating that the incentives were still mine ;)
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And did you 'withdraw' within 14 days and pay off, or 'settle' thus incurring interest and settlement fees?

[TW]Fox;29821423 said:
This almost always applies to new cars only - approved used cars from main dealer networks rarely have sizeable deposit contributions available.
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Which is why the deal was so attractive. Its only come on for Passat's last week, and I've seen the main dealers go through stock very quickly because of it.
 
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I can only talk for RCI but you can cancel (settle in full) within 14 days of the agreement becoming live and not pay a penny of interest and keep any incentives.
I have customers who have done just that to get a £1500 deposit contribution and an extra 2 year warranty. There'd be no way at all we could do that for a cash buyer.
 
Ahleckz said:
I can only talk for RCI but you can cancel (settle in full) within 14 days of the agreement becoming live and not pay a penny of interest and keep any incentives.
I have customers who have done just that to get a £1500 deposit contribution and an extra 2 year warranty. There'd be no way at all we could do that for a cash buyer.
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Cheers mate. RCI is Nissan?
 
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