VW Dealer PCP Finance - Pay off early but keep free service?
Discussion
Hi everyone,
First time poster here so go easy
Went to look at a VW Tiguan R line today, absolutely blew me away and very tempted to buy.
The offer from the dealer is:
Car price £21198 inc tax and admin fee
- P/X £8500 but only £5800 to be used as contribution to PCP (30%)
- £2700 to be given as cashback
This leaves:
£15398 to be financed over 3 years - the dealer forgot to mention this since he thought I was a dummy and just wanted me to sign!
- £1000 dealer contribution
£14398 @ 10.9% APR
Now, I don't need to take the finance but the dealer insists if I do I am better off as I will get 2 years free servicing plus he's going to throw in extended warranty and paint protection. However I do not want to take a loan out at 10.9% when I don't need to.
The dealer also insisted I make at least 7 monthly repayments before settling however I know this is because he gets his commission after 6 months.
So, what I want to know is can I go ahead with the deal but pay the loan/pcp off ASAP so as to avoid any fees BUT keep the 2 years free servicing?
Any help here would be appreciated since this would be my first car purchase from a main dealer.
Thanks.
First time poster here so go easy
Went to look at a VW Tiguan R line today, absolutely blew me away and very tempted to buy.
The offer from the dealer is:
Car price £21198 inc tax and admin fee
- P/X £8500 but only £5800 to be used as contribution to PCP (30%)
- £2700 to be given as cashback
This leaves:
£15398 to be financed over 3 years - the dealer forgot to mention this since he thought I was a dummy and just wanted me to sign!
- £1000 dealer contribution
£14398 @ 10.9% APR
Now, I don't need to take the finance but the dealer insists if I do I am better off as I will get 2 years free servicing plus he's going to throw in extended warranty and paint protection. However I do not want to take a loan out at 10.9% when I don't need to.
The dealer also insisted I make at least 7 monthly repayments before settling however I know this is because he gets his commission after 6 months.
So, what I want to know is can I go ahead with the deal but pay the loan/pcp off ASAP so as to avoid any fees BUT keep the 2 years free servicing?
Any help here would be appreciated since this would be my first car purchase from a main dealer.
Thanks.
funkyrobot said:
Why are you paying for Diamondbrite on a used vehicle? That sort of stuff is snake oil at the best of times. However, if the previous owner didn't bother, it's a waste of time.
There was only one previous owner, and the car is in lovely condition. You think I should tell him to call it off?Sheepshanks said:
Fair enough.
The salesman will be getting a load of commission so will hate you if you take it off. I agreed to it on our car but got the salesman to take most of the cost off elsewhere.
Agree on the admin fee too, but I've read some dealers are completely unmoveable on it. I'd go for what I said above - say you don't mind it appearing as a line on the invoice but want the cost taking off elsewhere.
I can't imagine VW dealers are hosing out used cars at the moment, so one would imagine they're be pretty keen. Their new sales dropped 14% last month (in a rising market).
He was meant to be throwing in the 3rd year warranty and the diamondbrite free, which is the -£648 at the bottom but I suspect he balls'd it up since he should be taking £748 off - don't worry I will be mentioning this tomorrow BUT what else can I mention, and how should I put it?The salesman will be getting a load of commission so will hate you if you take it off. I agreed to it on our car but got the salesman to take most of the cost off elsewhere.
Agree on the admin fee too, but I've read some dealers are completely unmoveable on it. I'd go for what I said above - say you don't mind it appearing as a line on the invoice but want the cost taking off elsewhere.
I can't imagine VW dealers are hosing out used cars at the moment, so one would imagine they're be pretty keen. Their new sales dropped 14% last month (in a rising market).
And is it really too late to re-negotiate. I mean if he wants to sell me the car surely they should be bending over backwards to do so?
Edited by tom6195 on Sunday 7th February 21:32
funkyrobot said:
Tell him you have had a think and the deal isn't good enough.
You have to remember that VW aren't selling cars like hot cakes at the moment.
Also, I guess the car is nice, but don't be too keen in the showroom. If they think they have an easy sale, you won't get the best deal.
Have you considered gap insurance? Not through the dealer, I must add. £21k is a lot of money.
He did actually give me a choice of gap insurance, the extra year warranty, the diamondbrite, and this other scratch protection plan - from which he let me choose 2 that he would throw in for free. He did say that the gap insurance would ensure I get what I paid for in the event of a write off.You have to remember that VW aren't selling cars like hot cakes at the moment.
Also, I guess the car is nice, but don't be too keen in the showroom. If they think they have an easy sale, you won't get the best deal.
Have you considered gap insurance? Not through the dealer, I must add. £21k is a lot of money.
Sheepshanks said:
Where's the £1000 contribution?
Is that £21K headline price supposed to be after that (and other discounts)?
What was the car up for in the first place?
How does the P/X on your BMW look - is that decent?
I don't think you're being especially shafted - I think it probably looks bad as used Tiguans look (in my opinion as I've said several times) somewhat over-priced. But yours does stack up against the (few) others on offer.
I may have misunderstood that, its a £500 contribution I think, with me matching it but he said I'll get my £500 back and the dealer will pay it making £1000 in total. Will clarify this.Is that £21K headline price supposed to be after that (and other discounts)?
What was the car up for in the first place?
How does the P/X on your BMW look - is that decent?
I don't think you're being especially shafted - I think it probably looks bad as used Tiguans look (in my opinion as I've said several times) somewhat over-priced. But yours does stack up against the (few) others on offer.
The p/x for my bmw is £8500, I think it's fair since it's a 2010 saloon on 85k. The tiguan is up for £21k, and it should be £21198 with the road fund license and admin fee (says £21298 but as mentioned they've miscalculated which I will chase them up on).
I'm hoping that my next car will be a lease deal. This tiguan is for my old man primarily but we're using the BMW as the p/x as it's worth more than his car (mitsubishi colt). I also start a new job in Notts from March and therefore won't be using the car and will be getting the train instead.
The way I'm looking at this is:-
Cost of car all in (with or w/o upsold extras) = £21198
Finance to be taken = £14398
Discount for p/x = £6800
Cashback remainder of p/x = £2200 (to be paid via BACS)
Total discount = £9000
Therefore my total contribution = £12198
Taking off the cost of the 2 free services let's say approx £500 this makes my actual contribution £11698.
How does that look?
The way I'm looking at this is:-
Cost of car all in (with or w/o upsold extras) = £21198
Finance to be taken = £14398
Discount for p/x = £6800
Cashback remainder of p/x = £2200 (to be paid via BACS)
Total discount = £9000
Therefore my total contribution = £12198
Taking off the cost of the 2 free services let's say approx £500 this makes my actual contribution £11698.
How does that look?
Edited by tom6195 on Monday 8th February 11:11
Sheepshanks said:
You'll have to put the details into DtD yourself but it comes out as below:
VOLKSWAGEN TIGUAN DIESEL ESTATE 2.0 TDi BlueMotion Tech R Line Edition 184 5dr DSG - £25,667.35
I used Car-Wow for the new one we recently bought and didn't get quite as low as the DtD price but I was able to use a local dealer and got a car in 2 weeks - DtD wanted me to wait the full lead-time and wouldn't name the dealer. If you are going to think about new, then be aware that, if they haven't stopped already, they must be very close to stopping making the current Tiguan so you'd likely have to find one already in the pipeline.
Coming up as £35260 for me when I include the extras?VOLKSWAGEN TIGUAN DIESEL ESTATE 2.0 TDi BlueMotion Tech R Line Edition 184 5dr DSG - £25,667.35
I used Car-Wow for the new one we recently bought and didn't get quite as low as the DtD price but I was able to use a local dealer and got a car in 2 weeks - DtD wanted me to wait the full lead-time and wouldn't name the dealer. If you are going to think about new, then be aware that, if they haven't stopped already, they must be very close to stopping making the current Tiguan so you'd likely have to find one already in the pipeline.
Oh wait I clicked through and it came up £28573. Now you've given me something to think about lol.
Would any of these drivethedeal deals allow for px?
Sheepshanks said:
What extras are you including to add £3K? R_Line has leather as standard now (IIRC the DTD page does has it correctly).
You'd have to negotiate the P/X with the dealer. Try Car-Wow - they connect you with dealers so you're quickly dealing with a real person.
Bear in mind you've paid a deposit on the you deal already, so it may be tough, or at least a lot of hassle, to get out of that. Be interesting in the same dealer bids through Car-Wow!
Ha yes that would be interesting!You'd have to negotiate the P/X with the dealer. Try Car-Wow - they connect you with dealers so you're quickly dealing with a real person.
Bear in mind you've paid a deposit on the you deal already, so it may be tough, or at least a lot of hassle, to get out of that. Be interesting in the same dealer bids through Car-Wow!
It looks I'll DTD don't do PX:
Q: Can I part exchange my car?
A: No, unfortunately our dealers do not offer part exchange as part of the transaction.
So that rules that out - however when I buy my next car I will defo use DTD myself.
Back to my dilemma and the original question, if all goes well with the purchase of this car on pcp, am I okay to pay the outstanding balance ASAP without it affecting my credit rating?
Vocht said:
Have you looked at hire purchasing it and just getting as larger deposit as you can for your car?
My Mrs is looking at changing her Polo for a newer/facelift one so we went in this weekend to try and do a deal. We got the exact same speil from the dealer, trying hard to push a PCP deal on us and brushing past/sneaking in things like wheel and paint protection and gap insurance which added almost £1000 to the deal over the term etc.
He offered us £3,500 for her car (£4,150 offered at Webuyanycar) and a brand new polo over 4 years at £230pm. So £14540 over 48 months years for a standard polo!
Instead we're now looking at a 6 month old Polo with just under 2,000 miles for £9950 with £4150 down (if sold to WBAY) and £5800 borrowed over 48 months, comes in at 139.57 per month (9.4% APR) with no final payment and no mileage limitations.
Anyway, my point being that really shop around hard and look at all the options available from a bank loan, HP, leasing, PCP, bought outright etc etc as you might be surprised (as we were) at what the best option to suit your needs might be. And most importantly, don't listen to the salesman!
Hire purchase you say?My Mrs is looking at changing her Polo for a newer/facelift one so we went in this weekend to try and do a deal. We got the exact same speil from the dealer, trying hard to push a PCP deal on us and brushing past/sneaking in things like wheel and paint protection and gap insurance which added almost £1000 to the deal over the term etc.
He offered us £3,500 for her car (£4,150 offered at Webuyanycar) and a brand new polo over 4 years at £230pm. So £14540 over 48 months years for a standard polo!
Instead we're now looking at a 6 month old Polo with just under 2,000 miles for £9950 with £4150 down (if sold to WBAY) and £5800 borrowed over 48 months, comes in at 139.57 per month (9.4% APR) with no final payment and no mileage limitations.
Anyway, my point being that really shop around hard and look at all the options available from a bank loan, HP, leasing, PCP, bought outright etc etc as you might be surprised (as we were) at what the best option to suit your needs might be. And most importantly, don't listen to the salesman!
Can I ask the dealer about this? FWIW webuyanycar quote £8k for the beamer but from my current working I'm getting £9000 for it on this deal.
Ultimately I am in the (fortunate) position to be able buy it outright without the PCP, but if I get the added 2 free services for the sake of "agreeing" to the pcp deal but then settling the minute I leave the showroom does this not make me better off providing I can keep the offer?
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