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.
Make sure you read all paperwork before you sign. Chances are he's added service plan, paint protection etc into the finance figures, so you're still paying for them. And the 'make 7 payments then settle' is bks. If you're gonna pay it off may as well after the first payment, I know most will only honour the deposit contributions if you make at least one payment. As long as you have it in writing that you get free services, it shouldn't matter, although I would still be wary that he's stitching you up and putting a service plan into the finance figures.
Source; I am a car salesman.
Source; I am a car salesman.
A couple of things different in my case - it was a new Tiguan and the service offer was £149 for two service so I knew there'd be no problem as I'd paid something towards it. I took the PCP to get the £2750 deposit contribution.
I called VW Finance a week or so after I got the car and asked about withdrawing. They couldn't have been more helpful and confirmed that I'd only have to settle the outstanding balance, plus about £20 of interest, but no fees.
I wouldn't expect (but don't know for certain) that the free service offer would be affected (I think it's a VW offer, not something given by the dealer) but perhaps worth asking VW Finance a "what if" question. I do recall reading that Toyota got fed up with this and started issuing vouchers for service only if the car was still on PCP.
One thing is to watch the timing - you have 14 days to withdraw and strictly that's from when the agreement is signed which may be some days before you get the car.
I called VW Finance a week or so after I got the car and asked about withdrawing. They couldn't have been more helpful and confirmed that I'd only have to settle the outstanding balance, plus about £20 of interest, but no fees.
I wouldn't expect (but don't know for certain) that the free service offer would be affected (I think it's a VW offer, not something given by the dealer) but perhaps worth asking VW Finance a "what if" question. I do recall reading that Toyota got fed up with this and started issuing vouchers for service only if the car was still on PCP.
One thing is to watch the timing - you have 14 days to withdraw and strictly that's from when the agreement is signed which may be some days before you get the car.
What's "USED 12 MTH AA" ?
I thought there was a 2yr warranty offer on at the moment.
ETA - bottom of this page: http://www.volkswagen.co.uk/used/offers
I thought there was a 2yr warranty offer on at the moment.
ETA - bottom of this page: http://www.volkswagen.co.uk/used/offers
Edited by Sheepshanks on Sunday 7th February 21:12
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?tom6195 said:
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?Also, as said above, read the paperwork before you sign for anything. Do not rely on what you are being told by anyone. Read it in detail and don't let then pressure you into signing.
I personally would want to read it away from the dealer. You are away from distractions then and can concentrate on it.
tom6195 said:
funkyrobot said:
Also, if it's a franchise dealer, why is an admin fee shown as a separate cost?
It's volkswagen parkway in Derby. He said all their cars are sold with the admin fee. Shall I call him up on it?Saying that, I haven't bought a car since 2010 so it may be different now.
tom6195 said:
That's the additional 1 year warranty. 2 years free at the moment plus he's throwing in a 3rd year.
Fair enough.The salesman will be getting a load of commission so will hate you if you take off paint protection. I agreed to it on our car but got the salesman to take most of the cost off elsewhere.
Agree with others 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).
Having said that you've paid the deposit now, so a bit late to try and re-negotiate.
Edited by Sheepshanks on Sunday 7th February 21:26
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
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.
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.
funkyrobot said:
I guess it is part of the cost. However, I have never used a franchise dealer who has billed it like this. I've seen it done in car supermarkets etc, but never in a franchise.
Saying that, I haven't bought a car since 2010 so it may be different now.
Stratstone has attempted this for years.Saying that, I haven't bought a car since 2010 so it may be different now.
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.
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