PCP - VW Fin Contrib - funds clawed back from dealer?
Discussion
Hi
Replacing current car using VW Finance and taking advantage of £1k contribution, intention to repay finance sooner rather than later.
Dealer advised not to repay before 6 months of Agreement has run as they would be hit by a clawback by VW Finance, I wonder if this relates to the £1k or a commission paid to dealer for 'selling' the finance?
I am aware that funding can be repaid in cooling off period and at any subsequent time, albeit the latter with a penaltyand only partial interest refund.
Replacing current car using VW Finance and taking advantage of £1k contribution, intention to repay finance sooner rather than later.
Dealer advised not to repay before 6 months of Agreement has run as they would be hit by a clawback by VW Finance, I wonder if this relates to the £1k or a commission paid to dealer for 'selling' the finance?
I am aware that funding can be repaid in cooling off period and at any subsequent time, albeit the latter with a penaltyand only partial interest refund.
It's not your problem if the dealer has their commission clawed back if you either settle early or withdraw from the agreement within 14 days of signing the documents.
If they give you scare stories of it not being allowed or, they will chase you for it or whatever then just ignore them.
You have a 14 day cooling off period on the finance from the day that you sign the documents, you should still be entitled to all deposit contributions, warranty extensions etc that come with the finance deal, many people actively purchase their cars in this way to take full advantage of what is on offer when taking out a finance deal on the car, in this scenario you will only pay a few days interest.
Alternatively you can settle an agreement whenever you want, you will still benefit from all contributions.
It is all part of playing the game, a dealer won't want any finance commission clawed back but it is tough.
If they give you scare stories of it not being allowed or, they will chase you for it or whatever then just ignore them.
You have a 14 day cooling off period on the finance from the day that you sign the documents, you should still be entitled to all deposit contributions, warranty extensions etc that come with the finance deal, many people actively purchase their cars in this way to take full advantage of what is on offer when taking out a finance deal on the car, in this scenario you will only pay a few days interest.
Alternatively you can settle an agreement whenever you want, you will still benefit from all contributions.
It is all part of playing the game, a dealer won't want any finance commission clawed back but it is tough.
Edited by HTP99 on Friday 24th February 14:24
HTP99 said:
It's not your problem if the dealer has their commission clawed back if you either settle early or withdraw from the agreement within 14 days of signing the documents.
If they give you scare stories of it not being allowed or, they will chase you for it or whatever then just ignore them.
You have a 14 day cooling off period on the finance from the day that you sign the documents, you should still be entitled to all deposit contributions, warranty extensions etc that come with the finance deal, many people actively purchase their cars in this way to take full advantage of what is on offer when taking out a finance deal on the car, in this scenario you will only pay a few days interest.
Alternatively you can settle an agreement whenever you want, you will still benefit from all contributions.
It is all part of playing the game, a dealer won't want any finance commission clawed back but it is tough.
Only thing to add to the above is if the dealer issues threats report them to the FCA.If they give you scare stories of it not being allowed or, they will chase you for it or whatever then just ignore them.
You have a 14 day cooling off period on the finance from the day that you sign the documents, you should still be entitled to all deposit contributions, warranty extensions etc that come with the finance deal, many people actively purchase their cars in this way to take full advantage of what is on offer when taking out a finance deal on the car, in this scenario you will only pay a few days interest.
Alternatively you can settle an agreement whenever you want, you will still benefit from all contributions.
It is all part of playing the game, a dealer won't want any finance commission clawed back but it is tough.
Edited by HTP99 on Friday 24th February 14:24
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