Odd request by dealer regarding initial payment for lease...

[JeS10]

I'm confused.

In July I ordered a VW Golf R 7.5 Estate from UChoosecontracts (VW Crewe). Got a great price for a Lapiz Blue estate: £275 p/m and £1650 initial payment for 8k miles etc. The usual deal. So I said to them I wouldn't be able to take delivery until December, which is when my Skoda Superb goes back. They were fine with this. Finance proposals done, credit search blah blah. So it was a case of waiting until December, telling them when I wanted it delivered and then paying £1650.

However, I e-mailed this week to confirm I'd like it delivered around 13th of December. But the reply was:

"The initial rental is set to Direct Debit. As you can see the initial rental payment on the documents (attached) shows higher than the amount we quoted you which is £1650, this is because we top up the difference of £647.58 and this will be paid directly into your bank account (which was provided on the proposal form) no more than 5 working days after the agreed delivery date, it is approx. 14 days after delivery before your 1st Direct Debit will be taken by the finance company"

So I've never experienced this before. I don't understand a) why b) why i'm only being informed now c) how they reckon i'm getting my hands on £600 in December of all months! I've got savings to cover it, but they're not easily accessible. I've got the credit card, but that'd be a faff (and cost me).

What do you lot make of this? I've said they'll need to hold the car longer (January pay day at least) in order for me to get the £650. Alternatively i'll just have to cancel the order, which would be a bit of an anti-climax after 5 months of waiting.

[Nickp82]

This is totally normal with VW currently, long story short their lease rates are fixed and dealers can only do 'deals' by using their handling fees to play with deposit and monthlies.

The cash back you are due will be paid in to your account before the initial rentals are taken so effectively you will pay the amount you expected and will not have to find the extra £600.

[JeS10]

That sounds promising. I'll hopefully get the clarification on Monday. It does seem a bit odd though. The wording of the arrangement doesn't make much sense if it's like what you're saying.

[quinny100]

Calm down, then read the email again. You can’t lose here.

VW will put the £650 in your account within 5 days of delivery of the car.

The DD will be taken 14 days after delivery.

You will have £650 of the VW dealers money in your bank account for 9 days. Don’t spend it on something else.

[davamer23]

My dad had similar with his yeti Lease, ended up having his car best part of a month without forking out a penny and actually had around £400 put in his account as cashback before he’d paid initial or a monthly.

[JeS10]

Ah. That's... trusting.

[Butter Face]

JeS10 said:

Ah. That's... trusting.

No more trusting than them letting you drive away a brand new £30k+ car before you've spent any actual money

[Sheepshanks]

davamer23 said:

My dad had similar with his yeti Lease, ended up having his car best part of a month without forking out a penny and actually had around £400 put in his account as cashback before he’d paid initial or a monthly.

I didn't go through with lease in the end (bought instead) but it was the same arrangement when I looked at leasing Tiguan as the old model ran out.

[AGK]

On both my R's the money was in the day they were delivered.

Nothing to worry about.

[VAGLover]

JeS10 said:

I'm confused.

In July I ordered a VW Golf R 7.5 Estate from UChoosecontracts (VW Crewe). Got a great price for a Lapiz Blue estate: £275 p/m and £1650 initial payment for 8k miles etc. The usual deal. So I said to them I wouldn't be able to take delivery until December, which is when my Skoda Superb goes back. They were fine with this. Finance proposals done, credit search blah blah. So it was a case of waiting until December, telling them when I wanted it delivered and then paying £1650.

However, I e-mailed this week to confirm I'd like it delivered around 13th of December. But the reply was:

"The initial rental is set to Direct Debit. As you can see the initial rental payment on the documents (attached) shows higher than the amount we quoted you which is £1650, this is because we top up the difference of £647.58 and this will be paid directly into your bank account (which was provided on the proposal form) no more than 5 working days after the agreed delivery date, it is approx. 14 days after delivery before your 1st Direct Debit will be taken by the finance company"

So I've never experienced this before. I don't understand a) why b) why i'm only being informed now c) how they reckon i'm getting my hands on £600 in December of all months! I've got savings to cover it, but they're not easily accessible. I've got the credit card, but that'd be a faff (and cost me).

What do you lot make of this? I've said they'll need to hold the car longer (January pay day at least) in order for me to get the £650. Alternatively i'll just have to cancel the order, which would be a bit of an anti-climax after 5 months of waiting.

You do have to question your affordability if £600 throws you out of kilter....
How are you going to afford tyres and servicing etc

[esxste]

VAGLover said:

You do have to question your affordability if £600 throws you out of kilter....
How are you going to afford tyres and servicing etc

£600 at Christmas time? With all the presents and parties and the like. Tires and servicing can be planned for.

[Teebs]

esxste said:

£600 at Christmas time? With all the presents and parties and the like. Tires and servicing can be planned for.

Christmas happens every year, guaranteed.

[ashleyman]

VAGLover said:

You do have to question your affordability if £600 throws you out of kilter....
How are you going to afford tyres and servicing etc

lol. Are you stupid? £600 is a fair chunk of change for us normal people.

I just got a puncture and having to shell out for 2 new rear tyres. That’s £285 I hadn’t budgeted for that. I’ve got the money but I hadn’t planned to be buying tyres until next year.

I’d imagine people leasing do so because of the fixed cost which means they’re watching the outgoings.

[Sheepshanks]

ashleyman said:

I just got a puncture and having to shell out for 2 new rear tyres. That’s £285 I hadn’t budgeted for that. I’ve got the money but I hadn’t planned to be buying tyres until next year.

You've got the money though - the OP is acquiring the use of a £35K car but is in a right panic (to the extent that he's talking about cancelling the order) o the off-chance he'll be required to produce £600 for a few days.

[Rick101]

Had similar with G2L.

Effectively sold it as 'cashback'

[pavarotti1980]

Sheepshanks said:

You've got the money though - the OP is acquiring the use of a £35K car but is in a right panic (to the extent that he's talking about cancelling the order) o the off-chance he'll be required to produce £600 for a few days.

Its a bit different to the reality which was that he didnt quite understand how the VWFS work their initial payments for PCH. Now explained he is just dumbfounded by them doing this despite it being normal with all VWFS/SEAT/Skoda

[VAGLover]

Sheepshanks said:

You've got the money though - the OP is acquiring the use of a £35K car but is in a right panic (to the extent that he's talking about cancelling the order) o the off-chance he'll be required to produce £600 for a few days.

This!

[VAGLover]

ashleyman said:

lol. Are you stupid? £600 is a fair chunk of change for us normal people.

I just got a puncture and having to shell out for 2 new rear tyres. That’s £285 I hadn’t budgeted for that. I’ve got the money but I hadn’t planned to be buying tyres until next year.

I’d imagine people leasing do so because of the fixed cost which means they’re watching the outgoings.

No, I’m not stupid. Which is why £600 isn’t a big deal for me.
The point is, why run an expensive car, compared to others if you have no leeway
Life can’t be managed down to predictable outgoings....you need flexibility and reserves. If not, don’t lease a £35k car....

[JeS10]

All sorted now. I didn't anticipate having the £600 'going' spare this month. Not that it's anyone's business, but I have savings, a house that's paid for and a good income. I would've cancelled the order and re-ordered - they've been holding the car for me a while until the Skoda goes back. They couldn't hold it past December. I should've clarified that. Hope that makes sense and you can all relax about my current financial position.

[Rick101]

No doubt the reason you lease it is that you can't afford to buy and you will not be the owner.
How very dare you drive about in a new car that others to thick to realise, have put all their money into and are living by candlelight on curry pot noodles.