VWFS - Extending PCP or refinancing ballon payment with them

[Frozen Pigeon]

Hi

I have a Golf GTi on PCP with VWFS and the agreement comes to an end in the summer. I normally trade up at this point but we love the car so we’ve decided to keep it for the foreseeable to replace my wife’s older mini.

I am wondering if anyone has any recent experience of either extending the PCP or re-financing the ballon with VWFS? I know my settlement figure so I’m aware of likely cost to finance it elsewhere but I wondered if they may be a good option?

VWFS are proving hard to get a hold of (due to C-19 I assume) so I thought I’d ask here.

One potential complication to extending the PCP is I’m going to be around 10k miles over my agreement at the end (£1200 worth of excess miles based on the agreement) so I assume they’d want want to cover this cost in addition to standard monthly payment to square me off by the end of any extension?

TIA

[liner33]

Take out a personal loan and pay the balloon and keep the car . You will get a much better deal wrt interest and you won't need to pay the excess milage

[Wagonwheel555]

Re financing via VWFS is unlikely to be less of an interest rate than you will get on a personal loan.

If you can get 2.9% via VWFS then might be worth a punt but if not, just get an unsecured loan and pay the balloon.

You can do it now if you want. Call the finance company for a settlement quote, then borrow the money and pay it off.

[Frozen Pigeon]

Thanks guys. That’s what I was wondering really, the Apr rate VWFS are offering in these circumstances? My current pcp is 4.8%. Approved used is much higher, around 10%.

Happy to use my bank if needed but wondered if VWFS might be an easier option.

[Wagonwheel555]

If you have a decent credit history and are not up to your eyes in debt, you can likely get one of the 2.9% APR deals for an unsecured loan from the likes of TSB. Your own bank might offer similar. 2.9% tends to be on borrowing about £7.5k.

It’s really just about the interest, find the cheapest deal over the amount of years you want to borrow.

10% is laughable assuming you don’t have bad credit.

[Downward]

Just wondering if anyone has leased with VWFS and if they would sell you the car at the end of the lease ?

[Shabaza]

they do occasionally, no fixed answer. last couple years with stock shortages, ive heard them doing it less and less.
Best to call VWFS and ask

[Abdul Abulbul Amir]

Downward said:

Just wondering if anyone has leased with VWFS and if they would sell you the car at the end of the lease ?

Depends on the product. If it's a PCH or Finance Lease they can't sell it to you.

[Shabaza]

Abdul Abulbul Amir said:

Depends on the product. If it's a PCH or Finance Lease they can't sell it to you.

PCP and HP its your absolute right.

PCH, they can and have offered to sell the car to the customer, but much rarer and from what ive seen often not worth it. (weirdly ask for more then market value)

[Sheepshanks]

Downward said:

Just wondering if anyone has leased with VWFS and if they would sell you the car at the end of the lease ?

If it's Contract Hire:

Buying your vehicle

A Contract Hire agreement comes with no option to own the vehicle. However after the agreement has ended, our agents at British Car Auctions may offer the vehicle for sale. To find out more you can contact the BCA Driver Sales team at 01625 417991 or visit www.purchasemyvehicle.co.uk.

https://customer.vwfs.co.uk/existing-customers/End...

It used to be that you couldn't buy it yourself - but your partner (or anyone else) could buy it - don't know if that's still the case.

[Abdul Abulbul Amir]

Shabaza said:

Abdul Abulbul Amir said:

Depends on the product. If it's a PCH or Finance Lease they can't sell it to you.

PCP and HP its your absolute right.

PCH, they can and have offered to sell the car to the customer, but much rarer and from what ive seen often not worth it. (weirdly ask for more then market value)

Assuming they are following conventional VAT accounting for PCH they can't offer to sell to the lessee without jeopardising their tax position.

HP/LP has a different VAT treatment for the funder inline with the right/certainty of the customer to take ownership of the car...usually with a nominal option to purchase to fee.

Contract purchase follows CH VAT accounting with the right of the customer to buy the vehicle...this is a great discussion topic for us beanies.