Refinance Settlements

[CanIGetAOhYeah]

Just about to collect my new Audi from the dealership!

Vehicle was discounted by 18% 6 months ago. Interest rate is 6.4%

I don’t believe I will have anything to pay to settle the finance in the first 14 days and I won’t lose any dealer contribution? (Please correct me if I am wrong!)

Who are the best companies for refinancing the settlement on the vehicle?

I am hoping other people have done this them selves and can shed some light!

Thanks in advance!

[Mark V GTD]

Did the dealer make a contribution or did the finance company? Re-financing at a significant interest reduction usually involves a bank loan.

[CanIGetAOhYeah]

Around a 75/25 split

(Dealer/VWFS)

[Mark V GTD]

If it’s VWFS they will be unlikely to ask for their contribution back if you pay off the finance. The dealer even less likely as you have still bought the car from them.

[Sunnyv5]

Why do you have to settle (and refinance) within 14 days?
I thought you can settle at any time - they provide settlement figure if you ask at anytime I thought..?

[Jamescrs]

Bank loan is the usual route for doing it.

[fourstardan]

Is this really a settlement or more a early cancellation within contractual rights?

[BlueJ]

I have recently been through this process with BMW FS.

Within the first 14 days settlement is termed "withdrawal", as you are choosing to withdraw from (and then have cancelled) the finance agreement. The finance agreement is deleted from your credit file - as if it never existed. Your figure to settle this (withdraw!) will include daily interest to the date of repayment.

You can also ask for a settlement figure at any point after the 14 days, but the settlement figure could then include extra interest to cover a notice period e.g. it may include 1 months extra interest - it depends on the nature of your contract.

The cheapest thing to do is withdraw within the 14 days.

I too was offered incentives (i.e. a contribution, free GAP and paint protection) if taking out the finance, and these have not been affected. I don't know where the contribution came from (dealer of BMW FS?).