Buying VW approved used on finance then paying off
Discussion
Looking at some VW approved used and if you buy with their finance you get 2 years warranty and servicing as well as a few other worthwhile benefits, stuff worth having... I have no interest in giving them 13.4% interest though and in the past i've heard of people buying on finance and then immediately paying off the balance.
My question is would this void the approved used benefits were I to do this? Has anyone got experience of doing this for the same or similar reasons?
My question is would this void the approved used benefits were I to do this? Has anyone got experience of doing this for the same or similar reasons?
Other than the service dept seeing that you have the included services due to the way the car was purchased, how the car is funded after you drive it away, won't make a difference to the service dept.
Whilst not quite the same as your situ of wanting to pay it off in full, I financed a Kodiaq and got the two "free" services but prior to the first one I had already paid off 50% and by the time of the second "free" service my remaining balance was down to £5K and no problems.
Whilst not quite the same as your situ of wanting to pay it off in full, I financed a Kodiaq and got the two "free" services but prior to the first one I had already paid off 50% and by the time of the second "free" service my remaining balance was down to £5K and no problems.
They don’t like you doing it and best not tell the dealer you are doing it as they can get penalised but they won’t, or at least never have asked for service packs, deposit contributions back before.
Best thing to do is do it after about 7 days once you have received the VWFS docs in the post As the interest will only be about £40.
Best thing to do is do it after about 7 days once you have received the VWFS docs in the post As the interest will only be about £40.
It will all be covered in the T&C`s if you can be bothered to plough through them all however I would expect that your sudden change in financial circumstances (and being able to know pay the full balance) cannot be held against you and the benefits withdrawn.
I have done it many times to get the better price on purchase but not service packages. Its a no brainer for just signing a few extra bits of paperwork.
I have done it many times to get the better price on purchase but not service packages. Its a no brainer for just signing a few extra bits of paperwork.
milfordkong said:
Thanks all, still feels a little bit of a risk as i'd only be buying from them and paying the inflated main dealer price for these benefits... if they're stripped following paying off the finance the whole thing would have been pointless.
Absolutely nothing to worry about, I've done this several times in the last 9 years with VWFS, the last time was about 12 months ago buying an approved used Audi. Took out finance to get a service pack & dealer deposit contribution then paid off in full within the 14 day cooling off period, just phone up VWFS and say you want to withdraw from the finance arrangement, they will provide a settlement figure. I've never paid more than about £20 in interest charges and not once ever had a service refused at a later date or had the dealer chasing me for his contribution back. It was actually a VW salesman who recommended me to do this when I bought a Golf R in 2016. I did this last month.
I used my old car as a deposit and bought a new car using the in-house finance, with a £250 deposit contribution and two inclusive services. Once all the documentation was done and the car had arrived, I contacted VWFS by phone and requested to pay off the finance. They sent a letter with bank details, which I followed through and paid off. Confirmation took a few more days after that. I think think there's some distinction about withdrawal within 14 days or early settlement but it didn't seem relevant to me.
The settlement figure was net of the £250 contribution (i.e. I kept that), and I can see that the policy for 2 free services is still active.
It's a very well worn path, very easy to do.
I used my old car as a deposit and bought a new car using the in-house finance, with a £250 deposit contribution and two inclusive services. Once all the documentation was done and the car had arrived, I contacted VWFS by phone and requested to pay off the finance. They sent a letter with bank details, which I followed through and paid off. Confirmation took a few more days after that. I think think there's some distinction about withdrawal within 14 days or early settlement but it didn't seem relevant to me.
The settlement figure was net of the £250 contribution (i.e. I kept that), and I can see that the policy for 2 free services is still active.
It's a very well worn path, very easy to do.
I bought a Renault with two years free servicing if I took finance. I played it safe and paid back all but £100 of the finance so there was no argument.
In the end there was an argument because I took it back for its second free service before it was due as I was selling the car. Fortunately the nice lady booked it in anyway. That’s got nothing to do with the finance of course…
In the end there was an argument because I took it back for its second free service before it was due as I was selling the car. Fortunately the nice lady booked it in anyway. That’s got nothing to do with the finance of course…
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