Audi Finance Rules - a query

[Astylishmonk]

Evening everyone.

Bought a new Audi (from franchised dealer) earlier this year with decent discount so quite happy. Part of the discount was down to taking Audi finance.

Fortunately I could pay cash if I wanted to and the salesman knows this as I have bought from him before. He asked that if I was to pay the finance off could I let him know in advance and they would 'see what they could do' because under certain circumstances a clawback would apply.

I work in financial services so I understand the principle here. I was wondering if anyone can confirm how the VAG system in particular works.

I think that if you pay it off within 12 months, all the dealer commission is repayable. After that there is a sliding scale of clawback.

If you pay off £1 or more at anytime in advance of the contract term, then the clawback is suspended and the dealer has 12 months to sell you another finance product. If none is sold then the clawback comes into play.

I've got two points of interest here - firstly I don't want to unreasonably harm the salesman who has always been helpful and professional to date, but I would also like to maximise my bargaining power when I come to change my car - clearly the finance agreement can work in my favour here and incentivise the dealer to do a deal.

Anyone have knowledge out there?

Thanks in advance!

[Harryturbs]

It's 6 months - so as long as you don't settle it before you're 6 months through, the dealer won't be charged.

[RammyMP]

Mine was 6 months too.

[Astylishmonk]

Thank you kindly folks!

[s4tronic]

I don't think it matters really? When I bought my S4 via Audi approved scheme the salesman actually encouraged me to take on the finance and repay within 14 days or so as that would have registered me with a service plan add on that came with the finance.

I paid back full balance before 14 days passed (so had no interest to pay) and still got benefits of free service.