Paying off VW FINANCE? YAY OR NAY
Discussion
Hi wife is collecting a Audi TT tomorrow, it's a low mileage (18k) example, just the 1.8 tfsi black edition.
It's £18100, she had only put down £2000 as a cash deposit, we had planned to pay it in cash, but if we take PCP we get 2 years services and 2 years warranty.
The idea was to call within the first 14 days and "withdraw" from the finance agreement as we heard that this means we keep the service plan.
But a question came into my head, if there is a fault with the car, is it better to leave the finance on the car? In case we need to regret it? ABIT like paying on a credit card?
Ive hard a good look around it, it looks good, but I believe the 1.8liter has had issues with water pumps, but was used in a lot of lean FR which are still running..
Instead of paying off all the finance, I think we can pay off 10k in the first month, and then in the second month pay another amount, just leaving a small balance?
Kind regards
Karl
It's £18100, she had only put down £2000 as a cash deposit, we had planned to pay it in cash, but if we take PCP we get 2 years services and 2 years warranty.
The idea was to call within the first 14 days and "withdraw" from the finance agreement as we heard that this means we keep the service plan.
But a question came into my head, if there is a fault with the car, is it better to leave the finance on the car? In case we need to regret it? ABIT like paying on a credit card?
Ive hard a good look around it, it looks good, but I believe the 1.8liter has had issues with water pumps, but was used in a lot of lean FR which are still running..
Instead of paying off all the finance, I think we can pay off 10k in the first month, and then in the second month pay another amount, just leaving a small balance?
Kind regards
Karl
It's been many years since I had a car on finance at a dealer (about 2000 I think on a 4 year old Mondeo 
), but I too took it because of an included service and lower price. I left it 1 month in case of any teething problems, but then got a settlement figure and paid it off.
I can't advise on if any arranged maintenance remains, but it should, it was in the purchase contract presumably. Paying off the finance is a legal right.
), but I too took it because of an included service and lower price. I left it 1 month in case of any teething problems, but then got a settlement figure and paid it off. I can't advise on if any arranged maintenance remains, but it should, it was in the purchase contract presumably. Paying off the finance is a legal right.
KARL-v5ofl said:
But a question came into my head, if there is a fault with the car, is it better to leave the finance on the car? In case we need to regret it? ABIT like paying on a credit card?
Can't say I would bother. As you're on VWFS I'm assuming it's also got the Audi warranty, which is as good as such things get.Certainly the thermostat\waterpump housing would be covered.
Done it three times, twice with new and once with nearly-new. I left it a few days to make sure all seemed OK with the cars.
I always think it's a little odd that VWFS charge a few quid interest when you Withdraw as it's supposed to be as if the finance never existed. Then last year, on a new car, without me saying anything they waived the charge. I found that a little un-nerving!
Someone above suggested leaving it a month and Settling - it'll costs a couple of hundred in interest if you do that.
I always think it's a little odd that VWFS charge a few quid interest when you Withdraw as it's supposed to be as if the finance never existed. Then last year, on a new car, without me saying anything they waived the charge. I found that a little un-nerving!
Someone above suggested leaving it a month and Settling - it'll costs a couple of hundred in interest if you do that.
Edited by Sheepshanks on Monday 16th September 09:22
KARL-v5ofl said:
Hi wife is collecting a Audi TT tomorrow, it's a low mileage (18k) example, just the 1.8 tfsi black edition.
It's £18100, she had only put down £2000 as a cash deposit, we had planned to pay it in cash, but if we take PCP we get 2 years services and 2 years warranty.
The idea was to call within the first 14 days and "withdraw" from the finance agreement as we heard that this means we keep the service plan.
But a question came into my head, if there is a fault with the car, is it better to leave the finance on the car? In case we need to regret it? ABIT like paying on a credit card?
Ive hard a good look around it, it looks good, but I believe the 1.8liter has had issues with water pumps, but was used in a lot of lean FR which are still running..
Instead of paying off all the finance, I think we can pay off 10k in the first month, and then in the second month pay another amount, just leaving a small balance?
Kind regards
Karl
It makes no difference in respect of faults whether its financed or not as its covers by sale of goods and warranty.It's £18100, she had only put down £2000 as a cash deposit, we had planned to pay it in cash, but if we take PCP we get 2 years services and 2 years warranty.
The idea was to call within the first 14 days and "withdraw" from the finance agreement as we heard that this means we keep the service plan.
But a question came into my head, if there is a fault with the car, is it better to leave the finance on the car? In case we need to regret it? ABIT like paying on a credit card?
Ive hard a good look around it, it looks good, but I believe the 1.8liter has had issues with water pumps, but was used in a lot of lean FR which are still running..
Instead of paying off all the finance, I think we can pay off 10k in the first month, and then in the second month pay another amount, just leaving a small balance?
Kind regards
Karl
Check the terms and conditions on withdrawing from the finance (within 14 days in full). It will stipulate if you retain on lose the warranty and servicing.
Other than that just pay off a decent chunk as proposed to get an interest rebates and clear it all off. You will get charged 2 months interest but get a 2 year warranty and free servicing....
I've only ever bought a VW once, but it was with £2500 discount if you took their PCP deal. Took delivery, drove home; car seemed fine. Next day called VW finance and paid off the full amount (technically I withdrew from the finance agreement within 14 days) with a bank transfer there and then. They charged me some silly sum like £2.58 for a day's interest IIRC. Anyway, it didn't affect the warranty or servicing deal in any way.
To my surprise, the salesman advised me to do the above, said it didn't affect the dealership incentives at all since what I did was entirely legal.
To my surprise, the salesman advised me to do the above, said it didn't affect the dealership incentives at all since what I did was entirely legal.
bennno said:
It makes no difference in respect of faults whether its financed or not as its covers by sale of goods and warranty.
It can be useful to have another angle and you do read of finance companies jumping all over garages to sort things out - after all, the car belongs to the finance company.However I can’t see VWFS being any help in a dispute with an Audi (I presume) dealer.
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