Hi all. We've been to been to have a look at a car and it's been offered with a service plan and warranty when took out with the dealers PCP. My question is, if we were to buy under a PCP to get the extras and then just pay it off with a personal loan then would we be charged any interest as it would be classed as a settlement figure? I just want to pay as little as poss i suppose and save on the interest fees etc. Has anyone done something similar recently in regards to VW finance? Any advice would be great.
PCP query
- Thread starter JDC
- Start date
The Service Plan and MOTs aren’t dependant on taking out a PCP. Negotiate the price for the van and extras, then agree ways of paying, not the other way round!
If the Service Plan is “free” then he will itemise it as “FOC”…..though, I reckon you’ll see him reduce the cost of the van and add on the cost of the plan when he’s doing the paperwork!!!
If the Service Plan is “free” then he will itemise it as “FOC”…..though, I reckon you’ll see him reduce the cost of the van and add on the cost of the plan when he’s doing the paperwork!!!
Simon Audi
Member
With PCP - you can request a settlement figure the same day you had the car - then that price is fixed and you have 30 days to pay the balance (maybe 28 Days) so you pay just a few pounds in interest
I did the same when we bought the wife's up - I took out the PCP to get the Free Servicing and paid it around 2 weeks later - cost me around £4 in interest.
I think it was 2 services and something else - but can not remember what else (old age)
Thanks#
I did the same when we bought the wife's up - I took out the PCP to get the Free Servicing and paid it around 2 weeks later - cost me around £4 in interest.
I think it was 2 services and something else - but can not remember what else (old age)
Thanks#
Yeah this was what I was thinking of doing Just didn't want to be hit by s large settlement figure. For example, 15k purchase, 17k settlement as the finance company have missed out on your interest.
Would this come in the T&C from the finance company.?
That's brilliant, thanks. I was dreading it could be the full interest amount or at least a partial payment of it. I emailed the dealer this morning and the salesman didn't exactly give me a correct answer.
Simon Audi
Member
Is it VW finance or someone else?
Simon Audi
Member
The dealers need you to keep the finance 4 to 6 months or they have VW come back to them and reduce their commission... Or at least that's what I was told by a business head at Skoda where I had a number of cars from.
Yes its from a VW dealer.
Funnily enough I've just been told the same thing via a friend of a friend who knows the manager at Liverpool VW. I've been told it needs to paid for at least 6 months or VW cancel the service and warranty deals but I won't have any daft resettlement figure. I'm not sure if @Sharpe has that in his contract?
On my new van I got a deposit contribution for taking out the minimum loan with VW for six months at least. Interest was small compared to the discount.
Simon Audi
Member
You do not loose any of the Deposit Contribution or Service Plans when you pay off... its just the dealer who may loose some or all of his commission.
Just spoken to VWFS and exercised my right to withdrawal. Have had 10 days interest added to my balance (signed finance documents 27th September). Once you request the withdrawal (has to be within 14 days of signing the finance agreement, not when you get the car), you then have 30 days to pay the balance.
If I had let it roll past the 14 days and requested an early settlement, apparently would have had 58 days interest added to the balance.
I took a personal loan at a lower rate than my VWFS agreement to make up the difference. Which I can overpay / repay early without penalty
If I had let it roll past the 14 days and requested an early settlement, apparently would have had 58 days interest added to the balance.
I took a personal loan at a lower rate than my VWFS agreement to make up the difference. Which I can overpay / repay early without penalty
You could also consider only taking the PCP deal out for the minimum (or a very low) amount and paying the rest up front. I did that when I bought my van new for the £3k discount. Then even if you don’t pay it back early, the interest will be low.
Good stuff. That's exactly what I'm thinking of doing. More money in my pocket than the stealers!!!
