VW finance deposit contribution - where does it come from?

superchargedpolo

superchargedpolo

Senior Member
T6 Pro
I'm due to pick up my T6 this week. I managed to get a good deal, I think, when I ordered the van back in January.

Anyway, I was going to pay for it outright but noticed VW give you £500 towards your deposit if you take out their finance. Just told the dealer I'd be keen to take the finance option and he basically said I couldn't get the £500 contribution as this was part of my deal in the first place? Even though I never said anything about finance when the deal was done.

Where does the deposit contribution come from? I thought it was VW finance and nothing to do with the dealer or have I got it all wrong?

Any thoughts much appreciated.
 
superchargedpolo said:
I'm due to pick up my T6 this week. I managed to get a good deal, I think, when I ordered the van back in January.

Anyway, I was going to pay for it outright but noticed VW give you £500 towards your deposit if you take out their finance. Just told the dealer I'd be keen to take the finance option and he basically said I couldn't get the £500 contribution as this was part of my deal in the first place? Even though I never said anything about finance when the deal was done.

Where does the deposit contribution come from? I thought it was VW finance and nothing to do with the dealer or have I got it all wrong?

Any thoughts much appreciated.
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Did you opt for the 5year warrantee; and 4 services (100k miles) pre purchase options?
 
It is part of an incentive that VWFS give to the dealers because if you take their finance, they are not only making £ on the original sale price, but then also creaming the cash cow through the monthly payments. They know they will make way more money than what they offer as incentive over the term of the finance. Therefore it is purly there to tempt you in to giving them even more of your hard earned cash. I played them at their own game. Bought the van on their finance deal, got the discounts I wanted, then very next day paid it off, and got in quick enough so that there was an early settlement charge. If you do it this way you need to have your wits about you and calculate the days back to when you sign the paperwork rather than when you pick the van up, as you only have I think it is 14 days cooling off period.
 
That's what I thought. To be fair I think the salesman has been really good up to now. I don't want to make a big deal out of it but £500 means a whole lot more to me than any dealer. I've never had a new car or van in my life, this is a bit of a one off.

@chriscroft I didn't go for their servicing nor extended warranty. I owned 2 secondhand T5's in my time and they have never missed a beat or had anything other than routine servicing needed. I do work on other friends vans, including servicing . The number of van that come to me with FVWSH but hasn't been done properly is disappointing to say the least. As much as I love their vans I would never let a VW tech touch my pride and joy. If they'd let me do the PDI, I'd do it myself.
 
superchargedpolo said:
That's what I thought. To be fair I think the salesman has been really good up to now. I don't want to make a big deal out of it but £500 means a whole lot more to me than any dealer. I've never had a new car or van in my life, this is a bit of a one off.

@chriscroft I didn't go for their servicing nor extended warranty. I owned 2 secondhand T5's in my time and they have never missed a beat or had anything other than routine servicing needed. I do work on other friends vans, including servicing . The number of van that come to me with FVWSH but hasn't been done properly is disappointing to say the least. As much as I love their vans I would never let a VW tech touch my pride and joy. If they'd let me do the PDI, I'd do it myself.
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Likewise, I am pretty certain that the £500 is an incentive from VWFS and is in addition to the dealer discount so you should get both. As above, just cancel immediately you have taken delivery

I reckon the extended 5 years warranty is a steal at the price. Even if you don't make use of it, it will increase the residual value of the van if you sell it within the 5 years. For a buyer it's almost as good as buying it from a main dealer but without the dealer premium
 
Just spoke to VW finance and it would appear that it's the dealer that takes the £500 hit because, in most cases, they will make than money back over time when the finance is paid back. My mistake was mentioning to my salesman that I might only need the fianance for a few months. He has obviously put 2 and 2 tighter and realised they won't make their £500 deposit contribution back.

@Captain Mainwaring what is the cost of extended warranty? I'll be keeping this van for a least 10 years so selling it on won't be an issue, but if it's buttons then might be worth it.
 
superchargedpolo said:
That's what I thought. To be fair I think the salesman has been really good up to now. I don't want to make a big deal out of it but £500 means a whole lot more to me than any dealer. I've never had a new car or van in my life, this is a bit of a one off.

@chriscroft I didn't go for their servicing nor extended warranty. I owned 2 secondhand T5's in my time and they have never missed a beat or had anything other than routine servicing needed. I do work on other friends vans, including servicing . The number of van that come to me with FVWSH but hasn't been done properly is disappointing to say the least. As much as I love their vans I would never let a VW tech touch my pride and joy. If they'd let me do the PDI, I'd do it myself.
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Its great you can do so much more yourself; but if in year 4 or 5 the slightest thing goes wrong with all the Euro 6 engine technology, and it needs diagnostic and parts that couple of hundred quid the 5 year warrantee cost will seem like chicken feed? Hopefully nothing will go wrong. The thing about the 4 services is to keep full VW service history buys you "good will" with VW UK if you have a problem. Again it is cheap for what it is imo. Thats how I look at it anyway, but I do also share your frustration with some of the VW service departments; Somehow the two above items only became available to me, when we spoke about VW finance?????
 
There are a number of different ways the £500 discount could be applied... sometimes it's a dealer subsidy (they take the hit to get you to take the deal) and sometimes it's a brand subsidy (VW pay the extra £500).

Recently the common method has been as a deposit contribution, wherein VWFS or VW will pay back the extra to the dealer, but the dealer has to effectively pay for it first.

If your agreement based on a cash price has included a £500 dealer contribution, changing to finance should get you the extra £500 discount. Don't let on that you're only doing the finance for a short period, and will settle early, as that affects what the dealer may pull in & therefore they may decide not to offer the extra £500.

I think your salesman was trying it on to suggest that the £500 dealer subsidy was the deposit contribution from VWFS...
 
I would also suggest the service plan as well, you often get them included as part of a solutions/pcp deal as it helps ensure that the vehicle value is as high as possible compared to the balloon payment...
 
This is from vw commercial website and states £500 deposit contribution and doesn't state from dealer, and you are well within your rights to settle however dealers aren't normally forthcoming with this but if you ask they have to tell you that you are within your rights to settle at anytime

IMG_0889.PNG
 
Within the first 14 days you can cancel the finance and not pay interest, but you'd likely lose the deposit contribution too.

Alternatively, if you do an early settlement you'll pay a couple of months interest max, which should be less than the £500...
 
I'm going to sit on it for a couple more days till I get back to the dealer. I'm not in a rush to pick up the van and feel pretty miffed at their response.
Circa £30k might not be much to a VW dealer but it's a huge outlay and commitment for me, so every saving counts!
 
redvers said:
Within the first 14 days you can cancel the finance and not pay interest, but you'd likely lose the deposit contribution too.

Alternatively, if you do an early settlement you'll pay a couple of months interest max, which should be less than the £500...
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Paid mine off direct with VWFS over the phone within the 14 days, no interest charge and no recoup of the £500.
 
DaveyB said:
Paid mine off direct with VWFS over the phone within the 14 days, no interest charge and no recoup of the £500.
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If that was done as a cancellation of the finance, then it depends on who ultimately paid the contribution as to whether it will be revoked... I imagine it wasn't VWFS if you were able to cancel the finance on which it was predicated (or there's a glaring loophole in their processes!)
 
redvers said:
If that was done as a cancellation of the finance, then it depends on who ultimately paid the contribution as to whether it will be revoked... I imagine it wasn't VWFS if you were able to cancel the finance on which it was predicated (or there's a glaring loophole in their processes!)
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Paid mine off in full after a week or so. My dealer just asked me to wait until they got the money from higher up (I assume vw finance). So it was a free £750 (the deal at the time). Everyone's happy.
 
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