Buying New Polo: Deals To Expect?

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CJ-77
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Buying New Polo: Deals To Expect?

Post by CJ-77 »

Hi all.

Hopefully at the weekend I should be taking a test drive of the Polo (1.0TSI SE is what I will buy I think) but wonder what to expect deal wise and whether to go for a pre-reg which currently seem to be late September 2018 cars for the most part or go for a factory order? Would I be right in thinking at the end of this month there could be some new pre-reg cars added to hit targets? If so, what sort of deal could I reasonably expect?

I'm going in with the plan to pay cash+PX but at what point would I be mad not to take a finance offer?

Cheers, CJ.
monkeyhanger
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Re: Buying New Polo: Deals To Expect?

Post by monkeyhanger »

Look at Drivethedeal's website - their figure will almost certainly be the best deal you can get, but will be dependent on you taking out PCP and getting the VW finance deposit contribution.

If you have the cash to buy, take the finance, ask for withdrawal from finance agreement within 14 days and you settle up with just a nominal daily interest rate, about £3 a day for the Polo you're looking at - you keep the VW deposit contribution, they cannot recover it.

Example: You buy a £17500 RRP Polo with a broker sized discount of £2500 which is inclusive of the deposit contribution. The discount is considered by VW finance as deposit. So on paper you bought a £17500 car for £17500, but got a £1000 deposit contribution and put down £1500 deposit (this is your £2500 broker discount) - your withdrawal from finance settlement figure is £15000 plus nominal daily rate within that 14 day window.

In consumer law, something cannot be cheaper under finance than a cash buy. The car companies get around this by offering a "deposit contribution".- it's a discount that's not a discount by definition. Due to the consumer law, they cannot claw back that deposit contribution, or they would be in violation of the rule that a car cannot be offered cheaper under finance.

Don't mention it to the dealer, they won't like it because they get a kickback from VW finance if you stay in the finance agreement beyond the window of your 14 day right to withdrawal.
CJ-77
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Re: Buying New Polo: Deals To Expect?

Post by CJ-77 »

Thanks for that info, Monkeyhanger. I had heard about this trick but didn't know about finance not being allowed to be less than cash. Always wondered what a "deposit contribution" was about.

Looking at £15,100 inc metallic paint through DTD adjusted for cash. Or £14,100 on a 4.9% PCP plus 2 services available for £199. The other option would be a pre-reg at ~£12,900 to £13900 depending on options.

Decisions, decisions.....
blackertracker
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Re: Buying New Polo: Deals To Expect?

Post by blackertracker »

I noted the other day you can buy a brand new Seat Leon SE 1.5 EVO 130 6-speed for £13075. Including metallic paint. That’s a 30% discount from Drivethedeal.
That’s got to be better value than a Polo SE 1.0TSI 95 with the 5 speed gearbox (that people on here complain about)?
Last edited by blackertracker on Thu Mar 07, 2019 1:03 pm, edited 1 time in total.
Andy Beats
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Re: Buying New Polo: Deals To Expect?

Post by Andy Beats »

Agree with those who suggest taking out any finance deal that offers discounts, then settling.
Going straight in with cash is s very old fashioned method that can actually be worse.
blackertracker
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Re: Buying New Polo: Deals To Expect?

Post by blackertracker »

Andy Beats wrote: Thu Mar 07, 2019 8:53 am Agree with those who suggest taking out any finance deal that offers discounts, then settling.
Going straight in with cash is s very old fashioned method that can actually be worse.
Completely agree.
CJ-77
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Re: Buying New Polo: Deals To Expect?

Post by CJ-77 »

Just to update that I test drove the Polo today and struck a decent deal on a pre-reg and will be picking it up next weekend...... fingers crossed.

It is a Reef Blue 1.0TSI with front & rear sensors and style pack. Car drove lovely allowing for it only having 20 miles on the clock. It is true the gearing is high, especially 1st > 2nd, but I don't think its a deal breaker and is no worse than other modern turbo'd cars/vans I've driven at work. They all have a walking pace 2nd gear flat spot of some sort to be honest. One of the key attributes of my current C-MAX' 1.6 Zetec engine is its low speed tractability even though power/torque to weight and general performance is much lower than the Polo (or most other modern small Turbo cars). Will take a bit of getting used to for sure.

One week to go... :mrgreen:
Aube
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Re: Buying New Polo: Deals To Expect?

Post by Aube »

Hi,

Good news.

Remember not to get sucked in with gap, paint protection and tyre and wheel insurance from the dealer as the price will be way more than buying from companies like ala.co.uk. Example, gap from VW circa. £500, but from ALA, with a discount code, under £100!

Enjoy the car.
CJ-77
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Re: Buying New Polo: Deals To Expect?

Post by CJ-77 »

Aube wrote: Sun Mar 10, 2019 8:57 am Hi,

Good news.

Remember not to get sucked in with gap, paint protection and tyre and wheel insurance from the dealer as the price will be way more than buying from companies like ala.co.uk. Example, gap from VW circa. £500, but from ALA, with a discount code, under £100!

Enjoy the car.
Cheers. No worries about those extra add on's. All those added up to £1,800 on the basic quote sheet but I politely listened to the script and said no thanks. My brother is a detailer and has already offered to give it some protection for free. I might source GAP from someone like ALA as you suggest.
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Re: Buying New Polo: Deals To Expect?

Post by ashleyman »

If you plan to take out finance with the intention of clearing it. I'd always recommend waiting until Day 15 of the agreement. It's rare but there are stories of manufacturers and dealers trying to recoup any finance incentives if you pull out within the 14 day cooling down period.

Just bought a Polo SEL 115ps DSG for my wife. It's a brand new unregistered stock car with no options except for Reflex Silver metallic Paint.

List price was £20,615 and I managed to beat them down to £17,030. We also took the car on a PCP which meant getting another £1000 off. So after all the discounts it's £16,030.
We're taking the 2 year servicing for £199. Brilliant value and means at least for the first 2 years, servicing is paid for.

We also looked at 2 other demo cars which were about £1000 cheaper. She wanted to run the car on a PCP and the used vehicles were working out more expensive because the interest rates were higher, and the GFV lower. Plus, honestly, who wants to buy a demo?

We didn't take any paint protection, wheel insurance or gap. The insurances sound like poor value, so many restrictions and I've had friends who have had these who have been told their damage doesn't qualify and they refuse to pay out so I'm keen to avoid those. We will get gap insurance with ALA as usual as they're usually the cheapest. They also owe me £70 from a policy I finished early last year.

There are deals to be had and with a price increase due on April 1st, plus the uncertainty surround Brexit & Import Tariffs we were keen to get a car secured, registered and delivered asap.
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Re: Buying New Polo: Deals To Expect?

Post by monkeyhanger »

ashleyman wrote: Sun Mar 10, 2019 2:58 pm If you plan to take out finance with the intention of clearing it. I'd always recommend waiting until Day 15 of the agreement. It's rare but there are stories of manufacturers and dealers trying to recoup any finance incentives if you pull out within the 14 day cooling down period. .
Absolutely false. They cannot recoup it. If they try, they are in violation of consumer law. If they were able to recoup it, they would effectively ensure that the purchase price under finance is cheaper than that of an outright purchase - a direct violation of consumer law.

They rely on most people wanting/needing PCP anyway to make their purchase, or not knowing that they can withdraw from the finance (but not the obligation to buy a car that has been ordered especially for them without forfeit of any deposit they paid to place the order) and retain the deposit contribution.

If you withdraw within 14 days, they can only charge you a nominal interest fee per day from the day after the agreement started until the day you give notice to withdraw - around £3 a day for an £18-20k finance deal. They will then provide you with a settlement figure that will not include return of the deposit contribution e.g. you buy a £20k car on finance, there's a £1k deposit contribution from VWFS, and you put in £2k deposit - amount financed is £17k. Finance withdrawal settlement figure is £17k.

For the GTI there is no deposit contribution currently, but if there had've been, I'd take out the finance and settle within a few days of taking delivery of the car.

I did this for my wife's Audi A1 in September 2015, and nothing has changed legislatively.

Any scare stories you may have heard about waiting until day 15 have almost certainly come from the dealerships - they don't get a kickback from VWFS or other finance company if you withdraw within 14 days.

From day 15 and onwards, you can settle at any time, and they will provide a settlement figure that will calculate interest due until that point, plus a penalty for early settlement - usually equivalent to what would've been your next 2 months of interest (that's what VWFS have historically charged when you want to px early and the salesperson uses it to calculate your positive or negative equity vs px value).
CJ-77
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Re: Buying New Polo: Deals To Expect?

Post by CJ-77 »

That's a good deal you got on your car, ashleyman. As my car was technically a used pre-reg (but only 20 miles on the clock) it wasn't eligible for all the deposit contributions or low % rate PCP a unregistered vehicle is, so I've kept it really simple and got the cost to change figure as low as possible and will pay the balance on collection. Probably not the best deal but the car is in a nice colour and spec so I'm happy. I haven't gone for any of the add on's as they really are poor value and/or not needed.
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Re: Buying New Polo: Deals To Expect?

Post by ashleyman »

monkeyhanger wrote: Sun Mar 10, 2019 3:48 pm
ashleyman wrote: Sun Mar 10, 2019 2:58 pm If you plan to take out finance with the intention of clearing it. I'd always recommend waiting until Day 15 of the agreement. It's rare but there are stories of manufacturers and dealers trying to recoup any finance incentives if you pull out within the 14 day cooling down period. .
Absolutely false. They cannot recoup it. If they try, they are in violation of consumer law. If they were able to recoup it, they would effectively ensure that the purchase price under finance is cheaper than that of an outright purchase - a direct violation of consumer law.

They rely on most people wanting/needing PCP anyway to make their purchase, or not knowing that they can withdraw from the finance (but not the obligation to buy a car that has been ordered especially for them without forfeit of any deposit they paid to place the order) and retain the deposit contribution.

If you withdraw within 14 days, they can only charge you a nominal interest fee per day from the day after the agreement started until the day you give notice to withdraw - around £3 a day for an £18-20k finance deal. They will then provide you with a settlement figure that will not include return of the deposit contribution e.g. you buy a £20k car on finance, there's a £1k deposit contribution from VWFS, and you put in £2k deposit - amount financed is £17k. Finance withdrawal settlement figure is £17k.

For the GTI there is no deposit contribution currently, but if there had've been, I'd take out the finance and settle within a few days of taking delivery of the car.

I did this for my wife's Audi A1 in September 2015, and nothing has changed legislatively.

Any scare stories you may have heard about waiting until day 15 have almost certainly come from the dealerships - they don't get a kickback from VWFS or other finance company if you withdraw within 14 days.

From day 15 and onwards, you can settle at any time, and they will provide a settlement figure that will calculate interest due until that point, plus a penalty for early settlement - usually equivalent to what would've been your next 2 months of interest (that's what VWFS have historically charged when you want to px early and the salesperson uses it to calculate your positive or negative equity vs px value).
I said I had heard stories about dealers and finance companies trying to make you pay back the incentives. The thing to remember is a deposit contribution is not a discount, it makes up part of the customers finance agreement. These stories are not from dealerships or salespeople but actual people I know who have had letters to say they're required to pay back incentives - nobody has ever ended up paying them back but they've still had the letters. I did read another example online the other day involving Mitsubishi & Santander but that was online so the person posting could be anyone. See https://www.pistonheads.com/gassing/top ... &t=1797560

You may be exercising your consumer rights to walk away but that won't stop some from trying it on. If you want to avoid the hassle it might be worth waiting until Day 15.

Even if you do wait until Day 15, you're still only paying interest on the value of the loan up until that date. Waiting until Day 15 doesn't suddenly require you to pay for 100% of the interest over the full term, you'll pay 15 days of interest.

Anyway, back on topic about how people have funded their cars and not arguing about the positives or negatives and intricacies on different forms of purchase.
ashleyman
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Re: Buying New Polo: Deals To Expect?

Post by ashleyman »

CJ-77 wrote: Sun Mar 10, 2019 4:06 pm That's a good deal you got on your car, ashleyman. As my car was technically a used pre-reg (but only 20 miles on the clock) it wasn't eligible for all the deposit contributions or low % rate PCP a unregistered vehicle is, so I've kept it really simple and got the cost to change figure as low as possible and will pay the balance on collection. Probably not the best deal but the car is in a nice colour and spec so I'm happy. I haven't gone for any of the add on's as they really are poor value and/or not needed.
Thanks, I don't see how I possibly could have got a better deal unless I'd dropped the paint and waited for a factory order. Both of which weren't going to happen. SEL is a good trim with a nice economical engine so nothing extra is really needed. Most important thing is it fits within the budget my wife had set out for her vehicle.

So long as you're happy with the car and what it cost then that's all that really matters! If you're paying cash on collection then you're saving interest on a loan! Add ons do seem like poor value. Never had them, probably never will.
monkeyhanger
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Re: Buying New Polo: Deals To Expect?

Post by monkeyhanger »

ashleyman wrote: Sun Mar 10, 2019 4:18 pm

Even if you do wait until Day 15, you're still only paying interest on the value of the loan up until that date. Waiting until Day 15 doesn't suddenly require you to pay for 100% of the interest over the full term, you'll pay 15 days of interest.
More falsehood.

Once in day 15, you are fully bound by the finance contract, as you are deemed to have accepted it before the cooling off period. You won't pay the full whack of term interest, but you will pay any penalty interest due as per your contract, - usually 2 months penalty interest plus a nominal admin fee is the norm on most bank loan and car finance providers, including VWFS, Lloyds/black horse, direct line, Barclays etc. By this I mean if you have a 36 month loan and you've paid it for 12 months, Aunt Dotty dies and leaves you with enough money to clear the loan. You ask for a settlement figure. The settlement figure will include as a penalty, the interest charges that would've been part of payments 13 and 14, plus an admin fee.

The pistonheads post deemed the dealership demand horse excrement - the dealer couldn't demand anything legally the finance was with Santander and not the dealership. Dealership were chancers.

You are undeniably wrong. That PCP deposit contribution is free money up for grabs if you have the readies to settle in full.
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