Finance offers changed waiting on delivery

[Ima]

Hi all

I’ve seen that the PCP finance rate has increased on the GTI compared to what I agreed when signing up in February. I assume that VW will honour my agreed rate when I finally sign up but wondering on anyone’s experience in this situation?

[monkeyhanger]

Hi all

I’ve seen that the PCP finance rate has increased on the GTI compared to what I agreed when signing up in February. I assume that VW will honour my agreed rate when I finally sign up but wondering on anyone’s experience in this situation?

If you got fully finance approved in February, you will retain that deal. If the dealer ran through the numbers as an example with no formal credit application made and accepted, you won't.

When I ordered my Golf R in Oct 14, they had an incredibly high GFV which made PCP deals very reasonable. My usual salesman was so confident about my credit rating, he didn't put the figures through. In Nov, the GFV dropped £3k, effectively adding £80 a month to the PCP on the new terms. There was nothing VWFS could or would do about it. I ended up buying it outright to avoid the hike.

[Ima]

Thanks monkeyhanger. I’ll have to check but if they don’t honour it they will lose the sale as I was told the final agreed cost was what the vw finance screenshot they gave me was. As soon as dealer opens in June I’ll have to confirm. All very frustrating. The finance deals on the rest of the range have a much lower rate and a 3 month payment contribution so they can whistle if they want to charge me more.

[sc-red]

Thanks monkeyhanger. I’ll have to check but if they don’t honour it they will lose the sale as I was told the final agreed cost was what the vw finance screenshot they gave me was. As soon as dealer opens in June I’ll have to confirm. All very frustrating. The finance deals on the rest of the range have a much lower rate and a 3 month payment contribution so they can whistle if they want to charge me more.

When I signed up for my Polo GTI+ I was told that the deal I signed up to was a worst case. They would honour the deal even if rates went up. As it happened the rate stayed the same, but contribution went up so the reduced my final deposit I had to pay when collecting the car. I’m sure if it’s via VWFS then you’ll be fine based on my experience.

[SRGTD]

Thanks monkeyhanger. I’ll have to check but if they don’t honour it they will lose the sale as I was told the final agreed cost was what the vw finance screenshot they gave me was. As soon as dealer opens in June I’ll have to confirm. All very frustrating. The finance deals on the rest of the range have a much lower rate and a 3 month payment contribution so they can whistle if they want to charge me more.

When I signed up for my Polo GTI+ I was told that the deal I signed up to was a worst case. They would honour the deal even if rates went up. As it happened the rate stayed the same, but contribution went up so the reduced my final deposit I had to pay when collecting the car. I’m sure if it’s via VWFS then you’ll be fine based on my experience.

Also, if you’ve been approved for VW finance, if interest rates were to go down (unlikely, as they’ve just been increased), you can take advantage of the lower rates.

[Ima]

Cheers for the replies. I’m annoyed with myself for not checking although salesman did say that if my part ex value increased they would pass on the difference. As long as they pre approved me then it should be fine.

It looks like VW are trying to put people off From GTI at the moment with massive price increases and less attractive finance.

[johnpolo2]

With the Bank of England contemplating a future with negative interest rates, the customer may be paid to take out loans.

Sent from my SM-G960F using Tapatalk

[Ima]

Indeed and that’s why it’s galling that PCP rates remain so high in many cases. Clear profiteering.

[l3rady]

With bank interest rates on loans being so low and maybe to fall even further would anyone recommend paying off PCP of 6.5% APR and taking out a loan for 2.8% APR? The downside of doing this is that you have to pay for the full car value now so repayments will be significantly more but if you are already putting the money aside each month for the balloon payment at the end of the PCP term and given that savers are not making a dime then it seems like you could make a nice saving over 3 years.

Is there any reason not to do this? Only thing I think would be a problem is that in 3 years the car is worth significantly less than what is on the finance agreement now.

[monkeyhanger]

With bank interest rates on loans being so low and maybe to fall even further would anyone recommend paying off PCP of 6.5% APR and taking out a loan for 2.8% APR? The downside of doing this is that you have to pay for the full car value now so repayments will be significantly more but if you are already putting the money aside each month for the balloon payment at the end of the PCP term and given that savers are not making a dime then it seems like you could make a nice saving over 3 years.

Is there any reason not to do this? Only thing I think would be a problem is that in 3 years the car is worth significantly less than what is on the finance agreement now.

If you're taking out a loan, a fairer comparison with PCP is a 5 year loan. If a car has a GFV of 45% RRP, PCP is like a 5 year loan that you only intend to take to a 3 year term. You do have the safety net of being able to hand the car back after 3 years regardless,but I've never known a VW yet not worth more than its GFV at 3 years.

You just have to make sure you're not shafted by the salesperson on value at px time. Most salespeople play on what you owe VWFS when you decide to chop in for a new one.

If you do buy outright, make sure you PCP to get the deposit contribution and then clear the balance within 14 days. If you do that though, make sure your credit rating will handle taking out effectively 2 car loans very close together - they won't discuss the fact that one loan is paying off the other with an online application.

[l3rady]

With bank interest rates on loans being so low and maybe to fall even further would anyone recommend paying off PCP of 6.5% APR and taking out a loan for 2.8% APR? The downside of doing this is that you have to pay for the full car value now so repayments will be significantly more but if you are already putting the money aside each month for the balloon payment at the end of the PCP term and given that savers are not making a dime then it seems like you could make a nice saving over 3 years.

Is there any reason not to do this? Only thing I think would be a problem is that in 3 years the car is worth significantly less than what is on the finance agreement now.

If you're taking out a loan, a fairer comparison with PCP is a 5 year loan. If a car has a GFV of 45% RRP, PCP is like a 5 year loan that you only intend to take to a 3 year term. You do have the safety net of being able to hand the car back after 3 years regardless,but I've never known a VW yet not worth more than its GFV at 3 years.

You just have to make sure you're not shafted by the salesperson on value at px time. Most salespeople play on what you owe VWFS when you decide to chop in for a new one.

If you do buy outright, make sure you PCP to get the deposit contribution and then clear the balance within 14 days. If you do that though, make sure your credit rating will handle taking out effectively 2 car loans very close together - they won't discuss the fact that one loan is paying off the other with an online application.

Thanks for the info. I have been with PCP already for 1 year. 3 years to go. The PCP is under my name only and the plan is that my partner would take out the bank loan as she has no other loans other than the mortgage. This would avoid the two sizable loans being out at the same time which would possibly mean I wouldn't get the lower rate.

The intention has always been to keep the car at the end of the PCP so I have been putting away each month an amount needed for the balloon payment, but with interest rates for savers being so abysmal it seems to me, more financial sense to use what savings we have got so far to pay off as much of the car we can and then take out a low-interest loan for the rest.