PCP deals

[Simmo63]

Hi
I am awaiting delivery of my Polo GTI+ in early September, my dealership hasn’t been in touch yet reference payment, the original PCP deal on the car when ordered had an APR of 4.9%, has anyone who has recently taken delivery of their car been offered a better deal from their dealership? My other question is, to benefit from the VW deposit contribution of £1250 do I have to take out a PCP and if so is there any penalty if I choose to pay off the PCP straight away?

[SRGTD]

The current PCP offer is £1,500 VW finance deposit contribution and 3.5% APR for cars ordered before 31/08/2020 and delivered to the customer by 30/09/2020. I don’t know if I’d wait for the dealer to offer you this - I’d be contacting the dealer and asking for it!

There’s no penalty for if you pay off the PCP straight away, and you retain the finance deposit contribution - you’ll just pay daily interest from the start date of the contract up to the day to notify VWFS that you want to exercise your right to withdraw. If you withdraw from the PCP within the first 14 days, you’re effectively exercising your right to change your mind within the standard 14 day cooling off period.

[Simmo63]

Thanks for the reply, handy to know prior to doing the deal

[lancslad1985]

The current PCP offer is £1,500 VW finance deposit contribution and 3.5% APR for cars ordered before 31/08/2020 and delivered to the customer by 30/09/2020. I don’t know if I’d wait for the dealer to offer you this - I’d be contacting the dealer and asking for it!

This is the deal I got yesterday which was lower than when I put my deposit down in June. Knocked an extra £7 off my payments all told so not complaining!

[monkeyhanger]

Thanks for the reply, handy to know prior to doing the deal

Just don't tell the dealer you plan to do this - they get a kickback from VWFS if you carry on the PCP and won't be pleased to know they won't be getting it.

For every day within the cooling off period before you request to withdraw from the agreement, you'll be paying about £3 a day in interest. Once you've requested to withdraw you have 30 days to pay up the balance (purchase price minus deposit contribution and any deposits you already paid) without accruing any further interest.

If there's a better finance deal now than the one you signed up to, the dealer can get you on the newer deal (in your case, if the deposit contribution has increased, it'll be worth asking).

If VW are still doing the "3 months free" promotion on PCP (I think it's happening across most of the VW/Audi range, if not all), it might actually be worth sticking with the PCP for at least 3 months. You'll get 3 months payments made for you but will suffer 2 months penalty interest when you do. 3 months capital + 3 months interest trumps not being liable for 2 months penalty interest. Just make sure current deal is deposit contribution plus 3 month free, not 3 months free instead of 3 months free.

[Simmo63]

All good advice, thanks for your input.