# VW finance



## Avanti (Jan 17, 2006)

Anyone used this?
When I ring the dealers, it seems to be a 'secret' until the customer visits the showroom, all the guy would tell me over the phone is that 50% deposit is not allowed 
All I want to know really is what's the minimum and max deposit (if there is a deposit) is there an arrangement fee? How is the final payment calculated is it based on mileage?
Thanks in advance for any responses short of visiting a dealership :thumb:


----------



## chillly (Jun 25, 2009)

Is it the pcp one colin?

If so then they prefer you not to put in a high deposit due to the fact they make more money on the more you borrow.
You can put in as much as you want but that brings down the monthly payments. And not the final payment.

The final payment is based on the mileage you do per annum and then there scheme works out what the car will be woth at the end of the term. Lets say 6000 miles per year and they say the car will be worth 10k at the end. and you only do 3000 miles per then your car should be worth more. if you go over the agreed 6000 miles per then you will have to pay so many pence per mile due to the car having more miles than agreed hence it will be worth less than the original agreement. in there eyes i might add.

A car that costs say 30k will probs give you a final payment of about 12 to 13k with payments of £350 a month with a deposit of about £3000 ish. The more deposit you pay will bring down your monthly payments but still leave you with the same final payment. If your car for example is worth 10k and they you agree a deposit of 5k and £300 a month then they will give you a check for the other 5k for you to do with what you will. If at the end of the agreement you wish to keep the car then you will have to pay the final payment. If not then you give the car back and with no payment needed or use your car as an deposit against another one but you will have to hope that your car is worth more than the final payment you agreed to in the beginning. vw and audi are some of the very few which are most of the time because they give you a real price to start with. 

But remember if you give the car back you will have nothing except the money they gave you for your car in the beginning.

All this is example mate so dont quote me on figures :thumb:


----------



## jimmy669966 (Sep 25, 2011)

Avanti said:


> Anyone used this?
> When I ring the dealers, it seems to be a 'secret' until the customer visits the showroom, all the guy would tell me over the phone is that 50% deposit is not allowed
> All I want to know really is what's the minimum and max deposit (if there is a deposit) is there an arrangement fee? How is the final payment calculated is it based on mileage?
> Thanks in advance for any responses short of visiting a dealership :thumb:


Don't know about the min/max, but they offered me 6.9% APR on a golf, i could get 7.4% with my bank so for the difference the 0.5% made to the monthly payment I went with the bank, this way if i want to ever sell the car privately i don't have to worry about the complications selling a car with outstanding finance brings.


----------



## Osarkon (Feb 20, 2011)

Why can't you put down a 50% deposit? I didn't realise there was a maximum deposit...


----------



## Avanti (Jan 17, 2006)

chillly said:


> Is it the pcp one colin?


I think so, the last few cars I have had , I have purchased outright, but with car prices going up and wanting to complete some house tasks, was keen for some numbers ££ss of how the scheme works compared to getting a loan if needed.



jimmy669966 said:


> Don't know about the min/max, but they offered me 6.9% APR on a golf, i could get 7.4% with my bank so for the difference the 0.5% made to the monthly payment I went with the bank, this way if i want to ever sell the car privately i don't have to worry about the complications selling a car with outstanding finance brings.


I will check what the bank would offer but don't think it was as low as that, but was not sure if there was an arrangement fee, do they in effect say a car was £24k and the owner put 1/3 deposit, the finance is one 2/3 but only 1/3 paid and the remaining 1/3 is the balloon payment?


----------



## Avanti (Jan 17, 2006)

Osarkon said:


> Why can't you put down a 50% deposit? I didn't realise there was a maximum deposit...


I don't know why, the guy was keen to get me to the showroom, but when he kept mentioning the sales manager 'he would have to ask this or that' , I had to remind him that he was not doing me a favour selling me a car


----------



## jimmy669966 (Sep 25, 2011)

Avanti said:


> I think so, the last few cars I have had , I have purchased outright, but with car prices going up and wanting to complete some house tasks, was keen for some numbers ££ss of how the scheme works compared to getting a loan if needed.
> 
> I will check what the bank would offer but don't think it was as low as that, but was not sure if there was an arrangement fee, do they in effect say a car was £24k and the owner put 1/3 deposit, the finance is one 2/3 but only 1/3 paid and the remaining 1/3 is the balloon payment?


When i was doing it there was simply a 20% deposit, the remaining balance + interest was then split over 60 months. Yes there was an arrangement fee, it wasn't massive (about £200 IIRC) and it wasn't up front, they just added it to the amount I would have been borrowing.


----------



## Avanti (Jan 17, 2006)

jimmy669966 said:


> When i was doing it there was simply a 20% deposit, the remaining balance + interest* was then split over 60 months. Yes there was an arrangement fee, it wasn't massive (about £200 IIRC) and it wasn't up front*, they just added it to the amount I would have been borrowing.


Yikes 60 months, would want it done and dusted well before 5yrs, is there a charge or option for early settlement do you know? Looks like I may have to waste time at the dealers after all


----------



## jimmy669966 (Sep 25, 2011)

Avanti said:


> Yikes 60 months, would want it done and dusted well before 5yrs, is there a charge or option for early settlement do you know? Looks like I may have to waste time at the dealers after all


Don't know about the early repayment as i didn't get that far.


----------



## ryand (Jul 18, 2008)

Used VWFS for a PCP. Deposit, spread the payment over max 42 months I think, then pay the balance to keep the car, return it and start again, or pay it off and sell privately if you wish. Linked to mileage but you can set the mileage lower than you will ever do to get the payments down if you know you want to keep the car at the end. If you dont then you may get hit for c.6p per mile over. Dont think there was early settlement and there was a voluntary termination option when past the half way point. Dealer sent me many options by email once I had been in there once, but it was an excellent Skoda dealer so I cant speak for VW themselves (VWFS for VW and Skoda and I guess Audi). HTH.


----------



## chillly (Jun 25, 2009)

chillly said:


> Is it the pcp one colin?
> 
> If so then they prefer you not to put in a high deposit due to the fact they make more money on the more you borrow.
> You can put in as much as you want but that brings down the monthly payments. And not the final payment.
> ...


Updated mate :thumb::thumb:


----------



## Avanti (Jan 17, 2006)

Chilly so it looks like really you are paying for the depriciation of the car, I understand you say the figures are plucked out of the air, but £350 seems low, what's the crack with the cheque? I suppose it could be just deposited in an ISA


----------



## chillly (Jun 25, 2009)

It depends how much your part exchange is worth or how much deposit you pay mate. If you part ex and yours is worth more than the deposit you agree they give you the balance in the form of a cheque i think but they may put it in your account via wire transfer. (guess). And yes you can save that until the final payment is needed.


----------



## yin (Dec 29, 2005)

http://www.broker4cars.co.uk/volkswagen-finance-personal-contract-purchase-pcp.htm

This should give you a rough idea of whats on offer:thumb:


----------



## andy665 (Nov 1, 2005)

VWFS have a min deposit of zero and a max of 35% on PCP, current PCP APR on Golfs is 4.9%, dealers can earn commission if they conduct business above the marketing campaign rate

Fees are usually front and end loaded, as is a legal requirement VT can be exercised once half the total amount payable point is reached ( not halfway through the agreement)


----------



## Buck (Jan 16, 2008)

Avanti said:


> Yikes 60 months, would want it done and dusted well before 5yrs, is there a charge or option for early settlement do you know? Looks like I may have to waste time at the dealers after all


I got my Golf on a VW PCP over 36 months.

If buying new the APR is subsidised by VW. If its a used car the APR will be higher.

I put £5k deposit into mine and a realistic mileage. Speaking to a friend who is also on a PCP (not his first) he said to check after one and two years as the value of the car can be a lot higher than the finance value leaving you with more cash than if you leave it to run term.

Checked mine after one year and the GTD was worth £2k more than the finance settlement but not ready to change yet!


----------



## andy665 (Nov 1, 2005)

One more thing - PCP. like HP allows you to settle at any point in the agreement, legally PCP is seen as a HP agreement with a different payment profile

Despite what many people think, PCP is not about getting the lowest possible monthly payment, more geared to giving more options, protection from a collapse in used prices and changing car more regularly


----------



## Goldbug (Sep 23, 2011)

Avanti said:


> Anyone used this?
> When I ring the dealers, it seems to be a 'secret' until the customer visits the showroom, all the guy would tell me over the phone is that 50% deposit is not allowed
> All I want to know really is what's the minimum and max deposit (if there is a deposit) is there an arrangement fee? How is the final payment calculated is it based on mileage?
> Thanks in advance for any responses short of visiting a dealership :thumb:


You'll will be better off with a Personal *flexible * loan through one of the high street lenders.

Then just go to the stealers with the bank cash and negosite the hard way.:thumb:

Good luck


----------



## andy665 (Nov 1, 2005)

Goldbug said:


> You'll will be better off with a Personal *flexible * loan through one of the high street lenders.
> 
> Then just go to the stealers with the bank cash and negosite the hard way.:thumb:
> 
> Good luck


Age old misconception - why would the dealership offer a better deal by a customer not using their funding - it costs them money up front (maybe only a tiny amount - circa £50 on a manufacturer subsidised deal but potentially more on bonus payments by not hitting finance targets

Fact is you are more likely to get a better deal by using dealer funding


----------



## Stevoraith (Mar 15, 2008)

Or just get a straightforward loan from VW finance instead of PCP?

That way you can put down your large deposit and the dealer gets his commission- eveyone is happy?

FWIW I've used VW finance three times now (once from a VW dealer, twice from a Skoda).
Each time it's been a starightforward loan and I've been able to haggle the APR rate down by 1-2%.

I don't see the point of PCP if you have a large deposit.
I may have it wrong but surely if you have your trade-in plus several thousand as a deposit and you put this down on PCP, when you get to the end of the term you've still got the baloon to pay for.
This will be set at (if you're lucky) a couple of k below what your car is worth.

So when you buy your next car you are now in the position of having only a couple of k equity where previously you had the value of your old car plus a few k.

Staright finance for me everytime, that way when you get to the end of the term you have, as a minimum, the entire value of your car as a deposit on your next car.

Obvioulsy the monthly payments will be higher but if you have a large deposit then this should keep them down.


----------



## Ric (Feb 4, 2007)

Ive just purchased my S5 from a dealer using VWFS.

They will try sell you the PCP, avoid really and you can't put down a large deposit. plus when its over you dont actually own the car :/ its more like a rental.

They also do a standard finance option over however many years.

I ended up giving a 17k deposit on a 26k car, so you can pay the deposit you want, and simply pay the rest over however many years you choose, plus you own the car at the end of it.


----------

