VW finance agreement

boo81

Hi

Im hoping someone can advise on the VW finance process. We have a VW golf originally bought new for around £14K and we signed a credit agreement lasting 3 years bringing us up to this December. its a solutions agreement so we paid a small deposit, pay a monthly amount and have about £5K to pay at the end if we want to keep the car.

One option we apparently have is part exchanging the car for a new one and signing a new agreement, which is the option we would prefer. We may want to downsize and my first question is whether they would let us do this.

Secondly how much of the car do we own and how much do we get to put towards the new car by going for this option. From the maths we own about 2/3 of the car but then have the depreciation value to factor in. So if the car is worth £10k, minus the £5K we owe we should get £5K towards the new car. Is this correct or am I simplifying this a bit too much?!

Any advice gratefully recieved :-)

smitchy73

This is weird I've just been searching all over the place for more info on the solutions. I also have the Solutions, only started last year. But from what I understand you'd go in to a VW Dealer anywhere, see what you can get for a trade in, then see what deal you can get for another car, I don't think you have to upscale each time, I think you can downgrade vehicles too, people's needs change with time, some will go up, some will go down, you may need a cheaper vehicle to run etc etc.

The best advice I could give is contact VW financial services, you should have details in your paperwork, see how much is outstanding, then take it from there, I don't even know for sure if you have to stick to VW, I'm sure they'd like you to, remember to shop around too for a good deal, you might find you get a better trade in at another dealer, or the car is cheaper to buy online.

I also think with the solutions from what I was told at the time, they down play(well last year) what the car will be worth, so that when you bring it back and get the trade in price, it should be more than what you owe, so therefore giving you a deposit to put down on your next car, that could also have been sales pitch too, solutions just now are all about 7.9% apr with a three year/30k service free(sells for £299).

Also depending on what type of car you're looking at getting, remember order time, I waited nearly 12 weeks for my Golf Bluemotion. Most other Golf's are roughly about the same.

Hope this helps.

LandyAndy

boo81 wrote: »

Hi

Im hoping someone can advise on the VW finance process. We have a VW golf originally bought new for around £14K and we signed a credit agreement lasting 3 years bringing us up to this December. its a solutions agreement so we paid a small deposit, pay a monthly amount and have about £5K to pay at the end if we want to keep the car.

One option we apparently have is part exchanging the car for a new one and signing a new agreement, which is the option we would prefer. We may want to downsize and my first question is whether they would let us do this.

Secondly how much of the car do we own and how much do we get to put towards the new car by going for this option. From the maths we own about 2/3 of the car but then have the depreciation value to factor in. So if the car is worth £10k, minus the £5K we owe we should get £5K towards the new car. Is this correct or am I simplifying this a bit too much?!

Any advice gratefully recieved :-)

That is correct except that after 3 years a car that cost £14k new will be worth about £5k as a trade in, leaving you with nothing as a deposit.

smitchy73

Sorry missed the last part. You could check Glass's or Parkers for trade in prices, but they'll just give you roughly what to expect, you can put in all the car's details, although the only one's that will count is the system in any dealership, last year they went in right in front of me, put in the registration number of my car, and they could see any finance, value depending on condition etc.
In theory though, if a garage says, yes Mr Jones, you're 3yr Golf is worth £10,000 and you owe £5000 to VW Solutions, yes you'd have £5k to put down on your new car.

Also as a slight guide What Car reckons the petrol Golf's hold about 45% of their value over 3 yrs, where diesel models hold about 50% of theirs, so if you paid £14k it may only be worth about £6-7K, check it out so you don't have heart failure, I was trading in a Chrysler when I got my Golf and nearly passed out, it lost alot of value.

boo81

Thanks for the advice guys, the trade in price on parkers guide is £9,700 for the model we have so it wasnt a bad guess.

Only problem is that the new golf is so much more expensive! This is not straightforward. We love our golf, just cant afford to pay the rest of the money upfront so that we can own it.

LandyAndy

boo81 wrote: »

Thanks for the advice guys, the trade in price on parkers guide is £9,700 for the model we have so it wasnt a bad guess.

Only problem is that the new golf is so much more expensive! This is not straightforward. We love our golf, just cant afford to pay the rest of the money upfront so that we can own it.

Is the car two or three years old now?

LandyAndy

First thing to do is get a settlement figure from the finance house and a trade in value from a dealer. We can all speculate as to values but those are the numbers that actually count.