VW Polo early payment fees

bigmun

Hi,

I'm looking at getting a VW Polo and make use of their offer of 3 years of free services and 1 year of insurance. It's available only if it is financed. Does anyone know if there's an early payment fee or any limitation regarding early payment?

Thanks!

gnasher18us

A lot of car manufacturers are doing this - ridiculous incentives for people to take finance!

I purchased a Vauxhall yesterday with 0% finance and an extra £750 off if I took the finance! I'm not sure where they're making money...

I don't know about the VW finance that you ask (sorry), but I do have a few suggestions to avoid paying the finance if you want to pay cash (and it seems you do)

If you have the cash, do you need a car now? Usually, at the end of September car manufacturers can't wait to shift "old" cars (well, one month old!), and they heavily discount them to meet their sales figures if August (new reg) was particularly bad.

It may be worth you just holding fire for one month as you will probably get a better deal from VW.

Also, if they know you have popped in, and someone has drawn up a "deal", they want to keep your interest. You will probably get a phone call asking you why you've not been back. Simply say, "The car is about £600 too expensive, can you do a better deal?"

A £600 reduction pays for your service for more than 3 years I would suggest, and it's not a ridiculous thing to do. You have to ask to get the deal that's right, and these salesman WANT to sell you a car for their figures.

bigmun

gnasher18us wrote: »

A lot of car manufacturers are doing this - ridiculous incentives for people to take finance!

I purchased a Vauxhall yesterday with 0% finance and an extra £750 off if I took the finance! I'm not sure where they're making money...

I don't know about the VW finance that you ask (sorry), but I do have a few suggestions to avoid paying the finance if you want to pay cash (and it seems you do)

If you have the cash, do you need a car now? Usually, at the end of September car manufacturers can't wait to shift "old" cars (well, one month old!), and they heavily discount them to meet their sales figures if August (new reg) was particularly bad.

It may be worth you just holding fire for one month as you will probably get a better deal from VW.

Also, if they know you have popped in, and someone has drawn up a "deal", they want to keep your interest. You will probably get a phone call asking you why you've not been back. Simply say, "The car is about £600 too expensive, can you do a better deal?"

A £600 reduction pays for your service for more than 3 years I would suggest, and it's not a ridiculous thing to do. You have to ask to get the deal that's right, and these salesman WANT to sell you a car for their figures.

Congrats on your new buy!

Thanks for the tip. My feeling is that VW dealers (and perhaps Vauxhall ones too) have a sufficiently large margin on cars like Polo. According to Autoebid's history, there are often bids at around 11%-15% discount on the Polo. I've also looked at the Ford Fiesta, the deals' bids are even lower! I'm guessing that they could be less flexible with the bargaining if the customer is to take finance. If they are, say, 6% less generous on the negotiation of a £15k car, then that'd be more than enough to pay for the £900 worth of offers. That said, the offers themselves may be worth £900 to us, but most likely cost them much less. For example, VW is throwing in 3 years of free services, which may be worth £250, but don't cost them £250.

Did you manage to get a discount from Vauxhall on top of that £750?

Biketrials08

I too have recently been looking at a Polo for the other half, from what I can tell, only the servicing offer is dependant on the finance, I'm not looking at using finance. As for discount, on an intial dicussion they came down £1250 (use the what-car? target price as a start) on a 5-door 1.2 TSI and didn't give too bad on a part ex, I won't go through with it though as its really not neccessary to change her car. These inclusive service packeges aren't usually as good as they appear, have a look at the Mercedes scam thread on here as many of them work like that, by limiting the number of services you actually receive results in a poor value product.