VW Solutions Finance

rqy99g

Hi

I hope I've posted this in the right section!

I'm looking to buy a VW Polo and for the best discount that I can find for a no trade in they have suggested that I use their 'Solutions' package.

I'm now 52 and apart from a mortgage I've never had a lone so am very nervous but it does seem to be a better option than just paying cash.

If I take the offer they will include £500 towards payment and I will also get free insurance for 1 year plus 3 years free servicing.

As I really don't want to be tied in with finance they have suggested that after 3 months of payments I can simply pay the remainder and that will be that but I will still have the insurance and servicing.

The interest rate is 7.9% and that equates to around £1000 saving.

I seem to remember someone telling me that he had something similar with Toyota and they were really difficult with him when he tried to buy out of the scheme.

I'm interested in peoples opinions as my experience in this area is non-existent!

Cheers

Simon

rodenal

Do you have the cash to buy the car? Look at www.drivethedeal.co.uk etc and check what they'll get you the same model for.

If you're looking at a system where you commit to a low monthly payment with a balloon payment at the end you should be able to cancel the finance within 14 days and pay the full agreed amount for the vehicle. If you let the contract run for a few months you will pay quite a large amount of interest on top as they will consider this to be an early settlement rather than cancelling the finance. If however it's some sort of lease deal then you may find you are unable to cancel outwith the 14 day period without paying the remainder of the monies due in full (and no car)

rqy99g

Hi

I have used both Drive the Deal and OrangeWheels when negotiating and have come to a discount in the middle of them both. To get the discount both those brokers have quoted I would still have to use the 'Solutions' package.

Honestly I am so naive about finance and need to make sure as you say that I still actually have a car if I cancel.

Can you suggest any obvious questions that I should ask when I go in later?!

Cheers

Simon

rodenal

Just take your time and read over the documentation - your right to cancel etc will be on the documents you sign. Make sure the numbers tie up with what you have agreed and that you are comfortable with the total amounts owed, less deposit etc shown on the paperwork. Do you have anyone with experience of these types of deals you can take with you or do you have a link of any sort to the package that's on offer?

rqy99g

There are links to info on the VW website but it doesn't cover what I need to know!

My thoughts are to ask them to answer the following in writing:

What is the minimum time that I can pay off the finance without incurring penalties?

If there are penalties what are they?

How much notice and in what form do I need to give notice to pay of early?

rqy99g

Well I've just spoken to two people within finance at VW one says there is no penalty and can withdraw at any time. I suggested 14 days and he said I'd just pay one month and the balance with no penalties incurred.

I then spoke to a lady who suggested that there would be penalties if I haven't gone beyond 50% of the payments!

I think this is why I've always avoided finance!!

Trebor16

I bought a VW in January this year and the dealer advised me to borrow £5000 with VW Finance to get a free servicing deal. The dealer told me that I could pay the money back with little penalty and this was confirmed with VW Finance.

Before the first payment was due I made a lump sum payment of £4500. They then took my first payment and I then called and asked for a settlement figure which I then paid. The loan cost me £5017 so I have got two years servicing for £17.

Don't pay off the loan in one go as they can hit you with the rule of 78. But if you pay off the bulk of the loan and then pay off the final amount then the rule of 78 is based on the outstanding balance at the time of the settlement request. In other words, the amount of penalty interest will be much lower on a balance of £500 than it would if you asked for a settlement on the whole loan amount.

rqy99g

Trebor16 wrote: »

I bought a VW in January this year and the dealer advised me to borrow £5000 with VW Finance to get a free servicing deal. The dealer told me that I could pay the money back with little penalty and this was confirmed with VW Finance.

Before the first payment was due I made a lump sum payment of £4500. They then took my first payment and I then called and asked for a settlement figure which I then paid. The loan cost me £5017 so I have got two years servicing for £17.

Don't pay off the loan in one go as they can hit you with the rule of 78. But if you pay off the bulk of the loan and then pay off the final amount then the rule of 78 is based on the outstanding balance at the time of the settlement request. In other words, the amount of penalty interest will be much lower on a balance of £500 than it would if you asked for a settlement on the whole loan amount.

Hi Trebor

I have just spoken to VW Finance and they have confirmed that I could do that. They didn't seem keen (no surprise there) but they said that I wouldn't be penalised.

So thanks for the advice.

Simon

Retired_Prof

rqy99g wrote: »

Hi Trebor

I have just spoken to VW Finance and they have confirmed that I could do that. They didn't seem keen (no surprise there) but they said that I wouldn't be penalised.

So thanks for the advice.

Simon

I have exactly the same query as Simon - i.e. I was advised to take a VW Solutions finance plan rather than pay in full for a new VW Polo in order to receive a £500 contribution from VW and free servicing for 3 years. Like him, I was told that if I paid off the loan within a few weeks I would not incur any penalty. This seems too good to be true! I would like to ask Simon whether he followed this advice and, if so, how he got on, and to ask Trebor whether his experience was with the "Solutions" plan or with a straight HP plan?

Any advice gratefully received!

Jenny

Indout96

I would check a couple more dealers, JCT600 VW in Bradford offered me 5% and 3 years free servicing two weeks ago on a 59 plate Passat - they are also doing 2 years interest free if you can pay back in 2 years.

I am not pushing JCT as I felt the car itself was overpriced so bought elsewhere but there are good deals out there.

Retired_Prof

Thanks for the suggestion, but Bradford is a bit far for me.