PCP with Audi query

iazcac

Hi,
I am coming to the end of a PCP deal with Peugeot and am in the process of part exchanging it and getting a new PCP deal with Audi.

I was in the showroom tonight and the salesman suggested I get the car over 48 months rather than 36 months to keep the payments low

He then said that I would actually be able to "voluntarily terminate" (exact words used) the PCP deal at 33 months once I have paid over 50% of the amount due and return the car and get a new deal.

The finance would be with Volkswagen Financial Services, owner of Audi and he said he would even "help me draft the letter" after 32 months and it would not affect my credit rating.

This sounds too good to be true and I trust car salesman about as much as estate agents!! Can anyone advise whether this is correct?!

smitchy73

Make sure you can see this in print on your finance agreement that you are legally allowed to do this, I'm sure you are with the Solutions package, as i'm planning on doing this myself, as I've been hit with negative equity on my Golf I got just over two and a half years ago, can't get rid of it by trading in as there is a shortfall of around £2-3000 depending on garage visited, even the dealer I got my car could only get me out of it by using the £2000 deposit contribution offered on a new outgoing Golf model. I've decided to hand it back, although I need to check I can do this tomorrow, and I will save up a deposit over the next few months and start again with a fresh deal somewhere else.
So I would just ask for a copy of the finance agreement paperwork, sit and read it over a cuppa before signing, salesmen will tell you anything to get you to sign, unfortunately it worked for me and now I'm dealing with the cost of it.

motorguy

smitchy73 wrote: »

Make sure you can see this in print on your finance agreement that you are legally allowed to do this, I'm sure you are with the Solutions package, as i'm planning on doing this myself, as I've been hit with negative equity on my Golf I got just over two and a half years ago, can't get rid of it by trading in as there is a shortfall of around £2-3000 depending on garage visited, even the dealer I got my car could only get me out of it by using the £2000 deposit contribution offered on a new outgoing Golf model. I've decided to hand it back, although I need to check I can do this tomorrow, and I will save up a deposit over the next few months and start again with a fresh deal somewhere else.
So I would just ask for a copy of the finance agreement paperwork, sit and read it over a cuppa before signing, salesmen will tell you anything to get you to sign, unfortunately it worked for me and now I'm dealing with the cost of it.

?????

Surely its a good thing that you can VT and save yourself quite a considerable loss?

You seem to think its a bad thing?

Apples2

As soon as the salesman said he would sit down in 32 months and help you draft the letter, I would have ran for the door.

That would have instantly flagged my suspicions this guy is completely desperate for me to sign the dotted line. Not a cat in hells chance he will even give you the time if day if you aren't buying from him next week, let alone in nearly 3 years.

Sign absolutely NOTHING until you have read it on the agreement. If you can't find it, ask him to point it out. Never trust a salesman. You are nothing more than a pay cheque.

maninthestreet

The salesman may not be around in 33 months time to 'help' you write the letter.

iazcac

Didnt quite run for the door but it did flag my suspicions hence this post.

I have booked into see two other dealers this week and will see what they say. See which one wants the sale most (ie gives me biggest discount)

Will absolutely be reading paper work word for word even if it takes me half a day

Hintza

It might not affect your credit rating as such.

But let me ask you this question from the finance providers view point:-

Would you lend the money a second time to someone who had VT a car previously?

(OK there are other finance providers but.........)

As has been said the salesman just wants his commission today and will worry about tomorrow when it comes.

LandyAndy

Hintza wrote: »

It might not affect your credit rating as such.

But let me ask you this question from the finance providers view point:-

Would you lend the money a second time to someone who had VT a car previously?

(OK there are other finance providers but.........)

As has been said the salesman just wants his commission today and will worry about tomorrow when it comes.

Yeah. of course they will. I VTd a Mazda RX8 in August 2009 and bought two new Mazdas on finance the next month. No probs at all.

LandyAndy

VTing hardly requires a complicated letter.

Dear Finance Co.

Vehicle AB61 DEF. Agreement no. 123456.

I wish to voluntarily terminate the above agreement on [date].

Please make arrangements for the vehicle to be collected from the above address.

Yours etc

maninthestreet

OP - what deal did this Audi actually offer you? Might be interested myself if the price is right....

smitchy73

pgilc1 wrote: »

?????

Surely its a good thing that you can VT and save yourself quite a considerable loss?

You seem to think its a bad thing?

Oh no I do think it's a damn good idea which will save me £2-3k, I just wish someone had mentioned it a couple of months ago. I'll go without a car for a couple of months, well for work anyway, still have the wife's car for getting around elsewhere.

I was just trying to make sure the OP checks the paperwork to ensure it is covered in his finance agreement before signing, I've read about Bill Of Sale on some cars etc which stop you from doing this.

Cheers.