New car on finance cheaper than cash!!

cardeal123

alleycat` wrote: »

I'm certainly aware on VW finance that you can get dealer deposits, free servicing and other bits as part of the deal with taking out finance.

I've also read that if you cancel within the 14 days (i.e. pay off the finance) you can do it without penalty and still maintain the freebies you got.

So under certain circumstances it is true.

Isn't the 14 days just a cooling off period. I guess any deposit contributions would be taken back and the full price would have to be paid to keep the car. Just reading on vw that if its done after 14 days they will offer you a settlement figure. Can't find any details of simply paying a fine and getting out it.

neilmcl

cardeal123 wrote: »

Isn't the 14 days just a cooling off period. I guess any deposit contributions would be taken back and the full price would have to be paid to keep the car. Just reading on vw that if its done after 14 days they will offer you a settlement figure. Can't find any details of simply paying a fine and getting out it.

No, you have to understand the "car deal" and the finance are two separate things. Once the deal has been done and as long as you've taken possession of the car before the 14 days has elapsed (make sure you only sign the finance once you're within 14 days of collection) you can cancel without penalty and enjoy the deal that you've been given. Also, even if you miss the 14 days you can settle the finance with usually with a minimal fee.

cardeal123

neilmcl wrote: »

No, you have to understand the "car deal" and the finance are two separate things. Once the deal has been done and as long as you've taken possession of the car before the 14 days has elapsed (make sure you only sign the finance once you're within 14 days of collection) you can cancel without penalty and enjoy the deal that you've been given. Also, even if you miss the 14 days you can settle the finance with usually with a minimal fee.

So just to be clear. If you wanted a car with rrp of £12000. You could negotiate down to £11000, then ask for finance and if there was a deposit contribution of £500, your actual price for the car would be, £10500. Then you could cancel the agreement and still only have to settle £10,500?

DUTR

cardeal123 wrote: »

So just to be clear. If you wanted a car with rrp of £12000. You could negotiate down to £11000, then ask for finance and if there was a deposit contribution of £500, your actual price for the car would be, £10500. Then you could cancel the agreement and still only have to settle £10,500?

Nearly but not quite, there often is an arrangement or acceptance fee, and then there maybe a cancellation fee.

izzzzythedog

on cancelling that `small amount `` will be based on the length of the finance and the APR , i suspect it will run into thousands and of course given you already have the car then your stuck with either paying up or not , you wont be able to give the car back based on this and you will find yourself with the words ``ive been sucked ``running through your brain for the next 5 years or however long it takes to pay it off

alleycat`

DUTR wrote: »

Nearly but not quite, there often is an arrangement or acceptance fee, and then there maybe a cancellation fee.

Pretty much this.
In the case of VW options there wasn't, at the time, any of these that applied.

I know a few people that used it with regards to getting free servicing (as an example).

There are examples on this very forum of similar things.

https://forums.moneysavingexpert.com/discussion/3649847

In an example on the above thread it cost the equivalent of £17 to get 2 years free servicing and get out of the finance.

Hintza

The contract will spell it all out and then all you have to do is the Maths!

motorguy

forgotmyname wrote: »

Salesman gets you to take finance where you pay £2000 - £3000 over the cash price. Salesman gets £500 - £750 commission. So he can afford to knock £300 - £500 off for a finance sale.

All figures off the top of my head.

No.

Very no.

The "extra" deposit comes from the manufacturer in the form of a manufacturers contribution to the finance deal.

BMW do it too and it can be £1500+ sometimes.

SO, basically, take out the finance, get the extra discount, clear the finance inside the first month (cant remember if its within 14 days, or after 14 days to retain all the benefits), and you're ££££'s in.

motorguy

izzzzythedog wrote: »

on cancelling that `small amount `` will be based on the length of the finance and the APR , i suspect it will run into thousands and of course given you already have the car then your stuck with either paying up or not , you wont be able to give the car back based on this and you will find yourself with the words ``ive been sucked ``running through your brain for the next 5 years or however long it takes to pay it off

No, it doesnt amount to thousands - its usually a few poiunds or a few hundred at most.

Legally they're not allowed to charge you all the interest due over the entire loan.

Out of curiosity, in this day and age where good customers are hard to find, do you really think it would be a good idea for a main VW dealer to be stiffing its customers to the tune of thousands, just to get a few pounds commission?

Do you really really think thats how businesses are built?

motorguy

DUTR wrote: »

Yep

No.

DUTR wrote: »

and another 'trick' they will do , is for instance cardeal123 says "I can afford to pay say £300/month"
So the salesman simply increases the term of the loan.

Yes, thats a great way to get repeat customers, stiff them without telling them you're increasing the payment term. Brilliant! Make money today, close your business tomorrow! :beer:

Very rarely happens, and moreoften the customer is not "listening". Also, read what you're signing - the payment term is on the very front page of the finance agreement.