Used car - PCP offer

DailyClicker

Hi,

I'm looking to buy a used car and VW are offering the following if you take out finance with them.

2 years warranty
2 years roadside assistance
2 years MOT
2 services (1 x major / 1 x minor)

http://www.volkswagen.co.uk/retailers/offers/00375/offer/GENERIC/28784/peter-cooper-southampton-hedge-end/southampton

It does not mention how long you need to kept the finance agreement, so could I cancel within the 14 day period and keep the benefits?

If not, could I clear the outstanding balance after the first monthly payment (so I would have just paid 1 months worth of interest)?

Would this have any impact on my credit rating / score?

Thanks

Nasqueron

You'd need to ask them to put these questions in writing if they are not in the terms and conditions.

Taking out finance will affect your credit rating. Your score is made up and can be ignored

jlfrs

What is the value of the car you're considering taking?

VW's APR is 10.9% which is mighty high and the offer you've highlighted is for cars with a minimum £5k value.

You may be better off getting a 3rd party PCP agreement (which is all the fancy-named VW finance product is), from a broker like Carzu who should be able you an APR under 7%. It's a very easy thing to do, all you need is the car's reg number, price, what term you want the PCP over and how many miles per annum. The only thing to remember is that PCP's only go up to a maximum 100k miles over the term of the agreement, including the mileage on the car when bought. You don't even need to put a deposit down which there's little point doing if you intend to give the car back.

What will happen is the finance company offering the PCP will effectively buy the car from the dealership. Your contract is with them.You can beat the dealership up for a better price, or include servicing in the price. Most main dealers will include a warranty and MOT as standard in my experience. You may even find as I have that the dealership will attempt to match the finance deal or get close to it. You'll need to show them a copy of the quote though.

motorguy

jlfrs wrote: »

What is the value of the car you're considering taking?

VW's APR is 10.9% which is mighty high and the offer you've highlighted is for cars with a minimum £5k value.

You may be better off getting a 3rd party PCP agreement (which is all the fancy-named VW finance product is), from a broker like Carzu who should be able you an APR under 7%. It's a very easy thing to do, all you need is the car's reg number, price, what term you want the PCP over and how many miles per annum. The only thing to remember is that PCP's only go up to a maximum 100k miles over the term of the agreement, including the mileage on the car when bought. You don't even need to put a deposit down which there's little point doing if you intend to give the car back.

What will happen is the finance company offering the PCP will effectively buy the car from the dealership. Your contract is with them.You can beat the dealership up for a better price, or include servicing in the price. Most main dealers will include a warranty and MOT as standard in my experience. You may even find as I have that the dealership will attempt to match the finance deal or get close to it. You'll need to show them a copy of the quote though.

You didnt read all of the original post, did you?

The O/P is proposing taking the finance offer then clearing it in a matter of days, to avail of the free services, etc.