Audi VW Finance

cloud123

We recently purchased a car and were offered finance, which if we took it out we would have an extra sum towards the deposit. WE had enough cash to buy the car but took advantage of the extra deal. The dealer asked that we did not exercise our 14 day cancellation rights so they could recoup some of their costs. We confirmed that the loan could be repaid at the pro rata APR rate (6.2%). After a couple of months I repaid the loan and have been charged about three times the pro rata APR rate. Audi finance have been a nightmare to deal with. They will not show how they calculated the interest on the loan and the interest statement provided is incorrect. This is now going to the Financial Ombudsman. However, I wanted to make people aware that Audi / VW finance are impossible to deal with and seem to charge random amounts which they fail to justify. It would seem that the dealership may also have mis sold the policy.

Clive_Woody

Does your finance contract definitely say 6.2%APR and you weren't quoted a flat rate instead or the dealer said 6.2% and when they ran a credit check the finance company came back with a higher APR...that the dealer forgot to mention?

I believe when you repay finance early they can charge two months interest. I know what pro-rata means but I am not sure what you mean in this situation, you would have been charged interest on the outstanding balance. Maybe you could share t he calculations that VW finance provided and tell us how you think it is wrong.

missile

Were easy to deal with when I cancelled my VW Finance.

Why did you take finance if you intended to terminate after two months?

worried_jim

missile wrote: »

Were easy to deal with when I cancelled my VW Finance.

Why did you take finance if you intended to terminate after two months?

Bigger dealer discount which would more than cover any finance fees associated with settleing early. Many cash buyers now buy their new cars this way.

neilmcl

missile wrote: »

Why did you take finance if you intended to terminate after two months?

Did you not read this part?

cloud123 wrote: »

We recently purchased a car and were offered finance, which if we took it out we would have an extra sum towards the deposit. WE had enough cash to buy the car but took advantage of the extra deal.

missile

I did read that, but if one has the cash or can arrange a low interest loan, the smart thing to do is cancel within 14 days cooling off or most of that "discount" is lost in set up charges and settlement fees.

neilmcl

missile wrote: »

I did read that, but if one has the cash or can arrange a low interest loan, the smart thing to do is cancel within 14 days cooling off or most of that "discount" is lost in set up charges and settlement fees.

Even after a couple of months you're not going to offset the sort of savings you've made by then interest charged in settling.

Although I do have to say the OP has been rather naive about the whole thing and should've cancelled or settled much earlier.

missile

neilmcl wrote: »

Even after a couple of months you're not going to offset the sort of savings you've made by then interest charged in settling.

Although I do have to say the OP has been rather naive about the whole thing and should've cancelled or settled much earlier.

There is usually a set up charge and a redemption charge. If OP tells us the car and gives us the figures we would be able to judge what saving he has made.

He had the cash to buy outright, I suspect there may well have been a better deal on offer.

neilmcl

missile wrote: »

There is usually a set up charge and a redemption charge. If OP tells us the car and gives us the figures we would be able to judge what saving he has made.

He had the cash to buy outright, I suspect there may well have been a better deal on offer.

I don't know what these "charges" you're referring to are, I've never come across them before, do you have actual examples of these?. The only other charge I know of is the Optional Final Repayment Fee but this is usually a tiny, nominal amount.

missile

neilmcl wrote: »

I don't know what these "charges" you're referring to are, I've never come across them before, do you have actual examples of these?. The only other charge I know of is the Optional Final Repayment Fee but this is usually a tiny, nominal amount.

This is one of my PCP agreements with Audi

Solutions Quotation Regulated
Audi Finance is a trading style of Volkswagen Financial Services (UK) Limited.
Dealer: ******** Audi
To: Mr **********
*****
Dear Mr ******
We are pleased to give the following quotation for New Solutions facilities through Audi Finance Date: **/**/**
Vehicle AUDI SQ5 STW QTR 5D TIP
Period of Hire 18 Months
Cash Price 47,340.00
Less: Advance payment/allowance ** 23,670.00
Balance of cash price/ amount of credit 23,670.00
Add Charges 1,141.66
Balance 24,811.66
Balance payable by 17 monthly rentals of £ 1,330.98
Followed by a final rental of
Acceptance fee payable within first rental 125.00
Purchase fee payable with final rental 60.00
Total amount payable 48,666.66
Annual Percentage Rate (APR) 6.9% 18 Months
Total monthly payment £ 1,330.98
Based on Maximum annual mileage:
Maximum total mileage:45000 miles
Excess mileage charged at 30000 miles 14.4 pence per Mile (inc VAT)
**PAYABLE BY ONE PAYMENT ON OR BEFORE ENTERING INTO AGREEMENT

daveyjp

Please don't tell me people actually pay those extra charges, acceptance and final purchase fees.

No wonder the dealers like PCPs!