Making an additional payment to a PCP with Volkswagen finance.

tommyedinburgh

I have a PCP with VW finance. It has 42 payments to go, if I was to make a payment of £4200, would this reduce my monthly payments by £100 or my final payment at the end? 

Given what is going on just now I’d like to reduce my monthly payments. 

Nebulous2

Read your documentation. A lot of finance agreements only allow you to reduce the monthly payment, not the term. Some allow a choice. It will say in the documentation you received at the beginning how they handle overpayments. If you have an online portal it will tell you there as well. 

wizzywig27

I am not 100% certain but I think it goes off your final payment, I would suggest calling, they are very helpful and VWFS

MEM62

tommyedinburgh said:

I have a PCP with VW finance. It has 42 payments to go, if I was to make a payment of £4200, would this reduce my monthly payments by £100 or my final payment at the end? 

Given what is going on just now I’d like to reduce my monthly payments. 

Given what is going on now you would be better off hanging onto the £4,300 in an emergency fund.  You can always address the matter of your car finance once things are more settled.    

lopsyfa

VW finance will allow you to choose whether to reduce your monthly payment or to reduce the term. They won't allow you to reduce the final payment since this is tied to the residual value of the car. The reduction in monthly payment will be slightly more than £100 due to the savings on interest.

The only time they won't allow reduction in monthly payment is if the new monthly payment is less than £25 (£50 some finance companies). At this point, you can only reduce the term.