Skoda PCP confusion (VW Finance)

bigfrankblue

I'm hoping someone can help me.

I recently bought a car via VW Finance (Skoda) on a 48-month PCP deal.

The total cost of the car was £25,500 and I traded my old car in, giving me a deposit of £4,500. So the total amount of credit was £21k.

The APR is fixed at 7.9% and my monthly payment is roughly £345. I've made two payments so far and decided to look on the customer portal and was really confused because it stated the total amount outstanding was around £30,000. It also listed the final balloon payment at around £9,300.

Does this seem unusual to anyone else?

I'd expected the calculation to be £21k plus the 7.9%over 48 months with then the balloon figure. 

I've always used PCP deals when buying cars but the VW finance system and how things are explained seem totally unintelligible. I'm just concerned that potentially I've had something mis-communicated or there's an error in the calculations somewhere.

shiraz99

Read your PCP agreement, it should tell you there exactly what the total amount payable is.

I suspect the figure you're looking doesn't take off the deposit/part exchange value. I would expect the total cost of credit to be around the £4,750 mark. So the amount payable would be the £21K, plus the cost of credit, plus the deposit which will give you the £31K.

TadleyBaggie

As above. I think what you saw was the total amount payable:

  (345 x 48) + 9300 + 4500 = £30300

daveyjp

As above.  You will have been given the finance package calculations when you signed for the vehicle, that needs checking first.

Don't assume what you verbally agreed is what actually ended up on the paperwork and signed up to.

Vehicle price, deposit, trade in, APR, term are all variables which can very quickly be changed and presented.  If you don't have the deal written down before signing the official order it is easy to sign up to something different.