VW Solutions PCP £1750 discount and paying off early

All Volkswagen ID.3 related discussions
Post Reply
MotMot
Posts: 1213
Joined: Fri Jun 11, 2021 2:04 pm

Post by MotMot »

Hi there,
Just weighing up options and ID3 prices at the moment - loads of discounts around before any dealer haggling (2.5k govt, 1k Euro21 test drive and £1.75k PCP deposit contribution). BTW, the PCP deposit contribution more or less pays for the interest over 2 years - making it effectively interest free PCP...

A quick Question - has anyone ever ended (bought out) VW solutions PCP early? Like after a month or so? the reason I ask, is when chatting to the sales guy from Drive the Deal - their price (23 995) was including the PCP deposit contribution of £1750. I said I wanted to be a cash buyer outright, but the guy said - just take the PCP deal and pay it off as soon as you can - and you can trouser the discount and just pay just a little of the interest.

Has anyone done that? or paid off their VW PCP deal early? was there any penalty or issue with this? Before going ahead just wanted to see if this were possible?
Thanks Loads.

phphoto
Posts: 3
Joined: Fri Jun 11, 2021 2:34 pm

Post by phphoto »

Hi

I have settled several VW PCP solutions early, usually about 3 months in, with no problem. You may have to pay a very small amount of interest that's all. I haven't ordered mine yet but hopefully soon.
digital
Posts: 121
Joined: Sun Dec 13, 2020 12:07 am

Post by digital »

It's simple. Contact VW Finance on 01908 485000 and ask for a settlement figure. Do it within 14 days and you pay only a little interest and no penalties.

You can do it online but the 'phone gives you the opportunity to understand exactly what's happening - online gave me the wrong figure (£400 extra!) as their system hadn't been completely updated by the time I requested the figure.
ID3 Family, Scale Silver, East Derry alloys.

Go to https://share.octopus.energy/amber-foal-811 to split £100 cashback with me from Octopus Energy.
MotMot
Posts: 1213
Joined: Fri Jun 11, 2021 2:04 pm

Post by MotMot »

Magic. Seems like a decent extra discount for very little bother. Thanks for all the replies.

Brings it down to £24700.. (58kw life)

By the way the drive the deal price was for 14 week delivery.. dealer is ‘in stock’ (aka a few weeks)

Going to have another test drive this weekend… last bought a brand new car ten years ago and said never again (instant depreciation) but EV’s seem to be strongly bucking that trend at the moment.
monkeyhanger
Posts: 1273
Joined: Sat Mar 20, 2021 1:33 pm

Post by monkeyhanger »

The correct terminology is "withdrawing from the finance agreement" - you have a cooling off period of 14 days, starting on the day you pick up the car. For every day that passes between picking the car up and contacting them to exercise your right to withdraw, you'll accrue about £3 a day interest. I've done this twice in the last 4 weeks on our ID3s bought. You get a letter aroundv3 days after your call and have 30 days from your call to settle up with no further interest added...free £1750.

If you settle early, after 14 days, you'll save a lot of interest over the shortened term, but they'll load on 2 months penalty interest.

Be aware that the £1000 test drive incentive has an expiry date (sometime in September, I think) - if you collect after the expiry date, you get £500, not £1000.
Cupra Born V2 e-boost 230ps Aurora Blue, replaced ID3 PP Family

Audi S3 - because I hate rapid charging for long distance driving.

Octopus referral: https://share.octopus.energy/lush-fawn-565
sparkymark75
Posts: 2
Joined: Fri Jun 11, 2021 8:40 pm

Post by sparkymark75 »

Rather than create a new topic for a simple question on the topic of PCP. I’ve never taken out PCP before (having either done bank loan, HP or one lease).

Anyway, when taking out PCP, at what point do you pay the “deposit” (I know it’s not technically a deposit as you don’t get it back!). Do you pay it when you collect the car? Is it your first months payment?
Talk-torque
Posts: 5
Joined: Fri May 21, 2021 5:16 am

Post by Talk-torque »

You will pay it when you pick up the car, Mark. It is not the first month’s payment, however. That will be taken by direct debit, possibly a month, or more, after you drive away.
sparkymark75
Posts: 2
Joined: Fri Jun 11, 2021 8:40 pm

Post by sparkymark75 »

Talk-torque wrote: Sat Jun 12, 2021 5:56 am You will pay it when you pick up the car, Mark. It is not the first month’s payment, however. That will be taken by direct debit, possibly a month, or more, after you drive away.
Thanks
yummymummy11
Posts: 20
Joined: Fri Jun 04, 2021 5:52 pm

Post by yummymummy11 »

Works well as long as you phone within the first 14 days done it this week with my new ID.3 and previously on my mark 7 Golf GTD no problems at all, just a way of engineering more discount from the dealer
bromlmj
Posts: 4
Joined: Sat May 22, 2021 8:55 am

Post by bromlmj »

Worked for me as well - I did it online asked for settlement figure after about a week which was instantly generated and paid it off. Job done.
johnmfriend
Posts: 5
Joined: Mon Aug 09, 2021 7:00 am

Post by johnmfriend »

Has anyone done this when buying the id.3 through their business? The dealer told me that I can, but it's an unregulated finance scheme as it's being bought through a business. I want to check that I can pay it off early still. I'm thinking I might not get the 14-day cooling off-period.
107KW Family Pro 58kWh
Stonewashed blue
Ordered 18 August 2021.
Arrived 3 August 2022.
Delivery Info Tracker: https://tinyurl.com/id3tracker
mish
Posts: 56
Joined: Thu Jul 01, 2021 3:51 pm

Post by mish »

digital wrote: Fri Jun 11, 2021 2:45 pm It's simple. Contact VW Finance on 01908 485000 and ask for a settlement figure. Do it within 14 days and you pay only a little interest and no penalties.

You can do it online but the 'phone gives you the opportunity to understand exactly what's happening - online gave me the wrong figure (£400 extra!) as their system hadn't been completely updated by the time I requested the figure.
What would happen if I decided to do my first monthly payment before paying off early? Would it still just be the interest for this month or are there any extra costs doing it like this? I just wondered if I should play nice and and let the dealer have his slice while I get the contribution minus marginal interest. Or is there a penalty for paying early after the cooling-off-period has lapsed?
MotMot
Posts: 1213
Joined: Fri Jun 11, 2021 2:04 pm

Post by MotMot »

No penalty charge - but after the 14 day cooling off you pay interest. So you would have to pay something.
monkeyhanger
Posts: 1273
Joined: Sat Mar 20, 2021 1:33 pm

Post by monkeyhanger »

mish wrote: Wed Sep 08, 2021 4:10 pm
digital wrote: Fri Jun 11, 2021 2:45 pm It's simple. Contact VW Finance on 01908 485000 and ask for a settlement figure. Do it within 14 days and you pay only a little interest and no penalties.

You can do it online but the 'phone gives you the opportunity to understand exactly what's happening - online gave me the wrong figure (£400 extra!) as their system hadn't been completely updated by the time I requested the figure.
What would happen if I decided to do my first monthly payment before paying off early? Would it still just be the interest for this month or are there any extra costs doing it like this? I just wondered if I should play nice and and let the dealer have his slice while I get the contribution minus marginal interest. Or is there a penalty for paying early after the cooling-off-period has lapsed?
If you want to pay off after a month for the dealer to get their VWFS commission, don't bother - you have to do 3 full months before they'll get something.

After the 14 day withdrawal period, you'll pay 2 months interest plus option to purchase charge. In the very early days of a PCP, a months interest is almost half the monthly payment.

So it's about £400 out of your pocket and nothing in the dealership's to wait a month, or if you're feeling generous, wait 3 months to pay out about £900 in unnecessary interest to give your favourite salesperson about £50 in their pay packet in personal commission.

Alternatively, ask to withdraw from the finance agreement within 14 days of collection. You'll pay about £3 interest for every day until you make that call.
Cupra Born V2 e-boost 230ps Aurora Blue, replaced ID3 PP Family

Audi S3 - because I hate rapid charging for long distance driving.

Octopus referral: https://share.octopus.energy/lush-fawn-565
JDH
Posts: 1
Joined: Sat Sep 18, 2021 12:20 pm

Post by JDH »

Hi @Monkeyhanger and all,

Thanks for the useful comments.

I’m in the process of buying an ID.3 - Life Pro (58kw) for £25,500. This includes £1,750 finance contribution.

So to ensure I understand correctly, if I put down say £5,500 deposit, putting £20k on finance, I can call within the first 14 days to settle early and I will be charged £20k plus £3 per day? So if I do it on day one I pay £20,003 and the ID.3 is mine?

Many thanks, JDH
MotMot
Posts: 1213
Joined: Fri Jun 11, 2021 2:04 pm

Post by MotMot »

Yes (ish) as if you cancel and pay off in the first 14 days you are in the cooling off period so pay zero interest.

When I paid mine off (after 4 days) initially their online quote was including 4 days interest - which I paid. I then phoned them up as I hadn’t heard anything for a couple of days and the guy on the phone said ‘oh sorry - I see we’ve incorrectly charged you interest in your cooling off period - I’ll refund you the xxx straight away’
Cherry
Posts: 247
Joined: Tue Aug 10, 2021 8:34 pm

Post by Cherry »

johnmfriend wrote: Thu Aug 19, 2021 7:12 pm Has anyone done this when buying the id.3 through their business? The dealer told me that I can, but it's an unregulated finance scheme as it's being bought through a business. I want to check that I can pay it off early still. I'm thinking I might not get the 14-day cooling off-period.
Do you get £1750 VW deposit if you buy via a business? I thought not, especially if a limited company.
9 Sep 21 Ordered ID.3 Family Pro, Stonewashed Blue & East Derry
13 Sep 21 PCP approved. VW No: 3131xxxx
24 Sep 21 Temp build wk43, conf' 46
22 Nov 21 Conf' build wk 49
10 Jan 22 Code 38 Awaiting ship-release (wk48 build)
01 March preferred collection
Post Reply