VW Solutions PCP £1750 discount and paying off early

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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.

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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
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