Preferential Early Termination

[Luke_bank]

Anyone had any experience of a preferential early termination with VWFS/SEAT Finance?

I’m changing my FR early, just for another FR Black Edition.

VWFS said on 23rd April that they wanted £11,500 as the preferential early termination figure. I’m not getting the car until early June so would’ve made two more payments by then. Am I right to assume that the settlement figure will decrease in light of the two extra payments? Dealer isn’t really sure and says that he can’t phone VWFS as they are only answering urgent calls from customers.

Also, I’m due to make a payment in my current Leon on 28th May and then collect the new one 1st June where I’d need to pay one month up front. Do I get any refund for the May payment on the current Leon?


If anyone has any experience or knowledge I’d be grateful. I’ve emailed VWFS but as the are running with very little staff I don’t think it’ll be a priority for them.

 

[Hag]

In theory yes your settlement figure should decrease by your monthly payment. I’ve never heard of a preferential settlement figure unless it’s some sort of renewal tactic from VWFS. (I had a few years working for Skoda with VWFS)

With regards to your May payment again that will be taken from your balance and wouldn’t be refunded unless you’ve handed the car back and settled that finance in advance. The dealer can usually request a settlement figure online and could do so just before you are due to trade your car in so you know what money you need to have to hand


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[Luke_bank]

In theory yes your settlement figure should decrease by your monthly payment. I’ve never heard of a preferential settlement figure unless it’s some sort of renewal tactic from VWFS. (I had a few years working for Skoda with VWFS)

With regards to your May payment again that will be taken from your balance and wouldn’t be refunded unless you’ve handed the car back and settled that finance in advance. The dealer can usually request a settlement figure online and could do so just before you are due to trade your car in so you know what money you need to have to hand


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Thanks for this mate.

I’ve suddenly gone from only paying £300 (difference between part ex value and settlement figure) and the first months up front payment so £547 total. To having to pay £780 in the space of 3 days!!

Dealer seems to think the value of my current car will depreciate by the same as monthly payment so the £300 difference remains the same but I think he’s got the wrong end of the stick.

The preferential early termination is exactly that, a renewal tactic. Gets me out the car and into a new one at a preferential rate to me and the dealer.

 

[Hag]

Who knows with current depreciation but I think the used car market will be very popular when dealers open and will command a premium due to lack of new cars etc so will be Interesting to see how your dealer plays this out.

Have you advertised your car privately in the meantime to try and minimise your outlay. Nothing to lose as you have a dealer figure already offered.


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[Luke_bank]

Who knows with current depreciation but I think the used car market will be very popular when dealers open and will command a premium due to lack of new cars etc so will be Interesting to see how your dealer plays this out.

Have you advertised your car privately in the meantime to try and minimise your outlay. Nothing to lose as you have a dealer figure already offered.


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I don’t think I can, as the car is on PCH?

Essentially VWFS tell the dealer what they want to to settle the agreement early and then the dealer pays them. Allegedly VWFS offer it at a ‘preferential’ rate providing a new car is registered for the VAG brand.

Any difference and I have to make it up (I assume there would never be any positive equity and if there was that would go to VWFS as it’s there car).

 

[Hag]

I don’t think I can, as the car is on PCH?

Essentially VWFS tell the dealer what they want to to settle the agreement early and then the dealer pays them. Allegedly VWFS offer it at a ‘preferential’ rate providing a new car is registered for the VAG brand.

Any difference and I have to make it up (I assume there would never be any positive equity and if there was that would go to VWFS as it’s there car).

Aaahhh I see. Yes I have heard of this and it’s very very rare tbf, I didn’t realise you meant you were on PCH. Yes the car has to go back to the dealer for that and you have to achieve a certain buy back figure.


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[Luke_bank]

Aaahhh I see. Yes I have heard of this and it’s very very rare tbf, I didn’t realise you meant you were on PCH. Yes the car has to go back to the dealer for that and you have to achieve a certain buy back figure.


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Okay doke!

No way to avoid the monthly payment on 28th May and the up front payment for the new one on 1st June then?

Thanks for the advice mate. As I said I have emailed VWFS but I know they’re inundated with more urgent things.