VW Finance - just wondering...

[Shelby]

hello folks,

sort of thinking out loud and wondering about finance....

I took out a 3 year finance deal on my 1.2 Tsi Mk5 (personal) and took out the full service/maintain/tyres package as well - all of which is done thru VW Financial Services.

So fast forward to 3 years time, when i can either give the car back, pay the outstanding and keep it or chop it in for a new car....would VWFS let me choose another brand like a Skoda or a VW instead of sticking with Seat?!

Anyone on here tried it and it all worked out ok or any horror stories? I just thought about it for continuity, rather than end one totally, then have to start from scratch on another finance deal etc.

Thought I'd ask here first before having to go through hypothetical questions with someone on the end of the phone at MiltonKeynes!!
Cheers in advance
Mike

 

[BJM]

I don't get what you mean mate. If you buy it then you own it. If you hand it back then that's all ties cut with VWFS. If you chop it in then you can chose whatever brand you like - they just pay off the finance direct to VW.

If you want a Skoda then you start a new finance package.

 

[J400uk]

At the end of the 3-years you can either buy the car or hand it back to VWFS, but either way the agreement is over.

 

[Shelby]

The handing it back or the buying it outright bits are fine, I get that. Its the 3rd option of using my car and any extra worth it might have as a deposit on the next car. My Seat dealer will more than happily use my car as a deposit on another Seat, but what if I want to get a Skoda? I can see already that my dealer will say no it cant be done, effectively locking me into another Seat.

Who handles that side of things? Will Skoda pay off the balance of whats owed on my car and use any extra as a deposit? I hope I am explaining what I mean properly - apologies if not!

 

[J400uk]

When you trade it in the dealer is effectively buying the car of VWFS on your behalf. The marque of the dealer shouldn't make a difference, but SEAT may offer a better price since they can sell it on themselves rather than send it to auction.

 

[Shelby]

aha right so there should in theory be no issue with me rocking up to a Skode dealer and them taking my car in exchange for something else. Appreciate it!

 

[doyliee]

Sorry to hijack your thread.. I will soon have a finance agreement over four years . Its a Hire Purchase agreement, I hope to pay it off within two years. Has anyone had dealings with Seat and their Settlement figures? I have seen some horror stories where people have had to pay all the interest off ,


Cheers

 

[m0rk]

If you can pay it off over two years, set the period as two years.... You'll save on early repayment fees

They don't (or shouldn't) add all the interest on at the beginning.

 

[JamesL]

Some of them do though I think.

As Mark says, if you can pay it off over 2 years do that - or at least speak to them and ask them about settlement figures and early repayment charges etc before hand, so at least you know what you can expect.

 

[char_baby]

New question, which i've always thought since last year but never found the answer.

If you have a 3 year payment deal, but decide you now longer want the car so go back to your SEAT dealer and say you want rid. What happens to the finance balance left?

My Mum seems to think that if I sold the car back to the dealer, then I'd still have to pay the outstanding finance off, even though I wouldn't have the car. Is this correct?

 

[nightflight]

Depends on how much your car's worth and how good a deal you can get with the dealer.
If the car's worth the same/more than what you've got left to pay then they will, but if you've got more left to pay then the car's worth, (ie negative equity) then you'll have to keep paying the difference off AIUI

 

[sly200sx]

You can terminate a finance agreement under the 1974 Consumer Credit act. The term must be more than 50% past or you must have paid 50% as far as i can remember. I did this some years ago with an S reg escort. Basically you write to the finance co saying you wish to terminate the finance agreement. all i had to do was once the vehicle had been inspected, take it to a motor auction compound and walk away. Got me out of a deal where the car was worthless due to some new fangled focus that came out ;-)

Obviously take other advice before doing this, does not affect your credit history or score either.

 

[Andy_Cup]

I've got my cup with vwfs on hp, the interest is front loaded, you can pay it off at any time, just phone up and the automated system gives you the early repayment amount, they also send you a paper copy with details of how to pay it off.

There are calculators on the net showing how much interest is paid each month if its front loaded so you can work out how much you'll have to pay if you pay it off early.

 

[m0rk]

IIRC they'll rebate you for the interest 'not' owed - but that'll be calculated in your settlement

 

[Sergio]

You can do what you want with it, you can trade it in anywhere. You'll get a settlement figure and a part-ex offer. If you're lucky the latter will be more than the former. The biggest obstacle you may face is negative equity.

 

[Sergio]

You can terminate a finance agreement under the 1974 Consumer Credit act. The term must be more than 50% past or you must have paid 50% as far as i can remember. I did this some years ago with an S reg escort. Basically you write to the finance co saying you wish to terminate the finance agreement. all i had to do was once the vehicle had been inspected, take it to a motor auction compound and walk away. Got me out of a deal where the car was worthless due to some new fangled focus that came out ;-)

Obviously take other advice before doing this, does not affect your credit history or score either.

This only applies to HP, not PCP or any other form of lease.

It shouldn't affect your credit history, they're not allowed to record derogatory information against you for it. They can, however, record a 'Voluntary Termination' marker against the credit record, and it's up to individual lenders how they interpret that further down the line.

You may find future lenders pushing you towards personal motor loans (i.e. not asset backed, so not eligible for termination at the mid point). Whole area is a minefield, but you can definitely end HP agreements by handing the car back halfway through. They can bill you for any damage though, and they are merciless in doing so.

 

[5509433]

I looked at going on finance with SEAT for my car. I opted for a loan from the bank. Worked out a much better deal over the same period

 

[char_baby]

You can do what you want with it, you can trade it in anywhere. You'll get a settlement figure and a part-ex offer. If you're lucky the latter will be more than the former. The biggest obstacle you may face is negative equity.

So as long as the car is worth more than whats left to pay off it should be fine?

 

[adambolus]

So as long as the car is worth more than whats left to pay off it should be fine?

Technically yes, its like you get the part-ex money and do an early repayment on whats left. However they just skip you out, and simply pay for the car.
They always ask if there is any outstanding finance on the car