Withdrawing from VW Finance

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Bruce287
Posts: 232
Joined: Sat Oct 13, 2018 3:07 am

Re: Withdrawing from VW Finance

Post by Bruce287 » Thu Jun 13, 2019 2:21 pm

Baldyjones wrote:
Thu Jun 13, 2019 11:01 am
Ok this might be a silly question, as when I think about it I feel sure I know the answer, but if you'll appease the small doubt in me I'd be grateful.

When withdrawing from the finance do you have to settle the whole amount including the balloon payment or is it the amount excluding balloon payment? Also I assume that then lose the option to hand back or swap?

In my head I think it's the full amount and you then own the car and so the pcp options disappear, but I never like to assume.
You pay the lump sum, you own the car, its yours. You pay the figure minus the interest over however many years you were doing PCP for
Previous car - 2017 R Line, 240 BiTDI, white, leathers
Own - 2019, R LIne Tech 230 TSI, white, TMS, Dynaudio and leathers


Rory
Posts: 333
Joined: Sun Nov 27, 2016 2:00 pm

Re: Withdrawing from VW Finance

Post by Rory » Thu Jun 13, 2019 4:33 pm

Baldyjones wrote:
Thu Jun 13, 2019 11:01 am
Ok this might be a silly question, as when I think about it I feel sure I know the answer, but if you'll appease the small doubt in me I'd be grateful.

When withdrawing from the finance do you have to settle the whole amount including the balloon payment or is it the amount excluding balloon payment? Also I assume that then lose the option to hand back or swap?

In my head I think it's the full amount and you then own the car and so the pcp options disappear, but I never like to assume.
Be careful with the terminology - really, balloon relates to Lease Purchase which is more of a business thing. Balloon payments are usually variable, not fixed like PCP final payments.

For PCP deals it used to be called Guaranteed Future Value but that phrase has fallen out of use (probably because some people got upset when their cars weren't worth the GFV) and it's generally been replaced with the term Optional Final Payment.

One advantage of Withdrawing is you avoid the document etc fees - they used to be a few hundred pounds but they're generally a tenner now so not a big deal.

There's a figure in the agreement called Total Amount of Credit (the amount you agreed to pay for tha car, less your deposit) - that's the amount you pay, plus a few £ per day of interest which will vary depending in how quickly you tell VW you want to Withdraw.

As said above, that's it, you now own the car so you can't hand it back at 3yrs. You can still swap it in much the same way as when it was on PCP but it's possible the salesman might be slightly less keen with the deal he does than if you were rolling from one PCP to another,
near Chester, UK
Sept 2015 Match 150PS TDI 4Motion DSG (hers) - thinking of a mk2, maybe an Allspace, for him. :)
Added Sept 2018 SEAT Ateca SE-L 1.0TSi 2WD manual to the family 'fleet'.


Baldyjones
Posts: 8
Joined: Thu Jun 13, 2019 10:53 am

Re: Withdrawing from VW Finance

Post by Baldyjones » Thu Jun 13, 2019 7:55 pm

thanks guys, appreciate the responses


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