There’s an interesting thread on the motoring forum of moneysavingexpert about the VW Solutions finance scheme.

It seems it’s possible to get the deposit contribution and the free servicing offer, but then, soon after purchase, settle the finance without incurring significant interest costs or charges. So for cash buyers it seems an good opportunity to lower purchase costs. It has been used by VW buyers contacting dealers through brokers such as drive the deal.

I wonder if this is possible with Skoda finance. Has anyone tried it for their new Octavia ?

From: http://forums.moneys...d.php?t=3649847

Originally Posted by ChileanRed

I'm in the same boat! Do I just buy outright, or will I really save anything by going via VW "solutions" route.

They say they will give £500 towards the deposit and 3 year servicing will cost me £99 instead of £299... (total "saving" of £700).

I can pay just three months payments and then settle the account .. and as the interest is spread across the full term (36months) rather than being "front end loaded", I would get a rebate on the interest ???

I just can't get my head round it ...confused.com! :0/

Yes, that's how it works. You don't even have to wait three months before settling up and you still retain the benefits. They are fully aware that people will do that but because the law was changed on the settling of loans ahead of time there is little they can do to stop people signing up to these agreements and paying them up early.

In fact, it was the finance manager at the dealer who suggested it!

But the best way to do it is to pay off the majority of the loan, leaving say a few hundred quid on it and then asking for a settlement figure on the few hundred quid. It lessens the amount of penalty interest they can charge doing it that way.”

Yes, you can do it on any of the Skoda finance deals.

Yep done it paid the few days interest and got the £500 off and 3 years servicing. Its very simple to do, the dealer will tell you that you need to keep the finance for x number of months, but you don't.

Yep done it paid the few days interest and got the £500 off and 3 years servicing. Its very simple to do, the dealer will tell you that you need to keep the finance for x number of months, but you don't.

Exactly what my dealer told me - 6 months in my case. You probably find they lose their commission if you settle early. There's me being cynical again.....

There's quite a few Audi owners doing the same thing as the finance contributions are £2K plus depending on model. The dealers don't seem to care as they still get their finance bonus, so looks like a win-win!

I did this too, following Stokey's lead and encouragement. I paid £9.48 in interest, cancelled the finance 6 days after signing. You just need to check what date the dealer has dated the paperwork for as it runs from the typed date, not the date of signature, and take the withdrawal option within 14 days. If you cancel after 14 days, there are additional charges of about £180 as it is classed as an early repayment option, so there will be the arrangement and option to purchase fees included, plus I think they charge a minimum of 1 months interest. The dealer also told me that they get £50 commission, irrespective of whether or not the customer cancels.

Been discussed many times on here and yes, its as easy as that. Ive done it previously with no issues and something like £6 cost in total interest.

As this is exactly what I'm planning to do, I have a question on the small print. For the 3 years servicing does the car service indicator have to be set to a fixed interval of 10K or is it still set to variable interval?

As this is exactly what I'm planning to do, I have a question on the small print. For the 3 years servicing does the car service indicator have to be set to a fixed interval of 10K or is it still set to variable interval?

I believe the offer is for fixed only, and that's what the dealer should set it to.

I'm sure I also saw a mention recently that the small print on the contract has changed so you need to make a minimum of three monthly payments to qualify.

I believe the offer is for fixed only, and that's what the dealer should set it to.

I'm sure I also saw a mention recently that the small print on the contract has changed so you need to make a minimum of three monthly payments to qualify.

Mine was delivered set to fixed service intervals, but it can be amended to variable after the 30k service. I asked for an e-mail from VAG Finance confirming that I still get the free servicing, and they obliged with a positive response.

Hi guys, I have just signed up for a new Octy & the dealer pointed me to the £500 & 3 years servicing, but they claim that the free servicing part of the deal takes a while to be confirmed so advised I make 3 payments then pay of the finance. Is that correct or should I ignore that & pay it off asap?

Saving £1000 (£500+3 yrs servicing - £7 interest) by taking/cancelling finance or saving between £2350 and £3500 by buying cash.

Which is the better deal?

Note: Calculators are not permitted during this exam.

Hi guys, I have just signed up for a new Octy & the dealer pointed me to the £500 & 3 years servicing, but they claim that the free servicing part of the deal takes a while to be confirmed so advised I make 3 payments then pay of the finance. Is that correct or should I ignore that & pay it off asap?

I was told the same but when you ring up ask the question and they will tell you that you can keep all incentives. I asked them to email me this prior to paying it off and they did so. The paperwork took well over a month to arrive but I emailed them again and they even emailed me a copy of the paperwork.

Edited 26 June, 201312 yr by stokey

Saving £1000 (£500+3 yrs servicing - £7 interest) by taking/cancelling finance or saving between £2350 and £3500 by buying cash.

Which is the better deal?

Note: Calculators are not permitted during this exam.

And your point is what???

Saving £1000 (£500+3 yrs servicing - £7 interest) by taking/cancelling finance or saving between £2350 and £3500 by buying cash.

Which is the better deal?

Note: Calculators are not permitted during this exam.

You seem to be assuming that you won't be able to get a discount if you use finance. Plenty of people will tell you that's not the case. In fact, dealers will sometimes allow a greater discount if you use finance as they know they get commission that way.

And your point is what???

That everyone here thinks that saving £1000 off list price by taking/cancelling finance is such a fantastic deal?

In fact, dealers will sometimes allow a greater discount if you use finance as they know they get commission that way.

on £50 commission?

Edited 26 June, 201312 yr by xman

That everyone here thinks that saving £1000 off list price by taking/cancelling finance is such a fantastic deal?

Well it is!! Call me old fashioned but I'd rather save £5,000 on the deal rather than £4,000!

You seem to be assuming that you won't be able to get a discount if you use finance. Plenty of people will tell you that's not the case. In fact, dealers will sometimes allow a greater discount if you use finance as they know they get commission that way.

Exactly you negotiate your four figure discount before taking out the finance giving an extra £1000 saving. I negotiated my discount before the finance offer was announced .

OK.....I get it.

Walk into dealers......demand the lowest price (DTD).....after they agree to that tell them I want the finance deal with free servicing and £500 contribution on top .......after they agree to that ....ask for a bit more discount because of the finance deal (as Dr Zoidbergs advice). :peek:

Sounds good......except the last 3 cars I've bought from my Skoda Dealer they've stuck like glue to official pricing and I had to prise a deal over several days....it was like getting blood out of a stone.....and I didnt even match DTD.

Is there an easier way, e.g. go through DTD/Carfile and then ask for finance deal/freebies on top? And do I keep my gob shut about cancelling the finance after a few days?

Use a different dealer is all id say then... I put my final spec out to the nearest six dealers - then its narrowed down on price from there, so I usually deal with two of them and see if they'll match the dtd price. After matching that and including any finance contribution (which is normally built into the dtd price), (take the £600+ worth of free servicing too for opting for the finance if thats a current campaign also) and then experience shows you'll be lucky to get anymore than a free tank of fuel on top. Ive never really told them im paying up the finance before either but I doubt it makes much difference as its a SUK offer, not a dealer offer.

I may get accused of stating the bl*****g obvious here but it isn't always the discounted price that matters, if you have a trade in car in which case it's the cost to change that is the only number that matters. Drive the Deal / Carfile etc is all well and shiny but margins are so low on those deals you'll likely get crucified on any px. Beware. It may cost you more by getting a cheap headline price if a px is involved.

Edited 27 June, 201312 yr by Timoctav

The small print

Deposit contribution valid on all new ŠKODA Octavia vehicles delivered from 8th February to 30th June 2013. Offer may be varied or withdrawn at any time and cannot be used in conjunction with any other offer.

So anybody collecting a car next week, check down the side of the sofa for the extra £500 you'll need

I may get accused of stating the bl*****g obvious here but it isn't always the discounted price that matters, if you have a trade in car in which case it's the cost to change that is the only number that matters. Drive the Deal / Carfile etc is all well and shiny but margins are so low on those deals you'll likely get crucified on any px. Beware. It may cost you more by getting a cheap headline price if a px is involved.

My golden rule - always sell privately. Thats how you get the best new price and best exchange price equally a win win overall.

Is there an easier way, e.g. go through DTD/Carfile and then ask for finance deal/freebies on top? And do I keep my gob shut about cancelling the finance after a few days?

Yes, exactly that. It even says on the DtD website what the prices include (e.g. dealer finance contribution), so to get the best price, you often HAVE TO take the finance out.

The small print

Deposit contribution valid on all new ŠKODA Octavia vehicles delivered from 8th February to 30th June 2013. Offer may be varied or withdrawn at any time and cannot be used in conjunction with any other offer.

So anybody collecting a car next week, check down the side of the sofa for the extra £500 you'll need

I have been to 2 dealers this week to get a deal on a new Octy & as it will be a factory order will be 12 weeks approx before it arrives & both urged me to go for the finance deal to get the £500 &free servicing. I have signed up & the £500 has been worked into the deal, so if Skoda Finance don't deduct that it will be the dealer who has to find £500.