I will be collecting my new Yeti Adventure (no name yet) next week but still don't know whether to take finance at 7.9%, or pay cash as I normally do.

The only advantage of the finance is 3 years free servicing.

My question is can I pay off most of the loan straight away? I have read somewhere that I would have to leave £10 outstanding to keep the loan 'live'.

I've been told that I can finalise the loan after 6 months.

Unfortunately the business manager at the garage is not back at work until the weekend, so I'm just trying to find out what I can do before I talk with him.

I took the finance, then paid it off in full the day after collecting the car.  End result was 3 year's free servicing for an interest charge of around £1.40

 

This was back in May so I suggest you contact Skoda Finance to check that you can still do this and keep the free servicing.  My dealer had told me that I needed to keep the finance for 6 months to qualify for the free servicing but that simply wasn't true - it seems to be a fairly common statement from Dealers so I'm not sure whether they don't know what they are selling, or does finance kept for 6 months gives better commission  :think:

Personally I would phone Skoda Customer Services.The terms and conditions for the free servicing with finance can change without notice and they can confirm exactly what you can and can't do when paying off the finance but still wanting to preserve the free service package.

The Dealers want you to have the finance to get their commission,so be sceptical about what they say.

I've been told by my local dealer that once I've made one payment I can then pay off the balance with no extra charges and still have the three years servicing.

My new Yeti 2.0ltr 4x4 TDi 140 DSG was built last week on the 21st August so they told me today I should have it in a fortnight.

Same here ...you can pay the finance off straight away and still get the 3 years free servicing.

In fact advised by dealer to do it as a 'no brainer'.

I've been told by my local dealer that once I've made one payment I can then pay off the balance with no extra charges and still have the three years servicing.

My new Yeti 2.0ltr 4x4 TDi 140 DSG was built last week on the 21st August so they told me today I should have it in a fortnight.

 

I would check that with Skoda Finance if I was you.  Back in May, you had to pay off the finance within 14 days (i.e. withdraw from the agreement) in order to avoid any fees (all you have to pay then is daily interest - £1.62 in my case for 1 day (not £1.40 as I thought earlier, but still a bargain  ).  I was told that after 14 days had elapsed I would have to request an early settlement figure to clear the finance.  Don't know for sure, but I presume that early settlement figure would include either an arrangement or settlement fee, so as I said earlier, it's worth an email or phone call to Skoda Finance to check.

I took the HP finance and worked out how much to borrow so the interest was less than the services package. You don't have to borrow as much with the HP as with some of the options packages and I thought why spend my own money. I was getting more interest from the bank 20 months ago but now it may be better to take out finance and pay it off the following day. Check the T&C's.

You have a 14 day cooling off period on the finance.

If you pay it back within this time you pay no interest (only a small handling fee) and keep the free servicing.

 

Win-Win.

You don't even need to tell the dealer this is what you will do.

Quite true, I have been assured by the salesman that you can pay off the loan as stated previously and still keep the free servicing! Can't be bad.(He's done two this month).

I've managed to speak with the business manager who believes that I will need to keep the loan for 6 months to keep the free servicing, but I'm still not convinced.

When do you actually get something that shows you do qualify for the servicing?

If I do have to run it for 6 months, I intend paying the bulk of it off straight away, so only incurring interest on a small amount of loan.

I spoke to Skoda (VAG) Finance beforehand who said I would keep the free servicing, no matter when I paid it off.  I got them to confirm that to me again when I phoned to clear the finance the day after collecting the car.

 

I didn't have anything in writing until recently though (I collected my car on 21st May, but didn't get a letter until 1st August confirming my service plan - though the letter was actually dated 12th June, so they may have admin problems in their office).

I've managed to speak with the business manager who believes that I will need to keep the loan for 6 months to keep the free servicing, but I'm still not convinced.

When do you actually get something that shows you do qualify for the servicing?

If I do have to run it for 6 months, I intend paying the bulk of it off straight away, so only incurring interest on a small amount of loan.

I had the same quandry when buying my S4.

The deal was 2 years free servicing when taking out a VW finance package.

I was straight with the sales guy - I want the free servicing but have no intention of keeping it. As far as I was concerned the free servicing was a deal breaker.

He came back after talking to the business manager and said if I cancelled I would lose the free servicing. I basically walked away. A day later they rang and said they had got it wrong, and they basically lose their finance commission if you cancel but the free servicing stands

I bought the car, cancelled the finance, and had my first 'free' sevice last month.

I would persevere and push hard and ask to see the T&C's. Good luck.

I spoke to Skoda (VAG) Finance beforehand who said I would keep the free servicing, no matter when I paid it off.  I got them to confirm that to me again when I phoned to clear the finance the day after collecting the car.

 

I didn't have anything in writing until recently though (I collected my car on 21st May, but didn't get a letter until 1st August confirming my service plan - though the letter was actually dated 12th June, so they may have admin problems in their office).

How did you manage to speak to vwfs? I've tried for days but have just been left on hold, I've emailed them but had no reply to my emails either.

How did you manage to speak to vwfs? I've tried for days but have just been left on hold, I've emailed them but had no reply to my emails either.

 

I think the first time I actually 'spoke' to them was when I phoned up to clear the finance - it was all done by email ([email protected]) prior to that.  I was paranoid of getting stung for fees that would end up more than the cost of servicing so asked a few times in the weeks prior to collection.  Here are copies of some of the replies :-

 

"By taking out a finance agreement you are within your consumer rights within the first 14 days to withdraw from the finance  paying interest on a daily rate from the date the finance agreement becomes live to the day we are notified by yourself plus the cost of the vehicle or after the 14 days we can arrange an early settlement figure for you.

On either of the above options any service plan will not be affected by settling your finance."

 

"We can confirm that should you decide to settle your agreement early (even if within the first 14 days) your free service plan will not be affected."

......... A day later they rang and said they had got it wrong, and they basically lose their finance commission if you cancel but the free servicing stands.......... 

 

..........hence why so many dealers are advising customers to keep the finance for 6 months  :wonder:

I think the first time I actually 'spoke' to them was when I phoned up to clear the finance - it was all done by email ([email protected]) [/size]prior to that.  I was paranoid of getting stung for fees that would end up more than the cost of servicing so asked a few times in the weeks prior to collection.  Here are copies of some of the replies :-

 

"By taking out a finance agreement you are within your consumer rights within the first 14 days to withdraw from the finance  paying interest on a daily rate from the date the finance agreement becomes live to the day we are notified by yourself plus the cost of the vehicle or after the 14 days we can arrange an early settlement figure for you.[/size]

On either of the above options any service plan will not be affected by settling your finance."

 

"We can confirm that should you decide to settle your agreement early (even if within the first 14 days) your free service plan will not be affected."[/size]

That's interesting, thanks. When did this take place?

..........hence why so many dealers are advising customers to keep the finance for 6 months :wonder:

Exactly, they lose out.......not you.

That's interesting, thanks. When did this take place?

 

Picked up my car on 21st May 2013 (The 2 emails quoted above are from 12th April & 13th May)

..."We can confirm that should you decide to settle your agreement early (even if within the first 14 days) your free service plan will not be affected."

I have been told that this will change sometime next year, because too many people are doing this.

When the rules change...

If you cancel within 14-days then the servicing will be cancelled too.

If you cancel after 14-days, then any complete years of servicing will be cancelled.

I have been told that this will change sometime next year, because too many people are doing this.

When the rules change...

If you cancel within 14-days then the servicing will be cancelled too.

If you cancel after 14-days, then any complete years of servicing will be cancelled.

That's why you should ALWAYS read the T&C's carefully before signing a finance agreement. I went for a cup of coffee with a copy of the last one.

I once asked what the APR was on a finance deal on a Vauxhall Vectra (many years ago) I was looking at. They were quoting 'Flat rates'. I was told quite bluntly that I could only see that after the finance had been signed & approved!!!

I've had the following replies from the business manager at the garage:

 

My understanding is that you must make at least 6 payments to keep the free servicing. You can make over payments by calling Skoda finance customer services. If you repay the loan within 14 days, you are exercising your right to withdraw from the contract, and therefore you will not keep any benefits from the agreement. i.e. the free servicing offer would be lost and the benefits/terms of a hire purchase agreement would be lost.

 

then when I asked for t&cs:

 

ttp://www.skoda.co.uk/finance/finance-offers/0-pcp/yeti-offer

 

The above link shows free servicing when purchased with Skoda solutions. If the finance agreement is cancelled, then so would the free servicing.

 

If you want a servicing package, a 3 year plan is available to buy for £499.

 

then when I asked for t&cs, again:

 

The only t&c's relate to the product when finance documents are printed.

 

I'm confused now!!

If I was you I would persevere with trying to contact VWFS and see what they say - given the experience with my Dealer, I don't think I would accept their word.

Latest emails from business manager;

 

No confusion from me. If you make at least 6 payments you will keep your servicing, if you cancel within the 14 days you won't get the servicing.

 

Just a thought, if you want to speak to Skoda finance customer services to clarify terms and conditions the telephone number is 0845 3030022. (Ask to speak to a team leader if possible)

 

I'll be on the phone in the morning to see if I can get things clarified!

I will be collecting my new Yeti Adventure (no name yet) next week but still don't know whether to take finance at 7.9%, or pay cash as I normally do.

The only advantage of the finance is 3 years free servicing.

My question is can I pay off most of the loan straight away? I have read somewhere that I would have to leave £10 outstanding to keep the loan 'live'.

I've been told that I can finalise the loan after 6 months.

Unfortunately the business manager at the garage is not back at work until the weekend, so I'm just trying to find out what I can do before I talk with him.

 

 

First post from me

 

Just bought an Adventure and expecting delivery mid-September.  Was very much on the fence in regards to cash or finance to get the servicing.  Dealer had offered me a decent trade in but I went all out asking for the free servicing as part of the cash deal and after a bit of debate he relented so I got the servicing included.  Suppose it depends what you have been offered already on a cash deal to see if they would stretch to including servicing but clearly it can be done.