Hi all,

 

In the process of getting quotes from dealers for a new 190 tdi SE L 7 seat 4x4 DSG. 

 

I questioned the dealer regarding the line in the quote called "Add Charges" to which I was told this is the Interest payable on the amount of credit. This is listed as £4818.72 but the interest on the balance is actually £1,727.19. (balance * 4.9% APR)

 

Can any of you shed some light on what "Add Charges" actually is?? 

many thanks

Rob

 

 

 

I would presume it stands for additional charges. 

 

Could this be for any of the extras on the vehicle or any dealer fit accessories? 

@abaday789 - you could be right. I did spec quite a few options including Pan Roof so that might explain to figure.

 

I've also noted your fallout avatar  

I believe "Add Charges" IS the interest on the total loaned amount (OTR price less deposits & dealer discounts), presuming this is a PCP quote

 

Are you calculating the 'balance' to not include the Balloon / Final Rental at end of term?  You still need to pay interest on the final payment / balloon all the while you have the car.

As above, you don't only pay interest on the PCP's final or balloon payment, you also pay it on the deposit and all projected monthly payments, i.e. on the 'total amount payable'.

 

If you're planning to buy the car outright and you want to reduce the interest charges, as soon as you sign the finance documents (either online or at the dealer) ring Skoda finance and ask to exercise your 'right of withdrawal' (it can take a 24 hours for them to see your agreement number on their system). They will then give you a settlement amount right there and then (as well as confirming via the post) that is valid for 30 days. The sooner you do this the less interest you'll pay as interest is accrued daily.

 

I signed online and settled the next day using a pre-arranged bank loan with a significantly lower APR than that offered from Skoda Finance (there is no rush though as the settlement figure is frozen / held for 30 days from the moment Skoda Finance issue it to you).

 

This does not affect any finance contributions you qualified for at the time of ordering (i.e. deposit contribution, fuel card, test drive incentive, free services etc.).

 

Unfortunately, if your looking to let the PCP take it's course then the total interest charge of £4,818.72 is payable and is absorbed into the quoted monthly payments.

 

Edited 19 July, 20188 yr by silver1011

10 minutes ago, silver1011 said:

As above, you don't only pay interest on the PCP's final or balloon payment, you also pay it on the deposit and all projected monthly payments, i.e. on the 'total amount payable'.

 

Hmmm. Slight correction to that - you don't pay interest on the deposit, because that's money you're putting in up-front to reduce the size of the 'loan' and thus the amount of interest you will need to pay!

50 minutes ago, robdav said:

@abaday789 - you could be right. I did spec quite a few options including Pan Roof so that might explain to figure.

 

I've also noted your fallout avatar  

 

Looks like the better read up kodiaq owners know what it means

 

Yes one of my guilty pleasures. I'm probably quite a young'n at 22 compared to the rest of the majority of Kodiaq owners lol. 

 

So gaming is still part of my life

 

But as mentioned above I'm doing what a lot of other owners are doing making the most of cost savings from the finance and then will be paying it off in full as soon as I can to save on the pennies. 

Yes, poorly worded, often the deposit is equal to the monthly payment. I guess if the deposit is larger then interest savings can be made...

 

27 minutes ago, silver1011 said:

As above, you don't only pay interest on the PCP's final or balloon payment, you also pay it on the deposit and all projected monthly payments, i.e. on the 'total amount payable'.

 

If you want to reduce the interest charges, as soon as you sign the finance documents (either online or at the dealer) ring Skoda finance and ask to exercise your 'right of withdrawal' (it can take a 24 hours for them to see your agreement number on their system). They will then give you a settlement amount right there and then (as well as confirming via the post) that is valid for 30 days. The sooner you do this the less interest you'll pay as interest is accrued daily.

 

I signed online and settled the next day using a pre-arranged bank loan with a significantly lower APR than that offered from Skoda Finance (there is no rush though as the settlement figure is frozen / held for 30 days from the moment Skoda Finance issue it to you).

 

This does not affect any finance contributions you qualified for at the time of ordering (i.e. deposit contribution, fuel card, test drive incentive, free services etc.)...

 

 

Interest would not be payable on any deposit paid, I would not be very happy if I paid interest on money I had given them!  But agree totally with the paying off PCP loan with a cheaper bank loan (I did this @ 3%) only downside being you are not guaranteed the value of car like a PCP deal at end of loan term.

Edited 19 July, 20188 yr by WaterMelonMan
took so long to type reply now old news ! :D

Ok thanks guys. I was just concerned that the dealer was trying to add something that I couldn't account for.

 

Yes this is a PCP and I'm off to see the dealer on Saturday. I've made it quite clear that the quote he has provided me is a starter for 10. I also have received there quotes today which are in the region of £3.5K - £4K cheaper than my local dealer has initially offered so I'm expecting to come in under his quote very quickly after we sit down to discuss.

 

 

In this new 21st century world, it seems more people prefer to “rent” a car rather that buy one in that old fashioned way.

 

However you go about it, it all comes down to an annual / monthly expense over the period of ownership.

 

Me? I’m renting now.

9 hours ago, BoxerBoy said:

In this new 21st century world, it seems more people prefer to “rent” a car rather that buy one in that old fashioned way.

 

...and swap for a new one every 2-4 years, instead of keeping them until they go to the scrapyard.

 

Consumerism and capitalism FTW.