Does the Finance perks ruse still work without trouble?

[Berisford]

I’m getting on a bit and thought my 10 year old Golf might see me another 10 years and in to my 80’s - but on the other hand, the ‘care home’ or worse might be just around the corner so, sod it, I’ll get something more fitting for myself, I’m thinking a TSI280, a anonymous looking beast I’ve admired for some time.

 

Question is, does the finance offer ruse still work?
 

That is to say, (I did this 2 years ago) can you still cancel and pay it off a week or so into the finance deal and keep the perks, I.e. the £3k discount and the £159 service deal?

 

I’m wondering if VWFS UK might hold some sort of ‘blacklist’ and refuse me?

 

Anyone done this more than once?

[MarkyG82]

Don't see why not. Did it last year for MrsG on seat finance. They have a 14 no penalty setup usually don't they? As far as I know the perks are a deal with the dealer and the finance is purely with the finance company. 

[Berisford]

11 minutes ago, MarkyG82 said:

Don't see why not. Did it last year for MrsG on seat finance. They have a 14 no penalty setup usually don't they? As far as I know the perks are a deal with the dealer and the finance is purely with the finance company. 

Thanks Marky, however, it's the second time around thing I'm concerned might make 'em (VWFS) reluctant to play ball.........

[MarkyG82]

Shirley a finance deal is a finance deal. If it's written in the t's & C's they can't stop it.  I think the "feature" is there so you can hand the car back in the 14 day cooling off period. 

I think each deal is different. Any bonus you may get for repeatedly going back to the same dealer bis between you and the dealer. Vwfs don't care where the money comes from.

[Colin170CR]

3 hours ago, Berisford said:

I’m getting on a bit and thought my 10 year old Golf might see me another 10 years and in to my 80’s - but on the other hand, the ‘care home’ or worse might be just around the corner so, sod it, I’ll get something more fitting for myself, I’m thinking a TSI280, a anonymous looking beast I’ve admired for some time.

 

Question is, does the finance offer ruse still work?
 

That is to say, (I did this 2 years ago) can you still cancel and pay it off a week or so into the finance deal and keep the perks, I.e. the £3k discount and the £159 service deal?

 

I’m wondering if VWFS UK might hold some sort of ‘blacklist’ and refuse me?

 

Anyone done this more than once?

I don't do finance deals to buy cars but I see no reason why this shouldn't work more than once. 

Alternatively, if you have the cash just play hard ball with a dealer & ask for the same terms or better, or use a broker. A quick check on Carwow indicates the average savings below on new Superb's & I wouldn't mind betting you might even get more discount on a 280.

    

 

[skidpan]

7 hours ago, Berisford said:

I’m getting on a bit and thought my 10 year old Golf might see me another 10 years and in to my 80’s - but on the other hand, the ‘care home’ or worse might be just around the corner so, sod it, I’ll get something more fitting for myself, I’m thinking a TSI280, a anonymous looking beast I’ve admired for some time.

 

Question is, does the finance offer ruse still work?
 

That is to say, (I did this 2 years ago) can you still cancel and pay it off a week or so into the finance deal and keep the perks, I.e. the £3k discount and the £159 service deal?

 

I’m wondering if VWFS UK might hold some sort of ‘blacklist’ and refuse me?

 

Anyone done this more than once?

 

They cannot stop you from paying it off despite what some lying salesmen will tell you.  The law allows it, if they stopped you (other than being unable to meet the requirements to pay it back) they would be in breach of the finance laws.

 

We bought a Leon in 2013 on a PCP, paid it off within a week and kept the £2000 thanks very much. We bought a Fabia in 2018 on a PCP and kept the £2500 paying it off with the week. In between those 2 we bought a Nissan on a PCP and kept the £2500 contribution, free 3 year service plan and £1000 for being an existing Nissan owner and kept the lot.

[skidpan]

3 hours ago, Colin170CR said:

or use a broker. A quick check on Carwow indicates the average savings below on new Superb's & I wouldn't mind betting you might even get more discount on a 280.

   

 

The prices quoted by CarWow normally include any finance contribution and tell you to add £££££'s if you do not want to take out finance. I have bought cars in the past from Carfile.net and their prices do not include the finance contribution and this can make them look more expensive unless you realise it still needs taking off if you wish to save even more money.

 

Carfiles price on a 280 Sportline is £35,718.60, a saving of £4661.40. There is another £3000 to be saved by taking out a PCP and the service offer at £159 is also available. Brings the price down to £32718.60, one hell of a saving.

[facet edge]

Carfile doesn't get the publicity it deserves.

I used it and he beat Carwow easily.

[SurreyJohn]

Of course one of the stupidities of deposit contributions is if you are offered a £3000 deposit contribution, you donate extra £600 in VAT to the Government compared to if they simply cut the price by £3000 (which would be a price cut of £3600 including VAT)

 

No idea why Skoda marketing want you to pay hundreds of pounds extra in VAT, but for their niceness to Rishi Sunak you may as well take their perks and pay finance off.

 

[xman]

2 minutes ago, SurreyJohn said:

Of course one of the stupidities of deposit contributions is if you are offered a £3000 deposit contribution, you donate extra £600 in VAT to the Government compared to if they simply cut the price by £3000 (which would be a price cut of £3600 including VAT)

 

No idea why Skoda marketing want you to pay hundreds of pounds extra in VAT, but for their niceness to Rishi Sunak you may as well take their perks and pay finance off.

 

 

I think if you examine the invoice it will entered as a negative figure of minus 2500 pounds.

 

They may call it a deposit contribution, but on the invoice pricing column it is a discount. When VAT is added to the total, you have an effective £3000 discount, so Skoda "contibute" 2500 and the UK VAT man loses 500.

 

Of course its not really a contribution or even a discount, but the underlying real price, presented as an effective marketing tool to make you think, ooooh, thats nice......where do I sign....... It also acts a great blocker for salesmen to say, no more discount is available sir we've already given so much.....

 

Skoda UK dont care about buyers who are foolish enough to pay cash without jumping through the relatively simple finance/cancel hoop, more money for them.

[Colin170CR]

1 hour ago, facet edge said:

Carfile doesn't get the publicity it deserves.

I used it and he beat Carwow easily.

I guess Carfile don't have the overheads of a You Tube channel, TV advertising, & an excitable presenter waving a "stick of truth" & throwing suitcases & rear parcel shelves into hedges..   

[Berisford]

4 hours ago, skidpan said:

 

The prices quoted by CarWow normally include any finance contribution and tell you to add £££££'s if you do not want to take out finance. I have bought cars in the past from Carfile.net and their prices do not include the finance contribution and this can make them look more expensive unless you realise it still needs taking off if you wish to save even more money.

 

Carfiles price on a 280 Sportline is £35,718.60, a saving of £4661.40. There is another £3000 to be saved by taking out a PCP and the service offer at £159 is also available. Brings the price down to £32718.60, one hell of a saving.

Thanks for the pointer towards Carfile Skidpan, a good deal can be had it seems ......... pity about the £40k road tax - you'd think the extra 'luxury' tax would have increased / moved with the times over the last 5 years? 

[Shaady]

Kind of wish I had done this when I bought mine rather than pay for it outright, live and learn though will be considering it next time. 

 

I can't see how they can stop you doing it again if you have done it once before, that's with the finance company anyway the dealer most likely won't care as they have got their perks out of it when the finance is initially taken out 

[skidpan]

13 hours ago, Berisford said:

Thanks for the pointer towards Carfile Skidpan, a good deal can be had it seems ......... pity about the £40k road tax - you'd think the extra 'luxury' tax would have increased / moved with the times over the last 5 years? 

 

The list price of the 280 hatch is indeed over £40,000, actually its £40,405. But for the purpose of calculating the VED the first years VED is deducted from the list price which reduces it to £39,510, below the £40,000 and no extra to pay for 5 years. Add in any extras such as paint and you would be above £40,000 so pretty academic, who wants a crappy solid colour on an expensive car.

[Hettonist]

My brother is after buying a 10 month old Octavia 3 with £79 for 2 services if finance is taken. If he paid it off after 3 weeks would he still get the services and are there any penalties for this?

 

Cheers, sorry if if this is a daft question!

[SurreyJohn]

On 04/05/2021 at 09:12, Shaady said:

Kind of wish I had done this when I bought mine rather than pay for it outright, live and learn though will be considering it next time. 

 

I can't see how they can stop you doing it again if you have done it once before, that's with the finance company anyway the dealer most likely won't care as they have got their perks out of it when the finance is initially taken out 

It can be stopped in theory, as a dealer requests finance approval, and finance Co could say: ok from credit, but not that individual as they always pay it off.

 

But it seems VWFS take the view that don’t want to upset dealer (who might just then go and put it to another finance company), and will do deal anyway, knowing there is high likelihood of them paying arrangement fee to dealer, but never recovering it in interest.

 

As long as the proportion paying off is fairly small, everyone else paying interest can subsidise these.  Of course if too many do repay with 14 days, then this subsidising by those who can’t afford to pay for the car in one go falls apart.   It’s same principle as a credit card company charging nothing to those who pay off in full, because those who don’t subsidise those who do with higher interest.   
 

 

[nbramwel]

I bought a Fabia DSG in February 2016 on HP finance simply to get 2 free services and paid the loan off in a couple of days.  I bought my current Octavia on HP in August 2019 again so I could get 2 services for something like £159 (this was the deal going at the time).   Again I paid the loan off within a few days.  No problems paying either of the loans off and besides, you can withdraw from any financial agreement within 14 days by law anyway.  I would just check beforehand with Skoda Financial Services that they haven't changed their rules and will still allow you to keep whatever incentives they offer with their various financial packages.