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Paying off finance straight away

A4B9 Jan 24, 2016

  1. A4B9

    A4B9 Well-Known Member

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    Has anyone bought a new car on finance and then paid off the finance straight away in order to pocket the finance contribution? Is there anything stopping you from doing that?

    Mods: feel free to close this down and deleting it if this is considered a bit dodgy
     
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  3. Raiden

    Raiden Well-Known Member

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    Don't think so. I brought a car off BMW years ago on finance and then within a few weeks of getting it I inherited some money so I paid it off. Just a £50 admin fee
     
  4. A4B9

    A4B9 Well-Known Member

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    Do you literally just ring them up and say you want to pay it off? Has anyone done this with VW/Audi finance recently?
     
  5. RAF_S7

    RAF_S7 Well-Known Member Gold Supporter

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  6. SootySport

    SootySport Well-Known Member

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    You need to check the terms and conditions as above.
     
  7. A4B9

    A4B9 Well-Known Member

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    OK, so I have the right to withdraw inside 14 days, in which case, I just pay off the balance of cash price (i.e. the remainder left after deposit), correct?

    Edit: That page makes no mention of any fines or admin fees being incurred for doing this.

    Surely it can't be this simple otherwise everyone would be doing this
     
  8. Steve!

    Steve! Active Member

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    It is that simple yes, just a card payment over the phone to clear it...

    Don't think 'everybody' has £30k+ cash in their bank to clear their finance lol..
     
  9. rum4mo

    rum4mo Well-Known Member

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    I've seem lots of claims about doing this in Skoda and VW forums, seems like dealers need to tighten up on how they operate. At the same time, if it is an "open" loop hole, then why not try it? Bottom line is, go in and say you are paying cash and you will not get any extra discount, so what is not to like about being devious - as I said, I'd hope that the finance houses would stop this by clawing back the dealer contribution - or maybe even the dealer should do that.

    Many years have passed since I suddenly became aware that main dealers (etc) had changed from being run as car sales places to places where you go to to get a loan to buy a car! (I've only ever had one car loan and that was from my bank and used as a bridging loan prior to selling the previous car)
     
  10. DrEskimo

    DrEskimo Well-Known Member

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    If they offered the same deals to customers regardless of how they pay, no one would need to 'exploit' any loop holes. As far as I'm concerned, if I was in a position to buy a new car with cash, I would always get the best possible deal by getting it on finance and pay it off in full before any penalties.

    I dealt with a very good dealership from BMW while I was thinking about moving to 'the darkside'. The level of discounts I was getting were fantastic and the sales manager always stipulated how this level of discount was the same whether I was cash or finance. Seems fair to me. Dealer will always make a profit on a new car sale, they just make more on a finance deal.

    As you say, they are there to sell me a car, not finance!
     
  11. rum4mo

    rum4mo Well-Known Member

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    Having in the past been a "personal importer" of VWs from Holland, after running them into the ground, my next car was secondhand, an S4 as it would be only used for longer journeys/fun, our main car, a VW Polo SEL, I bought only after exploring the car broker options, then I took what I chose to be a proper price to pay along with the build options, and generated a document and placed it on the VW dealer's sales guy's desk - making sure that this was a "single and final proposal to purchase for cash" and not just a "try my hand to see" - after 5 or 10 minutes we shook hands, I had expected to end up walking away as my pricing was tight, but I was happy with that deal to buy a factory order car.
     

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