Paying your PCP off...time it well!

[S32B]

Just thought I'd post this here to give people the heads up. I'm sure some will already be aware though!

I ordered a new car on the 26th Aug, they gave me a settlement figure for my S3 and also a px price for it. She said the worst case scenario would be I'd have to pay them the difference between today's px price and today's settlement figure (the px price was based on Septembers prices and the px price was lower than the settlement figure!).

Thinking that if I'd made Septembers payment that figure would reduce, I specifically asked "If I'd come in at the start of of September would the worst case scenario difference be less, as I'd be making a payment in September". She said no, the settlement figure doesn't change until you make that months payment! So with that information I thought I had until the 12th of September (my payment date) to pay the settlement figure that she had given me! Thinking I'd save on Septembers interest charge.

I received a letter from Audi finance dated 30th Aug on 1st Sept, with the settlement figure she had given and details of how to pay it. I paid it off in full on the on the 2nd Sept thinking that was it all done and dusted.
I waited a few days and then called the automated line to make sure it had cleared, it hadn't! There was now a new lower settlement figure! I phoned up and explained the above, they told me that I'd been given the wrong information and that the figure does change on the 1st of every month, it's the old figure minus the (anticipated) Sept payment plus interest! Not happy with being hit for another months interest because of being misinformed I had a moan, thankfully they agreed and arranged for the payment I'd made to be the final one. End of story!

No, I was telling a lad in work about this on Monday night and he said did you get your August's payment back? I didn't know what he was on about I thought the settlement figure was based on you paying everything until the end of the month! I listened to what he said and phoned Audi finance up first thing on Tuesday!

"Oh yes because you paid it off in full using the Aug settlement figure, you will get your August payment back. The system got confused as a new lower figure had been processed! I'll have to send it to be manually overwritten so that you get your August payment back".

I received a letter today saying that they have now transferred £381 back to my bank account

So when paying it off:

1) The figure does change on the 1st of each month, not on the date your payment comes out!
2) If you pay it off by the end of the month, you then get that months payment back! (Nobody told me that!)

Thanks to my mate I'm now almost £400 better off, which I wasn't expecting (That will pay for the Ghost system on the new car ).

Icing on my day today: When I got up I received an email from a sports car specialist 11 mile from where I live, they have offered me the same for my S3 as Mike Brewer who I was going to sell to, he is 72 mile away and a train journey back! They will come to my door and collect it or I can take it there and they will give me a lift home Their buy price more than covers what I've just paid out to pay it off....so I'm slightly up on the sale So with that slight profit plus Sept & Oct payments I'm not making on the S3 = the deposit on the new car covered So 30 months into a 48 month PCP with the S3 and it's cost me nothing extra to change cars

 

[PHutch33]

interesting story! I'm with Blackhorse finance and when I traded in my TT for the S3 they were really good with processing payment refunds once the settlement sum was paid off.

I'm also only paying 3.9% APR on my S3 (which was 6 months old) as opposed to the TT which was much higher so I shouldn't be too far off breaking even throughout the term of my PCP, even more so after a few years.

 

[DrEskimo]

Yup, just had exactly the same with my S5. Settled the finance on Tuesday and knew my settlement figure was valid until the 13th. I clarified that I wouldn't pay this month (usually comes out on the 25th), and he said nope, in fact we owe you last months payment (also of £381...spooky...!).

Although I have no new car coming, so sad to see the blue beast go

 

[David McQueen]

Just thought I'd post this here to give people the heads up. I'm sure some will already be aware though!

I ordered a new car on the 26th Aug, they gave me a settlement figure for my S3 and also a px price for it. She said the worst case scenario would be I'd have to pay them the difference between today's px price and today's settlement figure (the px price was based on Septembers prices and the px price was lower than the settlement figure!).

Thinking that if I'd made Septembers payment that figure would reduce, I specifically asked "If I'd come in at the start of of September would the worst case scenario difference be less, as I'd be making a payment in September". She said no, the settlement figure doesn't change until you make that months payment! So with that information I thought I had until the 12th of September (my payment date) to pay the settlement figure that she had given me! Thinking I'd save on Septembers interest charge.

I received a letter from Audi finance dated 30th Aug on 1st Sept, with the settlement figure she had given and details of how to pay it. I paid it off in full on the on the 2nd Sept thinking that was it all done and dusted.
I waited a few days and then called the automated line to make sure it had cleared, it hadn't! There was now a new lower settlement figure! I phoned up and explained the above, they told me that I'd been given the wrong information and that the figure does change on the 1st of every month, it's the old figure minus the (anticipated) Sept payment plus interest! Not happy with being hit for another months interest because of being misinformed I had a moan, thankfully they agreed and arranged for the payment I'd made to be the final one. End of story!

No, I was telling a lad in work about this on Monday night and he said did you get your August's payment back? I didn't know what he was on about I thought the settlement figure was based on you paying everything until the end of the month! I listened to what he said and phoned Audi finance up first thing on Tuesday!

"Oh yes because you paid it off in full using the Aug settlement figure, you will get your August payment back. The system got confused as a new lower figure had been processed! I'll have to send it to be manually overwritten so that you get your August payment back".

I received a letter today saying that they have now transferred £381 back to my bank account

So when paying it off:

1) The figure does change on the 1st of each month, not on the date your payment comes out!
2) If you pay it off by the end of the month, you then get that months payment back! (Nobody told me that!)

Thanks to my mate I'm now almost £400 better off, which I wasn't expecting (That will pay for the Ghost system on the new car ).

Icing on my day today: When I got up I received an email from a sports car specialist 11 mile from where I live, they have offered me the same for my S3 as Mike Brewer who I was going to sell to, he is 72 mile away and a train journey back! They will come to my door and collect it or I can take it there and they will give me a lift home Their buy price more than covers what I've just paid out to pay it off....so I'm slightly up on the sale So with that slight profit plus Sept & Oct payments I'm not making on the S3 = the deposit on the new car covered So 30 months into a 48 month PCP with the S3 and it's cost me nothing extra to change cars

Just out of curiosity, what deposit did u put down on your s3 your getting rid of? If you dont mind me asking!


Sent from my iPhone using Tapatalk

 

[Bells]

Just thought I'd post this here to give people the heads up. I'm sure some will already be aware though!

I ordered a new car on the 26th Aug, they gave me a settlement figure for my S3 and also a px price for it. She said the worst case scenario would be I'd have to pay them the difference between today's px price and today's settlement figure (the px price was based on Septembers prices and the px price was lower than the settlement figure!).

Thinking that if I'd made Septembers payment that figure would reduce, I specifically asked "If I'd come in at the start of of September would the worst case scenario difference be less, as I'd be making a payment in September". She said no, the settlement figure doesn't change until you make that months payment! So with that information I thought I had until the 12th of September (my payment date) to pay the settlement figure that she had given me! Thinking I'd save on Septembers interest charge.

I received a letter from Audi finance dated 30th Aug on 1st Sept, with the settlement figure she had given and details of how to pay it. I paid it off in full on the on the 2nd Sept thinking that was it all done and dusted.
I waited a few days and then called the automated line to make sure it had cleared, it hadn't! There was now a new lower settlement figure! I phoned up and explained the above, they told me that I'd been given the wrong information and that the figure does change on the 1st of every month, it's the old figure minus the (anticipated) Sept payment plus interest! Not happy with being hit for another months interest because of being misinformed I had a moan, thankfully they agreed and arranged for the payment I'd made to be the final one. End of story!

No, I was telling a lad in work about this on Monday night and he said did you get your August's payment back? I didn't know what he was on about I thought the settlement figure was based on you paying everything until the end of the month! I listened to what he said and phoned Audi finance up first thing on Tuesday!

"Oh yes because you paid it off in full using the Aug settlement figure, you will get your August payment back. The system got confused as a new lower figure had been processed! I'll have to send it to be manually overwritten so that you get your August payment back".

I received a letter today saying that they have now transferred £381 back to my bank account

So when paying it off:

1) The figure does change on the 1st of each month, not on the date your payment comes out!
2) If you pay it off by the end of the month, you then get that months payment back! (Nobody told me that!)

Thanks to my mate I'm now almost £400 better off, which I wasn't expecting (That will pay for the Ghost system on the new car ).

Icing on my day today: When I got up I received an email from a sports car specialist 11 mile from where I live, they have offered me the same for my S3 as Mike Brewer who I was going to sell to, he is 72 mile away and a train journey back! They will come to my door and collect it or I can take it there and they will give me a lift home Their buy price more than covers what I've just paid out to pay it off....so I'm slightly up on the sale So with that slight profit plus Sept & Oct payments I'm not making on the S3 = the deposit on the new car covered So 30 months into a 48 month PCP with the S3 and it's cost me nothing extra to change cars

Not too sure whether I've been stung by this as well after reading your post.

I requested my settlement figure on the 27th July after making my regular monthly payment on the 23rd. Then paid the full balance outstanding on the 11th Aug which cleared before the 23rd Aug and as a consequence didn't get charged again. However, I remember trying to work out the total amount paid and the interest worked out a little more than I was expecting. Reckon I'd be owed some money if I queried it further?

 

[DrEskimo]

Not too sure whether I've been stung by this as well after reading your post.

I requested my settlement figure on the 27th July after making my regular monthly payment on the 23rd. Then paid the full balance outstanding on the 11th Aug which cleared before the 23rd Aug and as a consequence didn't get charged again. However, I remember trying to work out the total amount paid and the interest worked out a little more than I was expecting. Reckon I'd be owed some money if I queried it further?

When you requested your settlement figure it will give you a date for when that figure is valid too. That's the date you need to pay it by, not the date the payment leaves your bank.

 

[Bells]

When you requested your settlement figure it will give you a date for when that figure is valid too. That's the date you need to pay it by, not the date the payment leaves your bank.

Yeah the letter stated that the price was valid from the 24/07 to the 21/08 so I made sure the payment was with them by the 21st hence paying the balance on the 11th

 

[DrEskimo]

Yeah the letter stated that the price was valid from the 24/07 to the 21/08 so I made sure the payment was with them by the 21st hence paying the balance on the 11th

Ah cool!

In which case I suspect it's correct....

 

[Bells]

Ah cool!

In which case I suspect it's correct....

Though it would be you'd expect Audi Finance to get it correct, obviously not in the OP's case though.

Still it was nice to see I'd saved £3500 interest on repayments by settling finance early based on the letter they sent me, they also haven't asked for my £2200 deposit contribution back and don't suspect they will so still a win win from my perspective

 

[DrEskimo]

Though it would be you'd expect Audi Finance to get it correct, obviously not in the OP's case though.

Still it was nice to see I'd saved £3500 interest on repayments by settling finance early based on the letter they sent me, they also haven't asked for my £2200 deposit contribution back and don't suspect they will so still a win win from my perspective

True...guess it's worth asking? Can only say no!

Yea nuts how much you pay in interest isn't it! Nah they can't ask for any discounts back, unfortunately for them it doesn't work like that!

Not sure your dealer will be all too happy about it though....not that it should bother you that much in all honesty!

 

[Bells]

True...guess it's worth asking? Can only say no!

Yea nuts how much you pay in interest isn't it! Nah they can't ask for any discounts back, unfortunately for them it doesn't work like that!

Not sure your dealer will be all too happy about it though....not that it should bother you that much in all honesty!

Yeah might ring and just make sure, 5 minute phone call costs nothing after all. But crazy interest like you say when you look at it with your sensible head on, but hey thats the consequence of wanting an Audi and not a Dacia

Not too bothered about the dealership to be honest as luckily I've got 4 to choose from locally, plus my salesman left the week before I picked the car up!

 

[AudiNutta]

So my payments come out on the 28th, what you're saying is if I get a settlement after September 28th.. then sell the car on the 14th October, I won't get my September payment back? But if I paid before the 31st September, I'd get my September payment back?

 

[S32B]

Just out of curiosity, what deposit did u put down on your s3 your getting rid of? If you dont mind me asking!

£1,000 and I'm doing £1.000 on the A5 coupe, I just put down the amount needed to get my monthly figure to what I'm potentially willing to lose on a car each month (£100 pw). I see a car as dead money/luxury, so £1,000 every 3 years to switch to a new one I can live with, @ 3 years they are due tyres, big service, breakdown cover and a MOT so all that is almost £1,000 anyway, plus they are out of warranty!

Not too sure whether I've been stung by this as well after reading your post.

I requested my settlement figure on the 27th July after making my regular monthly payment on the 23rd. Then paid the full balance outstanding on the 11th Aug which cleared before the 23rd Aug and as a consequence didn't get charged again.

I suppose it depends on when the settlement figure lasted from-until, if it was from 1st July-31st July and you paid it on the 30th, you would have got the 23rd's payment back!

When you requested your settlement figure it will give you a date for when that figure is valid too. That's the date you need to pay it by, not the date the payment leaves your bank.

That was the problem with mine and a point I argued, on the figure I received through the post from Audi, it didn't state a date so I took the girl in the showrooms word as being correct when she said it doesn't change until your normal payment date...but that was wrong!!! It should have said on mine valid until 31st Aug, because it then changed on the 1st Sept and not on the 12th as she had said!

So my payments come out on the 28th, what you're saying is if I get a settlement after September 28th.. then sell the car on the 14th October, I won't get my September payment back? But if I paid before the 31st September, I'd get my September payment back?

If you run into Oct they will take the Sept settlement figure minus your anticipated Oct payment from it add the the interest and that will be your new settlement figure. If you then pay that off on the 14th it will be all done and you get nothing back. So as my example by convincing them to accept the Aug settlement figure I got my £381 Aug payment back and saved about £140 on Septembers interest. If they hadn't gone for it then yes the new figure would be less that £381 from Aug but then added on the £140 interest. Basically if we both had identical loans etc and I paid mine off on the 31st Aug and you paid yours off on the 1 Sept, you would have paid £140 for being 1 day later as it rolled into a new month/settlement figure/interest charges.

As everyones may be different, the best thing to do is to make sure you have a date on the settlement figure and not take the person in the showrooms word for it!