Worrying times,,,,

[Andru8]

I ordered a Sportback S3 in Sepang Blue back in December. It's on a pcp @ £280 a month, I put in my BMW 125d as part ex in which I was given £18500.
My problem is I work for Tata Steel in Port Talbot as a mushroom, kept in the dark and filled full of **** ! Apparently there is an announcement in the next few days of a possible 1,000 job losses. As I've been there 27 years things should not be too bad unless they shut they whole place then it's not just me in the *****.

I'm worrying what to do, cancel my order and get my £18500 back or just hope for the best that I avoid the cull. What is the latest you can cancel and get you deposit back?

Cheers, hopefully,,,,

 

[pburv]

Hey sorry to hear that.
I'm in manufacturing and I have noticed over the last 6 months or so things are slowing down big style..
Can't help you out on the cancel date but I would advise that you hold out a little longer and see what happens at work.
Hope things work out for you buddy..

 

[RichardT]

It will depend on when delivery is I suppose. Assume you still have the bmw? In that case you haven't paid that as deposit, it's just quoted on the paperwork.
Best thing you can do is to contact your dealer and have a conversation.
They are not likely to insist on proceeding with the deal if you are likely to not be able to make the payments.

 

[pburv]

It will depend on when delivery is I suppose. Assume you still have the bmw? In that case you haven't paid that as deposit, it's just quoted on the paperwork.
Best thing you can do is to contact your dealer and have a conversation.
They are not likely to insist on proceeding with the deal if you are likely to not be able to make the payments.

Sound advice..

 

[Andru8]

No, I gave them the BMW the following day, I assume they have parted with it now. I think I will have to speak to them as soon as I can especially if the announcement affects me. Fingers crossed it will not. My build date is/was week 6 for delivery 2nd or 3rd week of March.

 

[pburv]

No, I gave them the BMW the following day, I assume they have parted with it now. I think I will have to speak to them as soon as I can especially if the announcement affects me. Fingers crossed it will not. My build date is/was week 6 for delivery 2nd or 3rd week of March.

Can't understand why they took your car so soon?

 

[Andru8]

Can't understand why they took your car so soon?

They took the car straight away to maximize my px price. If I had waited until delivery date then I could have lost approx £1k on it. I bought a little scrapper to run around in until the delivery.

Like you say, I'll hold on for a little while until the announcement is made. I was just wondering when if and when I could cancel the order.

 

[pburv]

They took the car straight away to maximize my px price. If I had waited until delivery date then I could have lost approx £1k on it. I bought a little scrapper to run around in until the delivery.

Like you say, I'll hold on for a little while until the announcement is made. I was just wondering when if and when I could cancel the order.

Yeh I remember now from a previous post..
Hope it's good news for you and fellow workmates.

.

 

[RichardT]

I've never heard of them doing that. They certainly could not hold on to the whole amount, even if they insisted on retaining some deposit in case of a cancellation.
They should have given you the cash to put in your bank, less the deposit on the order, which shouldn't be more than £1K.
If they had over £18K for a month or two, they should give you at least some interest on that (though it wouldn't be much!)
Again - have a conversation. Let us know what transpires.

 

[Thechase]

I see a very worst case as they try and hold you to a another car to the same value as your deposit as opposed to buying the s3. That's still not a great outcome obviously.

2nd preferred for them would be an outcome where you drive away an Audi of some sort and still have some cash.

But I recon you'll get out of it without too much pain.

Good luck with the car and job.

 

[Andru8]

I've never heard of them doing that. They certainly could not hold on to the whole amount, even if they insisted on retaining some deposit in case of a cancellation.
They should have given you the cash to put in your bank, less the deposit on the order, which shouldn't be more than £1K.
If they had over £18K for a month or two, they should give you at least some interest on that (though it wouldn't be much!)
Again - have a conversation. Let us know what transpires.

I didn't think of it that way to be honest. You are right, if they sold my car back in December then they are sitting on my £18500!!

I may just have to call in to see them sometime tomorrow and see what they say. If things do go belly up on the jobs front what would I lose on the deposit side of things? I have read on here that other have cancelled and had all there deposits back, is that the actual case?

 

[Jassyo06]

Go with the flow mate..£280 is not a lot to pay for a S3...LIKE YOURS.....27 YEARS service....good redundancy package...??? sure you will get another job elsewhere...it may not pay as much but it will see you through, chin up

 

[Thechase]

If the going gets tough!

Audi/vag finance are regulated by the financial conduct authority who along with the banks are now forced to have more way more focus on responsible lending. If your getting some BS from a sales guy about not being able to back out make sure you understand cancellation rights on the contract and tell them your going to contact the finance folk to advise of your situation who would have to pull the plug given information you've shared around your ability to pay! No finance no car and no impact to credit score etc and deposit returned

 

[Thechase]

Alternatively I like jassy's way of thinking! And it even came without a gif......

 

[RichardT]

Well I don't think they can take an unreasonable deposit. As far as I can tell on this forum, deposits range from nothing to a grand. Don't think they usually ask for more than that.
This whole thing sounds really wierd, but then you did agree to give them the moneybas a deposit. They should have that money in some sort of escrow account.
I don't think they will make this situation difficult for you. But bottom line is to remember that it's your money, not theirs.

 

[Jassyo06]

Alternatively I like jassy's way of thinking! And it even came without a gif......

Ching...Ching...lol

 

[Thechase]

http://www.howtolaw.co/terminate-a-credit-contract-392214

 

[RichardT]

But has he actually signed a credit agreement - I wouldn't think so - until the new car is available.

I tend to agree with jassy - but it wouldn't be the best use of a reduncancy payout - to in effect buy a car with it. Because there's no dole while you have that much cash.

 

[chrisb72]

£280 a month for an S3 with your spec !?!? I knew there were some good deals out there, but this seems very good. I'd hold out as long as you can. I assume you got such a good deal because you used your BMW (£18500) as the deposit. Hope things work our for you.

 

[HawkeyeS3]

Hmm, I think they should give you your deposit back, however they may consider keeping some back as a "commission" for selling your car so you may need to negotiate. Not saying they will, but if that is the case, then do remember they will have sold it for more than they gave you as a trade-in, so have effectively realised their commission. Possibly they may again claim some as "compensation" for the lost sale, however I think that unlikely as well, what they may suggest is some back now and the rest back once the car you ordered is delivered and sold (to someone else) or the deposit re-taken (so in effect the new "owners" deposit passes through them to you. That is not unfair IMO on their behalf if they say that, and to an extent is standard practice when its too late to cancel an order

Given your circumstances, I'd have a word with the dealership pronto in the first instance to check how the land lies. The sooner you are up front with them the better, and the better your chances of getting the best deal for everyone concerned. However unless they give you the cash back in your account and cancel the order - which is the result you want I assume - then get their offer in writing and go chat with the Citizens Advice Bureau before accepting to check that you have obtained all that is your right.

Trouble with this is that this is a strange deal, however there are rules for everything, it's just a case of finding out what you are entitled to in these circumstances and with these sorts of numbers on the table, that's a little more difficult to do.

Good luck in any case

 

[Simon L]

Surely the assumption here is that they sold the beemer for more than the £18,500 they agreed as deposit on the order so why do they need to take a commission on top? It's not like they're out of pocket financially, just out of a sale.......potentially.

Hope you get a good outcome Andru.

 

[HawkeyeS3]

That's true Simon, but you know how some salesmen work - all I was suggested was a "be aware that this could be the case" rather than "this is what they will have done". Apologies if it came across in the wrong context....

 

[Simon L]

That's true Simon, but you know how some salesmen work - all I was suggested was a "be aware that this could be the case" rather than "this is what they will have done". Apologies if it came across in the wrong context....

Absolutely mate, which is why I didn't quote your post. Just wondered if anyone had factored in the mark-up they most likely already made. I don't really see why they need to keep any further funds at all but knowing what these dealerships are like they'll most likely come up with some mystery 'administration/cancellation' charge!!

 

[Andru8]

£280 a month for an S3 with your spec !?!? I knew there were some good deals out there, but this seems very good. I'd hold out as long as you can. I assume you got such a good deal because you used your BMW (£18500) as the deposit. Hope things work our for you.

I gave my 63 plate BMW 125D as deposit and had a GFV of £11000 in 3 years, so yes I think I have/had a good deal considering the spec I chose.

Thanks for all your advice it is certainly welcome at this uncertain time. I will speak to my dealer in the next few days to see where I stand if the ***** hits the fan as they say. The manager is a good mate of mine for the last 30 years so that should hold me in good stead.

As you all say, at he moment they have at least £18500 of my money in their account, which is in fact owing to me if the news is bad in the next few days.

 

[Beery]

Hmm - to be honest anything uncertain about employment and I wouldn't be taking on additional debt of any kind...

 

[Thechase]

i think there is zero chance of them seeking a commission on the new sale. It would be in enforceable!

Far more interesting is what's happened to the £18.5k. There must be a credit agreement or they'd have no grounds for holding the cash? You can't hold cash on the promise of a later sale.

 

[steeve]

I've often let them have my car within a few days of ordering a new vehicle, as you say it maximises the trade in value. Being retired I can manage without a car if I have to.

However I have always had the dealer give me the value of the car, that's your money and not theirs, the deposit is a separate item. If you think about it they are sitting on all that cash and getting some interest (little I know). You should ask for the money and not leave it with them, it isn't theirs, they bought the car.

Sorry to hear about the job situation. I suppose we'll see a bunch of issues with people working in North Sea Oil too, S3 and RS3's a popular choice.

 

[Andru8]

Here is a copy of the invoice, it clearly states £18500 as a px price. So what you are all saying I would be well within my rights to go back and get at least £18000 cash back while still leaving a £500 deposit.

 

[SW14NY'S]

Minus any outstanding finance Audi had to pay to settle your existing agreement.

 

[Andru8]

Minus any outstanding finance Audi had to pay to settle your existing agreement.

There was no outstanding finance on the BMW, it was paid for in cash.

 

[DrEskimo]

I think he's referring to the £11k GFV on your BMW. Your deposit amounts to £7,500, not £18,500.

When you part exchanged your BMW, you essentially sold it to them for £18,500 with the agreement that they would also pay off the £11k outstanding finance. You should of been given a cheque for £7,500 and paid £500 as a deposit. The remaining £7,000 deposit would then be paid on collection of the S3.

Thats what I understand of the situation anyway....correct me if I am wrong anywhere!

 

[Andru8]

My understanding is the car was taken in as a £18500 deposit, then pay the monthlies for 36 months then after that I have to find the GVF of £11000 to keep the car. This was going to achieved by saving approx £250 a month plus the £2000 cashback on the car at collection.

 

[DrEskimo]

My understanding is the car was taken in as a £18500 deposit, then pay the monthlies for 36 months then after that I have to find the GVF of £11000 to keep the car. This was going to achieved by saving approx £250 a month plus the £2000 cashback on the car at collection.

Ah OK I'm with you. Sorry the note on the bottom left of your invoice about the BMW says 'Outstanding Finance - Yes', so confused me!

In which case, I am inclined to agree with the other posts above. You have effectively sold Audi your car. By doing it now, rather than at collection in March, you have enabled yourself to get a slightly better price.

By all means pose the question, as you still don't have to sign the agreement for the S3 when its delivered, but I would imagine it would be similar to a private sale? I can't imagine if someone bought my car and I changed my mind, they would give it back for a refund of their money...?

Hope it works out for you in the end whatever the outcome mate.

 

[Andru8]

Cheers for that, it's all dependent what the Indians want to do with Port Talbot steel works, I'm sure I'll know in the next few days if the work rumors are correct.

 

[Kugaman1]

Why does everyone assume they sold the BMW for more than the trade in value?
They maybe did! But on the other hand, they may have just punted it on at the same money as they gave because they were making their profits on the Audi or on a manufacturers volume registration bonus?

I only say that as when I bought my S3, they gave me £30k as trade in on my Evoque. However, as they dont sell anything but Audi, they put it out to auction.
It sold for £27400, minus commission, so they lost a lot on it!
I managed an 8% discount on the S3 so it wasnt a great deal for them.

 

[DrEskimo]

Cheers for that, it's all dependent what the Indians want to do with Port Talbot steel works, I'm sure I'll know in the next few days if the work rumors are correct.

Fingers crossed...obviously the worst case scenario is you get the £18.5k they bought the BMW for...Why you don't have at least £17.5k in your pocket right now is a mystery to me..as others have said, most I've seen for a deposit to place an order is £1k!

 

[S32B]

Sorry to hear that you may lose your job, but if I were in your shoes I'd be thinking:

1) I'll need a reliable car in or out of work.
2) Long service = a decent redundancy package (hopefully) pay the entire car off.
3) Worse case I have to claim some sort of benefits from the government, the more money I have in the bank the less likely that I'll qualify for anything! or they will tell me to come back when I'm down to my last £X.

Remember this country rewards people that have never worked, saved for a rainy day and can't be bothered to work, those of us that have worked all our lives and then hit hard times and need a bit of help get told to jog on and live off our savings!

Hope things work out for you

 

[Andru8]

Can I throw in another thought?

If I am not affected by the latest round of job losses then how would you consider this if you were in my shoes. I know there are a few brighter minds regarding money than mine works.

I can afford to pay the balance of the car by using approx 50% of my savings. Would I be better off by settling the full amount within a week or so of collection then saving the monthly payment PLUS the extra £250 ( around £530 ) I was going to save to pay off the GFV or just carry on with the monthlies and extra savings?

I hope I have explained that well enough.

Just your personal opinions not looking for financial advice, lol

 

[pburv]

Can I throw in another thought?

If I am not affected by the latest round of job losses then how would you consider this if you were in my shoes. I know there are a few brighter minds regarding money than mine works.

I can afford to pay the balance of the car by using approx 50% of my savings. Would I be better off by settling the full amount within a week or so of collection then saving the monthly payment PLUS the extra £250 ( around £530 ) I was going to save to pay off the GFV or just carry on with the monthlies and extra savings?

I hope I have explained that well enough.

Just your personal opinions not looking for financial advice, lol

1:Way up the costs of handing back the car if things go tits up job wise i.e. what you owe on the finance versus what they value your car at.
2:If you owe the car outright and you lose your job what will you sell the car at (how much depreciation)
It's a tough one either way you are going to take a hit financially If you buy outright or if you hand the car back during your pcp contract..
As you have said above I hope I've explained it clearly..

 

[DrEskimo]

Assuming you are all OK on the job front and decide to keep the S3, from a quick glance it looks like the discount you got more or less cancels out the interest you are paying. Given how low the interest rate is, it makes sense to me to keep the savings in your bank and put it towards something like home improvements, which would increase your savings, rather than piling it all into a car, which will depreciate like a stone?

Just my 2ps worth...