Audi Finance

**nealeb** · 01-04-2012,09:50 PM

I was given a copy of the finance agreement when I picked up the car and that talked about the "right to withdraw" or some such. I think there is a 14d cooling-off period and in my case, I was charged something like £4.50 a day interest. I was given a settlement figure over the phone, confirmed by letter a couple of days later. They then say that you have 7d to pay, but there is a strong implication that in practice this is 30d (I don't have the letter in front of me at the moment). There doesn't appear to be a catch, and it was all pointed out to me very clearly by the Audi salesman. As someone said, a strange business model but I guess that they hope that not too many people realise.

**burningoil** · 10-04-2012,11:39 AM

Yes, phoned in yesterday. Got the settlement figure (p/work should be here in couple days), there is a wee bit of interest to pay. I can get a 6.0 APR loan to pay the balance of over 36months. One the amount I am financing it is £90 per month cheaper with m&S bank loan. So, £3240 cheaper over 3 years and I got the benefit of my p/x "being worth" £5,000 more by taking out the finance. Keep looking for a catch but there does not seem to be one.

**robbyg** · 23-05-2012,04:35 PM

just signed my papers today. wording implies that if you terminate agreement they can chagre the whole interest...

tim: you paid yours off within the 14 day cooling off period?

Nealab and burningoil, when and how did you pay yours off, before or after the first direct debit?

**Timothy Nathan** · 23-05-2012,05:14 PM

I paid at the first opportunity.

**TDiTom** · 23-05-2012,06:13 PM

Am I missing something here? What was the exact deal you agreed to on finance with audi, and how did the final amount to pay back on finance, compare with the cash price and settlement figures you were given?

Have you paid FULL or PARTIAL settlements? One is good, the other leaves a balance on your credit file but no further action may be taken to recover it.

**Timothy Nathan** · 23-05-2012,06:48 PM

I was given a substantial number of thousands off for taking finance.

Paying it off in its entirety cost a very small number of hundreds.

It was a no brainer.

**robbyg** · 23-05-2012,08:03 PM

have to finance about 50% of the car and you get between £3 and £4k off cant remember actuall figure.
Salesman says the interest is worked out daily so if you pay off in full after say 2 months, you only pay interest for those 2 months.
seems too good to be true!

**Timothy Nathan** · 24-05-2012,12:41 AM

It seemed like the elusive free lunch at the time, and nothing has happened to change that.

I guess it's just a way to give you a discount without giving you a discount, like Volvo's 17% off if you own an old car.

**robbyg** · 24-05-2012,09:04 AM

have just had a good read through the small print, i see how they make their money - they hold the majority of balance back so at the end of 3 years you still owe alot, and have paid the 6.8%apr interest on it for the duration.
for me, financed sum is £27.6k. monthly payment for 3 years is £402, then there is a "final payment2 of £17.8k!!! so this back end loading they can make 6.8% on all the way through!

i will be following tims guidance in the opening post i think!

**mrankin** · 06-09-2012,07:37 PM

I'm keen to understand this too. I took the finance to get the contribution from Audi finance as specifically asked the dealership ahead of time what the penalty was to pay in full before the normal period. They claim 1 months interest only for ealry termination.

they also told me that if I pay the full ammount off BEFORE the third payment is made then Audi Finance recoup the additional discount yopu get for taking out the finance from the dealership. So they "asked" me nicley not to do this. Am going to check over the papers now with a toothcomb but would appreciate others thoughts/experiences arround this and whether the dealer is just bs'ing me...

Mark