Audi Finance

**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.

**a8toa6convert** · 24-05-2012,07:23 AM

Consumer credit legislation stops VWFS, or any other car finance house, from stinging you for lots of front end interest and penalties. You just have to pay the few £hundred in admin fees plus accrued daily interest. It was even worth it for me buying an ex-demo car, where the incentive is just £500 plus 2 years' free servicing.

jbanfie · 24-05-2012,07:42 AM

I have some experience of this, back in March I bought a Mini Countryman for the wife and gained an 1150 additional discount by taking out the finance - the dealer - an idiot - told me I could early repay after 3 months - Lexus dealer told me similar stories over a new one of those quoting you can repay early after 6 months. All of that is rubbish.

Quoting from my BMW Financial Services Hire Purchase Agreement regulated by the Consumer Credit Act 1974 - there are three things you can do

Right of Withdrawal - this is what you should do!

"You have the right to withdraw from the credit agreement under Section 66A of the Consumer Credit Act 1974 by giving us written or oral notice of the withdrawal before the end of the period of 14 calendar days beginning with the day after the relevant day. Blah Blah Blah
a) You must given us notice of withdrawal by writing to ....., phone or fax to .... You do not need to give us any reason.
b) If you withdraw from this agreement after the credit has been provided, we will keep any advance payment you have paid and you must pay £13,937.40 (the amount of credit) plus the interest at £2.44 per day which has accrued from the date the credit was provided."

Early Repayment

"You have the right to repay all or part of the credit early at any time:
a) Write to us etc etc
b) To repay all the credit early, you must replay all the amounts payable by you to us under this agreement, including the Purchase Fee, less any rebate of charges allowable by law. You will then become the owner of the Vehicle" I guess that mean you pay the interest to date!!!

Termination

You can terminate and give the car back.

My Audi Dealer said you could get £4500 off by using the finance, some came from the dealership some from Audi Finance - as my discount was bigger than this he did not even try and sell me finance.

It's all a fudge to get cars sold, you really can get the "finance discount" and Withdraw within 14 days no questions asked.

As I have Lloydstsb Premier, I can get a credit report anytime, the "Loan" from BMW appeared very quickly and then about six weeks later became "Settled" any my credit score went down by about 10!!! I'm not entirely sure the loans industry likes people paying off really early as they won't make any money!

I think I had credit on the Mini for about 12 days cost me about £30 - lush

**robbyg** · 24-05-2012,08:57 AM

looks like i should pay it off within the 2 weeks then i think!

dealer advised me to wait at least 1 month and make the first payment.

**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!

**Timothy Nathan** · 24-05-2012,09:09 AM

I tried to pay off earlier, but they said that it hadn't been set up and I had to wait for a letter with an agreement number.

I thought it churlish to try to avoid paying a small fee, when I had gained a massive discount, so just went along with it.

I too am with LloydsTSB Premier but know nothing of this credit report. Do I get it via online banking or do I have to call the 0845 number? Is it free?

**a8toa6convert** · 24-05-2012,09:25 AM

Originally Posted by jbanfie

Right of Withdrawal - this is what you should do!

If you "withdraw" rather than make full "early repayment", then you are electing to be put back in the same position as if you hadn't entered into the finance agreement at all, and so surely VWFS can claw back any incentives given ? That's what my dealer told me, and is why I am planning to repay early rather than withdraw.

**Timothy Nathan** · 24-05-2012,09:27 AM

Originally Posted by a8toa6convert

If you "withdraw" rather than make full "early repayment", then you are electing to be put back in the same position as if you hadn't entered into the finance agreement at all, and so surely VWFS can claw back any incentives given ? That's what my dealer told me, and is why I am planning to repay early rather than withdraw.

That makes total sense and it is also the "right" thing to do, to my mind.