Finance: Right to withdraw

[sofaspud]

I have done this last month. Took the finance but after 8 days decided to pay it off. Rang customer services and said I wanted to withdraw. They did not ask why and gave me a quote which was effectively for 8 days interest about (£33). Paid the original balance and the 8 days interest off and got a letter from them to confirm finance was cleared and title had passed to me.

Was no hassle and did not affect the sale in any way.

[retired99]

Well, we did and I still don't see how it could affect the price. We were advised to do so by a salesperson, presumably to get the sale.

The 14 day cooling off is law I believe. "Right to withdraw" <-- which I have just noticed is the thread title.

I'm not saying you're wrong. I was trying to draw a distinction between withdrawing from the agreement before it came into force and terminating it after it was in force.

Maybe this is a distinction without a difference, I don't know. I was putting forward a point that might make a difference and looking for clarification.

[Wuffles]

I'm not saying you're wrong. I was trying to draw a distinction between withdrawing from the agreement before it came into force and terminating it after it was in force.

Maybe this is a distinction without a difference, I don't know. I was putting forward a point that might make a difference and looking for clarification.

I can tell you the difference too if you like. One nullifies the contract completely, and the other means we would right now quite possibly have had our rejection of the vehicle upheld.

Either way though, from what I understand, you purchased the vehicle from/through the finance company and not directly from Audi (although they are all the same thing). So if you have problems, I mean real problems, you're forced to go to VWFS.

[JohnEx]

I have just done this. As Sofaspud wrote, all you have to do is say that you want to withdraw from the agreement - no questions were asked. You get a payment figure and I was told that I had 30 days (I think) to pay it. I paid off over the phone using debit cards and that was it. It cost me something like £30 which was the daily interest that the finance was active. A few days later I had the letter saying that Audi Finance had no further interest in my car.

This was a withdrawal within the 14 day cooling off period not early settlement. I had checked previously with Audi Finance and was told that neither they nor the dealer had any comeback to claim back the incentive discount. Not sure if there is any comeback on the dealer, I did hear that Audi Finance claim the discount back from the dealer if the agreement ends within 3 months although I couldn't back that up. My dealer was keen for me to stay in for 3 months so there could be something in the 3 month thing. I almost feel guilty having done it but hey, a few days interest versus 3 months worth?

[johnsimcox]

The standard VWFS contract allows you to request a settlement figure at anytime during its period of operation without incurring any penalties for early repayment. My previous C6 was on a four year deal, my dealer persuaded me to swop to a the C7 after three years and I simply replaced one payment with the other. In fact because of the timing of the transaction I actually paid one instalment too many on the old car compared to the settlement figure that had been used so was sent a cheque within a couple of days by VWFS.

[retired99]

I have just done this. As Sofaspud wrote, all you have to do is say that you want to withdraw from the agreement - no questions were asked. You get a payment figure and I was told that I had 30 days (I think) to pay it. I paid off over the phone using debit cards and that was it. It cost me something like £30 which was the daily interest that the finance was active. A few days later I had the letter saying that Audi Finance had no further interest in my car.

This was a withdrawal within the 14 day cooling off period not early settlement. I had checked previously with Audi Finance and was told that neither they nor the dealer had any comeback to claim back the incentive discount. Not sure if there is any comeback on the dealer, I did hear that Audi Finance claim the discount back from the dealer if the agreement ends within 3 months although I couldn't back that up. My dealer was keen for me to stay in for 3 months so there could be something in the 3 month thing. I almost feel guilty having done it but hey, a few days interest versus 3 months worth?

I did wonder if the dealer suffers clawback if the deal doesn't run for a given period. However, at £100+ a month interest I'm afraid I'm out of the finance deal as fast as possible.

[Whippy53]

Customers whose finance Agreements are covered by the Consumer Credit
Directive have the right of withdrawal from their finance Agreement. They
have14 days, starting from the day after they sign their finance Agreement to
withdraw from the finance Agreement (but not the vehicle purchase). They
simply inform their finance provider, who is entitled to charge a daily rate of
interest as detailed on the finance Agreement until such time as the loan
advanced has been settled. The customer must do this without undue delay
and within 30 days of giving their notice of withdrawal.

[Passatier3]

The standard VWFS contract allows you to request a settlement figure at anytime during its period of operation without incurring any penalties for early repayment. My previous C6 was on a four year deal, my dealer persuaded me to swop to a the C7 after three years and I simply replaced one payment with the other. In fact because of the timing of the transaction I actually paid one instalment too many on the old car compared to the settlement figure that had been used so was sent a cheque within a couple of days by VWFS.

I guess this makes the VWFS contract pretty good when compared with other agreements that do penalise you for early payment with the main reason being that punters are more likely to change their cars which is what it it all about.

With regards to those terminating their agreements early having taken advantage of the discount I doubt that VWFS/VAG are that fussed in the scheme of things as most customers like me wouldn't have the cash available to pay it off and so would let the agreement run until completion or at least until they change their car.

[robbyg]

I took the finance reiscount last year. Paid 50% deposit.
Cancelled when the paperwork came through. Had to pay in 3 lumps due to bank tranfer limits.

Easy. Discount 3k for 1 hour effort.

[belly buster]

Just to add a "me too". I paid 50% down, 50% on 4 year finance through Audi Finance (actually VW Financial Services).

After a week I rang them up, paid off the balance (plus £3.42 per day) no questions asked.

Assuming you have the cash, for an hour's work you can save a couple of grand.