Scirocco Finance

[dftedesco]

Hi guys,

I just wanted to get some advice regarding the finance side of my Scirocco purchase..

I ordered my car back in November and agreed a March 2009 delivery (as I'm stuck with my current car til then). I've arranged to buy the car on one of those leasing arrangements, where at the end of the lease u have the option of buying the car outright or returning it.

I got the finance side approved through the dealer at the time I ordered it, but was told that my monthly rental could increase due to interest rate fluctuations between then and the date of collection. I asked if this meant that I could benefit if interest rates went down (which they have) and they said yes (nothing in writing though).

I'm now in a position where I've agreed (although not signed) to the initial finance arrangement but, at current market rates, would be paying around £35 a month less. What do u think the chances are that I can persuade the dealer to offer me an improved rate? Would it be worth threatening to pull out of the deal (my car is built and ready to collect)? I know I would lose my deposit but I'm presuming they are quite desparate to get as many sales as they can at the moment given the economic climate.

Any thoughts would be greatly appreciated! Thanks guys.

[Bagwafu]

Firstly, to the forum.

I would haggle for a lower rate, or get pcp type leasing from a third party company at the newer rates. I doubt the showrooms are overflowing with people looking to buy cars at the moment, so I think you would have a good chance of a successful outcome.

[dftedesco]

Firstly, to the forum.

I would haggle for a lower rate, or get pcp type leasing from a third party company at the newer rates. I doubt the showrooms are overflowing with people looking to buy cars at the moment, so I think you would have a good chance of a successful outcome.

Thanks! Thats what I figured too. I'm guessing they'd rather offer me a better rate than lose the sale altogether.

[gossa]

Tell them you have arranged your own finance instead but you'll still go with them if they offer the most recent rates. That is like them not passing on the 15% vat rate, rates have come down, your payments should.

Shop around for teh best rate you can find and just tell them to match it.......

[jonallen628]

dftedesco what APR is the VW finance?

[dftedesco]

Just got back from the dealer... managed to negotiate it so I'll now be paying £50 per month less

Jonallen, thats based on 8.9% APR. I've been looking around and this seems quite competitive... because they guarantee u the residual value at the end of the contract, APR's for PCP financing arrangements are higher than for HP.

Also he agreed that if the base rate falls further between now and collection it'll be passed on, but if interests rates go up (which, granted, is very unlikely!) my current rate is guaranteed.

Thanks for the advice guys... now just counting down the weeks til i collect!!!

[jonallen628]

[quote="dftedesco"] Jonallen, thats based on 8.9% APR. I've been looking around and this seems quite competitive... because they guarantee u the residual value at the end of the contract, APR's for PCP financing arrangements are higher than for HP. [quote]

8.9 % APR is a good rate from the dealer, but i got 6.8 % on a 4yr PCP through a broker. If you are interested i will PM you and anybody else the details. You will have to pay a broker fee up front to get the rate (usually 1.75% but try to negotiate on this) even when you add this into the equation it still worked out the best deal for me.

The guy is called Dan, he was very helpful with just quotes initially. When i decided to nominate them as my finance source he helped me every step of the way and ensured the funds were in place for me to collect my car despite me not allowing them a lot of time to achieve this. They are a big broker of cars / finance, the finance is supplied by a major banking outfit who you will deal with directly towards the latter part of procedings. The rate availible through the broker is not available direct from the bank.

[dftedesco]

Jonallen, thats based on 8.9% APR. I've been looking around and this seems quite competitive... because they guarantee u the residual value at the end of the contract, APR's for PCP financing arrangements are higher than for HP.

8.9 % APR is a good rate from the dealer, but i got 6.8 % on a 4yr PCP through a broker. If you are interested i will PM you and anybody else the details. You will have to pay a broker fee up front to get the rate (usually 1.75% but negotiate this down as i did) but even when you add this into the equation it still works out very cheap.

That would be great if u could send me the details. I still haven't signed up to anything so there's still scope to haggle some more!

[sir_rocco]

Is that finance deal based on the full list price though cos you should get a fair discount now which may answer why they have knocked a lump off your monthly premium.

[dftedesco]

Is that finance deal based on the full list price though cos you should get a fair discount now which may answer why they have knocked a lump off your monthly premium.

Yeah its based on OTR price of £20,500. Could probably have got a cheaper price if I'd ordered later but I was too impatient!! Nevermind - just gotta try and get the best finance deal now, not much I can do about the OTR price as I've signed up for the order.