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Hi all,

I have started this post as I can find no mention of it on this forum despite it being common knowledge on most other Audi model forums.

Once upon a time anyone walking into a dealership and being able to pay cash for their new car got the best treatment and the best discounts. Times have changed. Finance is where the profit is, for the dealer, and also for you if you are savvy.

This will benefit those who are in a position to pay off the vehicle in full but would also work for those who can negotiate more favourable finance terms elsewhere and use that to pay off the Audi finance.

This is how it works best.

Source a dealer, either through local or via a broker, and enquire about a Q5. Inform them you haven't decided how you intend to pay for it yet.

Negotiate the best discount you can on the basis of paying cash. Once you have this figure the finance option is your "card up your sleeve"

Once the discounted figure is agreed you place your order.

Before collection, you notify the dealer that you now want to take advantage of the current finance offer.

At the moment Audi are offering a £1000 contribution towards any Q5 on any car ordered before 31st March 2013 and delivered before 30th June 2013, if you take their finance (Actually it's VW Financial Services).

This contribution is made up of £500 from Audi finance and £500 from the dealer (Some dealers may not give you their £500 as they will argue it was built into the discount originally offered, negotiate hard for at least some of their part as the dealer will make more than they were expecting if you now take finance)

You then have this £1000 deducted from the price you have already negotiated. (You've have just saved yourself a further £1000 so hit the options list again!)

When the vehicle is ready for collection and only after you have checked it and are happy with it do you sign the finance agreement. This is where time limits kick in!

Under the Consumer Credit Directive you have 14 days to withdraw from the agreement, starting with the day after it was signed. You now have to be able to pay the vehicle off in full. You have 30 days to do this.

Contact Audi financial services and inform them you wish to withdraw from the finance agreement. You do not have to give a reason and they will not ask for one. You will be charged a nominal daily interest fee of around £3 per day during this 14 day period. You have 30 days to settle the agreement once you have notified them of your intention to withdraw.

Once you have notified them of your intention to withdraw there is no longer a legal finance agreement in existence. Neither Audi or the dealership can claw back the £1000 as it formed part of the agreed purchase price and you have paid that off. You do not have to pay the arrangement fee either. (in simple terms the agreement does not come into being until 15 days after you sign it)

For those who do not have the funds to pay off in full you could make this work for you by having finance on better terms either in place or arranged during the 14 day period and simply use that to pay off the outstanding Audi finance.

This cash incentive is part of an Audi business model which must work for them,or they wouldn't do it.

Withdrawing from the agreement and keeping the discount is perfectly legal and the dealership is legally obliged to make you aware of this as part of the finance agreement. If you raise the issue of withdrawing some dealers will skirt round this by advising you to pay three or four instalments before asking for an early settlement figure. They do this simply to ensure they get their commission from Audi finance, which they do not get if you withdraw within 14 days. It is best to understand this and not discuss withdrawing.

I have highlighted certain key points and time limits:-

It is important that you understand the difference between withdrawing,which can only be done within 14 days, and asking to settle the agreement early which can be done at any time but will incur higher interest charges and also attract the Finance agreement fee.

All of the above is of course dependent upon the finance offers available at the time and those relevant to you. Some A6 owners received £5,000 contributions!!!

Below is taken from VW Financial Services website.

Hope this helps.


This new Consumer Credit Directive legislation (CCD) aims to guarantee high levels of consumer protection and is aimed to join together Law, Regulation and Administrative processes for consumer credit for customers.

CCD is designed to establish common rules on consumer credit across the United Kingdom (UK) and also Europe wide (EU).
All customers who fall within the new CCD area, have a period of fourteen calendar days to exercise a right of withdrawal from a credit agreement without giving any reason and have the right to early repayment of the finance agreement.

Customers whose finance Agreements are covered by the Consumer Credit Directive have the right of withdraw from their finance Agreement. They have 14 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.

Right of Withdrawal
This is only applicable to regulated purchase products (Hire Purchase, Solutions (Personal Contract Plan) and Lease Purchase) up to and including an amount financed of £60,260, governed by the Consumer Credit Directive. This applies to Agreements whether signed at the retailer's premises or elsewhere.
Please Note: The Right of Withdrawal does not apply to refinance Agreements.

 

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Thanks for the explanation. I shall see if I can work a deal as you have suggested.
 

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Hmmm very interesting!
 

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Hi all,

I have started this post as I can find no mention of it on this forum despite it being common knowledge on most other Audi model forums.

Once upon a time anyone walking into a dealership and being able to pay cash for their new car got the best treatment and the best discounts. Times have changed. Finance is where the profit is, for the dealer, and also for you if you are savvy.

This will benefit those who are in a position to pay off the vehicle in full but would also work for those who can negotiate more favourable finance terms elsewhere and use that to pay off the Audi finance.

This is how it works best.

Source a dealer, either through local or via a broker, and enquire about a Q5. Inform them you haven't decided how you intend to pay for it yet.

Negotiate the best discount you can on the basis of paying cash. Once you have this figure the finance option is your "card up your sleeve"

Once the discounted figure is agreed you place your order.

Before collection, you notify the dealer that you now want to take advantage of the current finance offer.

At the moment Audi are offering a £1000 contribution towards any Q5 on any car ordered before 31st March 2013 and delivered before 30th June 2013, if you take their finance (Actually it's VW Financial Services).

This contribution is made up of £500 from Audi finance and £500 from the dealer (Some dealers may not give you their £500 as they will argue it was built into the discount originally offered, negotiate hard for at least some of their part as the dealer will make more than they were expecting if you now take finance)

You then have this £1000 deducted from the price you have already negotiated. (You've have just saved yourself a further £1000 so hit the options list again!)

When the vehicle is ready for collection and only after you have checked it and are happy with it do you sign the finance agreement. This is where time limits kick in!

Under the Consumer Credit Directive you have 14 days to withdraw from the agreement, starting with the day after it was signed. You now have to be able to pay the vehicle off in full. You have 30 days to do this.

Contact Audi financial services and inform them you wish to withdraw from the finance agreement. You do not have to give a reason and they will not ask for one. You will be charged a nominal daily interest fee of around £3 per day during this 14 day period. You have 30 days to settle the agreement once you have notified them of your intention to withdraw.

Once you have notified them of your intention to withdraw there is no longer a legal finance agreement in existence. Neither Audi or the dealership can claw back the £1000 as it formed part of the agreed purchase price and you have paid that off. You do not have to pay the arrangement fee either. (in simple terms the agreement does not come into being until 15 days after you sign it)

For those who do not have the funds to pay off in full you could make this work for you by having finance on better terms either in place or arranged during the 14 day period and simply use that to pay off the outstanding Audi finance.

This cash incentive is part of an Audi business model which must work for them,or they wouldn't do it.

Withdrawing from the agreement and keeping the discount is perfectly legal and the dealership is legally obliged to make you aware of this as part of the finance agreement. If you raise the issue of withdrawing some dealers will skirt round this by advising you to pay three or four instalments before asking for an early settlement figure. They do this simply to ensure they get their commission from Audi finance, which they do not get if you withdraw within 14 days. It is best to understand this and not discuss withdrawing.

I have highlighted certain key points and time limits:-

It is important that you understand the difference between withdrawing,which can only be done within 14 days, and asking to settle the agreement early which can be done at any time but will incur higher interest charges and also attract the Finance agreement fee.

All of the above is of course dependent upon the finance offers available at the time and those relevant to you. Some A6 owners received £5,000 contributions!!!

Below is taken from VW Financial Services website.

Hope this helps.

This new Consumer Credit Directive legislation (CCD) aims to guarantee high levels of consumer protection and is aimed to join together Law, Regulation and Administrative processes for consumer credit for customers.

CCD is designed to establish common rules on consumer credit across the United Kingdom (UK) and also Europe wide (EU).
All customers who fall within the new CCD area, have a period of fourteen calendar days to exercise a right of withdrawal from a credit agreement without giving any reason and have the right to early repayment of the finance agreement.

Customers whose finance Agreements are covered by the Consumer Credit Directive have the right of withdraw from their finance Agreement. They have 14 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.

Right of Withdrawal
This is only applicable to regulated purchase products (Hire Purchase, Solutions (Personal Contract Plan) and Lease Purchase) up to and including an amount financed of £60,260, governed by the Consumer Credit Directive. This applies to Agreements whether signed at the retailer's premises or elsewhere.
Please Note: The Right of Withdrawal does not apply to refinance Agreements.
I wonder what this would do to one's relationship with the dealer, in terms of future transactions


ZED
 

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I wonder what this would do to one's relationship with the dealer, in terms of future transactions


ZED
don't think they would be doing you any favours in the future, and i would think that would be across the whole dealership including service dept! Could always order the car from a dealer miles away that you never intended using again!
 

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But the dealer wont be your point of contact would it VW financial services would be so one does wonder if they would be informed as you have already paid in full in their eyes?
 

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Guys,

VAG are one of the most profitable companies in the world. They decide what finance terms they will offer, including incentives, and are fully aware of both theirs and the consumers legal rights.

If this type of incentive was not hugely profitable they would simply not offer it. For every customer that pays off the finance early there must be tenfold who do not.

Do you honestly think a dealer is going to treat you any differently if you paid your finance off early? Are they going to refuse the profit they make from you on servicing and selling you a car in the future?. I think not.

If I could walk into my local dealer and be offered 10% discount and the best finance terms available on the market without having to shop around then I would probably have a different view. Unfortunately I can't and had to get my car from a dealership 80 miles away to get the best deal. It is the game most of us have to play and if playing within the rules of the game is financially better for me then I am happy to do so.

I fully accept some may view their relationship with their dealer as of the highest importance. If they are happy with that and feel they are obligated to them that is their choice.

All I am hoping to do is make people aware of the fact that they can save some of their hard earned money. They will probably spend it on options so VAG get it anyway.

I am willing to bet most people have banked with the same bank for many years but don't have a mortgage with them. Same with car insurance, credit cards, energy supplier etc, etc. You shop around and play the game to your advantage so why not do it when buying a car.?

I didn't set the rules, VAG did.
 

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It might be like DFS, free finance if you pay off the balance within the year. I wonder how many intend to do that and forget / find they do not have the cash when 12 months comes round.
 

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Discussion Starter · #9 ·
Missile

Here you go.
 

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Many Thanks


I intend to give it a try. I will report back in due course if I succeed or crash and burn.
 

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No offers on Q5s (model makes no different and yes its just a trim regardless of what some say.) so its unlikely to yield any results.
 

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So, My local best friend ass smoke blowing dealer came back to me on this.

You can indeed do this, you will get costs and these are stated in the T&C, those cost are the £125 doc fee, the £60 option to buy fee and you will get charged interest on the loan unto the point of cancelation.

Currently no offers on the Q cars, but big numbers on offer for some of the other models.
 

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Discussion Starter · #14 ·
Snow Man,

What you have been told is not correct. Trust me, I did it!

There is no document fee payable and there is no option to buy fee either.

This is because once you cancel within the legal time period there is no longer a finance agreement in existence Those charges are only applicable to a legally existing agreement, (which you no longer have).

There is a small fee relating to the daily interest charge which is around £3 per day if memory serves me right. This is set by law.

This is all irrelevant if Audi do not have any financial offers on the Q5 when you order it. However if they introduce one before you collect it may become relevant as per their terms and conditions.
 
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