# Audi solutions PCP right of withdrawl



## neil100 (Feb 12, 2014)

Hi,I have just taken delivery of a new TDi TT and was talked into buying it using a PCP in order to get a dealer "incentive" of £2k off the car.

I have got the funds to pay off the car in full and was wondering if anyone has tried using the "14 day right of withdrawl" to fully pay off the (PCP)finance balance?, if so did Audi finance or the dealer try to claw back the incentive which is shown on my paperwork as part of the advance payment (deposit) and is not itemised as an incentive.

This seems an excellent way of getting an even better discount on the car if it works.


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## Lrihk (Jan 13, 2014)

I did the same and it works even though when some people doubted me.. I just got charged £20 odd interest for the 7days I was on the finance plan on top of what I had to pay with the discount included.

viewtopic.php?f=29&t=523258 (scroll to the end for T&C).


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## DD1988 (Feb 6, 2014)

I did some work at a firm the other day and the finance manager did exactly this and she said she kept the discount received. She also mentioned that one dealer she visited was very pro doing this, but another didn't seem too keen on the idea.

Not personally read the t&c's fully, but I can't imagine there not being a specific term relating to this, then again, I haven't heard any instances of this being exercised.


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## ZephyR2 (Feb 20, 2013)

I waited 3 months in to the PCP (money tied up in fixed term deals) and then paid it all off and kept the £3500 contribution from Audi. All this was discussed and explained at the dealers when I was looking to buy.


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## Lrihk (Jan 13, 2014)

Once you signed the papers and picked your car up, you need to *"withdraw"* from the finance plan by phoning Audi finance up. You will then have 30days to pay it off, but I paid it off straight away.

The important thing is to withdraw within 14days and not after, but make sure you say you withdrawing and not cancelling/ want to settle the finance plan.


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## Shug750S (Feb 6, 2012)

Not sure on Audi, but we did the same with my daughters new Ford, got the loan to get the extra £1,500 discount, then after 30 days she called them and paid it off on her debit card. Think it was about £80 admin charge so well worth it.

Dealer was very helpful, he suggested we finance rather than pay cash to get the extra discount, and even marked the credit agreement up to show the number to call to pay off after 30 days.


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## TTB42OLD (Mar 4, 2013)

I phoned Audi finance to confirm that there were no clauses about settling the pcp within 14 days & was also sceptical about not being asked for the dealer "contribution" back, as the dealer clearly stated that I had to wait 6 months which was nothing short of a blatant lie. Anyway, you are perfectly within your rights to cancel/clear the pcp and will not be asked to pay any of the contribution back. Amazing eh, even Audi dealers are prepared to bend the truth. :?


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## neil100 (Feb 12, 2014)

Thanks Guys,

I will be on the phone first thing Monday morning and get it sorted :lol:


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## Lrihk (Jan 13, 2014)

Yeah, dealers do lie about saying you have to keep the plan for at least 30days or even 3months etc.. Anything longer than 14days so you are out of your withdrawal period and they can start rinsing you off your interests..

Also, if you have any service plans free etc you still keep them! 

Don't phone the dealer, but phone Audi Finance instead.


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## missile (Jul 18, 2011)

My dealer said I would have to repay the Audi contribution to the finance if I cancelled finance package


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## Lrihk (Jan 13, 2014)

missile said:


> My dealer said I would have to repay the Audi contribution to the finance if I cancelled finance package


Dealers talking bull and don't even mention about cancelling it to them. The Audi Finance is a different department which you deal with over the phone.

They do that to scare you into not cancelling it so they can make money from your interests.


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## ZephyR2 (Feb 20, 2013)

I settled the agreement after 3 months, obviously paying some interest in that time, but other than that I'm not sure what the difference is between paying it off early and cancelling within 14 days. They didn't charge me an admin fee as far as I can tell.


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## Lrihk (Jan 13, 2014)

ZephyR2 said:


> I settled the agreement after 3 months, obviously paying some interest in that time, but other than that I'm not sure what the difference is between paying it off early and cancelling within 14 days. They didn't charge me an admin fee as far as I can tell.


From my understanding, if you've taken a 20k loan out with Audi Finance and do not "withdraw" within 14days of it being set up and then you choose to cancel/settle, you will need to pay for the x amount of years you agreed on with the interest over those years to be paid in full.

If you withdraw within 14days of it being set up, you will only pay the 20k loan and the x amount days you was on the finance plan for and it really isn't that much like £3 or so..

That's the difference.

My thread I linked has links from other Audi forums which explain in more detail.


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## ZephyR2 (Feb 20, 2013)

No, that's not what happened with me. When I cancelled after 3 months in to a 36 month agreement the settlement figure showed something like £1300 in what would have been interest payments credited back to me. Which is why I don't see the difference between the two ways of ending the PCP.


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## neil100 (Feb 12, 2014)

Well I have been on the phone to Audi finance this morning, I even got a normal landline number rather than the rip off 0870 number they tell you to ring  and I confirmed that there are absolutely no dealer clawbacks and any discounts, incentives or extras given to seal the deal remain in force without any further payments being required.

Needless to say I have now exercised my right of withdral and the car is now fully paid off via an online transfer, the total extra cost above the initial balance on finance was an extortionate £23 :lol: :lol:.

This is a great way to get an additional saving on a new car if you have the cash to buy outright, my S line TDi with the additional extra cost of the pearlescent paint and comfort pack came in at under £24.5k, I have seen 6 month old cars on dealer`s forecourts with higher asking prices.

Thanks for all the advice guys, now I`m going to get on with enjoying my new TT even more :lol:


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## LEO-RS (Apr 13, 2009)

neil100 said:


> Well I have been on the phone to Audi finance this morning, I even got a normal landline number rather than the rip off 0870 number they tell you to ring  and I confirmed that there are absolutely no dealer clawbacks and any discounts, incentives or extras given to seal the deal remain in force without any further payments being required.
> 
> Needless to say I have now exercised my right of withdral and the car is now fully paid off via an online transfer, the total extra cost above the initial balance on finance was an extortionate £23 :lol: :lol:.
> 
> ...


Couple of questions....

1) How much interest on the PCP agreement was due should you have went the full term and paid the monthlies?
2) Could you have invested the £24.5k to generate an income more than the interest paid in Q1?

Now seeing as the Mk2 is end of life, buying outright in my opinion is a big gamble as you have no idea on the depreciation. At 3yrs, on the PCP plan you may have had a GFV of say £14k, with a cash buy, there is no such protection and at the end of the 3yrs, the car may only be worth £10k when you come to sell it? The Mk2 order books have closed, the mk3 order books are just about to open, how that will affect used prices going forward, I'm not so sure?

There are many advantages of sticking with PCP (Depreciation guarantee, capital protection and investment) negatives would be of course, added interest charges.

I guess you need to weigh both options up but buying is not always best. Seems like you got yourself a good deal using the finance incentive option though.


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## missile (Jul 18, 2011)

Great, thanks for the feedback [smiley=gossip.gif]


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## ZephyR2 (Feb 20, 2013)

Don't forget though if the GRV us say £14k then not only are you paying interest on your monthly repayments (which is a reducing balance) but you are paying interest on that £14k loan for 3 years. I think that as the interest rate us around 6.4% you are not going to get anywhere near that with an investment. 
As regards depressiation of the Mk2 I can't see the Mk2 breaking the mould of the German car market and falling far, especially with the Mk3 looking so much like the Mk2 to the untrained eye.


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## nylo (Oct 29, 2009)

I'm in a similar position, although I'm not sure I'll be in a position to pay it off within 14 days, it is likely that I will be able to pay the pcp off in full in say 3 months. What sort of cost is going to be involved if I do that?


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## Shug750S (Feb 6, 2012)

nylo said:


> I'm in a similar position, although I'm not sure I'll be in a position to pay it off within 14 days, it is likely that I will be able to pay the pcp off in full in say 3 months. What sort of cost is going to be involved if I do that?


Call the finance people and ask? Think under FSA rules they have to explain the options and costs if you ask


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## neil100 (Feb 12, 2014)

They can only charge you the interest that has accrued up to the point that you settle in full, although there may be some admin fee on top of that, in other words you should be paying no more than the initial balance to finance and it will most likely be slightly less.

In my case the GFV was around £11k due to my proposed annual mileage and I weighed that against an APR of 6.9% which they wanted to charge on the PCP for the 3 year period. I calculate I will be better off owning the car outright and this gives me the flexibility to do whatever I like at any time with the car.

The best I can get locking the money away for 3 years is currently less than 3% a year interest, so taking into consideration the additional incentves i got when I bought the car (saved over £2k on the "cash price") it made financial sense for me.


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## johncoote69 (Jul 31, 2004)

Are there any TT contributions?
I can't see any on website
Every other model seems covered!


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## neil100 (Feb 12, 2014)

Ring up the dealers and ask about incentives if you buy a new one on PCP (if the dealer can still get hold of a new Mk 2).


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## ZephyR2 (Feb 20, 2013)

neil100 said:


> They can only charge you the interest that has accrued up to the point that you settle in full, although there may be some admin fee on top of that, in other words you should be paying no more than the initial balance to finance and it will most likely be slightly less.
> 
> In my case the GFV was around £11k due to my proposed annual mileage and I weighed that against an APR of 6.9% which they wanted to charge on the PCP for the 3 year period. I calculate I will be better off owning the car outright and this gives me the flexibility to do whatever I like at any time with the car.
> 
> The best I can get locking the money away for 3 years is currently less than 3% a year interest, so taking into consideration the additional incentves i got when I bought the car (saved over £2k on the "cash price") it made financial sense for me.


Correct !
That's just how I looked at it. Knowing I wouldn't be paying it off for 3 months I got my GFV to an artificially low value and put in a large deposit - all of which kept down the interest I would pay. I had money tied up in a fixed term account so it was worth paying some interest for 3 months to avoid the early withdrawal penalties.


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## missile (Jul 18, 2011)

neil100 said:


> Ring up the dealers and ask about incentives if you buy a new one on PCP (if the dealer can still get hold of a new Mk 2).


My dealer has a TTR sitting in his showroom, but told me Audi incentive has been withdrawn on the TT.


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## phil3012 (Jul 25, 2008)

missile said:


> neil100 said:
> 
> 
> > Ring up the dealers and ask about incentives if you buy a new one on PCP (if the dealer can still get hold of a new Mk 2).
> ...


I got a call about a month ago from my dealer to do in on their "offers" weekend. Had a hour to spare on the Friday so popped in.

They did have a finance incentive but no discounts, due to the limited supply.

I suspect they withdrew the finance incentive at the end of March and anyone wanting to buy a new TT now will have to pay near the full price.


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## missile (Jul 18, 2011)

The finance incentive has been removed, apparently dealers were given no notice. Those who want a roadster will be fortunate to find a car at any price.

:lol: I was very fortunate to get both a discount and finance incentive when I ordered mine


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## ZephyR2 (Feb 20, 2013)

missile said:


> The finance incentive has been removed, apparently dealers were given no notice. Those who want a roadster will be fortunate to find a car at any price.
> 
> :lol: I was very fortunate to get both a discount and finance incentive when I ordered mine


Smug bastard ! :lol: :lol:


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## missile (Jul 18, 2011)

I will be even more smug when I take delivery :roll:


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## neil100 (Feb 12, 2014)

missile said:


> The finance incentive has been removed, apparently dealers were given no notice. Those who want a roadster will be fortunate to find a car at any price.
> 
> :lol: I was very fortunate to get both a discount and finance incentive when I ordered mine


Probably withdrawn due to a number of very early settlements or right of withdrawls exercised


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## neil100 (Feb 12, 2014)

I got an email today from Audi Finance confirming that they have no further interest in the car.

Sorted out in less than 5 days,


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## ZephyR2 (Feb 20, 2013)

neil100 said:


> I got an email today from Audi Finance confirming that they have no further interest in the car.
> 
> Sorted out in less than 5 days,


Yeah I got one of those letters too.
To be honest I don't think they ever had any interest in the car - just the money they could make out of us


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## GeoffO (Oct 29, 2016)

If I were to withdraw from a PCP within the 14 day period after receipt of my car, can anyone advise me when I would receive the registration certificate. Would my name appear as first owner of the car? Thanks


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## hooting_owl (Sep 3, 2008)

With a PCP you are the registered keeper from day one, so your name is on the V5 as the first owner.

If you are going through a broker, they may register the car in a different name in order to get fleet discount and you may be kept waiting for six months before the V5 comes through with you as the second owner.

If you are on a finance lease, then the car is owned by the lease company

Withdrawing from a PCP has no bearing on the V5 in terms of names and timings.


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## hooting_owl (Sep 3, 2008)

...and welcome to the forum!!!

Have you bought a used mk2 or a new mk3?


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## GeoffO (Oct 29, 2016)

Thanks Hooting Owl for your kind reply. I have ordered a new TT 2.0 TFSI Sport Quattro S Tronic, I expect to take delivery on 1st March (can't wait!). I have read on this forum that it's quite common to withdraw from a PCP within 14 days in order to take advantage of Audi's deposit contribution. It's worth an extra £2500 to me so it's hard to pass up. Hope things go smoothly come March! Thanks again for taking the trouble to reply.


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