VW finance on a Tig

[cmrtig]

Just wanted to know please the percentage that recent Tig owners (with finance) have been able to negotiate with VW finance. The reason I ask is that the percentage on the loan seems negotiable and different dealers seem to be able to arrange VW finance at lower rates. But it is hard to know how much they can be pushed without knowing what recent finance deals have been achieved for 5 or 7 year loan terms.

thanks in advance!

[tigger73]

Dealer finance can be a bit deceptive as they're not bound by the same disclosure requirements as some other sectors of the finance industry. My experience has been that the best "rate" may not necessarily be the best "deal" due to some finance deals shifting the money around from set-up fees to monthly account keeping fees, etc. The best way to compare "apples" with "apples" is to get everyone to quote the exact same loan term and to include all fees/charges in the monthly/fortnightly payment. You'd be surprised (or maybe not) how many dealer finance guys "forget" to tell you about the $5 monthly account keeping fee or the $500/$800 loan establishment cost just to get the deal.

You've also got to wonder about these 2-3% interest rates that are bandied around and figure how much of this discounted rate gets loaded back onto the car. Whatever sells cars must be good but we as consumers will pay for it one way or the other. No free lunch. Certainly shop around as I know I've saved close to $1,000 on finance just by doing a bit of shopping.

I did look at VW finance but didn't go with them as I got a better deal from a finance broker.

Also the other thing to consider is the conditions on the loan and if there are any penalties for early termination. If you're going to change cars before the end of the loan they may have you over a barrel for finance on the next vehicle....

Watch out and do your homework. Some of the credit unions were offering a pretty reasonable deal when I was looking around for finance 6 months ago. Good rate, no fees and no penalties for early exit. Only problem is that their approval process takes a week and unfortunately I didn't have that luxury at the time.

[coastvw]

As interest rates move each and every day I wont talk specific numbers as my contract was struck almost 12 months ago, but the process I went through, I first looked at Ratecity, for an idea of what range was current (once that shock is overcome) (IMB were good at the time), then I just went back and forth with VW. The figure moved 3.5% over the course of the deal. So just make sure you have some time to deal. As with tigger73 comments I have found if you are looking at the advertised 2-3% rates the trade off tends to be very little move from RRP on the car price. Good Luck