Deposit Contribution

[Meerkat1234]

About to buy a Cali and have read that the deposit contribution is now £2k. How does this work? This is from VW, not the dealer, that's correct isn't it? But we have spoken to VW (what agony...) and every department says that nobody in the whole of VW has any information about it.

If the deposit is £2k, is this something that must be fully included in our quote from the dealer? Does the dealer have any input into deciding this?

 

[Wobble’s Mum]

The deposit contribution of £2000 is available on purchases that are being financed via PCP.

If you purchase via standard HP, I believe the current contribution is £1000. This includes the ten year HP option.

When the dealer ‘builds’ your van on the system, the amount they are offering is recorded as a ‘deposit’ against the final price and added to any deposit you are putting in. I think VAT is added after that. No one physically gives anyone that money, it comes off the purchase price and is a country wide offer that affects the dealer margin with permission from VW.

I might be wrong, but I think if you are a ‘cash’ buyer, neither deposit contribution is offered.

 

[Meerkat1234]

Excellent explanation - thanks.

 

[2haw]

The 2k deposit contribution is from VW Financial Services. It's not from the dealer or VW.

This can be had over and above any discount you can negotiate with the dealer.

 

[Meerkat1234]

Thanks. I spent an hour on the phone today to VW Commercial and VW Financial Services - nobody from either could give me any information about the deposit contribution at all, and worse, nobody I spoke to seemed even bothered to try and found out for me. "Google it yourself" was actually a reply. Appalling service.

 

[calimera]

https://www.volkswagen-vans.co.uk/en/offers-finance/offers.html

Does the link help ?

 

[Bellcrew]

Thanks. I spent an hour on the phone today to VW Commercial and VW Financial Services - nobody from either could give me any information about the deposit contribution at all, and worse, nobody I spoke to seemed even bothered to try and found out for me. "Google it yourself" was actually a reply. Appalling service.

Normally the sales person gets a substantial commission for selling PCP, they are keen to encourage the deal and will give you the procedure to cancel the contract that ensures minimum interest payments and maximum retained benefits.

 

[Erbster]

We took the pcp deal, even though we were cash buyers, to get the discount (and on a servicing package too). We made one payment and then paid off the pcp.

 

[Meerkat1234]

Hi Calimera - I had checked the link first, and I even had to tell VW about the link and that webpage, since none of them knew about it. My call was more about questions about the source of the contribution and the dealer role, how it works, and was born from conversations I saw here about it rising to £2k. I eventually saw this rise was for PCP only, not for HP. I even had one guy from VW tell me that there was no charge for the credit at all over the period and hence it was interest-free (!).

 

[calimera]

Hi Meerkart1234

We did the same as Erbster ,we were cash buyers. Only took the PCP because of contribution £1000(2016) & service plan at a good price. Also took out the extended warranty ( now have 5yrs).

I learnt about it from this forum.Told the dealer ,he arranged it with VW finance.
The dealer did say we couldn’t pay it off for 6mths. In fact this was not true.
We paid it off with very little penalty.

We also got a good discount through drive the deal. Not sure they sell california now.

 

[Meerkat1234]

We're part cash, part finance, always thought HP was the best option. Might need to re-think that?

 

[MarkVw2017]

Yes, its a VW deal and it its its over a max time of 4 years and doesnt apply to HP, no deposit contribution on a cali with HP at mo. They seemed to have removed the 2 free services as well.

Have noticed though on their website the vehicle MUST be registered by 30th sept and with lead in times for a cali, you could miss this deadline for a factory order.

 

[Brian’s Dad]

Yes, its a VW deal and it its its over a max time of 4 years and doesnt apply to HP, no deposit contribution on a cali with HP at mo. They seemed to have removed the 2 free services as well.

Have noticed though on their website the vehicle MUST be registered by 30th sept and with lead in times for a cali, you could miss this deadline for a factory order.

I've just checked - I'm on the latest 2K PCP deal and the 2 services are still included

 

[Wobble’s Mum]

Yes, its a VW deal and it its its over a max time of 4 years and doesnt apply to HP, no deposit contribution on a cali with HP at mo. They seemed to have removed the 2 free services as well.

Have noticed though on their website the vehicle MUST be registered by 30th sept and with lead in times for a cali, you could miss this deadline for a factory order.

I noticed the disclaimer on the website about the registration date too. It’s not something that is within your control when ordering new is it?

I’ll be querying this tomorrow when we go to order ours as once the quote is put together and your deposit paid, surely they can’t just turn around when it is delivered, and say ‘sorry, it’s more money now!?’

Can they?

 

[Elmo3]

I noticed the disclaimer on the website about the registration date too. It’s not something that is within your control when ordering new is it?

I’ll be querying this tomorrow when we go to order ours as once the quote is put together and your deposit paid, surely they can’t just turn around when it is delivered, and say ‘sorry, it’s more money now!?’

Can they?

You will be agreeing a purchase price with the dealer. The £2K is VWFS’s deposit contribution and offer for Q3 PCP deliveries. It’s not the dealers money. There may be a Q4 deposit contribution, there may not be, it’s just the way manufacturer quarterly finance incentives work.

 

[Wobble’s Mum]

You will be agreeing a purchase price with the dealer. The £2K is VWFS’s deposit contribution and offer for Q3 PCP deliveries. It’s not the dealers money. There may be a Q4 deposit contribution, there may not be, it’s just the way manufacturer quarterly finance incentives work.

So they use an incentive to draw in customers that will place orders during Q3 to bolster figures, but if it’s delivered and registered in Q4 the consumer loses that original ‘draw’ (if it’s no longer being used as a marketing tool)

That doesn’t make any sense to me.

 

[2haw]

Due to the longer lead in time on a Cali, as long as the funding has been proposed and secured with VWFS within the deal quarter, the deal normally stands into the next qtr.

They more than likely state a registered by date to try to get a few more early orders in.

 

[Wobble’s Mum]

Due to the longer lead in time on a Cali, as long as the funding has been proposed and secured with VWFS within the deal quarter, the deal normally stands into the next qtr.

They more than likely state a registered by date to try to get a few more early orders in.

That would make a more likely scenario. It’s a marketing tool.

For some people (especially on PCP) taking away any incentive could mean the difference of quite a substantial amount on a monthly payment and therefore potentially make it unaffordable upon arrival. Not very likely I know, but still a factor.