Anyone with experience using VW CREDIT

[Anonymous]

This is my first time on the Auto Loan board.  I would like someone with experience dealing with VW Credit Financing.  I don't have a bank I can go to.  I use BoA for checking/savings, but they foreclosed on me years ago and I doubt will give me anything else.  It's not on my credit reports anymore.

I don't know if leasing would be better or buying.  I haven't pulled my fico scores on here yet.  I'm assuming the auto enhanced scores from Myfico are the same the dealership would use? Do they use Ex or TU?  I've seen both.

We are looking into a VW Passat.  The transmission in my 11 year old Volvo XC90 died on me. (bought it used and have personally owned it for 6.5 years) There's almost 270,000 miles on it. (I used drive a lot more than I do theses days.)  I LOVE that suv!

I have NEVER bought a car on my own before, so this would be the case this time.  I like all my ducks in a row so I know how to approach the dealership, salesperson, and the finance dept. 

If anyone could give me tips on dealing with VW and how to go about all this without getting taken, I'd very much appreciate it.  I don't know whether to lease or buy. 

Always learning!

[Anonymous]

I can't say I am a credit expert but I am an expert at buying cars without getting taken.  Most likely you will be better off with buying a car rather than leasing.  I say that because it sounds like you like to keep your cars long term and enjoy some years without payments, if that is the case it is an easy decision.  Leasing makes sense if you get a factory sponsered lease, drive under the maximum mileage, take good care of your cars (you have to pay for damage) and don't mind always having a car payment.

First and foremost you should determine what car you are most interested in, sounds like you have that done.  I highly suggest Truecar as a reliable source for good pricing, if you are a good negotiator you can probably beat Truecar by a small amount but most likely not.  Please understand that dealer make their money many ways, one way they make a lot (about 1800 per car on average last year) is selling the add ons like extended warranties, gap insurance, alarms, tints etc etc.  I follow the industry closely and get the trade magazines and it is amazing how they are always looking for new things that they can buy for nothing and sell to you for a lot.  When I bought a Honda for my wife the dealer tried to charge me $85 for nitrogen in the tires, my standard line is that I did not choose that option so I am not paying for it.  We have a dealer in my town that puts cheap pinstripes and tint as well as a protection package on all cars and add $2,000 to every cars sticker.  They do this to get you to negotiate from the much higher price of all the worthless crap they put on the car.  I highly suggest that if you see this practice on the lot you are shopping you should run not walk.  There are plenty of dealers who will give you a straight shot.

The finance guys only work on commission, that is why they don't want you to leave the deal without buying a warranty or insurance.  I always tell the sales person straight up that I am not buying any of that stuff and that if I get in to sign and have to go back and forth with the finance guy I will leave.  That seems to set the tone well. Get preapproved for finance so you can negotiate just the price of the car rather than finance terms also.  Undertstand that if they arrange finance they often charge you higher intererst than they get from the finance company because they get a kickback.  From what I have been reading the consumer protection folks are likely to make this practice illegal in the future because it has been demonstrated to be discriminatory.  Often times if you go in with pre approved financing they will want a shot a beating the terms, it is up to you if you want to do this.  You will get several HPs as a result but it may work out.

Best of luck 

[TRC_WA]

---

@Anonymous wrote:

We have a dealer in my town that puts cheap pinstripes and tint as well as a protection package on all cars and add $2,000 to every cars sticker.  They do this to get you to negotiate from the much higher price of all the worthless crap they put on the car.  I highly suggest that if you see this practice on the lot you are shopping you should run not walk.  There are plenty of dealers who will give you a straight shot.

---

Ain't that the true.

I added a hood decal and side stripes to my Challenger for about $120 and had my tint guy install them for $200.

The hood decal option alone from the dealer was almost $500.

I literally get people giving me the thumbs up sign on the interstate or rolling down their windows complimenting my car at a stoplight...  it looks great for a lot less than I would have paid at the dealer.

[Anonymous]

Yay, v-dub! I've got a deposit on a GTI, waiting for the firm delivery date myself

What workingfor850 said about truecar is very true. I used the service to price a few delearships in my area, and was easily able to get out the door price over the phone, without ever stepping foot on their lot. The whole call took about 15 minutes, and at least 5 of those were me giving them the specs I wanted for the car.

Also, I told them I am researching financing with my bank. I intend to go in with an interest rate in hand and let them try to beat that.

[DantGwyrdd]

I haven't bought many cars, but the advice I found helpful when buying for the first time: (1) focus on the out-the-door price and not on payment size (can't believe how many times the sales guy went and led the price talk into the monthly payment territory), (2) think ahead of time on how much you can afford and be firm with yourself on not crossing that line which requires that you (3) don't fall in love with the car in the dealership, it'll be harder to say no to a bad deal, and lastly (4) be prepared to say no and walk away at any point instead of accepting something you're not comfrotable with--we walked away from several dealerships and didn't buy a car on day 1, we were, however, looking into several different makes and models in the same class and that ended up being the right thing to do as, in the end, we ended up with a good deal and a good car.

Finally, there's people who prenegotiate a deal online and just go and get the car and get pretty good deals that way, personally, I'm not there yet and I like to test drive before I buy, and would feel like an ass if I just went to a place to test drive a car knowing there's no chance I'm buying that day from that guy, but that I'll go online and get it there.

[gwizdak24]

Hi, I agree that if you are going to drive a lot you should finance instead of lease.

But I will give you my experience with VW credit. 

I recieved my car through a broker, first car he told me the best deal and I went with it. I have a 2013 VW Passat, 12k miles a year, $250 a month. My car runs GREAT. Granted I put 36k miles on my car within the first 2 years but VW offer you to purchase extra miles halfway through your lease at a discounted price. Any service within the mileage is free at any VW dealership. (have to pay for tires and brakes etc - neither I had to pay for yet)

My bf has the same car, his is a more updated model (mine is basic), and its a company car he pays about $350 a month about 18k miles a year and updated with leather, heated seats, sunroof, navi etc.

I honestly say I have not dealt with them directly, just sent credit app to the broker with job info and I was approved, and he delivered the car to me (If you are in NY/NJ I can gladly give you his info). But VW on a whole I love dealing with the credit department, very courteous, no issues.  And I plan to turn my lease in at the end of the summer and get another one. 

[gwizdak24]

oh the other thing, I didn't have to put any money down, I did however pay my taxes upfront(my choice) and whatever fees (I think registration etc).

I also remember the broker took care of the plates and it was mailed to me within a month.  But the inspection I did on my own at the motor vehicles

[Anonymous]

If you have a vehicle in mind give me the vin number i can give you NADA values and carfax before you go to dealer and they try to upsell you on a used.  

[jim44]

---

@DantGwyrdd wrote:

I haven't bought many cars, but the advice I found helpful when buying for the first time: (1) focus on the out-the-door price and not on payment size (can't believe how many times the sales guy went and led the price talk into the monthly payment territory), (2) think ahead of time on how much you can afford and be firm with yourself on not crossing that line which requires that you (3) don't fall in love with the car in the dealership, it'll be harder to say no to a bad deal, and lastly (4) be prepared to say no and walk away at any point instead of accepting something you're not comfrotable with--we walked away from several dealerships and didn't buy a car on day 1, we were, however, looking into several different makes and models in the same class and that ended up being the right thing to do as, in the end, we ended up with a good deal and a good car.

Finally, there's people who prenegotiate a deal online and just go and get the car and get pretty good deals that way, personally, I'm not there yet and I like to test drive before I buy, and would feel like an ass if I just went to a place to test drive a car knowing there's no chance I'm buying that day from that guy, but that I'll go online and get it there.

---

Of all the good advice given to the OP, IMO DantGwyrdd's advice is the best.  If using any online pricing/buying service it's best to research them too. There are an equal amount of consumers who have had bad experiences with online middle man buying companies as good ones. What they are told by these companies and what they are told at the dealerships may be completely different. 

As far as APRs are concerned, DantGwyrdd also had this right, negotiate a apr with a lender before you purchase. If the dealer suggests financing tell them to beat your preapproved apr.  

[Kathy4NU]

I don't know what your credit scores are but you might want to consider DCU.  Their rates are lower than anyones right now.  Took about 4 hours from start to finish on our car loan.  EASY.  We were approved for up to 25k.   We only bought 13.5k.   Point is - if you are approved you can go into the dealership find the car you want and negotiate the price out of it.  

When we walked on the car lot the first thing the salesman asked:  What price range do you want your payments?   GEEZ, didn't even ask what kind of vehicle we wanted.  Second question:  Do you have a trade?   

Having your financing in order before you shop removes so many obsticles and lowers the risk of being taken advantage of if you go prepared.