WA Car Loan with Volkswagen Financial Services - What to Do?

[MBS]

Hi,

I recently purchased a car. The car yard that I purchase the vehicle from in finalizing the loan wants my signature on a document that states $19, 339 as the amount. The car yard says that the difference of $750 is for fees and charges. However, I was informed that the sum total of the loan with Volkswagen Financial Services (VWFS) was $18, 589.

The car yard says that if I don't sign the document they will need to get the car back to the dealership.

Help!

 

[Lance]

Hi,

Speak to Volkswagen financial services and tell them. They won't be inclined to tell you to sign something that is incorrect and get them to find out what the fees and charges breakdown is.

 

[Rob Legat - SBPL]

Under the National Credit Code you have to be given a copy of the proposed credit contract before you enter into it. The contract will have a 'financial table' at the beginning of it. Look for the amount you are borrowing (may be expressed different ways, such as 'principal' or 'credit amount') and the 'ascertainable fees'.

Check what they add up to, factoring that in nearly all cases the ascertainable fees relating to creating the loan will be deducted from the amount of principal available for drawdown. If a fee isn't there, they can't charge it to you. If it's not clear, ask them to explain it.

If you still can't find it, make sure the fee isn't a fee from the car yard on the purchase of the car - such as stamp duty or dealer delivery. Either way, it should be shown or referred to in the sale contract.