TDI Loan payoff advice

[Dynodon]

Our Passat has been turned in, we got our payment, but now, more than two weeks later, our loan through VW has not been paid off, and the Loan company will owe us three payments back.

Here is some advice, that we thought of too late. While I do believe that eventually we will get the excess payments we are due, we could have eliminated any delay by paying off the loan before we started the entire process. That way VW would pay us directly, and we would not be waiting for the extra process.

This hinges, of course, on the individuals ability to pay off the loan. It might be worth getting a local short term local loan, if you don't have the cash, depending on your loan interest payments. For instance, I don't know if we will get the interest fees back on our loan for the overpayment of the almost three months it has taken to get through the entire process, with it still not over. If we just get the principal paid, then we lose the interest we paid the loan company.

I don't know why VW didn't update the amount actually owed the loan company before writing us our check. They knew the correct current amount as of the day we turned in our car, but still paid us based on the amount from two months prior when we started the process. Then since that day, the bank has taken yet another payment out.

If anyone has gone through this and gotten their loan resolved, please post what happened.

In general I have been satisfied with the way VW is handling this, with this one exception.

 

[PacCoastFwy923]

Your interest question is interesting.

If you pre paid your monthly notes, then most likely the bank is keeping the interest.

If, on the other hand, you marked any pre payment as additional payments to be applied to principal, your interest charges will have been automatically adjusted down vs. if you had just stuck to the monthly payment schedule.

There's been at least one forum member that paid off his loan while on process with VW's buyback. This caused delays to his claim because VW required a new submittal, saying a title holder is subject to a different claim process. So like you suggest in your post, this is best done before first submittal.

But I'm still thinking it's not worth it to go through the trouble of taking out an unsecured loan to pay a car loan. Unsecured loans a scored differently on your credit report, they usually charge higher interest, and after all is said and done, what are you really gaining by doing this?

 

[2015vwgolfdiesel]

Our Passat has been turned in, we got our payment, but now, more than two weeks later, our loan through VW has not been paid off, and the Loan company will owe us three payments back.

Here is some advice, that we thought of too late. While I do believe that eventually we will get the excess payments we are due, we could have eliminated any delay by paying off the loan before we started the entire process. That way VW would pay us directly, and we would not be waiting for the extra process.

This hinges, of course, on the individuals ability to pay off the loan. It might be worth getting a local short term local loan, if you don't have the cash, depending on your loan interest payments. For instance, I don't know if we will get the interest fees back on our loan for the overpayment of the almost three months it has taken to get through the entire process, with it still not over. If we just get the principal paid, then we lose the interest we paid the loan company.

I don't know why VW didn't update the amount actually owed the loan company before writing us our check. They knew the correct current amount as of the day we turned in our car, but still paid us based on the amount from two months prior when we started the process. Then since that day, the bank has taken yet another payment out.

If anyone has gone through this and gotten their loan resolved, please post what happened.

In general I have been satisfied with the way VW is handling this, with this one exception.

All in all ~~ just more vw craapppolla

IMO ~~ this sort of vw mistreatment of owners (should have) been address in the settlement--

With financial reimbursement to the victims PLUS interest and penalties

 

[TDIbanker]

I was financed through VW Credit. My buyback was December 28th. My loan at the time of turn-in was due for a payment 12/8. So it was past due. It had accrued interest, and it had a late fee for the December payment. I called in, around January 3rd, and got a deferral for the 12/8 payment, which put me due for 1/8. As part of the deferral, VW Credit backed off the late fee for December. I made no payment after November 8th. So on January 11th or so, VW paid off my loan, but they only paid what they had in the original offer letter. This left about $125 or so in accrued interest, which VW Credit reversed and closed out my loan.

So, if I had made the payment, I would have been paying them the $125, which they would have not returned to me as part of the overage. Not a lot of money, sure, but it's something. I don't know if private lenders would be so courteous, but for those financed through VW Credit I wouldn't keep making payments without trying for a deferral. Your credit isn't affected until you're over 30 days late on a payment.

 

[PacCoastFwy923]

You're right, I don't expect my credit unions would extend such a courtesy. And to waive off $125? That's downright generous! There ought to be the new "game," how much of my loan can I get VW credit to absorb?

 

[2015vwgolfdiesel]

I was financed through VW Credit. My buyback was December 28th. My loan at the time of turn-in was due for a payment 12/8. So it was past due. It had accrued interest, and it had a late fee for the December payment. I called in, around January 3rd, and got a deferral for the 12/8 payment, which put me due for 1/8. As part of the deferral, VW Credit backed off the late fee for December. I made no payment after November 8th. So on January 11th or so, VW paid off my loan, but they only paid what they had in the original offer letter. This left about $125 or so in accrued interest, which VW Credit reversed and closed out my loan.

So, if I had made the payment, I would have been paying them the $125, which they would have not returned to me as part of the overage. Not a lot of money, sure, but it's something. I don't know if private lenders would be so courteous, but for those financed through VW Credit I wouldn't keep making payments without trying for a deferral. Your credit isn't affected until you're over 30 days late on a payment.

Happy it worked for you

Guessing other lenders would not have been so generous

Which is why the settlement is broken

Persons not being able to make the extra payments might even have hurt their FICO

 

[Tinman265]

It is a simple interest loan. Interest is charged per day until the loan is paid. Which means even though you paid the payments early the interest part of those payments has not been charged yet. If you were to chose not to make a payment Till the next due date then the interest would catch back up. So you are going to save a little of money due to the lower principle balance which interest is based. And because you are ahead you will not benefit from some of the "forgiveness" of small remaining balances that some people like myself have received.

 

[Stealth TDI]

I'm in a similar situation. I turned in my car on 1/26. I have automatic payments through VW Credit. I forgot to check to see if the loan had been paid off yet; so I was surprised when it came out this morning. I don't guess it matters: I still have an outstanding loan and the payment was still due. A rep at VW Credit recommended that I disable automatic payments and then not pay anything else. Couldn't that hurt my credit rating?

Calling the Settlement hotline was worthless. They show my claim as "complete." The only payment info they had available was a check that was sent on 1/18, clearly the one that was handed to me at my buyback appointment.

In short, I was glad to have the buyback behind me and see it be over with... until I realized that it's NOT over yet. Thankfully, I have the income to absorb the extra payment for now... it'll work out later. My loan was 0.9%, so the $8 in interest fees isn't going to kill me. It's just a little frustrating. UGH!

Scott

 

[2015vwgolfdiesel]

I'm in a similar situation. I turned in my car on 1/26. I have automatic payments through VW Credit. I forgot to check to see if the loan had been paid off yet; so I was surprised when it came out this morning. I don't guess it matters: I still have an outstanding loan and the payment was still due. A rep at VW Credit recommended that I disable automatic payments and then not pay anything else. Couldn't that hurt my credit rating?

Calling the Settlement hotline was worthless. They show my claim as "complete." The only payment info they had available was a check that was sent on 1/18, clearly the one that was handed to me at my buyback appointment.

In short, I was glad to have the buyback behind me and see it be over with... until I realized that it's NOT over yet. Thankfully, I have the income to absorb the extra payment for now... it'll work out later. My loan was 0.9%, so the $8 in interest fees isn't going to kill me. It's just a little frustrating. UGH!

Scott

The rep is playing with your FICO

Always look out for your FICO ~~ no matter what