VW FS Settlment Process

In 2022, I bought a car and arranged financing through VS FS. In 2023, I made the decision to sell the car privately. Upon informing VW FS of my intention to sell, I was informed that I needed to provide a 3 months' notice in order to settle the account. I explained to the representative that I couldn't guarantee the sale of the car within the stipulated timeframe and asked about the process. The agent informed me that failing to give the required notice would result in penalties when settling the account.

Unfortunately, I was unable to sell the car within the 3 months and contacted VW to inquire about the settlement amount. To my dismay, I was informed that there were several penalties imposed on the account due to multiple missed settlement notices. I found this policy by VW FS to be extremely unreasonable. Why should customers be required to provide notice to settle an account? I have previously financed vehicles through Standard Bank, ABSA, and MFC without encountering such issues.

Now, I am faced with the burden of paying additional penalties just to settle the account. I am considering refinancing the car with another financial institution to avoid dealing with VW FS in the future, as I have been thoroughly disappointed with their level of service.