As some of you may have already noticed on other threads I am looking to buy a new A3 Sportback 2.0TDI SE S-tronic. The overall price of the car from my dealer with a 10% discount is £22871. He has also offered a trade-in value on my existing A3 of £12250, leaving me £10621 to pay.
Now I have two options - pay cash from my savings or purchase it using a PCP contact. For the A3 they are currently offering a PCP at an APR of 5.4%.
What I'm not 100% clear on and perhaps you guys with more experience in this area could help. What are the advantages and disadvantages of purchasing using a PCP. If I was to use a deposit of £7500 from the £12250 trade-in and have the PCP over 36 months the overall cost would be £24654.13. This is of course £1783.13. I doubt that, in the present climate having the £4750 from the trade-in and the £10621 cash not used would earn enough interest to cover the £1783.13 cost of the PCP.
Also at the end of the 36 months I would still have to pay £6746.38 as a final payment to own the car or if I was to hand it back, I would have the difference between the value, say £12000 and this figure, ie £5253 to put towards another car.
Any comments on these figures and the advantages of both methods of purchase would be very much appreciated.
Now I have two options - pay cash from my savings or purchase it using a PCP contact. For the A3 they are currently offering a PCP at an APR of 5.4%.
What I'm not 100% clear on and perhaps you guys with more experience in this area could help. What are the advantages and disadvantages of purchasing using a PCP. If I was to use a deposit of £7500 from the £12250 trade-in and have the PCP over 36 months the overall cost would be £24654.13. This is of course £1783.13. I doubt that, in the present climate having the £4750 from the trade-in and the £10621 cash not used would earn enough interest to cover the £1783.13 cost of the PCP.
Also at the end of the 36 months I would still have to pay £6746.38 as a final payment to own the car or if I was to hand it back, I would have the difference between the value, say £12000 and this figure, ie £5253 to put towards another car.
Any comments on these figures and the advantages of both methods of purchase would be very much appreciated.