Hello - New member here. I currently own an Audi A5 3.0 TDI Sline but I'm considering upgrading to a brand new Audi S5 on a PCP deal. I've always owned my car outright but I thought I would give this PCP marlarky a go.........or at least take adavantage of the huge discounts on PCP through Carwow and then eventully buy the car outright.
I realise that sales are currently suspended on the S5 but I wanted to get some peoples opinions on purchasing a S5 using PCP. Best offer I've had so far is £8,200 (16%) discount through Carwow. With some optional extras, I have configured a S5 upto £51,000 (before discount).
One possible way to own the car would be to take advantage of the Carwow offer on PCP finance and use my current A5 as a deposit (approx. secondhand value is £15,000). The rough numbers are as follows:
£51,000
- £8,200 (carwow discount)
- £15,000 (part x current A5 for deposit)
= £27,800 remaining.
Then, if possible, borrow £25,000 (personal loan at 3% interest over 5 years) with £2,800 from savings to pay of the remainder. A £25K loan at 3% would acrue only £2,000 interest over 5 years - a lot less compared to the PCP interest. This option would only work if it is possible to buy the car outright within the first few months of the PCP contract - is this possible???
The Audi dealer (for obvious reasons) is wanting me to take the PCP deal with a low deposit of £5,000 for a 3 year contract but this would mean paying £5,600 total interest over a 3 year period and I would still have a £26,000 final payment at the end of the agreement or give the car back and walk away with nothing.
Is my option above of taking advantage of the PCP finance discount and then buying the car outright a good idea or should I just stick with the PCP process for the 3 year period?
Any feedback would be great!
I realise that sales are currently suspended on the S5 but I wanted to get some peoples opinions on purchasing a S5 using PCP. Best offer I've had so far is £8,200 (16%) discount through Carwow. With some optional extras, I have configured a S5 upto £51,000 (before discount).
One possible way to own the car would be to take advantage of the Carwow offer on PCP finance and use my current A5 as a deposit (approx. secondhand value is £15,000). The rough numbers are as follows:
£51,000
- £8,200 (carwow discount)
- £15,000 (part x current A5 for deposit)
= £27,800 remaining.
Then, if possible, borrow £25,000 (personal loan at 3% interest over 5 years) with £2,800 from savings to pay of the remainder. A £25K loan at 3% would acrue only £2,000 interest over 5 years - a lot less compared to the PCP interest. This option would only work if it is possible to buy the car outright within the first few months of the PCP contract - is this possible???
The Audi dealer (for obvious reasons) is wanting me to take the PCP deal with a low deposit of £5,000 for a 3 year contract but this would mean paying £5,600 total interest over a 3 year period and I would still have a £26,000 final payment at the end of the agreement or give the car back and walk away with nothing.
Is my option above of taking advantage of the PCP finance discount and then buying the car outright a good idea or should I just stick with the PCP process for the 3 year period?
Any feedback would be great!