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Audi Finance calculations

Discussion in 'New A3/S3 (8V Chassis)' started by smk82, Jun 18, 2013.

  1. smk82
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    smk82 Member

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    does anyone here know how Audi calculate their "excess charges" when they give you a finance quote? I did question the salesman specifically about what it includes, but he just comes back with its the interest etc + any admin charges - which doesn't exact tell you a lot! I ran some figures when I got home based on the APR they quoted of 6.3%, and the interest alone (assuming I was calculating correctly came up to ~600 more!). Also how do they do the estimate for the balloon payment? (I know its down to mileage/wear tear and depreciation)I just like to see exactly what I might be signing for (+ if they are trying to sneak extras in like GAP without telling you)
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  2. RossR
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    RossR Member

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    I wouldn't say I'm an expert on this but hopefully I can help.

    There's a good explanation of PCP here: Car Finance: The PCP (Personal Contract Purchase) Explained | The Car Expert

    The final payment is not an estimate. It is a fixed amount. It is expected to be slightly lower than the value of the car at that time.

    The APR is not the interrest rate. I think the interest rate for Audi's PCP at the moment is 5.9% fixed rate. The total amount payable is the amount borrowed + interest + a couple of other fixed amounts (usually acceptance fee and option to purchase fee). The couple of other fixed amounts have the effect of increasing the APR from 5.9% to 6 and a bit.

    Did you calculate the interest using the "flat rate" method? That would give you a significantly higher amount than the method that Audi use.
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