Carwow quotation

[Migwire]

I enquired on Carwow about an A3 saloon, 1.4TFSI S Line with comfort pack, privacy glass, Daytona paint and ***.

A dealer has given me the following quotation which includes trading my current A3 in. I said I owed around £18k on it, but having logged into my account the Audi Finance settlement figure is £16,800. He offered me £14,500 for my A3 3dr, 184 TDI Sport. He based his figures on me owing £18,000 though.

Deposit: £3010 - Min
Term:48 Months
Mileage:10k pa
Repayments: £373.40
GFV: £12,197.05
APR: 5.6%

Ideally I wouldn't want to put any money into the deal. Would far rather keep my current vehicle which I paid a£3000 deposit on. He says that the minimum deposit on the saloon is £3010 due to the negative equity on my current vehicle.

In total that all equates to £33130.25 for a vehicle priced at around £25,000.

Am I missing something here because I feel he's trying to pull my pants down and bend me over?

 

[RO65ERS]

They can check there and then what your settlement figure it.
so he knows.

are you prepared to put anything down?
have you considered telling him straight, you don't want to part with any cash?
depending what you pay per month on your current car, and to what its worth, have you seen its its worth keeping it a few more months, would it balance out and then it clears itself?

the problem with PCP - you will never have the upper hand.

 

[S32B]

My S3 with a few option comes in around the monthly figure he is quoting, plus I only put £1000 down!

 

[GSB]

Any particlular reason you want to change?

Changing with neg. equity is always going to be pricey, so I'm at a bit of a loss as to why you are considering the additional expense by changing one perfectly good, if somewhat run-of-the-mill A3 for another perfectly good, if somewhat run-of-the-mill A3. What's the benefit?

As for the price? Well, pcp value is often all about how close together you can get the cash price and the GVF, rather than what those specific numbers actually are, and in this case there's a £10500 gap over 48months. At that sort of interest, over that sort of timespan, you are paying through the nose. The interest alone appears to work out at about £150 per month.

You can try a number of things;

A shorter term will make the Cash Price to GVF value smaller, but decrease the number of payments by 12. With the interest rate as it is though, it may be that the monthly payments aren't that much more.

You could go to another dealer. In fact I'd absolutely recommend you go to another dealer. Compare and contrast several quotes to find the best ones. I found so many different variations of discount, cash price and GFV being used by dealers for EXACTLY the same spec car that it's clear to me that there's an awful lot of flexibility available, if you can twist their arms enough to convince them to use it. Even different sales people from the same dealership could come up with wildly different numbers.

Don't be shy of send one dealers quote to another dealer and saying "I bet you can't beat this...". It proves you are serious and not messing about, and it proves that they don't have a monopoly on your business. They then know they need to pull the rabbit out of the hat if they're going to earn any commission from you.

You could probably buy an S3 for similar outlay. (I started out by spending a "normal" A3, but quickly came to the conclusion that it was just as much to buy an S3, so I might as well have the fast one...)

If this is the best deal you can get though, then I'd say you should just keep the car you have.

 

[cuke2u]

A tad misleading to say its a carwow quotation when in reality it is a dealer quotation that carwow has nothing to do with. But to put things into perspective a dealer offered me £15,000 for my jan 2014 a3 1.4 saloon sline which I considered a complete pee take...

 

[S32B]

Just another thought: If you are over 50% through your current PCP deal, do a voluntary Termination. They take the car back and you owe them nothing, then start again.

 

[RO65ERS]

Just another thought: If you are over 50% through your current PCP deal, do a voluntary Termination. They take the car back and you owe them nothing, then start again.

If i don't end up buying the s3 at the end of my pcp (i think I'm likely to, the mrs loves it, and i want an s5)
i will do this, about 70-75% through.

 

[Migwire]

They can check there and then what your settlement figure it.
so he knows.

are you prepared to put anything down?
have you considered telling him straight, you don't want to part with any cash?
depending what you pay per month on your current car, and to what its worth, have you seen its its worth keeping it a few more months, would it balance out and then it clears itself?

the problem with PCP - you will never have the upper hand.

Yes, I told him that ideally I didn't want to put anymore cash down. He says the £3010 deposit is required in order to satisfy the 1% deposit. I think he made a typo there and meant 10%? But I thought the deposit had to be equal to one monthly payment? Currently pay £300/month.

Any particlular reason you want to change?

Changing with neg. equity is always going to be pricey, so I'm at a bit of a loss as to why you are considering the additional expense by changing one perfectly good, if somewhat run-of-the-mill A3 for another perfectly good, if somewhat run-of-the-mill A3. What's the benefit?

As for the price? Well, pcp value is often all about how close together you can get the cash price and the GVF, rather than what those specific numbers actually are, and in this case there's a £10500 gap over 48months. At that sort of interest, over that sort of timespan, you are paying through the nose. The interest alone appears to work out at about £150 per month.

You can try a number of things;

A shorter term will make the Cash Price to GVF value smaller, but decrease the number of payments by 12. With the interest rate as it is though, it may be that the monthly payments aren't that much more.

You could go to another dealer. In fact I'd absolutely recommend you go to another dealer. Compare and contrast several quotes to find the best ones. I found so many different variations of discount, cash price and GFV being used by dealers for EXACTLY the same spec car that it's clear to me that there's an awful lot of flexibility available, if you can twist their arms enough to convince them to use it. Even different sales people from the same dealership could come up with wildly different numbers.

Don't be shy of send one dealers quote to another dealer and saying "I bet you can't beat this...". It proves you are serious and not messing about, and it proves that they don't have a monopoly on your business. They then know they need to pull the rabbit out of the hat if they're going to earn any commission from you.

You could probably buy an S3 for similar outlay. (I started out by spending a "normal" A3, but quickly came to the conclusion that it was just as much to buy an S3, so I might as well have the fast one...)

If this is the best deal you can get though, then I'd say you should just keep the car you have.

To be honest no reason. I just thought I'd enquire. Obviously I'm not going to do it if it's substantially worse than my current deal.

And you're right about the S3. I've been considering it to be honest.

A tad misleading to say its a carwow quotation when in reality it is a dealer quotation that carwow has nothing to do with. But to put things into perspective a dealer offered me £15,000 for my jan 2014 a3 1.4 saloon sline which I considered a complete pee take...

You're nitpicking there though I feel. Yes, it's a dealer quotation but I'm in communication via Carwow so for ease of reference I'm calling it a carwow quotation. When Orangewheels come back that'll be an Orangewheels quotation....

 

[Migwire]

Just another thought: If you are over 50% through your current PCP deal, do a voluntary Termination. They take the car back and you owe them nothing, then start again.

I read somewhere that voluntarily terminating your deal is likely to make obtaining further finance from that lender much trickier??

 

[S32B]

I read somewhere that voluntarily terminating your deal is likely to make obtaining further finance from that lender much trickier??

Well if it does go elsewhere, but I doubt they would cut off their nose to spite their face!

My sister was just under 2.5 years into a 3 year pcp with a VW Up, what she owed was more than what they were offering for her car on a PX by about £800, she did a voluntary termination and then went to Ford and now has a Ford KA Zetec white edition on a PCP. VW even called her and asked if she wanted to go in and look at some other deals.

 

[RO65ERS]

I read somewhere that voluntarily terminating your deal is likely to make obtaining further finance from that lender much trickier??

no sure, its in your contract so they allow it.
as above though, i don't think they would turn down more custom, regardless of how you finished the previous contract.

I've been tempted with the idea of a GTR, and i was going to end it at 50% and get one, but they're common as muck! i see 2 if not 3 every day and i live in a city thats not even 30mile square!
if i was to end it and do that, I'm sure they'd be annoyed that i went else where but if i ended it, and end up going for an S5, i think they'll be pleased.

 

[Migwire]

VW just gave me a quote for a new Golf GTI. With the negative equity they want £435/month!!!

Guess I'm keeping the A3!!

 

[RO65ERS]

VW just gave me a quote for a new Golf GTI. With the negative equity they want £435/month!!!

Guess I'm keeping the A3!!

i take it that is with nothing in ?
the Gti is a nice car, but put some in, and get an s3 for that per month.

 

[Migwire]

That's was with £500.

I don't need to change cars to be honest. I'm just a little stunned that half way through the deal I'm £2300 in negative equity. Without the £3000 deposit I paid I'd be over £5k in negative equity. Oh well.

 

[RichardT]

That's was with £500.

I don't need to change cars to be honest. I'm just a little stunned that half way through the deal I'm £2300 in negative equity. Without the £3000 deposit I paid I'd be over £5k in negative equity. Oh well.

The PCP deal is designed to balance out at the end of the period. But the depreciation is not linear - high at the start and falls of later. So I would expect negative equity halfway through the period - right?

 

[S32B]

That's was with £500.

I don't need to change cars to be honest. I'm just a little stunned that half way through the deal I'm £2300 in negative equity. Without the £3000 deposit I paid I'd be over £5k in negative equity. Oh well.

You wouldn't be over £5k negative as your monthly payments would have been more, so it would still be about the same. But as just said in another thread, hence why I only put a small deposit down. If I want to change after 2 years and you're in big negative equity, you can just do a voluntary termination and walk away...as long as you have paid over 50% you're OK.

 

[Paulmichelle]

Thing I found with Carwow is they sell you a deal not a car. I agreed to buy one through them for a March delivery only to be told it was put back to November! I tried a couple more times but it was like running against a brick wall. I just got a quote for a car I wanted off carwow rang loads of dealers to see if they had any similar on order for a similar deal and it paid dividends.

 

[GSB]

Carwow don't sell you anything. They just introduce buyers to sellers.

It's like a dating agency, there are respondents who are refreshingly forthright and honest, and others who are looking to tie you down, but everyone is willing to screw you. These are car dealers after all, so remember you're swimming with piranha... The same dealer who told you March but then changed to November would have said the same thing to your face if it got a deposit out of you, so it's not carwow that's the problem, but the dealers using it.

 

[Mark_E]

If I want to change after 2 years and you're in big negative equity, you can just do a voluntary termination and walk away...as long as you have paid over 50% you're OK.

Yes but don't forget if it's a PCP you have to have paid 50% of the total payments INCLUDING the GFV. So it's 50% of the total amount financed plus interest over the term of the PCP, that's a huge amount to pay to walk away.

 

[Paulmichelle]

It's carwow who put you in touch with certain dealers (some who can't deliver) in the first place, so surely that would in some circumstances make them part of the problem ie mine. In the end Carwow came good for me as I simply used the quote from them with dealers not in the carwow network to find the car we required, and as I say it paid dividends.

 

[GSB]

Caveat emptor.

Carwow is just a service to join punter to dealer. Use it as intended and you won't go far wrong. Use its as a tool to gain information with which you can leverage a better deal out of a dealer (inside or outside of the carwow network) and it can only be a good thing. It cannot however make up for, or even disguise the fact that dealers are (generally speaking) money grasping target driven lying gets who are often economical with the truth. You also have to consider that most dealers seem to be struggling with delivery times at the moment, due to the pending facelift of the A3. I ordered one and the delivery date got earlier as the days went by. My friend tried to order one from the same sales person a week later, and can't get one until September or October...

 

[S32B]

Yes but don't forget if it's a PCP you have to have paid 50% of the total payments INCLUDING the GFV. So it's 50% of the total amount financed plus interest over the term of the PCP, that's a huge amount to pay to walk away.

Not sure about that with regards to 50% of the GFV! My sister got told she could walk away because she had made over 50% of the payments!

 

[Mark_E]

Not sure about that with regards to 50% of the GFV! My sister got told she could walk away because she had made over 50% of the payments!

Well I am sure, it says it in black and white in my contract, maybe she has a different product?

 

[jet_andy]

Yes but don't forget if it's a PCP you have to have paid 50% of the total payments INCLUDING the GFV. So it's 50% of the total amount financed plus interest over the term of the PCP, that's a huge amount to pay to walk away.

Not correct. I did it 2 months before I hit 50% and just paid a few hundred quid extra. It should not include the gfv. Mine with VW finance.
If you need to be sure just ring and ask. If it included the gfv and the 50% paid you have pretty much paid the full value.

 

[S32B]

Well I am sure, it says it in black and white in my contract, maybe she has a different product?

She had a 3 year PCP with VW financial services.

 

[veeeight]

How voluntary termination works


As long as you repay 50% of the Total Amount Payable (not the total amount borrowed, as you need to include interest and fees), you are entitled to terminate the agreement and return the car to the finance company. As long as there are no “damages if you have failed to take reasonable care of the goods (over and above normal wear and tear)”, you have nothing further to pay.

The total amount payable (which is the total amount borrowed plus interest and fees, and also includes the Guaranteed Minimum Future Value on a PCP) must be clearly shown on any car finance quotation and contract, so you should be able to find it easily enough. You must pay off half of this figure to be able to voluntarily terminate your PCP or HP.


From:
http://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/



Remember, when you finance a car with PCP, you are also financing (and therefore paying interest) on the whole amount, including GMFV, minus the deposit.


The balloon is just a deferred payment. But you're still borrowing it.

 

[Mike1981]

How voluntary termination works


As long as you repay 50% of the Total Amount Payable (not the total amount borrowed, as you need to include interest and fees), you are entitled to terminate the agreement and return the car to the finance company. As long as there are no “damages if you have failed to take reasonable care of the goods (over and above normal wear and tear)”, you have nothing further to pay.

The total amount payable (which is the total amount borrowed plus interest and fees, and also includes the Guaranteed Minimum Future Value on a PCP) must be clearly shown on any car finance quotation and contract, so you should be able to find it easily enough. You must pay off half of this figure to be able to voluntarily terminate your PCP or HP.


From:
http://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/



Remember, when you finance a car with PCP, you are also financing (and therefore paying interest) on the whole amount, including GMFV, minus the deposit.


The balloon is just a deferred payment. But you're still borrowing it.

100% correct

 

[veeeight]

Car finance companies like to make out that it's their deal that lets you "Hand the keys back and walk away" at the end of the term, and not pay the balloon.

In reality - it's the Consumer Credit Act that makes the provision for this.

Not the so-called "generosity" of the finance company or the deal

 

[Migwire]

So, anyone had any difficulty having VT'd a PCP and taking out another one??

I thought it was on here a while back that I'd read that it pretty much ruins your credit rating with that lender. I could be mistaken though.

 

[veeeight]

VT'ing, assuming no payment defaults, does not affect your credit rating.

 

[jet_andy]

So, anyone had any difficulty having VT'd a PCP and taking out another one??

I thought it was on here a while back that I'd read that it pretty much ruins your credit rating with that lender. I could be mistaken though.

It's part of the contract and you have the right to exercise it if you so choose. I did and took and another PCP out at the same time with the same lender, VW Finance. It one respect it was part of the reason they retained me as a customer, because it was so easy to do.

 

[Migwire]

So I'm actually quite drawn to an A6 Black Edition. Via Orangewheels with a couple of grand down almost brings the monthly payment into line with what I pay on the A3.

That might actually be a better option should I decide to change vehicle.

 

[Migwire]

How does voluntary termination work?

My agreement states that if I pay £14076 I can return the goods with nothing else to pay.

Does this include your GMFV?

I'm currently 24 months into a 48 month agreement. At my monthly payment £14076 is equivalent to 44 months of payments.

As already mentioned, that's a huge amount to pay, almost the full term, and then just hand it back for nothing!

Hardly seems worth it.

 

[GSB]

How does voluntary termination work?

My agreement states that if I pay £14076 I can return the goods with nothing else to pay.

Does this include your GMFV?

I'm currently 24 months into a 48 month agreement. At my monthly payment £14076 is equivalent to 44 months of payments.

As already mentioned, that's a huge amount to pay, almost the full term, and then just hand it back for nothing!

Hardly seems worth it.

Click the link in the post 7 posts above yours....

 

[Migwire]

Yeah, I read that.

What I was unclear on was do they take into account the value of the vehicle you hand back?

Or, do I have to pay £14076 in cash then hand the vehicle back regardless of the value of that vehicle.

 

[GSB]

The latter I believe. You're terminating early, having paid only half of what's due. They'll take the condition of the vehicle into account, especially if it's a rotter, but don't expect to see any of the profits from its sale.

 

[RichardT]

You borrow the total cost of your vehicle at the start (less your deposit).
You owe all of this plus the interest over the term of the loan.
Once you have paid half of what you owe, you can terminate the agreement.

The handing back of the vehicle and early termination is allowed by law. But they don't have to recognise any value the car has over the half of the payments that you owe.

I think v8 explained this in an earlier post.

 

[Pook]

Quick question - if you get a carwow quote and it says for example a carwow saving of let's say £2500 discount. But then looking at the manufacturer website they are already offering a £2000 deposit contribution - will the carwow quote only really be saving you an extra £500 to the norm, or would you get the carwow saving plus the already offered manufacturer deposit contribution?

 

[GSB]

Carwow quotes come from dealers, and include any deposit contributions currently applicable to the model.

 

[Pook]

Carwow quotes come from dealers, and include any deposit contributions currently applicable to the model.

Great thanks, just been doing one for the missus on a golf and quotes coming back at about 2.5k discount when VW already offering 2K anyway - pretty pants additional discount, but I guess it totals around 10% so not the worst in the world.