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Finance options?

Discussion in 'New A3/S3 (8V Chassis)' started by Jack s3, Jan 4, 2014.

  1. Jack s3
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    Jack s3 Member

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    Hi everyone, curious to what everyone is paying on their monthly payments on their s3 8v purely for curiosity as im sure i wouldnt ve able to pay what theyd ask for. And what you think the cheapest payments you could get away with paying?

    thanks
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  2. Joetidman
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    Joetidman Well-Known Member

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    Mine will be about £370 a month I think
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  3. Joetidman
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    Joetidman Well-Known Member

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    You can get the payments right down by extending the PCP out to 4/5 years, putting more cash in or reducing your yearly mileage (although if you do over that it'll cost you at the end anyway). Just depends what is more important to you, how much cash you have and how long you want the car
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  4. Daveotto
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    Daveotto Well-Known Member

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    Joe, thought you would have been paying cash!!! ;)
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  5. Joetidman
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    Joetidman Well-Known Member

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    Lol, not with two kids in full time nursery ;) I wasn't going to go with PCP actually, but they offered 3.2% which was too good to pass up and put my pennies to good use elsewhere
    #5
  6. squiretolley
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    squiretolley Active Member

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    Must be a large deposit because that seems really cheap. Tempted to swap mine early!
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  7. Jack s3
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    Jack s3 Member

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    Well tbh brand spanker like that and only being 22 id own it for a while! Would have about £5k to put down :/
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  8. Daveotto
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    Daveotto Well-Known Member

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    Wait until they start going to uni and want to start driving themselves......3.2% that's pretty decent
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  9. Joetidman
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    Joetidman Well-Known Member

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    If you can get a low percentage on the PCP and have it over 5 years on perhaps £10k mileage per year it might be reasonable then. Obviously body shape, gearbox, and options can pump up the price though. I chopped in my scirocco plus the few grand deposit if that helps.

    22 is young to get an S3, so you might want to test the water in insurance too, as I think the car is group 36
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  10. Joetidman
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    Joetidman Well-Known Member

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    Surely they can use public transport Dave like I did ;)
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  11. Jack s3
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    Jack s3 Member

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    Well i have a 57 plate s3 now so insurance could be litle more im geussing insurance ill be able to sort but like you said i may be able to get descent monthly payments on one but will be a pretty standardish one :/ as where id want one with te optional seats and sat nav and the other must have options
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  12. Schizophonic
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    Schizophonic Active Member

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    £0 a month

    Hands up anyone else paid their car outright?

    Hehe :)
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  13. cemerson
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    cemerson Well-Known Member

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    425 a month :eek:

    Probably could have got lower if I had pushed further to be honest, but I was happy with that price that came a long way down from their original offer (over £600 / month!) after a fair amount of negotiating, so pretty happy with it given the spec.
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  14. c.grex
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    c.grex Member

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    It is a little pointless asking what people pay per month.

    you can really get the payments down on PCP if you do the following:

    set the mileage at 5k (this will give the car a high balloon payment at the end, as it should be worth more with less miles on. e.g. £17k @ 4 year old)
    Don't add any options! (adding options will make no difference to the 'value' of the car in VW finance terms, just up the monthly payment)
    Put in a large deposit (this will just mean there is less to finance on PCP)
    go for 4 year PCP (this is the max that VW offer)

    If I had no options, 2k deposit, 4 year PCP, 5k mileage per year, the S3 would have been £309 per month.
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  15. PilotAudi
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    PilotAudi New Member

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    Nothing! Pay cash unless there is a financial incentive to use finance.
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  16. Leeber
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    Leeber Member

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    I'm paying cash but would seriously consider finance if I could get a rate like that! I got 8.8% discount on the car already, would this have any bearing on what rate might be offered? Been getting pretty good returns playing the markets recently, might well be able to offset the interest.
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  17. c.grex
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    c.grex Member

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    who was 3.2% with? I was told that VW finance no longer off any discounts on the advertised rates, so would be interesting if you did get that rate.
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  18. cemerson
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    cemerson Well-Known Member

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    might not be able to get discount on finance, but they could still discount the car a bit to make up for that
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  19. Pulp84
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    Pulp84 Well-Known Member

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    Finance pricing has just gone up at beginning of the year. 6.3% (6.7% APR) which is up from 6% flat. Not cheap but better than the 7% on my A1.

    Mine has come out at £430 x 36 months with £4k deposit. That's on a £35k car before discount. £18k balloon.
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  20. PilotAudi
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    PilotAudi New Member

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    That looks like about £5k of interest !! Car could be bought for £32k cash . 4k down = 28 k - 18k RV . 10k divide by 36 = 277 plus interest on decreasing balance.... Need to knock up a spreadsheet !! But 430 sounds a lot of profit for someone with interest rates at 0.5%.
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  21. Pulp84
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    Pulp84 Well-Known Member

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    I could have bought cash but have it tied up in some 7% bonds (it's with my employer - not available on high street before anyone asks). I find financing works for me as get a good yearly bonus which I part use for a deposit. I've bought cash and HP before but always seems to work out the same with depreciation come trade in. You lose or spend the same amount of £££ what ever you do. You can't really call these lovely bits of metal an investment.
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  22. Avallon
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    Avallon New Member

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    Haven't placed an order (yet) but:

    S3 Brilliant Red S-Tronic Sportback
    Audi Sound System
    Adaptive Cruise Control
    Comfort Package
    Mono.pur
    SD SatNav

    £31,687

    £1k deposit

    £441 p/m @ 10k p/a - 48 months

    £14,700 balloon payment

    5.3% APR

    As previous posters have alluded to, you need to take the GMFV or balloon payment into account when considering finance quotes as the level will not only determine your monthly payment amount but consequentially will also impact the amount of any equity in the vehicle at the end of the contract.
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  23. Jack s3
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    Jack s3 Member

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    Is there any way of paying descent monthly payments without a balloon payment at the end?
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  24. PilotAudi
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    PilotAudi New Member

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    Secure the money on a house spread over longer period BUT be very careful!!!!!! Is Joe's 3.2 Flat rate? Actual rate 6.5ish APR...not so good!
    #24
  25. h5djr
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    h5djr Well-Known Member

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    Even based on a £32,000 price for the car and a flat rate of 3.2% without the balloon payment at the end you would be paying for the whole car + interest. Over 4 years that would work out £752 per month and over 5 years £618 per month. At the end you would actually own the car though. The PCP balloon payment is designed to keep the monthly payments down but you would still have to pay the balloon at the end or give the car back.

    As PilotAudi said you may get a good deal by taking out a loan secured against your house but do you want to being paying for a car over a longer period than say 5 years at the most.

    I bank with Lloyds Bank and on their website is a good explanation of the advantages and dis-advantages of the various ways of purchasing a car. The website is: Lloyds Bank - UK Loans - Car Loans
    #25
  26. lee_fr200
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    lee_fr200 Active Member

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    Think pcp is only over a max of 4 yrs isn't it?

    Also nothing wrong with a balloon as I see it the balloon is usually less than the cars guaranteed value so you can part ex for another car and use the difference as a deposit

    So if they guarantee the car will be worth 18k in 4 yrs and your balloon is 10k part ex and you have an 8k deposit

    my old man has just done this on his new range rover sport, handed his back after 4yrs it's value is 30k but his balloon is 15k so he's used the difference as a deposit on a new one
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  27. Jack s3
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    Jack s3 Member

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    I may go and enquire about whats the cheapest they can do on monthly payments this weekend hopefully they can do what i can pay.
    #27
  28. h5djr
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    h5djr Well-Known Member

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    Exactly - that's what a PCP is all about. You only pay for part of the car initially and the balloon payment is set so that you have enough equity for the next PCP. The only cheaper way is cash because you pay no interest. These days with savings earning so little it's not worth leaving the money in the bank (if you have it in the first place of course). I'm in the silly situation at the mement with my currents accounts earning much more than any savings account.
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  29. h5djr
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    h5djr Well-Known Member

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    The more you can put down as a deposit (including any trade-in value if you have an existing car) will keep the payments lower. The longest period for a PCP with Audi/VW is 4 years.

    But be careful. Don't commit to buying something you cannot really afford. A lot can happen in four years. Is your financial position secure enough to be able to pay the payments for four years.
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  30. mjcourtney
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    mjcourtney Well-Known Member

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    That's a point worth remembering. Audi will at any point give you a 'settlement' figure for the car, and they also plan the finance such that your car should be worth more than the outstanding finance at any given point, eg: you should in reality be able to hand the car back to the garage and walk away from the lease. But beware, you will also lose your initial deposit by doing this.
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  31. geefunk1978
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    geefunk1978 Well-Known Member

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    I've personally always bought cars on finance with a minimum deposit, I'd rather keep my money in my bank for a rainy day than put it into a depreciating asset. I don't keep a car longer than 2yrs as a generally rule so I'll just pay for the car for that amount of time then trade it in for the next one. PCP's are good as it keeps the payments realistic and the interest rates are usually better than personal loans. My opinion obviously.
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  32. cuke2u
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    cuke2u Well-Known Member

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    That's exactly what PCP's are, low deposit because you'll never get back what equity you put in...
    #32
  33. CraigI
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    CraigI Well-Known Member

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    This, but put your spare cash towards paying off your mortgage (if you have one that is).
    Homes are (mostly) appreciating assets that the more you pay now, the less you'll pay in interest, so much more worthy of your spare cash than a heavily depreciating car is.
    #33
  34. rams_s3
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    rams_s3 Member

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    The deal I've just been offered on a £36,000 s3 was £6000 deposit, 4 years and 10,000 a year, £360 a month.
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  35. h5djr
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    h5djr Well-Known Member

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    Out of interest (no pun intended) the current APR on Audi Solutions is 6.6%. Here are some examples my dealer prepared earlier today based on 15,000 miles per year.

    Purchase price: £30,182 - £5000 deposit - £457.49 per month over 3 years. Final payment of £12,801.25 + £60 purchase fee

    Purchase price: £30.182 - £5000 deposit - £400.43 per month over 4 years. Final payment of £10.948.75 + £60 purchase fee.

    He also did a couple with a £12,000 deposit which obviously gave a much lower monthly payment, but I cannot remember the figures.
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  36. PilotAudi
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    PilotAudi New Member

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    What spec are you getting for purchase price? Have you got a good discount or is this gross figure ?
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  37. h5djr
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    h5djr Well-Known Member

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    It's based on a gross price of the A3 2.0TDI-184 Sport s-tronic quattro with some extras. It's not a firm price just one we used as an example to show the differences. Does seem an odd figure but it is just what he entered into the program on his PC.

    According to my spreadsheet if I was to buy a 2.0TDI-184 Sportback Sport s-tronic quattro and add the options I have decided on so far, it would give a price before any discount of £32,490
    #37
  38. PilotAudi
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    PilotAudi New Member

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    I reckon as an established customer you should get a good discount. Our dealer have just sold Mrs Pilots old 2011 BE TDi Quattro for £20k. Just got 50 odd days to wait now!
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  39. c.grex
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    c.grex Member

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    So has anybody got a lower APR from Audi/VW than advertised?
    #39
  40. audiruss
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    audiruss New Member

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    Hi all,

    after two weeks of trying to find best deal I ordered an s-tronic in Phantom black, sd sat nav, b&o, advanced key, comfort pack and interior lighting system. Can't wait though I've never driven one. I currently have a mapped 2.0tdi s line on a 56 plate which I like but can't wait to have a fast petrol again.

    I've put £8k in and managed to get the monthly payment down to £310 over 48 months which I'm very pleased with. Balloon of £16,000
    #40

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