1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

finance

Discussion in 'A3/S3/Sportback (8P Chassis)' started by steve184, Dec 29, 2007.

Thread Status:
Not open for further replies.
  1. steve184
    Offline

    steve184 Active Member

    Joined:
    Apr 10, 2004
    Messages:
    1,139
    Likes Received:
    1
    [Dec 29, 2007]
    wondered something for a while.... lot of youngish people on here who seem to find it quite easy to get there hands on brand new S3's (probably with morgages also!) - my question is how???? Do you guys just have all the money in the world or what or is it all on the never never???
    #1
  2. Ads

    Ads

    [Sep 22, 2014]

  3. L33TAY
    Offline

    L33TAY Member

    Joined:
    Jul 4, 2006
    Messages:
    344
    Likes Received:
    1
    [Dec 29, 2007]
    Would think its the amount of 'balloon payment' on the finance, this is how most people get these expensive motors, easy really.:icon_thumright:
    #2
  4. TDI-line
    Offline

    TDI-line Uber Post Whore

    Joined:
    Oct 14, 2004
    Messages:
    9,055
    Likes Received:
    37
    [Dec 30, 2007]
    Good question Steve, i've wondered this too.

    Are you guys living at home with your parents are are you also buying/renting property?

    If you are going to answer, please could you add your age also.
    #3
  5. julians
    Offline

    julians Member

    Joined:
    Nov 4, 2007
    Messages:
    312
    Likes Received:
    0
    [Dec 30, 2007]
    Bought mine outright, dont like borrowing money, although personal contract hire is quite tempting, but still ultimately more expensive than buying outright if you intend to keep the car for more than 2 years I have found.

    Age 34 and three quarters, not living at home with parents but paying off a mortgage slowly but surely.
    #4
  6. consilio
    Offline

    consilio Up the owls!

    Joined:
    Aug 29, 2007
    Messages:
    666
    Likes Received:
    3
    [Dec 30, 2007]
    26 years old. 3 years into a 160k mortgage. Have my S3 on PCP. Suits me as my monthly payments are low, I can change the car after 3 years without the hassle of selling the car.

    I have purchased a car outright before and the hassle of selling it on wasn't for me. I dont think i'll ever do it again, i prefer the idea of swapping the keys for a new one when i choose
    #5
  7. sat1983
    Offline

    sat1983 Member

    Joined:
    Feb 17, 2007
    Messages:
    715
    Likes Received:
    1
    [Dec 30, 2007]
    How does PCP work exactly?
    #6
  8. steve184
    Offline

    steve184 Active Member

    Joined:
    Apr 10, 2004
    Messages:
    1,139
    Likes Received:
    1
    [Dec 30, 2007]
    well ibeen looking at at this and on an S3 - if you get it at £420 a month you will be lucky (thats a standard one no options!)
    #7
  9. Twizzler
    Offline

    Twizzler Member

    Joined:
    Aug 3, 2007
    Messages:
    449
    Likes Received:
    24
    [Dec 30, 2007]
    There's far more comfort and reasurance in paying cash and owning something outright. Many on here who do that will own their own businesses. Start one - you never get rich digging a ditch. Making money is easy. The key is retaining it. Don't smoke - the Chancellor will love you. The NHS and your bank manager less so. Develop a healthy interest in the stockmarket and investment in general. Learn about Karma. If you think it has something to do with Boy George more research is needed. Be nice to people on the way up - you will meet them again on the way back down.
    And if all else fails woo a rich widow! lol
    #8
  10. consilio
    Offline

    consilio Up the owls!

    Joined:
    Aug 29, 2007
    Messages:
    666
    Likes Received:
    3
    [Dec 30, 2007]
    I have £4000 worth of options, and i'm paying £425 over 3 years, 12k miles a year. This also includes all maintenance for the car (service, tryes, brakes etc)
    #9
  11. steve184
    Offline

    steve184 Active Member

    Joined:
    Apr 10, 2004
    Messages:
    1,139
    Likes Received:
    1
    [Dec 30, 2007]
    sounds like a good deal consillio - where from?

    PS i think my original figure of 420 was for 2 years - i always generally get bored after this time!
    #10
  12. consilio
    Offline

    consilio Up the owls!

    Joined:
    Aug 29, 2007
    Messages:
    666
    Likes Received:
    3
    [Dec 30, 2007]
    Basically what you pay for is the interest on the finance, and the depriciation of the car. You pay a balloon payment at the end of the term, which is basically a little less than its actual market value at that time. You dont actually own the car until the final balloon payment is made - a bit like your house if mortgaged.

    However, if you dont want the car after the term, you can simply exchange it as a deposit on a new car. So you hand over the keys to the old car, and have a new one.
    #11
  13. consilio
    Offline

    consilio Up the owls!

    Joined:
    Aug 29, 2007
    Messages:
    666
    Likes Received:
    3
    [Dec 30, 2007]
    I got a good deal from Stratford Audi (Alastair)
    I retro fitted the RNS-E for £660 to save money.
    I got the finance and maintenance from Freeways www.freewaycars.co.uk. They will finance any car regardless of where you purchase it, but they also sell the cars at discounted rates. I just happend to get a good deal directly with a dealer, and prefered that approach as i got better service than some of these online monkeys


    PS - IMHO you wont be bored with the S3 after 2 years! :hubbahubba:
    #12
  14. steve184
    Offline

    steve184 Active Member

    Joined:
    Apr 10, 2004
    Messages:
    1,139
    Likes Received:
    1
    [Dec 30, 2007]
    How can you exchange something as a deposit on a new one that you dont own - i think i know what you mean but from my understanding the correct terminology is you return the car back to the finance co as full settlement - then you simply start again a fresh? right?
    #13
  15. consilio
    Offline

    consilio Up the owls!

    Joined:
    Aug 29, 2007
    Messages:
    666
    Likes Received:
    3
    [Dec 30, 2007]
    Yea kind of. The value of the car goes towards paying off the final balloon payment. What i mean by deposit is that the balloon payment should be less than the market value at the time (unless you've been screwed), so the value left over goes towards a deposit on the new one
    #14
  16. steve184
    Offline

    steve184 Active Member

    Joined:
    Apr 10, 2004
    Messages:
    1,139
    Likes Received:
    1
    [Dec 30, 2007]
    i just tried freeway and its 520 pm for 3 years with no option and no maintnenence!!! miles too expensive!
    #15
  17. consilio
    Offline

    consilio Up the owls!

    Joined:
    Aug 29, 2007
    Messages:
    666
    Likes Received:
    3
    [Dec 30, 2007]
    Yea you need to put the effort in. Negotiate a good deal from a dealer, then negotiate a better rate of interest with Freeway.

    I'm very happy with my deal
    #16
  18. steve184
    Offline

    steve184 Active Member

    Joined:
    Apr 10, 2004
    Messages:
    1,139
    Likes Received:
    1
    [Dec 30, 2007]
    i'm sure u r! sounds like a good one - think id be very happy with that!
    #17
  19. h5djr
    Offline

    h5djr Well-Known Member VCDS Map User

    Joined:
    Jan 23, 2003
    Messages:
    7,519
    Likes Received:
    573
    [Dec 30, 2007]
    I'm obviously at the other end of the scale to most of you guys.

    I'm 60 years old, retired, buy my A3s outright, own my own house with no mortgage and have a reasonable amount of savings. It quite nice seeing my pension money being paid into my back account each month without having to do anything for it (other than having worked for the last 44 years of course).
    #18
  20. yak
    Offline

    yak Member

    Joined:
    Mar 8, 2004
    Messages:
    377
    Likes Received:
    0
    [Dec 30, 2007]
    As I have no idea what's the situation in the UK, I'll just share my experience. Personally, I also paid my A3 in a 'balloon payment' way (hopefully I understood the term correctly ;)).

    However, at least in Finland, it's actually becoming cheaper for me this way, than paying the whole amount in the start. Interest rates weren't that high, and I got a lot cheaper deal with insurance (650e per year), and since dealers often get some sort of bonus by selling with 'balloon payment', it's easier to get better deal from the car. All this combined + I had money I could invest or do whatever I wanted, was in my opinion a good deal. Not to mention, inflations and such eat the amount I pay every month.

    I guess it's matter of preference, but it's not always about having enough money or not.

    - Yak
    #19
  21. sukrw
    Offline

    sukrw Member

    Joined:
    Oct 21, 2007
    Messages:
    70
    Likes Received:
    0
    [Dec 30, 2007]
    Not too sure I full understand all this ... maybe a little too much Xmas cheer still left inside ...

    so you pay your £xxx per month for 3 years and then at the end of it you are left with nothing ? if you decide not to pay the final baloon payment - you have no car and nothing to trade ?
    For example, £450 per month x 12 months x 3 years = £16,200 - so shell out £16,200 for 3 years driving and then have nothing to show for it ...?
    #20
  22. julians
    Offline

    julians Member

    Joined:
    Nov 4, 2007
    Messages:
    312
    Likes Received:
    0
    [Dec 30, 2007]
    correct SUKRW, theres also normally a 2 or 3 month deposit required at the beginning, so:-

    (3 x £450) + (35 x £450) = £17100.

    Although you do normally get your car tax paid for by the lease firm for the duration of the lease, so that saved you around £650 in total. And some deals include all the servicing, tyres, insurance etc, but these are normally priced accordingly.

    And then at the end if you have exceeded the allotted total mileage theres also an excess mileage charge to pay of aorund 6p per mile, and then the potential for being charged for any dents/scratches on the car.
    #21
  23. sukrw
    Offline

    sukrw Member

    Joined:
    Oct 21, 2007
    Messages:
    70
    Likes Received:
    0
    [Dec 30, 2007]
    Thanks Julians for the info.

    It kind of seems a bit expensive (to me) but I suppose if you don't have a big stash of cash under your bed and you really want a brand new car there and then, it does solve the issue.
    But, you also know in advance the amount of money you need to spend per month (if you had maintenance included etc) so not too many nasty big bills around the corner.
    And I suppose no company is going to do this out of the kindness of their hearts, they are there to make money out of all of us.

    Like someone said - it is a little like having a mortgage on your house for the duration of the term.

    Thanks again.
    #22
  24. Zoobs
    Offline

    Zoobs stEve

    Joined:
    Nov 25, 2007
    Messages:
    19
    Likes Received:
    0
    [Dec 30, 2007]
    IM 25 from NE scotland, got a 180 000 mortgage, just bought a new S3 and away to get a new kitchen and bathroom, saying that i work month on month off in Brazil and get all my UK tax back each April HOORAY!!

    So really you dont have to be "OLDER" to get what you want, just work hard and play harder!!!
    #23
  25. sat1983
    Offline

    sat1983 Member

    Joined:
    Feb 17, 2007
    Messages:
    715
    Likes Received:
    1
    [Dec 30, 2007]
    I think the PCP deal sounds good. I bought my current A3 cash but it's a hassle thinking of selling it when the times comes + you loose tons of cash in the first 3 years anyway. And at the end of the 3 years your car is probably an old model.
    PCP seems excellent, it is your car for the term of the contract, then when you're bored of it and it's getting on you can get the new model!
    #24
  26. h5djr
    Offline

    h5djr Well-Known Member VCDS Map User

    Joined:
    Jan 23, 2003
    Messages:
    7,519
    Likes Received:
    573
    [Dec 31, 2007]
    The figures quoted in the thread seem quite expensive to me. In my case I have the cash available so obviously gives me that choice as well. For example the purchase of my current A3

    A3 2.0 TDI-170 SE S-tronic - 23,065
    plus options - 2,830
    total cost of car - 25,895
    less discount - 2,436
    actual cost of car - 23,459
    less trade-in on existing A3 - 12,125
    amount to change - 11,334

    So that means I will have paid out £11k for 3 years 'use' of my A3 and at the end of the time I will still have a car worth £12-13k to trade-in against the next one.
    #25
  27. Matt
    Offline

    Matt Active Member

    Joined:
    Jul 4, 2006
    Messages:
    1,420
    Likes Received:
    2
    [Dec 31, 2007]
    By the time I saved up 20k+ to buy it outright I'd be grudged to use the money for anything other than towards a house. I lease mine. Plan on swapping it for another new car in 3 years time.
    #26
  28. Amchlolor
    Offline

    Amchlolor Active Member

    Joined:
    Jan 13, 2005
    Messages:
    5,604
    Likes Received:
    3
    [Dec 31, 2007]
    We're deciding how to finance the wife's new mini.
    They're offering PCP at 36 x £300, plus a balloon payment of £9K at the end.
    The projected residual for the car is £10400.00.
    However, I think I'm going to finance it myself.
    I can get a personal loan which will match the PCP payments.
    After 3 years, I will then get a discounted settlement figure from the loan company.
    If the car is worth £10k, I'll have much more equity than if I PCP'd it.
    I can see why people PCP, but I don't think it's such a good idea for cars that have good residuals.
    More valuable for cars that have poor residuals, or would be hard to sell.
    #27
  29. h5djr
    Offline

    h5djr Well-Known Member VCDS Map User

    Joined:
    Jan 23, 2003
    Messages:
    7,519
    Likes Received:
    573
    [Dec 31, 2007]
    Your wife's obviously a very persuasive lady, Bowfer!

    Happy New Year to you both.

    Regards
    #28
  30. Amchlolor
    Offline

    Amchlolor Active Member

    Joined:
    Jan 13, 2005
    Messages:
    5,604
    Likes Received:
    3
    [Dec 31, 2007]
    You know that chinese water torture?
    Where the water just drips...drips...drips...drips onto you, until you go mad?
    Imagine a woman going Mini.....Mini....Mini.....Mini....
    :sadlike:
    I wouldn't say I relented, it was more of a breakdown.

    Anyhoo, happy new year to you and yer ain!:salute:
    #29
  31. marriedblonde
    Offline

    marriedblonde Moderator

    Joined:
    Dec 6, 2004
    Messages:
    4,371
    Likes Received:
    3
    [Dec 31, 2007]
    LOL @ Bowfer I can relate to the torture, anything for an easier life! I've greed to Claires change of car mid year on the proviso I have a contract.

    Personally I privately finance my cars unless the dealers have a cheap offer on. On the B-Class I got 1.9% so it seemed stupid to buy the car outright.

    J.
    #30
  32. richs2891
    Offline

    richs2891 I cant spell !

    Joined:
    Jun 10, 2007
    Messages:
    440
    Likes Received:
    1
    [Dec 31, 2007]
    Think Twizler stated it right with the owning it outright (which I do), and the especially the not smoking bit - Cant believe how much some people spends on cigs & booze etc.
    OK I've one massive advantage in that I started buying & selling houses when I was 18 (32 now) so my rental properties are all paid for and a handy income from those now and the morgages on my main house and my crash pad are very small.

    Richard
    #31
  33. marriedblonde
    Offline

    marriedblonde Moderator

    Joined:
    Dec 6, 2004
    Messages:
    4,371
    Likes Received:
    3
    [Dec 31, 2007]
    Whilst I agree with the part off your post about not smoking I disagree with the above.

    I can't see the point in spending £35K cash on a car, I'd rather it was sat in the bank earning interest or invested in something thats not depreciating (I also pay a chunk of my mortgage each year). I'm very comfortable that I can make the repayments on my car and I'm happy that put in enough of a deposit to make sure that I will get most of it back and that the repayments will be enough to cover the dereciation.

    J.
    #32
  34. Twizzler
    Offline

    Twizzler Member

    Joined:
    Aug 3, 2007
    Messages:
    449
    Likes Received:
    24
    [Dec 31, 2007]
    If the £35k in the bank is earning less interest than the interest your paying on your loan then you would be better off not having the loan in the first place. Loans are great until something goes wrong in your life. Then you appreciate the comfort of owning things outright.
    #33
  35. Amchlolor
    Offline

    Amchlolor Active Member

    Joined:
    Jan 13, 2005
    Messages:
    5,604
    Likes Received:
    3
    [Dec 31, 2007]
    You must be in a very fortunate financial position.
    I don't know anyone who could buy a car outright, or at least not a decent one.
    A loan isn't a noose around your neck, that's a very old fashioned attitude.
    Let's face it, most people would just sell a car if the loan became a problem.
    I would never, ever, recommend people take out loan insurance, no matter what sort of doom and gloom nonsense the lender tries.
    #34
  36. N8
    Offline

    N8 Kowalski Details VCDS Map User

    Joined:
    Jul 4, 2007
    Messages:
    17,161
    Likes Received:
    688
    [Dec 31, 2007]
    If I had £35k cash to spend, £5k deposit on car, £30k on house, making money. Each to their own.
    #35
  37. Amchlolor
    Offline

    Amchlolor Active Member

    Joined:
    Jan 13, 2005
    Messages:
    5,604
    Likes Received:
    3
    [Dec 31, 2007]
    Why bother with the big deposit on the car, when it's going to make negligible difference to the repayments?
    It's like people who save up to put a 5% deposit on a house.
    It's madness.
    As quick as they save their paltry deposit, the house has increased in price.
    They're better taking 100% now.
    #36
  38. marriedblonde
    Offline

    marriedblonde Moderator

    Joined:
    Dec 6, 2004
    Messages:
    4,371
    Likes Received:
    3
    [Dec 31, 2007]
    I was trying to explain to a mate of mine. His plan was to rent a place for 6-12months and save up a deposit for a house. In the meantime he was paying off someone elses mortgage. At the time the prices where increasing more each month than he could save. Fortunately he saw sense and bought!

    J.
    #37
  39. sat1983
    Offline

    sat1983 Member

    Joined:
    Feb 17, 2007
    Messages:
    715
    Likes Received:
    1
    [Dec 31, 2007]
    I can't believe how well my parents are doing. They have rented all their lives (they're in their fifties now) and had decided to invest money through HSBC. The bank invests money on your behalf in markets like Asia and there is no risk. The worse that could happen is that for a month they wouldn't get very much interest. They told me that in 2 months they got £9k interest!!!!!!!!
    I was mad at them to put there money in a bank and wanted them to buy property. I've now changed my mind! They sure did the right thing.
    Wish I could invest my money like that. Unfortunately I haven't got £100k. Which is the lowest amount you have to put in that account.
    There are ways to make money in this life, and I for one think that working isn't one. Working keeps you sane, but unless you've got a good job you don't earn that much.
    #38
  40. h5djr
    Offline

    h5djr Well-Known Member VCDS Map User

    Joined:
    Jan 23, 2003
    Messages:
    7,519
    Likes Received:
    573
    [Dec 31, 2007]
    Unless of course house prices start to go down, as they seem to be doing at the moment. Although a house will still be a good investment in the long run but an investment that is difficult to access, unless of course your happy to retire to a tent.
    #39
  41. redbutcher
    Offline

    redbutcher Member

    Joined:
    Aug 28, 2007
    Messages:
    649
    Likes Received:
    0
    [Dec 31, 2007]
    Mine was financed using PCP as well. Due to the mileage I do the monthly figure is around the £500 mark for 30k a year for 3 years with the maintenance option as well, but then I get half of that back straight away thanks to the company car allowance. My business mileage will then knock another chunk off it, so I don't actually have to pay that much out of my own pocket - that's the theory anyway! Mine was done via Freeway as well (via Motorlogix).
    #40
Thread Status:
Not open for further replies.

Share This Page