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How many of you buy these on finance?

thesmileyone Apr 22, 2013

  1. thesmileyone

    thesmileyone Active Member Gold Supporter Audi A3

    Feel free to pm me if you don't want to disclose here.

    I have been looking at low mileage S3's and for just over 10k more I can get into a low mileage RS3, but £10k is a third of the cost. I dont really do credit, the only thing I ever have on credit is my phone cost and utilities, for obvious reasons = it is not a fixed price each month. I dont even have any credit cards, no debt other than a student loan that doesnt make sense to pay off yet, etc.

    Car finance has never made sense to me from a clever minded point of view, you are paying the same amount monthly for a depreciating asset. However having seen and heard an RS3 they have so much more visual and aural presence over an S3...

    Hard decisions right!?

    No point in asking my friends, they all tell me to buy a BMW because "Chris Harris says its better".

  2. knobby

    knobby Member

    My quick view on this...

    40k depreciating asset. Mr A goes in and spends his 40k hard earnt savings on his dream RS3. Mr B also buys the same car but he puts it on finance for 4 years with a 4k deposit (with a guaranteed value of 19k after 4 years) and leaves 36k I the bank.

    The savings Mr A had in his bank are no longer earning interest but he's also not paying £500 a month that Mr B is.

    In a perfect world 4 years down the line the cars will still be worth 25k say, I have no doubt that Mr A will be in a better financial position. However he risked his 40k while Mr B still has his 36k in the bank (Ok I understand he might have used those saving to pay for the monthly car but probably not, but if he did he's only have 12k left).

    So Mr A sells his RS3 and puts 25k back into the bank. Mr B sells his car and banks 6k.

    Mr A is all chuffed with himself as he's 7k better off.

    However... What about the "What if's?"

    The car market completely drops and the car is now only worth 12k?

    I took the finance route like most people on here probably, for me I prefer the finance takes that risk and not me. I know at the end of 4 years I can just hand it back no questions asked. It perhaps I loose my job halfway through, with VT I can just hand it back. Plus my 40k is sat in my offset account saving me nearly 4%. If I want to do an extension or something similar I have the funds still there to use, while Mr A has his funds tied up in car depreciating nearly £500 a month.
    Kelza likes this.
  3. jojo

    jojo Looking for Boost! Staff Member Moderator Team Daytona Audi S3 quattro Audi A6 Audi Avant Owner Group

    The RS3 will most probably be worth £10k more than a similar age/mileage S3 in the long run, so it's not exactly dead money in my opinion, but only if you can afford to buy it in the first place.
  4. 45bvtc

    45bvtc Well-Known Member Supporter Team Cornflower Blue Team Daytona Gold Supporter Team Sahara Silver Audi RS3 Audi TT Audi A1

    Cash! It's the years left that are depreciating....
  5. Mr_Freeze

    Mr_Freeze Well-Known Member

    I too had an S3 and a burning desire to have the RS3. I pondered the issue for some time until i decided you only live once.

    If you can afford the cash buy or the monthly payment then do one otherwise you will only continually pine for it.

    If you plain can't afford it, accept it and be happy with the S3. Still a very nice motor.
  6. JonnyG

    JonnyG Active Member

    I finance my cars ... as I get a monthly car allowance through work ... and as long as the interest rate is low it makes sense to me. If Mr A had the opportunity for 0% finance for 4 years in Knobby's example he'd be silly not to take it.
  7. klauster

    klauster Well-Known Member

    I've done cars on finance for the last few years, I prefer to have my money in the bank
  8. 45bvtc

    45bvtc Well-Known Member Supporter Team Cornflower Blue Team Daytona Gold Supporter Team Sahara Silver Audi RS3 Audi TT Audi A1

    Thanks guys, I intend to go out laughing all the way... Just don't start the 'want' list yet for Bluey...
    robbiemac likes this.
  9. monkeyboy_marcus

    monkeyboy_marcus Active Member

    Cash and part-ex for mine. Audi's rate was not very competitive and cash makes next to nowt in the bank with interest...
  10. CatnipRS3

    CatnipRS3 Active Member

    I paid cash with my lottery winnings!
  11. P_G

    P_G Active Member

    Interesting comment on the rate as Audi quoted me a daft rate to start with but after haggling them produced the best rate on the market bar a 0% deal
  12. igokhoa

    igokhoa Guest

    Chúc diển đàn ngày càng lớn mạnh ............................
  13. Macdaddy

    Macdaddy Active Member

    Bought mine when they had the 25% off, 0% finance and £1 deposit special offer on...... Didn't everyone else?
  14. robbiemac

    robbiemac 'S' Button engaged....

    promise we'll bury you in 'Bluey' invite only........ otherwise the replica boys might dig you up for the parts:laugh:
    45bvtc likes this.

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