Hi everyone - PCP help please

[Dan Masoomi]

I'm looking at a PCP deal for an 2013 3.0 Quattro Audi A5 Black edition 242 BHP. Black 54k miles

the car is just under £22,000 I'm paying a deposit of 2k

Monthly payments are about £390 over 47 months which is a total of £18,330 + 2k deposit

I was told my final guaranteed future value of the car will be around £9000 - this is my question

I'm just confused as what happens then? I don't usually buy cars this way and wonder at the end will I be left with my pants down?

do I have to pay the £9000 at the end if I want to keep the car? even though I've paid almost the full amount at the end of the 47 months.

If I want to exchange the car which I will probably do, is the £9000 negative equity I have to pay on top of the money I've already paid or is this positive money I can use to use as a deposit for another car?

any advice would be great I've looked it up on the internet but the last bit just aint making sense to me

Thanks again

Dan

 

[Bainie]

That's £29930 for a 3 year old a5 ! The interest rate on 2nd hand Pcp deals seems to be high , have you tried doing the figures for a new one , I was looking at a near new S3 , turned out a brand new one was cheaper on pcp .

 

[DrEskimo]

You can expect discounts of around 18% off a new A5 atm, so doubt you will get a new one of that spec for £22k.

The £9k is the payment you will have to pay to keep the car. You could trade in the car, and find its worth more than £9k and then use that difference towards the next car.

For me, the low interest and high discounts make PCP on new cars just about bearable...on used cars it's just daft. The final payment is always grossly underestimated and the APR is laughable.

If it were me I would be looking at getting a personal loan for the £20k at around 3% APR. Will only be a bit more than your monthly payments now and that's it. Once you've finished paying it off it's done.

 

[Bainie]

You will not get a new one for 22k , but with a much higher gfv , the monthly payments may not be much different ?

Is the one you are looking at the black one with white leather on Ebay ?


2.0 Tdi Quattro Black Edition Plus with 2k deposit is £426 a month before discount, bet it would be cheaper than that one with discount ...

 

[DrEskimo]

You will not get a new one for 22k , but with a much higher gfv , the monthly payments may not be much different ?

Is the one you are looking at the black one with white leather on Ebay ?

That's true. I pay £380 for my S5 but I did put down £6k.

Doubt I would buy new again though. It's just so expensive and would rather be paying a monthly payment towards capital on the car, rather than just depreciation and interest....

 

[Bainie]

I was offered an A5 sport back on car wow with 19% discount last week, with this level on a 3.0 stronic quattro coupe you are looking at £387 a month , so remarkably lower payments than a 3 year old one with 54k on the clock .

2nd hand car market must be struggling , which is going to catch up with pcp deals as gfv will not be viable . Then the bubble will burst I reckon .

 

[Dan Masoomi]

Hi everyone thanks for your great advice I'm just really confused. I only have a 2k deposit and don't want to pay more than £350 a month really but going all out on this.

So if I part ex the car in 4 years time I can use this car as a £9k deposit?

Ive been to audi directly over this exact same spec audi and they offered me £2000 but wanted £436 a month

this is the car... http://www.autotrader.co.uk/classified/advert/201603172058244/usedcars

 

[Dan Masoomi]

also forgot to mention that i'm currently driving an audi a4 black edition 64 plate on about 17k miles scuba blue.

I'm still under first year of finance and have a settlement value of 20,155 which they are sorting out for me and paying off and taking in as part ex

 

[Dan Masoomi]

That's true. I pay £380 for my S5 but I did put down £6k.

Doubt I would buy new again though. It's just so expensive and would rather be paying a monthly payment towards capital on the car, rather than just depreciation and interest....

what age is your s5 and where did you get it? any pics?

 

[Bainie]

Ah , negative equity will make a difference , I got a quote on an A5 through car wow 19.8% discount , which takes payments way down . Sounds like you have a nice car any ways though !

I saw that one on eBay , you are paying a lot of interest , but negative equity probably has something to do with it ?

 

[Bainie]

You can use the car in 4 years but not as a 9k deposit , the deposit would be what the car is worth minus 9k = not a lot !

 

[Dan Masoomi]

ah i see, it says on the ad like 3.5% interest? So bit confused like. its exactly what i want. but just a bit concert about the last part. yeah they offered me 19k for mine and paying the rest plus the difference in the car price.

I'm due in tomorrow at the dealership and its 76 miles away. so need to be sure really.

 

[DrEskimo]

I am really confused now...if you have a brand new car on finance why are looking to get another used car...?

Not only are you loosing a shed load on trading in your current car early, you are paying loads to finance a used car....just keep the A4??

Oh and here is my S5. Bought it new back in November.

 

[Dan Masoomi]

oh and here is my s5... haha

I did have another topic about it, just over time the a4 just hasn't done it for me. I was in two minds about changing it but then decided not too.

I then stupidly drove a friends Audi A5 QUATTRO 3.0 242 BHP auto and fell in love and ever since been trying to change it

 

[DrEskimo]

Might be worth discussing with your dealer about changing into a new one from your A4. Discounts are high and maybe they can do you a deal.

As above, make sure the discount is at least 19%.

Good luck with it

 

[Scottyg]

I've done this before. Bought car, didn't like it, waited 18 months then chopped it in. However, I bought brand new which offset the negative equity I had in the other car. Payments stayed the same as the new cars APR was ridiculously low at 1.9% and was discounted by 13%.
The deal you are thinking of doing is financial suicide. To be paying 9k over the asking price to keep the car at the end is stupidly high. That sounds like around 11% APR or more.
If you want to change why not try and spec the A5 with the 2.0Ltr Quattro set up and it will bring your payments down as it will be new.
Remember there's a new A5 out next year so haggle hard.

 

[Dan Masoomi]

Thanks for everyones advice I ended up going for it. The car is unbelievable doing a 4 year deal about 390 a month it's so powerful! I really appreciate everyones advice and this has been very eye opening. I just wanted this spec car for so long and anything else would of put me back in the same situation I was before. they offered me more for my car than anyone else including audi. I understand the car is used and there is a new model coming out next year but I'm just in love with this current gen car. its got so much more tech in it than I thought and the step up in power from the 2.0 is ridiculous. al get some pics up

 

[Dan Masoomi]

i'm paying 8.9%

 

[Dan Masoomi]

quick pic of day I got her

 

[DrEskimo]

Think you're a bit nuts, as you could of got a brand new, top spec (Black Edition) one for about £400 per month, but as along as you are happy mate

Love a black A5. Suits the car so well IMO!

 

[Dan Masoomi]

400 for a brand new black eddy 3.0 wuattro send me the link mate and al have a look at it.

Ive looked for ages and not seen nothing close to that kind of deal. How much deposit was required?

 

[DrEskimo]

400 for a brand new black eddy 3.0 wuattro send me the link mate and al have a look at it.

Ive looked for ages and not seen nothing close to that kind of deal. How much deposit was required?

Register with CarWow and get some deals from local dealers.

Drive the Deal is listing £8,845 off (20%) so thats a good target.
https://broadspeed.com/CarView/Audi/A5/31680/TDI_3.0_245PS_Diesel_Blk_Ed_Plus_Automatic_2_doors

Plug that discount on the Audi calculator and you get £2k deposit and 47 monthly payments of £394.74.

 

[Bainie]

Register with CarWow and get some deals from local dealers.

Drive the Deal is listing £8,845 off (20%) so thats a good target.
https://broadspeed.com/CarView/Audi/A5/31680/TDI_3.0_245PS_Diesel_Blk_Ed_Plus_Automatic_2_doors

Plug that discount on the Audi calculator and you get £2k deposit and 47 monthly payments of £394.74.

That's the kind of quotes I was getting , 2nd hand cars will be worthless shortly !

 

[Dan Masoomi]

On Audi website the finance on new Audi is too high for me on a 2k deposit

 

[Bainie]

But you will get a big discount , so add another 4K onto your deposit to see what the payments would be ...

 

[DrEskimo]

Yes that's why in the quote I attached your deposit is £6,208. The calculator already has a £4650 contribution so need to add £4,208 to get it to match the £8,858 discount we found, as well as your £2000 deposit.