Part-Exchanged A3

[The Kendragon]

I today signed the dotted line and part-exchanged my A3 after 9 months of ownership. It has left me with £4,000 of negative equity but at least the car that’s been giving me so much trouble will be gone. I’ve swapped it for a Peugeot 208 Black Edition as me and the girlfriend are saving for a house and it’s so much cheaper on monthly payments and insurance Picture attached of my build and I’m looking forward to the three week delivery time. Merry Christmas (to me)

 

[Sandra]

Nice car, I do like the Peugeot’s. Good luck with the saving, gett8ng on the property ladder is a costly business. Look forward to seeing the new car. x

 

[davemk]

I'm a bit confused - you're wanting to save but you're in negative equity with the A3. Surely it'll take a while to recoup that £4k, even with the lower monthly payments?

 

[The Kendragon]

Nice car, I do like the Peugeot’s. Good luck with the saving, gett8ng on the property ladder is a costly business. Look forward to seeing the new car. x

Thank you, yes it’ll take a while but the money saved will help!

I'm a bit confused - you're wanting to save but you're in negative equity with the A3. Surely it'll take a while to recoup that £4k, even with the lower monthly payments?

The monthly payments include the £4,000 negative equity and still work out cheaper by £80. Insurance will also be £1,500 without a black box compared to £6,000 with one Insurance is nuts on the A3 after I was hit by a van in September. The fact it’s the most stolen car also doesn’t help :|

 

[davemk]

Those insurance prices are insane! Shame that the A3 had to go, but it sounds like you've made a sensible choice in saving for a house. Plus, you'll still have a nice car. I've had a couple of Peugeots and really liked them.

 

[The Kendragon]

Those insurance prices are insane! Shame that the A3 had to go, but it sounds like you've made a sensible choice in saving for a house. Plus, you'll still have a nice car. I've had a couple of Peugeots and really liked them.

I know right, couldn’t justify spending that much on a car It is a shame but it’s been giving me issues anyway so probably for the best. I learnt to drive in a 208 and it’s wasn’t too bad to be honest, gets me from A to B

 

[Tom.H]

I know right, couldn’t justify spending that much on a car It is a shame but it’s been giving me issues anyway so probably for the best. I learnt to drive in a 208 and it’s wasn’t too bad to be honest, gets me from A to B

Well you certainly can't live in the A3 mate so you've made a wise choice. As I said in your previous post, there's plenty of time to get a decent car, same can't always be said about a house.

 

[The Kendragon]

Well you certainly can't live in the A3 mate so you've made a wise choice. As I said in your previous post, there's plenty of time to get a decent car, same can't always be said about a house.

An A3 wouldn’t make the best house Exactly and I’ll make sure to get a decent one in a few years (don’t you worry)

 

[Audi Bairn]

Good luck to you mate.
At least once you get a house it should, all going to plan, increase in value unlike a car.

 

[deanshaw24]

Sorry how much insurance were you paying on the a3?

 

[The Kendragon]

Good luck to you mate.
At least once you get a house it should, all going to plan, increase in value unlike a car.

Thanks mate, very true and much more important at the moment

Sorry how much insurance were you paying on the a3?

Currently it is £2800 for the year with a black box but after re-running the figures after my accident it was showing as £6000 with a black box for next year :’( Not worth it! Peugeot 208 with same info is £1500 without black box

 

[deanshaw24]

That is ridiculous

 

[DrEskimo]

I would think very hard about rolling negative equity into another car loan...

Put it this way...if you didn't have the negative equity and got this Peugeot on a PCP deal (and put nothing down upfront) and decided you needed to change car again in 9months time (for any magnitude of reasons that no one can predict...such as the one you are in now...), do you expect to be negative equity on this Peugeot...?

Almost definitely....probably to the tune of about £2/3k looking at the used market...A typical deal is RRP of £15,000 discounted to £12,500, with a settlement of £4,500. On a 37m PCP, this is £250 per month. After 9months you would have only paid off £2,250, leaving a settlement of around £10,645. Dealers are selling 17plates for like £9.5k...that means trade in will probably be around £7.5k. I.e. ~£3k negative equity....if you're lucky...

...now add the £4k negative equity you are adding from the A3....you are just increasing your risk, potentially putting you in a financially horrible position (i.e. needing to find ~£7k to get out of car finance agreement for a car only worth £7.5k trade....!).

My humble advice would be to minimise the negative equity by sale or return or private sale, or selling it to an indie garage through something like Tootle.com, and pay off any outstanding balance.

 

[The Kendragon]

I would think very hard about rolling negative equity into another car loan...

Put it this way...if you didn't have the negative equity and got this Peugeot on a PCP deal (and put nothing down upfront) and decided you needed to change car again in 9months time (for any magnitude of reasons that no one can predict...such as the one you are in now...), do you expect to be negative equity on this Peugeot...?

Almost definitely....probably to the tune of about £2/3k looking at the used market...A typical deal is RRP of £15,000 discounted to £12,500, with a settlement of £4,500. On a 37m PCP, this is £250 per month. After 9months you would have only paid off £2,250, leaving a settlement of around £10,645. Dealers are selling 17plates for like £9.5k...that means trade in will probably be around £7.5k. I.e. ~£3k negative equity....if you're lucky...

...now add the £4k negative equity you are adding from the A3....you are just increasing your risk, potentially putting you in a financially horrible position (i.e. needing to find ~£7k to get out of car finance agreement for a car only worth £7.5k trade....!).

My humble advice would be to minimise the negative equity by sale or return or private sale, or selling it to an indie garage through something like Tootle.com, and pay off any outstanding balance.

I get where you're coming from but I can afford the payments for the A3, I've just decided the money can be put to better use. I managed to get £4,000 off the list price of the Peugeot and free GAP insurance chucked in. It's a 48 month contract with payments of £285 a month compared to £367 at the moment so a big saving by the time car insurance comes into it. I won't be shifting this car until at least the half-way point (where you can voluntarily end the agreement) so all is good

 

[azibux1]

I get where you're coming from but I can afford the payments for the A3, I've just decided the money can be put to better use. I managed to get £4,000 off the list price of the Peugeot and free GAP insurance chucked in. It's a 48 month contract with payments of £285 a month compared to £367 at the moment so a big saving by the time car insurance comes into it. I won't be shifting this car until at least the half-way point (where you can voluntarily end the agreement) so all is good

Just bear in mind the half way point doesn't mean 24 months (as far as I'm aware) - it means once you've paid off half off the TOTAL amount owed (all payments and interested, divided by two) which can often be quite some way into the deal

 

[DrEskimo]

I get where you're coming from but I can afford the payments for the A3, I've just decided the money can be put to better use. I managed to get £4,000 off the list price of the Peugeot and free GAP insurance chucked in. It's a 48 month contract with payments of £285 a month compared to £367 at the moment so a big saving by the time car insurance comes into it. I won't be shifting this car until at least the half-way point (where you can voluntarily end the agreement) so all is good

In all likelihood, you will be fine and have no issues....

...but...!

...the reality is none of us know what life will throw at us. Whilst we hope for the best, it's generally wise to prepare for the worst. Illness, accident, redundancy, being fired, children...etc etc. Anything can happen that changes our circumstances and needs, particularly over a period as long as 48months. I mean, this is why we put money aside for rainy days and have insurance policies...

That's why many would advocate deposits of at least 20% to ensure they aren't in negative equity at any time during a PCP. That way if they do need to bail out the agreement early, they don't have to worry about finding extra funds like your good self to cover the negative equity. Same applies with a loan for a used car. Not many would say get a loan for the entire amount, but round 50% to ensure the value of the asset outweighs the debt against it over the term of the loan.

Obviously in this case, you are doing the exact opposite....

Of course you do what you feel works best for you. I'm sure if you're being honest, you probably wished you had never signed that dotted line for the A3 9months ago and bought something much cheaper and put those monthly savings towards your house deposit now...? I imagine you would be a fair few thousands better off..! I only assume this because, while I got my S5 after my mortgage, I still regret the amount I spent on it...!
It's why I and many others offer this advice to members on here looking at getting rather lovely Audi's before they have got on the housing ladder.

Anyway, I just hope it works out for you mate, and you dont have similar regrets in 12/24months time with this as well....

Might be worth clarifying the VT thing as well. It's 50% of the total amount owed, including interest incurred. If the GFV is £3,750, then 47*285+3750 = £17,145, meaning you will have to have paid £8,572.5. That would be about 30 payments of £285, so about 2.5years.

 

[azibux1]

Might be worth clarifying the VT thing as well. It's 50% of the total amount owed, including interest incurred. If the GFV is £3,750, then 47*285+3750 = £17,145, meaning you will have to have paid £8,572.5. That would be about 30 payments of £285, so about 2.5years.

Thanks, that's better than my explanation as I forgot / glossed over the GFV!

 

[Mark_86]

@GTAIVgunner Traitor...

In seriousness however. I hope it works out for you. What engine is in that washing machine you've bought anyway?

 

[MaffewEM]

Ouch. I feel your pain, although I don't quite understand how your insurance is £2800 - to increase to £6000 though? Do you have anything else that's affected it or rather what was it priced at originally - pre accident, out of interest?

Best of luck with the order and the house, hope it's worthwhile. Have to admit that's the only good thing about currently owning a Corsa is that it's reasonably cheap but the problem I've found with my current vehicle, is it generally continues to drastically drop it's value even though I've done less than 6000 miles a year whereas other vehicles like Golfs etc tend to hold it quite well in comparison which puts you in a better position generally.

Only reason I've bought a better car was due to having a good £500-600 spare per month to put towards a house deposit anyway. Then, the help-to-buy isa makes up for the extra money I'm spending on the better car anyway haha

 

[The Kendragon]

@GTAIVgunner Traitor...

In seriousness however. I hope it works out for you. What engine is in that washing machine you've bought anyway?

Thanks mate, I appreciate that! It’s a 1.2 petrol with 82BHP

Ouch. I feel your pain, although I don't quite understand how your insurance is £2800 - to increase to £6000 though? Do you have anything else that's affected it or rather what was it priced at originally - pre accident, out of interest?

Best of luck with the order and the house, hope it's worthwhile. Have to admit that's the only good thing about currently owning a Corsa is that it's reasonably cheap but the problem I've found with my current vehicle, is it generally continues to drastically drop it's value even though I've done less than 6000 miles a year whereas other vehicles like Golfs etc tend to hold it quite well in comparison which puts you in a better position generally.

Only reason I've bought a better car was due to having a good £500-600 spare per month to put towards a house deposit anyway. Then, the help-to-buy isa makes up for the extra money I'm spending on the better car anyway haha

My insurance at the moment is £2800 with a black box (bought it in August) but I was hit by a van on the M3 in September. I now have to declare the accident and when I compared quotes online the renewal price came back as £6000! I’m a young driver and only passed in February so being hit was the last thing I needed this year :’(

Yes I did notice that the GFV was low (about £2800) but it will be lower and lose value quicker because it’s not a ‘prestige’ brand. When we get the house, having the 208 for a few years would have been worthwhile so I’m not too bothered about the change

That’s what I’ll do, once we’ve got a place and we’re settled I can save up from what is spare each month (as we won’t be saving for the house anymore) and look into a better car. A the end of the day, a car on PCP lasts a few years but a house could last decades. Thanks for the support!

 

[Afizzypop]

.... how does the just add fuel marketing spin work then? I assumed this was the way of manufactures getting some of these astronomical insurance premiums converted into new car sales.

The non pcp method 12850 loan over 48 months is about 285 pcm (first direct). As stated above autotrader 17 plate black edition is £9.5k. As finances permit, over pay the loan to get back to trade in = residual value.

The other factor to remember is any loan will impact on mortgage multiples ( as discovered to the shock of a work colleague last week!!)

PS I do love having a new car to drive after a long day at work

 

[DrEskimo]

That’s what I’ll do, once we’ve got a place and we’re settled I can save up from what is spare each month (as we won’t be saving for the house anymore) and look into a better car.

Nope, but you will have a mortgage payment, council tax, water bill, gas and electric bill, internet bill, TV license, home insurance, life insurance.......
And you'll will want to be saving even after you get the house to prepare you for when you want to move too.....!

Good thing is, when you see that the money you put in upfront and in mortgage payments is not only still there, but more than likely increased, you will be quite happy to save for another property

 

[The Kendragon]

.... how does the just add fuel marketing spin work then? I assumed this was the way of manufactures getting some of these astronomical insurance premiums converted into new car sales.

The non pcp method 12850 loan over 48 months is about 285 pcm (first direct). As stated above autotrader 17 plate black edition is £9.5k. As finances permit, over pay the loan to get back to trade in = residual value.

The other factor to remember is any loan will impact on mortgage multiples ( as discovered to the shock of a work colleague last week!!)

PS I do love having a new car to drive after a long day at work

No idea how it works, I didn’t use Just Add Fuel. Used Passport (PCP) instead I paid £1,500 upfront to reduce some of the negative equity and with the discount on the car I’ve done alright.

We won’t be moving into a house for about two years so most the credit traces will be long gone. The £25,000 of debt (including interest) from the Audi will be gone too so that’s been lowered by £10,000

 

[DrEskimo]

No idea how it works, I didn’t use Just Add Fuel. Used Passport (PCP) instead I paid £1,500 upfront to reduce some of the negative equity and with the discount on the car I’ve done alright.

We won’t be moving into a house for about two years so most the credit traces will be long gone. The £25,000 of debt (including interest) from the Audi will be gone too so that’s been lowered by £10,000

I like your thinking, but I still think you will be far better off selling the A3 a different route and tying to minimise that negative equity. Maybe they are giving you a fair price, but I can't help but think they are just offsetting the additional £1500 discount they are giving you (£2,500 contribution is advertised on their website) by offering you at least £2k less than your A3 is actually worth....It's very common tactic when P/X is involved in a new finance deal...

Have you tried all different avenues for trading/selling the A3? Are you sure you're getting a fair price for it...?

With regards to the Peugeot, I agree with @Afizzypop. I would much sooner get a personal loan and put that and the £1500 deposit towards a used model, while paying off any negative equity you do have using a 0% interest credit card. While the monthly outgoings may be higher, you will have a Peugeot you own outright to sell at the end, which in 24m should be worth in the region of £5/6k....all in, your net gain should be around £2k better off I reckon...? Oh, and none of the risk I outlined above, as the finance on the car will be less than its worth.

 

[S32B]

Insurance will also be £1,500 without a black box compared to £6,000 with one

£6k for insurance!!!! and then the car payments on top of that! It would be cheaper to get a taxi to where you want to go!

 

[S32B]

I like your thinking, but I still think you will be far better off selling the A3 a different route and tying to minimise that negative equity. Maybe they are giving you a fair price, but I can't help but think they are just offsetting the additional £1500 discount they are giving you (£2,500 contribution is advertised on their website) by offering you at least £2k less than your A3 is actually worth....It's very common tactic when P/X is involved in a new finance deal...

Have you tried all different avenues for trading/selling the A3? Are you sure you're getting a fair price for it...?

Got to agree with this, when I negotiated the deal on my A5 I told them to keep the new car and the S3 deal separate as I wanted to know exactly what price I was getting each car for, I knew they weren't listening and they were all for pushing the A5 quote! So I sent them an email stating that I may sell the S3 privately and to keep the deals apart (to cover my back), they then contacted me over the A5 and offered me 21.4% off the price! Then offered me £2k less for my S3 than I could sell it elsewhere! So I agreed on the A5 deal and signed!

A week before I was due to collect the A5 they asked me to go in to sign some papers etc. they then mentioned my S3!!! I told them that they weren't having it and I was selling it to someone else for more money the look on their faces was class I then added "I did say at the start to keep the deals separate and I also said it again in the email I sent you".

Have you priced up the Peugeot 208 Black Edition online to see what anyone can get it for? Then try other places to sell the A3?

 

[S32B]

No idea how it works, I didn’t use Just Add Fuel. Used Passport (PCP) instead I paid £1,500 upfront to reduce some of the negative equity and with the discount on the car I’ve done alright.

We won’t be moving into a house for about two years so most the credit traces will be long gone. The £25,000 of debt (including interest) from the Audi will be gone too so that’s been lowered by £10,000

Just looked to see what they look like, they do look nice, but i did come across this one: https://www.autotrader.co.uk/classi...el=208&radius=1500&maximum-mileage=100&page=1

Not wanting to put a downer on your buying choice but just check the figures mate, this is based on the one above:

 

[DrEskimo]

Just looked to see what they look like, they do look nice, but i did come across this one: https://www.autotrader.co.uk/classified/advert/201712011739514?advertising-location=at_cars&postcode=ch21hn&make=PEUGEOT&aggregatedTrim=Black Edition&onesearchad=Used&onesearchad=Nearly New&onesearchad=New&sort=price-asc&model=208&radius=1500&maximum-mileage=100&page=1

Not wanting to put a downer on your buying choice but just check the figures mate, this is based on the one above:

View attachment 144602

11.9% APR...! Noooo!!

Get a personal loan at 3.4%, if at all! £9500 over 48m would total just £663 in interest charges....

Considerably less than £2,400...!!

 

[S32B]

11.9% APR...! Noooo!!

Get a personal loan at 3.4%, if at all! £9500 over 48m would total just £663 in interest charges....

Considerably less than £2,400...!!

Yeah i know mate, just an example from a main dealer to compare to the one he's using

EDIT* If I was young and just after a cheap run about I'd do this one https://www.v4b.co.uk/personal-leas...k-12-puretech-82-connected-chic-3dr-254010860

 

[Pinky1959]

I don't get why your insurance went up so much (I get insurance is a rip off ) did you call the company and do some haggling as if it wasn't your fault they shouldn't imo be putting it up so much .
Good luck with saving for a house but remember Carpets , curtains , blinds and any furniture you don't have , oh and plants etc for the garden and anything else you may think of ........

 

[DrEskimo]

I don't get why your insurance went up so much (I get insurance is a rip off ) did you call the company and do some haggling as if it wasn't your fault they shouldn't imo be putting it up so much .
Good luck with saving for a house but remember Carpets , curtains , blinds and any furniture you don't have , oh and plants etc for the garden and anything else you may think of ........

Couldn’t agree more. Seems very odd...

And it’s absolutely crucial before making this decision....

If insurance is in fact similar, then over 24m the Peugeot, with the negative equity and £1500 deposit, will be (24*285+1500) £8340. That’s just £500 cheaper than just keeping the A3 at £8,808 (£367*24)....probably make that back in fuel savings and reduced VED??

 

[The Kendragon]

My Audi has done 24,000 miles in a year so it’s been well used. Also the Peugeot is signed up for 15,000 miles a year so that’s why the payments are higher. The finance remaining on the Audi is £20,000 and nobody would buy it for that. Due to this I wouldn’t be able to clear the finance as I don’t personally have £3000/4000 lying around. Buying this Peugeot and them clearing the finance has allowed me to get rid of my problematic Audi, save money on car payments and save money on insurance. The main thing for me at this point was saving money and getting rid of my A3 as quick as possible. Thank you for all your input but with limited time and funds available to me, I had to ditch the A3 fast. The longer I keep it (the more miles I do), the more money I lose.... I’ve got three and a half years left on the agreement so I’m not keeping it for that long with the issues I’ve had. It’s going Also managed 2.9% APR on the Peugeot deal which I was happy with. Personally I think the £16,000 they said the car was worth was fair for trade-in when AutoTrader said it’s worth £17,000 privately. I’ve confirmed that I’ll save £4,500 on insurance next year

 

[Tom.H]

My Audi has done 24,000 miles in a year so it’s been well used. Also the Peugeot is signed up for 15,000 miles a year so that’s why the payments are higher. The finance remaining on the Audi is £20,000 and nobody would buy it for that. Due to this I wouldn’t be able to clear the finance as I don’t personally have £3000/4000 lying around. Buying this Peugeot and them clearing the finance has allowed me to get rid of my problematic Audi, save money on car payments and save money on insurance. The main thing for me at this point was saving money and getting rid of my A3 as quick as possible. Thank you for all your input but with limited time and funds available to me, I had to ditch the A3 fast. The longer I keep it (the more miles I do), the more money I lose.... I’ve got three and a half years left on the agreement so I’m not keeping it for that long with the issues I’ve had. It’s going Also managed 2.9% APR on the Peugeot deal which I was happy with. Personally I think the £16,000 they said the car was worth was fair for trade-in when AutoTrader said it’s worth £17,000 privately. I’ve confirmed that I’ll save £4,500 on insurance next year

24,000 in a year and here's me on 4200 odd after 9 months lol

 

[MaffewEM]

24,000 in a year and here's me on 4200 odd after 9 months lol

Haha I only do approx 6000 a year, if I was on that mileage I’d be pushing for some form of lease car so the value lost through high mileage doesn’t affect me! But yet again I don’t like 4 year deals as they tend to drop considerably in value the second an MOT is needed, which is a bit annoying

 

[deanshaw24]

I’ve just had the same with my Q2, i was only paying £265 a month and £100 of that is interest. So only paying £165 capital. The problem is that it’s depriciating more than £165 a month so I too had to get rid ASAP. Ended up leasing a new Tiguan, which is heads and tails over a q2. But then again it should be.

 

[The Kendragon]

I’ve just had the same with my Q2, i was only paying £265 a month and £100 of that is interest. So only paying £165 capital. The problem is that it’s depriciating more than £165 a month so I too had to get rid ASAP. Ended up leasing a new Tiguan, which is heads and tails over a q2. But then again it should be.

I’m guessing you had negative equity too?

 

[deanshaw24]

Yes. Had to pay £2250 so sell it

 

[Pinky1959]

Can you please put some photos up on here .
I have the MK 1 Tiguan sport and love it .

 

[deanshaw24]

Can you please put some photos up on here .
I have the MK 1 Tiguan sport and love it .

I’ll get some tomorrow

 

[The Kendragon]

Can you please put some photos up on here .
I have the MK 1 Tiguan sport and love it .

Agreed, always need to see car pics!