Yea got the same offer from Amersham Audi (presumably part of the same Jardine Franchise?).
Of course it involves paying £8k in interest charges for the PCP...!!!
Sportback discounts
- Thread starter lee_fr200
- Start date
Yea got the same offer from Amersham Audi (presumably part of the same Jardine Franchise?).
Of course it involves paying £8k in interest charges for the PCP...!!!
Behind The Bins
Registered User
That’s why I don’t like pcp the interest can be eye watering, I prefer a loan and buy the car.
Hope I’m not opening a can of worms
Hope I’m not opening a can of worms
That’s one big *** loan if your not putting in a monster deposit.
There are pros and cons to each route
There are pros and cons to each route
I was thinking PCP then get a cheaper loan to over pay it to take monthlies down to minimum (£50). That way you get better deal up front and then save some interest, best of both worlds? Anyone else done that?
Whether you had pcp or a loan would effect what you can borrow on a mortgage for example.
You can hand a car back if it’s half way paid on pcp, you can’t with a loan. Yes I know you have the car as equity to sell and clear that loan but that’s not how the banks view it
You can hand a car back if it’s half way paid on pcp, you can’t with a loan. Yes I know you have the car as equity to sell and clear that loan but that’s not how the banks view it
Behind The Bins
Registered User
I’m just not keen on pcp or anything like this, I suppose if you swap your car regularly it might have an appeal or you don’t have much deposit
I had a van on contract hire through my business a few years ago paid £10000 over 3 years for it but had to hand it back at the end of the contract key ring and all, left standing in the dealership car park with my pockets turned out
Definitely hiding behind the sofa now
I had a van on contract hire through my business a few years ago paid £10000 over 3 years for it but had to hand it back at the end of the contract key ring and all, left standing in the dealership car park with my pockets turned out
Definitely hiding behind the sofa now
Yea good point. There are some safe guards from a PCP that protect consumers from very heavy depreciation. I just think on cars like the RS3, or indeed other (non-diesel) Audi's, it's unlikely you will need to make use of them. As such, paying over the odds in interest to have them, seems a false economy to me personally.
I think you need to keep in mind this would typically be towards the very end of the PCP deal if a relatively low deposit was made though. For example, using the example from Amersham Audi on the RS3 deal they sent, it wouldn't be until month 46 of 48 that you could VT, due to only having a deposit of £2,999.
I don't think the RS3 GFV is lower than 50% of even the RRP over 3yrs, so obviously VT would not even be an option here.
If I had 50k lying around I think I’d be putting it into the mortgage rather than a depreciating asset. Completely agree though if you can afford to buy cash then do exactly that
But why? A mortgage charges about 1/2% APR, whereas the PCP on 6.2% APR is equivalent to around 9.4% APR on a personal loan in terms of interest paid.
It’s costing you around 7% net to do that.
The clue is in the first sentence. Why put it into a depreciating asset?
I understand your calculation there but for me personally I don’t keep cars long enough to warrant putting big lumps of money into them.
Doesn’t your calculation also ignore a few factors. How do you know that £50k added to my mortgage won’t allow me into the next band of LTV? Your not quite comparing like for like as realistically the mortgage balance is going to be higher so it’s not as simple as your calculations suggest
I understand your calculation there but for me personally I don’t keep cars long enough to warrant putting big lumps of money into them.
Doesn’t your calculation also ignore a few factors. How do you know that £50k added to my mortgage won’t allow me into the next band of LTV? Your not quite comparing like for like as realistically the mortgage balance is going to be higher so it’s not as simple as your calculations suggest
Behind The Bins
Registered User
Lol yeah, my responses are not meant in that way. I’m not against paying cash, loan or pcp I just choose the pcp route myself as I go through cars regularly so the less money I put in the better
Ha sorry. I quite like discussing these things 
I won’t derail the thread anymore. I can respond to your comment above by PM if you can be bothered Terry?
Basically I think the whole ‘rent a depreciating asset’ is a bit of a nonsense statement when it comes to cars....the car is depreciating regardless of how you buy it. Using finance just introduces another cost on top, and PCP is the most expensive form of finance.
Leasing is probably the only example where this might not be true, assuming the lease deal is below the expected depreciation curve.
I won’t derail the thread anymore. I can respond to your comment above by PM if you can be bothered Terry?
Basically I think the whole ‘rent a depreciating asset’ is a bit of a nonsense statement when it comes to cars....the car is depreciating regardless of how you buy it. Using finance just introduces another cost on top, and PCP is the most expensive form of finance.
Leasing is probably the only example where this might not be true, assuming the lease deal is below the expected depreciation curve.
I get completely what you are saying mate, I work in finance and I know if you were to lay it all out then there can be savings ultimately by avoiding the higher interest rate payments.But the savings do not correlate if your talking a £1m house with £550k mortgage vs £50k car.
If you were to put that £50k in and activate 50% LTV then the savings could be much greater than simply buying the car outright.
Of course if there was only 50k left on the same mortgage then buying the car makes the best financial sense.
Edit- by all means feel free to PM mate
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But the savings do not correlate if your talking a £1m house with £550k mortgage vs £50k car.
If you were to put that £50k in and activate 50% LTV then the savings could be much greater than simply buying the car outright.
Of course if there was only 50k left on the same mortgage then buying the car makes the best financial sense.
Edit- by all means feel free to PM mate
Hmmm...you sure?
So that RS3 deal was borrowing £38,605 over 4yrs and the total interest paid was around £7,500.
Looking online, I can't see any better rates for a mortgage at 50% vs 55% LTV? From my experience the rate remains pretty static for anything below 60% LTV? How much are you realistically expecting the rates to drop given a 5% reduction in LTV?
A 25yr mortgage @ 1.05% APR on £550k results in about £21.5k in interest paid over 48months.
A 25yr mortgage @ 1.05% APR on £511,365 (£550k - £38,605) results in about £20k in interest paid over 48months.
So about £1,500 saving, vs a cost of about £7,500 by financing the RS3?
I mean I guess if we start assuming as much as a 0.5% reduction in APR with the lower LTV you might see some meaningful savings, but is that realistic? I can imagine that for a 90% vs 70% LTV for sure, but not 55% to 50%?
I think I'm maybe missing something here so do please correct me, but probably via PM now as I'm sure I'm boring everyone like usual
As this is not a Audi Finance contribution would the £3120 Discount have to be returned if you paid off the Finance within the 14 Day cooling off period?
Lol yeah that was just a random example with no real thought behind it as down at 55% LTV it would make very little difference going to 50%.
90% to 85% would likely create a bigger variance.
I will PM you all the same
90% to 85% would likely create a bigger variance.
I will PM you all the same
Behind The Bins
Registered User
What I was saying is they will give you this discount at least without getting the thumb screws out with or without the pcp
Cash/pcp/hp/magic beans
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Behind The Bins
Registered User
Agreed
I’ve had the old Rockefeller saying quoted to me by salesmen, rent a depreciating asset and buy an appreciating asset
I think the top and bottom of it is look at the total figure you are paying including interest and choose the cheapest path you can
Ha sorry. I quite like discussing these things
I won’t derail the thread anymore. I can respond to your comment above by PM if you can be bothered Terry?
Basically I think the whole ‘rent a depreciating asset’ is a bit of a nonsense statement when it comes to cars....the car is depreciating regardless of how you buy it. Using finance just introduces another cost on top, and PCP is the most expensive form of finance.
Leasing is probably the only example where this might not be true, assuming the lease deal is below the expected depreciation curve.
I’ve had the old Rockefeller saying quoted to me by salesmen, rent a depreciating asset and buy an appreciating asset
I think the top and bottom of it is look at the total figure you are paying including interest and choose the cheapest path you can
I think w
Ignore the PCP. Take it if there is an Audi contribution and withdraw from the agreement in first 14 days and get the best finance rate you can. 6.2% is way too high.
This is cheap.......
https://www.cargurus.co.uk/Cars/inv...yPriceChangesViewDetailsCTA#listing=125831469
https://www.cargurus.co.uk/Cars/inv...yPriceChangesViewDetailsCTA#listing=125831469
Jardine Motor Group are giving the equivalent of 7% to anyone who orders before end of this month. I reckon with a bit of negotiating you could squeeze another 1-2% off.
Also, anyone can potentially get 25%-30% off if you don't mind becoming a part time Uber driver and are willing to use your RS3 partly for this purpose. This would be an extreme way of saving some money for most of us, but maybe food for thought for someone out there looking for extra work/savings.
