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

Audi finance lost for words!

S32B Sep 12, 2019

  1. S32B

    S32B Well-Known Member Audi A5 S tronic Coupe

    5,626
    6,535
    113
    OK so I sent AF an email asking when my car would be in voluntary termination territory. I received an email yesterday saying 16 month time, so January 2021! Thinking this is wrong I just phoned them up! :p

    He went through all the security questions etc and then I asked for him to double check the date of the VT as I think it's wrong...He came back with a confident 16 months/January 2021 as it says in the email you received :) I then said "Can you tell me when my contract is up then please?"....he looked and said "ohhh errr yeahhh that doesn't make sense does it?!?!? October 2020" so my contract ends 3 months before I can VT :D

    He couldn't explain why and just said "It looks like you will be just handing the keys back next October then" :D
     
  2. Avatar

    Google AdSense Advertisement


  3. AlS3BE

    AlS3BE Well-Known Member

    2,633
    1,475
    113
    Vt point is half the value of the retail price of the car after discounts/payments/deposits.
    Your car must have had a huge balloon/GFV at the end for it to be after the end of contract. First I’ve heard of this.
    Most pcps are geared towards the end of the 3/4 years to stop people vt’ing their cars.
    I think a lot of manufacturers have bumped up their GFV to keep monthly payments down and now it looks like everyone is either vt’ing or handing their cars back as the cars aren’t worth the GFV at the end of term. Bubble ready to burst if you ask me.
     
    Damo S and KenL like this.
  4. S32B

    S32B Well-Known Member Audi A5 S tronic Coupe

    5,626
    6,535
    113
    At the time I bought the car I got 21.4% discount, so it came down to about £29k and the final payment is £19k, when I came to collect the car the final amount on a new deal had gone down and the monthly payments had gone up! I had the choice to switch but he advised me that the deal I was on was the safer bet financial for me! As I could pay more over the term and still be handing the car back at the end! (36 month pcp) £1k down and £380 for a car with a list price of £38k isn't bad :) I've seen A1's coming in close to that recently.

    To be honest it doesn't bother me just handing it back because I owe more than what I can get for it :) The last time I changed from the S3 I had to mess around selling it privately, as Audi were offering me far less than what I owed on it! (I did change early to be fair) But in the end I got more than what I owed on it, but it was a bit of hassle doing without a car for a short time. This time it's easy, hand the keys back and get something else. Which begs the question, if I'm doing that at 3 years at a greater loss for them, I wonder if they'd let me do it early if I were to buy another Audi now, as the difference in what I owe today is only a few hundred more than what I can sell the car for?!?!

    I think you are correct about the ballon and it bursting though :)
     
  5. AlS3BE

    AlS3BE Well-Known Member

    2,633
    1,475
    113
    The car although listed for £38k was only ever worth £29k which is what you essentially paid. All these big discounts are realistically just fake numbers to make it look attractive and difficult to vt.
    To expect it to be worth £19k(65% of the £29k) after 3 years is a bit unrealistic. For years manufacturers have tried to control the second hand prices doing this kind of stuff and now it’s backfiring cause people aren’t willing to pay, in your case, £19k for a 3 year old car. I’ve seen more and more people vt’ing or handing it back recently cause the cars just isn’t worth anywhere near the gfv.
    We have also been spoilt with cheap finance cause financing a 3 year old car would be the same as financing a new one when you only looking at monthly payments so you might as well just get a new one.
    I’ve only ever vt’d 1 car, always previously managed to sell or trade in a car for more than the gfv. now looking at it there isn’t many cars gonna be worth their gfv after the term unless it’s something special like a lambo or Bentley.
    Might as well use and abuse this before the bubble bursts :wink:
     
    S32B likes this.
  6. terminator x

    terminator x Well-Known Member

    4,215
    4,771
    113
    Imho most final payments seem to be set close to 50% of the loan value effectively meaning you can't VT until all the payments are made. PH beat me up on it but it does seem to be the case the more people you speak to.

    TX.

    Sent from my BBB100-2 using Tapatalk
     
  7. S32B

    S32B Well-Known Member Audi A5 S tronic Coupe

    5,626
    6,535
    113
    Yep, just looked at my car/engine/s-line (with no extras) on the Audi site, if I were getting it now over 36 months and using the same 'to finance figure', it would cost me £70 per month more and the final balloon is down to £16,146 so £3k less than mine is. If I wanted the payments to stay the same I'd have to do a 48 month deal.

    As you say I may as well make the most of the cheap payments for another 12 months and just hand it back lol.
     
  8. Adam14

    Adam14 Well-Known Member Team Glacier Team V6 Audi S5 Coupe

    1,728
    1,557
    113
    Valid points. My S3 VT point was after 3 years and 2 months. My S5 is in a similar ballpoint. Both cars were bought used <6 months old and low mileage so "bargains" in a sense of the word.

    My GFV after 4 years (and 6 months) is about 35% of the cars value brand new. At around 43k miles.

    Sent from my SM-G965F using Tapatalk
     
  9. AlS3BE

    AlS3BE Well-Known Member

    2,633
    1,475
    113
    Yup. Looked at merc/bmw/Audi recently and compared to a year or 2 ago the GFVs now is a lot lower.
    In a few years time it’s gonna cost a lot more to get the same cars.
     
  10. KenL

    KenL Well-Known Member

    1,117
    778
    113
    I'm in the same boat in terms of VT not a viable option.

    Handing it back is turning out to be a PiTA!
     
  11. AlS3BE

    AlS3BE Well-Known Member

    2,633
    1,475
    113
    VT or handing back goes through the same process with BCA. Same charges could apply for damage or mileage.
    I was gonna hand back my wife’s merc but decided to vt it a month before the end. From what I researched I got better protection with vt than handing it back.
     
    KenL likes this.
  12. Avatar

    Google AdSense Advertisement


  13. KenL

    KenL Well-Known Member

    1,117
    778
    113
    Thanks for that. I'm a bit over on mileage but I will dispute any proposed extra charges as the car is in great condition for its age. Nothing more than wear and tear. No damage to alloys, no dents etc.
     
  14. TYb

    TYb Well-Known Member TFSI Owners Group Team Navarra Audi S3

    1,674
    1,837
    113
    Look into it but I don’t think you can be held to mileage when VT’ing despite what your contracted mileage is.
     
  15. KenL

    KenL Well-Known Member

    1,117
    778
    113
    Thanks. I am not VTing as I have made all the payments. I am still hopeful that I won't be asked to pay. It's about £200 according to the contract. No big deal and a lot less than the cost of a service at Audi!
     
    AlS3BE and TYb like this.
  16. AlS3BE

    AlS3BE Well-Known Member

    2,633
    1,475
    113
    Make sure service light/reminder isn’t on when you hand it back. Not sure about the a3/s3 but on my last a6 you can reset it through the mmi
    My mate handed a car back about 3k over and never got the bill for over mileage. Might have just been luck though.
     
    CHEZ and KenL like this.
  17. KenL

    KenL Well-Known Member

    1,117
    778
    113
    Service (oil & inspection) not due for 1500 miles. Plan on making sure it is showing at least 1k when I hand it over.
     
  18. jassyo06

    jassyo06 Voodoo Man ! S3 Saloon Audi S3 Black Edition Porsche Voodoo Blue

    17,812
    36,468
    113
    My son mentioned to me about folks that fire in low deposits on cars last week...he said they're mostly tied in right through the finance period,car jumping is money sapping as we all know...
     
    KenL likes this.
  19. AlS3BE

    AlS3BE Well-Known Member

    2,633
    1,475
    113
    Pcp is essentially a cheaper way to lease a car.
    You are mitigating some risk in the future value of the car to the finance company instead of yourself so appears as win win for consumers. A lot of consumers also think the half way mark to VT is half way through the term, dealers don’t make this clear, not half the value paid which as you say is closer to the end of 3/4 year term not the 1.5/2 years folk think it is.
    My wife’s car we just VT’d had a gfv(balloon) of £19k and a market value of about £15k. There was no point in keeping it as it was cheaper handing it back and walking in my local franchised dealer and buying an identical car for a lot less off the forecourt with a year used/approved warranty as well.
    Cars are always money pits anyway whether you own/lease/finance them. Unless you buy a classic that won’t depreciate there’s no escaping that fact.
    From a business point of view if it’s an appreciating asset you buy it, if it’s a depreciating asset you lease it.
    I can see this pcp bubble bursting sooner rather than later. These small monthlies for £30/40/50k cars isn’t gonna be sustainable for much longer. Second hand market is saturated now and people like a new car every 3 years.
     
    KenL and TYb like this.
  20. jassyo06

    jassyo06 Voodoo Man ! S3 Saloon Audi S3 Black Edition Porsche Voodoo Blue

    17,812
    36,468
    113
    This Thread Topic has been Flogged to death many times on here" The Bubble will Burst being the most common used phrase" and it still hasn't burst

    @S32B knows too well how PCP works :whistle2:
     
    cuke2u, KenL and S32B like this.
  21. KenL

    KenL Well-Known Member

    1,117
    778
    113
    As far as I am concerned the pcp bubble is burst where Audi are concerned.

    Never had any issues trading in MINIs or my wife's Citigos. They don't have a problem being worth what they should near the end of the deal.

    Audi are only getting by on the high interest rate they charge.

    My ST is going to be on a PCP interest rate is 2%.
     
    TYb and S32B like this.
  22. S32B

    S32B Well-Known Member Audi A5 S tronic Coupe

    5,626
    6,535
    113
    Audi are digging their own grave in all ways, quoted me £421 for my second service, the indi I've used before with genuine Audi parts has quoted me £198!!! Another indi £168 but I've not used him...so better the devil you know for the sake of £30 :)

    Mate of mine is looking to sell his A4 and get one of these: https://www.autotrader.co.uk/classified/advert/new/201908030756473?

    7 year warranty and he can also buy a 5 year servicing plan for £769, he does under 10k per year so will need 1 service each year, £769/5 = £153 per service.
     
    CHEZ and KenL like this.
  23. KenL

    KenL Well-Known Member

    1,117
    778
    113
    My wife just got a new Skoda Citigo. 2 services cost £99 with the purchase.

    Her last one had 2 services, 12 month intervals.

    £95 for first service and second was £145 at main dealer.
     
    S32B likes this.
  24. AlS3BE

    AlS3BE Well-Known Member

    2,633
    1,475
    113
    That’s was like my old mini had the tlc pack. Think it was £500 for 5 year servicing. One every year.
    Newer minis get cheated cause they still sell it the same but variable servicing means you get 1 every 2 years. Same price I think but half the services.
     
    S32B likes this.
  25. S32B

    S32B Well-Known Member Audi A5 S tronic Coupe

    5,626
    6,535
    113
    That's cheap enough to run :)

    Just asked him what he can get one of those Ceed GT's for new, £22,400 and he said he's run it for the full 7 years...think the longest I've ever done was 3 lol.
     
  26. KenL

    KenL Well-Known Member

    1,117
    778
    113
    Your memory is hazy, or is it mine?

    MINI going back to 2002 were always on variable servicing.

    My first MINI was £150 for TLC, I always managed to get it thrown in as part of the deal apart from the first MINI.
     
    AlS3BE likes this.
  27. AlS3BE

    AlS3BE Well-Known Member

    2,633
    1,475
    113
    Think there was a tlc pack for 3 and one for 5 which was more expensive. Not sure if it was different cause I had the dooper. Can’t really remember what the actual cost was. It was 2007. Kept the car till 2013. Last service was an Indy then sold for my first Audi.
     
  28. Evil Derboy

    Evil Derboy Well-Known Member Team Daytona Audi RS5 Owners Group

    752
    737
    93
    Isn’t the VT point when half of the total amount payable under the PCP agreement has been reached? This includes total interest and the balloon payment.
     
  29. S32B

    S32B Well-Known Member Audi A5 S tronic Coupe

    5,626
    6,535
    113
    Yes. On the paperwork it says total amount to pay, it's 50% of that which can be made up of payments and your deposit.
     
  30. AlS3BE

    AlS3BE Well-Known Member

    2,633
    1,475
    113
    Yeah forgot interest.
    So a £10k(list price) car with £2k interest and £1k discount is £11k total. You need to reach £5500 after monthly payments and deposit to vt.
     
    S32B likes this.

Share This Page