Keeping my S5 at end of PCP?

[Blessed_Badger]

12 months away yet (got a 2 year PCP in March 2018) and only just 1 year old next week but I’m seriously considering (and never really thought I would!) buying it at the end.

My GFV is £30k but looking online 2 year old B9s with a similar spec and mileage to what mine will have are £33k-£35k.

Even more worryingly speccing up a new, but similarly optioned 2.0L (so not really a comparable engine to the S5) it’s nearly £54k - my S5 was £53k with nearly every option ticked! And that’s before any changes due to Brexit (I see Porsche are already warning that orders could go up by £10k if there’s a no deal Brexit - WTF - to cover possible changes to tariffs and duties).

Makes me wonder what anyone else is doing? I suspect when the S5 does make it back on the configurator it’s going to be nearer £60k than £50k once you add a few options and that’s far more than I’d be willing to pay.

Is anyone else thinking similar or is it just me?


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[L_G]

Paid off the PCP on my last A5 and kept the it for a further 5 years. May well do something similar with my current car

 

[Blessed_Badger]

Paid off the PCP on my last A5 and kept the it for a further 5 years. May well do something similar with my current car

I’ve handed back my last 3 - an A5, Merc C-Coupe (both worth about the same as the GFV) and a BMW 435D that I VT’d at month 33/36 that was in £5k+ negative equity.

Always planned on handing back and starting again but with the recent (and probably future price hikes) a similar car will be 20-30% more by March next year.

 

[L_G]

Given my modest annual mileage and that I have another rather expensive hobby I don't think I could justify changing cars at year three, however circumstances can also change!

As an aside when ordering the S5 I noticed that by the time you had added the extras such as 19" wheels and the technology pack which came standard with the S5 but were optional on the 2.0l quattro there wasn't all that much difference in list price.

 

[Blessed_Badger]

Given my modest annual mileage and that I have another rather expensive hobby I don't think I could justify changing cars at year three, however circumstances can also change!

As an aside when ordering the S5 I noticed that by the time you had added the extras such as 19" wheels and the technology pack which came standard with the S5 but were optional on the 2.0l quattro there wasn't all that much difference in list price.

I realised similar (but too late) in 2013 when ordering my A5 3.0TDI Black Edition. My order was already in production when I realised for about £7 extra a month I could have had an S5 with the same spec! Obviously the fuel bills would have been different though. Luckily now I only do 6-8k per annum so it’s much less of an issue - although I am filling up every 2 weeks rather than 3 or 4 in the diesel.

 

[L_G]

We often go to the West Country which is a 400 miles round trip, the A5 used to do that with ease in a single tank but I now need to fill up on the way back or play chicken with the fuel warning light (which doing too often on a previous car knackered the fuel pump). Petrol is a bit cheaper though

I didn't buy it for the fuel economy!

 

[S32B]

Funny this post came up today, just been to Audi and was talking to a sales guy in there as I'm looking at either buying and keeping long term or downsizing the car as I'm doing under 5,000 mile per year now. I commented on the price of the cars via pcp over 36 months, saying that the new A1 is more than my current A5 on a pcp!!! and if I wanted the same A5 again and to pay the same monthly amount I'd have to do it over 48 months next time rather than 36.

His answer was simple, prices have gone higher and residuals have gone lower. I said I'm expecting just to hand mine back after 3 years and start again with something else, he said if you're happy with that then to keep your payments the same just do a 48 month deal and then VT after 36 months, he's had 10 people this month do exactly that!!! I then said if I'm just handing the car back or doing a VT all the time, I may as well just lease something for 24 month, he raised his eyebrows and smiled!!!

They had an SQ2 in the showroom, that looked nice, but it was over £40,000

 

[Blessed_Badger]

His answer was simple, prices have gone higher and residuals have gone lower. I said I'm expecting just to hand mine back after 3 years and start again with something else, he said if you're happy with that then to keep your payments the same just do a 48 month deal and then VT after 36 months, he's had 10 people this month do exactly that!!! I then said if I'm just handing the car back or doing a VT all the time, I may as well just lease something for 24 month, he raised his eyebrows and smiled!!! :

Considering he reckons residuals have dropped they certainly aren’t being passed on to the customer in the Audi AUCs as a 2 year old S5 is £32k+ and my GFV just shy of £30k after 2 years.

Saying that, when I ordered my car the GFV was £29990 after 2 years. Within a few weeks Audi had dropped it to £27500 for new orders.

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[S32B]

Considering he reckons residuals have dropped they certainly aren’t being passed on to the customer in the Audi AUCs as a 2 year old S5 is £32k+ and my GFV just shy of £30k after 2 years.

Saying that, when I ordered my car the GFV was £29990 after 2 years. Within a few weeks Audi had dropped it to £27500 for new orders.

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Mine was the same from ordering to collecting the GFV had dropped by £2,000, they gave me the chance to switch to the new deal with the slightly lower APR%, but the monthly payments went up rather a lot! I always say if there is equity at the end fine, if not fine....so I stayed on the deal I was on with lower payments but higher final figure. I could have gone higher payments for the lower final figure and then found the car was worth less than what I owed at the end anyway!!!

Mate of mine just sold his GTC VXR to a dealership for £17,100 they had it up for sale days later for £19.988

 

[Blessed_Badger]

After being inspired by Philip Schofield I thought I’d put my car into WBAC for a laugh - it was worth £30,275 about 4 months ago ....... now worth £32,175.

Something strange definitely going on with the used car market.

And changing subject - where’s the S5 gone from the Audi website?


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[IJB1959]

Interesting times ahead if a no deal Brexit. I live in Milton Keynes and close to VW & Mercedes UK HQ are located. A number of local people and some neighbours work for one or the other companies. There has been a lot of talk of pending price rises and even the closing of the UK financing arm due to EU banking laws. Anyone with a lease or PCP who wishes to purchase a EU imported car at the end of contract will possibly be quoted an inflated market value purchase price of around 10-15% if no deal is done on EU trade. Interestingly, until they sort out what final engine form the S5 will appear in and it being currently off the market, any current B9 S5/S4 has already inflated in resale price by 20% due to current supply and demand. If no EU trade deal is done the b9 S5 value will increase significantly more. One local car dealer told me he is currently investing more in 1-3 year old German stock hoping to profit from a no deal outcome.

 

[Terminator x]

Interesting times ahead if a no deal Brexit. I live in Milton Keynes and close to VW & Mercedes UK HQ are located. A number of local people and some neighbours work for one or the other companies. There has been a lot of talk of pending price rises and even the closing of the UK financing arm due to EU banking laws. Anyone with a lease or PCP who wishes to purchase a EU imported car at the end of contract will possibly be quoted an inflated market value purchase price of around 10-15% if no deal is done on EU trade. Interestingly, until they sort out what final engine form the S5 will appear in and it being currently off the market, any current B9 S5/S4 has already inflated in resale price by 20% due to current supply and demand. If no EU trade deal is done the b9 S5 value will increase significantly more. One local car dealer told me he is currently investing more in 1-3 year old German stock hoping to profit from a no deal outcome.

Simple supply vs demand though, if prices rise they will sell less of them.

TX.

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[IJB1959]

Simple supply vs demand though, if prices rise they will sell less of them.

TX.

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Simple supply vs demand though, if prices rise they will sell less of them.

TX.

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Yes that's true. Possibly a very difficult situation for German - UK car imports if tariffs are imposed.

 

[Blessed_Badger]

Anyone with a lease or PCP who wishes to purchase a EU imported car at the end of contract will possibly be quoted an inflated market value purchase price of around 10-15% if no deal is done.

So you’re saying that ‘possibly’ despite a PCP already signed and GFV being agreed and part of the terms having already been fulfilled Audi are going to try to get an extra 10-15% out of customers - I’d like to see them try as I bet there’s isn’t any small print that allows them to change the GFV / balloon at the end of the term - especially as payments have been made during the term based on, and to reduce the balance to the GFV.


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[cuke2u]

Agreed, you have a legally binding agreement which cannot be changed...

 

[IJB1959]

Agreed, you have a legally binding agreement which cannot be changed...

Yes, I totally agree with both of you. They are up to something but what exactly I don't know, maybe something with the small print? This is one of many other staff rumours flying around on no deal Brexit.

 

[Blessed_Badger]

Just rung Audi FS whilst I was waiting for the car to be serviced this morning - just to see what my settlement figure is.....

£30600, which I’m quite happy with as WBAC value it at £32k at the moment - and this is compared to £30500 a few months ago!

Also, as my GFV is £29900 I’ve worked out that if I pay it off now I’ll save nearly £1500 in interest on my monthlies as opposed to paying them and then the £29k next March. Just need to find the £30600 now!!!

 

[S32B]

Just rung Audi FS whilst I was waiting for the car to be serviced this morning - just to see what my settlement figure is.....

£30600, which I’m quite happy with as WBAC value it at £32k at the moment - and this is compared to £30500 a few months ago!

Also, as my GFV is £29900 I’ve worked out that if I pay it off now I’ll save nearly £1500 in interest on my monthlies as opposed to paying them and then the £29k next March. Just need to find the £30600 now!!!

Prices being kept up as you can't order one atm

Just note you say GFV of £29,900 remember it's a final payment, they don't have to give you that figure if you were to px the car!!!

 

[Blessed_Badger]

Just note you say GFV of £29,900 remember it's a final payment, they don't have to give you that figure if you were to px the car!!!

My thinking is....
1) I really like the car and can see myself still liking it in a few years time.
2) Having owned it from new I’ll have taken the steep first 2 year’s depreciation so why sell when it’s not dropping quite so sharply.
3) I know the history of the car and how well it’s been treated by myself.
4) I reckon that if I were to purchase a similar 2 year old S5 with all the options and little mileage mine’s got it’d be nearer £32-£33k from a franchised dealer.

Or at least they’re the reasons I’m using to justify it.

Also, looking at it another way, if I’ve got £30k to spend on a car - I can either buy my own S5 - or get a brand new.... Golf GTI or similar - the only advantage which I can see is it having a full 3yr warranty.



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[cuke2u]

All very good reasons and ones I am also applying to keeping my A4. Plus you can buy an extended warranty from Audi...

 

[DarkyUK]

My S5 Sportback was £39,500 with less than 5,000 miles and 9 months old when I got it, it had the pan roof, light and vision pack and tech pack (as it was back then). I've added a few bits since then as you can see form my signature and I got a really good PX value on the Land Rover, so realistically it was more like 38K.

 

[S32B]

Looks like the bubble has burst for Audi, I'm seeing on here more and more people are wanting to keep their cars for longer...only a few years back everyone was switching every 3 years!

 

[Blessed_Badger]

Prices have risen by 10-20% on most models and GFVs plummeted! On a BMW site I’m a member of (from my 435D days) they reckon PCP payments have gone up by 25%+ over the last 12-18 months for like for like models and I suspect Audi will be the same. I can see a large number if people keeping cars rather than swapping every 2 or 3 years!


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[cuke2u]

One of the issues I consider is the changes in VED the government brought in 2017. It is so easy to go over £40k...

 

[S32B]

Prices have risen by 10-20% on most models and GFVs plummeted! On a BMW site I’m a member of (from my 435D days) they reckon PCP payments have gone up by 25%+ over the last 12-18 months for like for like models and I suspect Audi will be the same. I can see a large number if people keeping cars rather than swapping every 2 or 3 years!


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After watching the ST Fiesta on Top Gear at the weekend I'm thinking about just buying one of those new for £20k and keeping it for at least 5 years...I looked at my mileage when I arrived at work this morning: 4,505 and it's 17 months old so 265 mile per month, 3,180 per year!!! So even if I kept the next car 5 years it would only have around 15,900 on the clock

I sold the S3 after 2 yrs 7 months with 17,500 on it/564 per month! so virtually a 50% drop in the miles I was doing!