RS3 fl Saloon Depreciation

[BadBoyWhiteRaps]

£33k deposit, 8 on finance. To go back to my original point, if my local dealership offered me 33k for a car I knew they'd try to sell for 43k, I'd just be offended and leave. 5k is plenty for a dealership, that'll be 3 times what they make on some of their cars.

 

[NevMan]

It's not hard to understand really. The dealers keep forecourt prices high, as Audi and more so RS Audi's are seen as a premium car. Premium car, premium price.

What the sticker price says and what it's true value is, is not always the same. Dealers are out to make as much money as they can. If the trade in price on an RS3 is around £32k, then it's realistic to expect the car to the be advertised for around £37k. This allows the dealer to make some money after any prep required, while still having a bit of bargaining margin to let the customer `get a deal`.

However, as we all know, car price are just all over the place at the minute. Sticker prices are artificially high, as we now live in the `Billy Big ******` era, where bragging to friends, family and colleagues about how much something costs is somehow seen as a right of passage and show how successful (falsely so) you are. All started off with the housing boom !

Plus with the advent of PCP deals, cars are sloshed around in the system for year where no one actually owns it. So someone taking out a PCP deal out on a new RS3 may quickly realise that the £700 a month they thought they could afford just to be seen in the new RS3, now is not so affordable once fuel, insurance etc is added on top. Or their circumstances change. So the car gets back into the system. The dealers advertise it at list (or thereabouts) and waits for the next punter to walk in, who realistically can't afford a £50k+ car, but thinks for a few hundred more than what they are currently paying for their Ford Focus, they can have an RS3 instead. Look at me, I'm successful !!!

I would suspect if the PCP / Lease bubble ever bursts, car prices will very quickly find their realistic values.

Pretty accurate summation

 

[NevMan]

That's my own fault really. Ticked the vast majority of options including all of the packs. Ended up financing £41,174 after my deposit at 6.07% interest, over 4 years with 15K mileage allowance. I got several thousand knocked off the price by the dealership too.

Out of curiosity I had a settlement figure generated and worked out that I could walk away clean now if I wanted to with no negative equity; but that 11 grand has vanished into thin air already.

Out of interest, did you investigate using say half or £6k of your deposit to pay some of the options cash, hence saving interest charges over the period, but admittedly monthlies going up?

 

[NevMan]

How are they winning if the 2nd hand cars aren't selling?

TX.

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But they are selling. A mate of mine has been looking to buy a PFL, but has missed out on about 4 cars as they are appearing to sell within a day or two of being available.

 

[RS_Dan]

Pretty accurate summation

I agree, my local dealer has the same car as mine only difference is it’s red and has Bose.

It’s on the forecourt for £30k, when I looked at trading mine they offered £21k.

Asked why the valuation was so low and get the response that everyone uses BCA auction prices to value now.

Think I’m going to keep mine for a bit longer as dealers just bend you over when it comes to changing.

 

[RS_Dan]

Interesting discussion on what people are paying.

I’ve never had a new car or a PCP deal so it’s good to read this sort of stuff.

 

[Callump01]

Out of interest, did you investigate using say half or £6k of your deposit to pay some of the options cash, hence saving interest charges over the period, but admittedly monthlies going up?

I generally change my car every 2 or so years so I wasn't too worried about the interest charges over the total period, I just wanted to keep the monthlies as low as possible whilst still not compromising on the options.

I had a passenger ride of a Tesla P100D launching a couple of times yesterday and i'm still trying to comprehend the speed (and instant torque) of it. I can see this being my last car with a traditional combustion engine after experiencing that thing... Perhaps next is a Model 3 Performance when it comes to the UK.

 

[N-Sinc]

Agreed to some extent. My cars on PCP but unlike alot of people I could pay it off now. I would rather pay the big deposit and 550 a month than part with 55k or so in one lump sum. Some people PCP a car and put the lump sum onto a deposit for property. That's far far better than throwing the full amount on a car. All depends on your appetite to risk and finance

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See, i don't agree with this. When i bought my RS3 end of last year, it was £45k with a couple of hundred demo miles on. If i took a PCP the total payable if i bought the car at the end would have been £55k. So i just bought it cash. Why would you choose to pay an extra £10k for a car if you had the option not to?

 

[N-Sinc]

I'd be interest to know how many people here would blow a named figure a month over three years for a Porsche GT3 (or equivalent) and have to give it back. Screen price then becomes irrelivant but to the dealer, they've sold the car. What would your monthly figure be?

This is an internal debate i'm having with myself at the moment. I want a 911 Turbo but don't know the best way to buy it..... If i do a PCP, you're right, i've paid a silly amount of money after 3 years to hand the car back.I could afford a high monthly but at the end it'd still make me feel sick! So i don't know the answer! Buy it for cash? But that's then 100k+ that could have gone towards clearing my mortgage..... Genuinely don't know the answer to this.....

 

[NevMan]

I generally change my car every 2 or so years so I wasn't too worried about the interest charges over the total period, I just wanted to keep the monthlies as low as possible whilst still not compromising on the options.

I had a passenger ride of a Tesla P100D launching a couple of times yesterday and i'm still trying to comprehend the speed (and instant torque) of it. I can see this being my last car with a traditional combustion engine after experiencing that thing... Perhaps next is a Model 3 Performance when it comes to the UK.

fair enough

 

[NevMan]

This is an internal debate i'm having with myself at the moment. I want a 911 Turbo but don't know the best way to buy it..... If i do a PCP, you're right, i've paid a silly amount of money after 3 years to hand the car back.I could afford a high monthly but at the end it'd still make me feel sick! So i don't know the answer! Buy it for cash? But that's then 100k+ that could have gone towards clearing my mortgage..... Genuinely don't know the answer to this.....

are you talking about PCP or PCH?

PCP = Finance pretty much 50% of car over 2/3/4 years, and at the end a) pay the balloon payment and you own b) P/X for something else and finance settled and new taken out c) re-finance the balloon amount for a further period.

PCH = Pay an initial deposit, and monthly payments over 18/24/36/48 months and hand back at end of term.

I am obviously not going into the finer detail such as agreed mileage, wear and tear etc.

If it were me buying a 911 Turbo, I would go down the PCP option with pretty decent deposit which in turn lowers monthlies and lessens interest you pay overall. Shorter period = less interest too obv.

 

[D0C]

See, i don't agree with this. When i bought my RS3 end of last year, it was £45k with a couple of hundred demo miles on. If i took a PCP the total payable if i bought the car at the end would have been £55k. So i just bought it cash. Why would you choose to pay an extra £10k for a car if you had the option not to?

It depends, you might think you could make that £10k up investing it elsewhere, property/stock market etc which also means you've got some liquid cash available for a rainy day. These debates go on and on. It's good that there's plenty of options and there's no right or wrong to any of them, providing they're not too silly.

 

[N-Sinc]

are you talking about PCP or PCH?

PCP = Finance pretty much 50% of car over 2/3/4 years, and at the end a) pay the balloon payment and you own b) P/X for something else and finance settled and new taken out c) re-finance the balloon amount for a further period.

PCH = Pay an initial deposit, and monthly payments over 18/24/36/48 months and hand back at end of term.

I am obviously not going into the finer detail such as agreed mileage, wear and tear etc.

If it were me buying a 911 Turbo, I would go down the PCP option with pretty decent deposit which in turn lowers monthlies and lessens interest you pay overall. Shorter period = less interest too obv.

Sorry, i was talking PCP. I'd probably re-finance the balloon if i were to do this, but because i haven't done a PCP before i didn't relaise you could just put down a huge deposit to reduce interest. Good shout! Is there a limit to how much deposit you can put down though?

There's also the issue of PCP APR being horrendously high on a used car isn't there? I wouldn't want to be paying 8%+...... So what would be the best option for say a 2 year old 911 Turbo from a finance perspective then?

 

[lee_fr200]

I’m in a conundrum at the mo I love the rs3 had the test drive and want one BUT

I work for my fathers compsny so I get a budget of 300 per month plus maintainance which he calculates at 90 quid to cover servicing and tyres the deal I have with him is that as long as I pay the deposit and the finance is 300 or under I can have what I like and the car goes in my name! So to get into the rs3 for 300 ish it requires a 20k deposit!

Would you do this? Is it worth it? Am I going to have any equity at the end because all I see atm is ppl paying 50k and it been worth the gfv on trade in meaningno equity for the next one? My gti should in theory be 6k in equity

I’m currently torn myself spend 20k on a kitchen or off my mortgage or an rs3 for 4 yrs
As physical cost to me is basically £5k per year for an rs product! And it will more likely be the next model rather than the 8v

 

[D0C]

I’m in a conundrum at the mo I love the rs3 had the test drive and want one BUT

I work for my fathers compsny so I get a budget of 300 per month plus maintainance which he calculates at 90 quid to cover servicing and tyres the deal I have with him is that as long as I pay the deposit and the finance is 300 or under I can have what I like and the car goes in my name! So to get into the rs3 for 300 ish it requires a 20k deposit!

Would you do this? Is it worth it? Am I going to have any equity at the end because all I see atm is ppl paying 50k and it been worth the gfv on trade in meaningno equity for the next one? My gti should in theory be 6k in equity

I’m currently torn myself spend 20k on a kitchen or off my mortgage or an rs3 for 4 yrs
As physical cost to me is basically £5k per year for an rs product! And it will more likely be the next model rather than the 8v

Ultimately an expensive car is never a good idea financially! Absolutely it's more sensible to pay off the mortgage. It will come down to your personal situation and what you're prepared to have to pay. It is just a car at the end of the day, but what a car.

 

[NevMan]

Sorry, i was talking PCP. I'd probably re-finance the balloon if i were to do this, but because i haven't done a PCP before i didn't relaise you could just put down a huge deposit to reduce interest. Good shout! Is there a limit to how much deposit you can put down though?

There's also the issue of PCP APR being horrendously high on a used car isn't there? I wouldn't want to be paying 8%+...... So what would be the best option for say a 2 year old 911 Turbo from a finance perspective then?

Yes, deposit's vary hugely. Some put down smaller deposit and have higher monthlies. I prefer slightly bigger deposit and more "manageable" monthlies.
Not aware of any limit on deposit's really.

2nd hand APR is usually much higher, so better off finding your own PCP deal out there...plenty companies do it such as https://www.capitalcarfinance.co.uk/

No idea what Porsche would offer, so best you speak to them, but what i do know is they tend to lose very little value, so definitely one of the better marques for retaining value.

I get what you are saying about paying £10k interest, but a mate of mine who is minted, prefers to just pay a monthly amount and keep his liquid cash available for investment, property, etc etc

 

[lee_fr200]

Ultimately an expensive car is never a good idea financially! Absolutely it's more sensible to pay off the mortgage. It will come down to your personal situation and what you're prepared to have to pay. It is just a car at the end of the day, but what a car.

Well I have to have a car it’s just a case of which

 

[NevMan]

I’m in a conundrum at the mo I love the rs3 had the test drive and want one BUT

I work for my fathers compsny so I get a budget of 300 per month plus maintainance which he calculates at 90 quid to cover servicing and tyres the deal I have with him is that as long as I pay the deposit and the finance is 300 or under I can have what I like and the car goes in my name! So to get into the rs3 for 300 ish it requires a 20k deposit!

Would you do this? Is it worth it? Am I going to have any equity at the end because all I see atm is ppl paying 50k and it been worth the gfv on trade in meaningno equity for the next one? My gti should in theory be 6k in equity

I’m currently torn myself spend 20k on a kitchen or off my mortgage or an rs3 for 4 yrs
As physical cost to me is basically £5k per year for an rs product! And it will more likely be the next model rather than the 8v

Can't you rather contribute towards the monthlies over and above the £300, as opposed to chucking in £20k?

 

[BadBoyWhiteRaps]

Can't you rather contribute towards the monthlies over and above the £300, as opposed to chucking in £20k?

Sage advice. For £400 a month, with your father's contribution, you'd be at £700 a month and not need any deposit. For £200 a month, a 10k deposit. I'd look at some arrangement to that effect.

 

[Terminator x]

I generally change my car every 2 or so years so I wasn't too worried about the interest charges over the total period, I just wanted to keep the monthlies as low as possible whilst still not compromising on the options.

I had a passenger ride of a Tesla P100D launching a couple of times yesterday and i'm still trying to comprehend the speed (and instant torque) of it. I can see this being my last car with a traditional combustion engine after experiencing that thing... Perhaps next is a Model 3 Performance when it comes to the UK.

I went up against one of them at Rockingham, seemed to just teleport a car length ahead then didn't pull away. I couldn't catch up either though!

TX.

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[lee_fr200]

Sage advice. For £400 a month, with your father's contribution, you'd be at £700 a month and not need any deposit. For £200 a month, a 10k deposit. I'd look at some arrangement to that effect.

No difference rly the end result as 4yrs would still cost me 20k and I can’t guarantee the monthlies at least with a deposit it’s done with and can be forgotten about! Likewise if it’s u see 300 a month he still gives me 300, there’s a few cars on my radar currently including the s4 avant as that’s only 2.9%

 

[NevMan]

No difference rly the end result as 4yrs would still cost me 20k and I can’t guarantee the monthlies at least with a deposit it’s done with and can be forgotten about! Likewise if it’s u see 300 a month he still gives me 300, there’s a few cars on my radar currently including the s4 avant as that’s only 2.9%

agree it is the same ultimately, only difference is paying £20k up-front or over the term, happy shopping

 

[lee_fr200]

agree it is the same ultimately, only difference is paying £20k up-front or over the term, happy shopping

Well my gti is to be changed March 2020 so hoping that I can be ordering in 10-11 month if the next rs3 is announced and I like it! I might always buy a 18 month old 8v at about 33-35k and only finance 13- 15k over 5yr I looked at a 16 plate silver 8v back in December 17 and that was up at 33k

Edit: just looked on autotrader and an 18 month old is still 40k on there