Facelift To lease again or not, that be the question

Masslob

Registered User
So my PCH lease is up in 10 months and the company said i can buy it now for £29K (plus 3k to get out of contract early)..so lets say i let the lease finish and i assume since im paying for their depreciation the car will prob be around 26-27K by the end of it.

Now that would be the most ive ever spent on a car and even the payments not spread over a stupid amount of years will still be quite hefty, so my dilemma is do i put myself 27K in debt for several years but own the car, or do i spend that amount leasing again (i could lease my s3 for another 5 years with the amount of money i would spend on buying it outright)

What would you guys do in that situation?
 

wab172uk

Now in an X3 M40i And a Yaris GR-Four
I'd never go for PCP if I wanted to own the car at the end, as you probable find that you've not even paid off half the car after 3 years.
 

msdmjb

Registered User
Leaving emotional attachment to the car at the door it is all about the numbers and your own personal situation, nobody can tell you the right thing to do.

It might be prudent to lease as the car market will go through some serious change over the next few years (e.g. emissions/Brexit to name but two) however on the other side if you intend keeping the car for many years (be honest with yourself) then it will be cheaper to buy it outright.........depending on whether you are getting at a good price now. Every lease on a new car has to consider initial depreciation which proportionally is usually more than over the long(er) term whereas if you keep your S3 say 7years to say 100k then the cost per £ will be I suspect much cheaper.

I own my 3yr old S3 outright therefore have a little comfort that if I needed a lump of cash then I can sell it, the counter argument is that the capital in the car could be being better used and if I need a lump of cash take a loan - mine only does around 8k / year so will run just fine for many years to come. I don't need the cash so works for me but that might not work for you.

Really helpful I know ;)
 

Flying Scotsman

Registered User
@msdmjb pretty much nails it. Leasing, really only makes sense if you can write it off as a business expense or you have to have a shiny new car every 24-30 months and screw the financial wisdom of purchasing etc. and keeping the car for a longer period.
 

S32B

Registered User
Personally I just PCP them for an easy hassle free life, I know how much I'm losing each month and I know if anything goes wrong with the car it's covered! Bank on zero equity at the end and if it has equity bonus, if not start again.

My S3 was coming up to 3 years old, it needed a big service, 4 new tyres, mot, breakdown cover...so about £1,000 to keep it and it would be out of warranty. So I started fresh with a new car, same payments with £1,000 down, after I'd ordered the car I paid the S3 off to save a bit on interest for 3 months whilst the new car was built, that interest saved plus the extra I got for the S3 on top of what I owed on the S3 virtually paid the £1,000 deposit on the new one....so it cost me next to nothing to change cars! I then sold the S3 and put that cash back in the bank, so cash and a new car win win :)

How much is a loan over 7 years on £27k? add to that any maintenance costs, then look how much cheaper it is than what you're paying now and then decide is the saving is worth the risk of running a car that will be 8 or 9 years old before it's 100% paid for. Hopefully all will be OK, but if the s-tronic went wrong how much would that be to fix?!?! Also would you be happy to keep it that long, what if the new S3 comes out next year and it looks the nuts!?!
 

Daveotto

Moderator
Staff member
Moderator
There are arguments for and against but it all comes down to your personal financial circumstances and how you think they might change in the next 1-3 years.

I bought both my and my wifes new cars the middle of last year on PCP deals as I was being made redundant and was not sure what I would be doing next, so PCP made sense as it put a wad of cash in the bank from the last S3 that I owned outright and I always have the option of handing the keys back on one or both. The way it has worked out with redundancy payments and early pension I am now planning to pay off the balance in full in 3-4 months on both cars to save the interest over the next 3 years.
 

FaisalJ

Registered User
My £0.02...

I’m a petrolhead and do OK financially- but the last thing I’d do is pay for a new car, regardless of whether it is outright, PCP, PCH...doesn’t matter how you finance it, a new car typically depreciates 40-60% in the first 3 years.

So, the last thing I’d want to do is start a new lease.

I’d be looking at a used car.


Sent from my iPhone using Tapatalk
 

4K

Registered User
So my PCH lease is up in 10 months and the company said i can buy it now for £29K (plus 3k to get out of contract early)..so lets say i let the lease finish and i assume since im paying for their depreciation the car will prob be around 26-27K by the end of it.

Now that would be the most ive ever spent on a car and even the payments not spread over a stupid amount of years will still be quite hefty, so my dilemma is do i put myself 27K in debt for several years but own the car, or do i spend that amount leasing again (i could lease my s3 for another 5 years with the amount of money i would spend on buying it outright)

What would you guys do in that situation?
Buy a 2 year old S3 for 32K when stock new ones are 32K? LOL. I think you know the answer to that one.
 

Carefree69

Registered User
Personally I just PCP them for an easy hassle free life, I know how much I'm losing each month and I know if anything goes wrong with the car it's covered! Bank on zero equity at the end and if it has equity bonus, if not start again.

My S3 was coming up to 3 years old, it needed a big service, 4 new tyres, mot, breakdown cover...so about £1,000 to keep it and it would be out of warranty. So I started fresh with a new car, same payments with £1,000 down, after I'd ordered the car I paid the S3 off to save a bit on interest for 3 months whilst the new car was built, that interest saved plus the extra I got for the S3 on top of what I owed on the S3 virtually paid the £1,000 deposit on the new one....so it cost me next to nothing to change cars! I then sold the S3 and put that cash back in the bank, so cash and a new car win win :)

How much is a loan over 7 years on £27k? add to that any maintenance costs, then look how much cheaper it is than what you're paying now and then decide is the saving is worth the risk of running a car that will be 8 or 9 years old before it's 100% paid for. Hopefully all will be OK, but if the s-tronic went wrong how much would that be to fix?!?! Also would you be happy to keep it that long, what if the new S3 comes out next year and it looks the nuts!?!
This^^

Hassle free motoring with a brand new car every 2/3 years. Works for me. I’d only worry about the marginal savings I’d make with purchasing outright if I was a tightwad. It’s negligible therefore it’s not worth worrying about. If I counted every penny then things might be different, but I don’t so a PCP is perfect for me.
 
Last edited:

Masslob

Registered User
I always planned to give it back, but my friends made a good argument for buying it outright (buying in general) so ive been doing some thinking

@4K where did you see that?.cheapest stock i have found is 35K
 

FaisalJ

Registered User
If you’re going to spend £26-7k on buying a car outright, you could get a LOT more car for your money than the S3.

I’m not one for paying extra for a newer car, when you can buy a better car for the money. I’m after maximum bang for my buck!

For £27k or under, you could buy

- A mint B7 RS4 (4.2 V8 - manual)

- 2014 B8.5 S4 (supercharged 3.0 V6 s-tronic )

- RS5 e.g 2011, (4.2 V8 s-tronic)

- RS3 2012 (5 pot)

- TTRS 2012 (5 pot)

Etc

The benefits are:
- More car for your money
- They’ve done most of their depreciating, so depreciation cost during ownership will be much lower meaning they should cost you much less than a newer car

If you’re worried about reliability- buy Audi used approved with an Audi warranty


Sent from my iPhone using Tapatalk
 

DrEskimo

Registered User
2014 B8.5 S4 (supercharged 3.0 V6 s-tronic )

I would have happily sold my 65 plate S5 with 14k on the clock for £28.5k to a member here back in July. That was £47k brand new (which I got discounted to £38.5k). Would have been worth what in 3yrs...£20k? So that's £8,500 in depreciation costs.

A brand new S3 with £2k options is £440pm over 36months with £1k down, so £16,400. My S5 (with far more options...) would have been half the cost....

As you say, even with extended warranties, it's a huge saving.
More importantly, plenty of cash left over for modding too...! Sod the warranty, stage 2 MRC for 480BHP :racer:
Would still have ~£5k left over in the coffers for any unexpected bills :p
 

Masslob

Registered User
If you’re going to spend £26-7k on buying a car outright, you could get a LOT more car for your money than the S3.

I’m not one for paying extra for a newer car, when you can buy a better car for the money. I’m after maximum bang for my buck!

For £27k or under, you could buy

- A mint B7 RS4 (4.2 V8 - manual)

- 2014 B8.5 S4 (supercharged 3.0 V6 s-tronic )

- RS5 e.g 2011, (4.2 V8 s-tronic)

- RS3 2012 (5 pot)

- TTRS 2012 (5 pot)

Etc

The benefits are:
- More car for your money
- They’ve done most of their depreciating, so depreciation cost during ownership will be much lower meaning they should cost you much less than a newer car

If you’re worried about reliability- buy Audi used approved with an Audi warranty


Sent from my iPhone using Tapatalk

thanks , ive already looked at this....parking space limits me to just hatchbacks so that rules out saloons and after being burned 2nd hand befoe i would only buy 2nd hand from dealers and 27K gets you a lot of boring audis and mercs, it only gets interesting with bmw where that kind of money gets you 140/240is and high mileage m cars..but i prefer audi to bm
 

Masslob

Registered User
I would have happily sold my 65 plate S5 with 14k on the clock for £28.5k to a member here back in July. That was £47k brand new (which I got discounted to £38.5k). Would have been worth what in 3yrs...£20k? So that's £8,500 in depreciation costs.

A brand new S3 with £2k options is £440pm over 36months with £1k down, so £16,400. My S5 (with far more options...) would have been half the cost....

As you say, even with extended warranties, it's a huge saving.
More importantly, plenty of cash left over for modding too...! Sod the warranty, stage 2 MRC for 480BHP :racer:
Would still have ~£5k left over in the coffers for any unexpected bills :p

Thanks will see in September what they offer me , if the price is ridiculous then the decisions is made for me. Thanks for all the input all
 

DrEskimo

Registered User
Thanks will see in September what they offer me , if the price is ridiculous then the decisions is made for me. Thanks for all the input all

Wasn’t aware you you could buy the car after a PCH! Learn something new :)

Will it be 3yrs old when the lease finishes? £27k seems a bit on the high side? As you say, see what they offer when the time comes. Perhaps run the reg through WeBuyAnyCar too just to check it’s not over the odds when the time comes?

Afraid only you can really decide what’s best for you with regards to finance, loans or further leasing etc.

Good luck :)
 

Masslob

Registered User
Yup i didnt think you could do it either but as long as you pay up your remaining payments (like cancelling a mobile contract early) you can buy the car at 'market rate' which they explained is what price it will get at auction

So as of Jan 2018, my 66 plate s3 with 3k option and 5k miles they said

£28900 to buy
£3200 to get out of lease

I will let the lease run out and let depreciation take its course till september

WBAC say my car (without options) is worth 24.3K right now
 

Nicole Redfern

Registered User
I've just looked into lease vs PCP vs bank loan options. I bought my current TT as an Audi used vehicle with a bank loan intending to keep it for a long time. Less than a year later and it's unfortunately no longer suitable for me. If I can sell it privately for around the price I want, it will have cost me £7000 in this time (depreciation, service, MOT, tyres, new windscreen, stone chip repair, alloy refurb). I managed to get a PCP deal through carwow and my local Audi dealer for only £10 a month more than I was paying on my bank loan, and for £60 a month less than I would on a lease so it was a fairly obvious choice for me. Once I get it I won't have to worry about depreciation, the car will be brand new and in warranty. If I were you I'd just carry on leasing or PCP if that works out cheaper which it could unless you want to keep the car for a very long time
 

Flowrider99

Registered User
I've just looked into lease vs PCP vs bank loan options. I bought my current TT as an Audi used vehicle with a bank loan intending to keep it for a long time. Less than a year later and it's unfortunately no longer suitable for me. If I can sell it privately for around the price I want, it will have cost me £7000 in this time (depreciation, service, MOT, tyres, new windscreen, stone chip repair, alloy refurb). I managed to get a PCP deal through carwow and my local Audi dealer for only £10 a month more than I was paying on my bank loan, and for £60 a month less than I would on a lease so it was a fairly obvious choice for me. Once I get it I won't have to worry about depreciation, the car will be brand new and in warranty. If I were you I'd just carry on leasing or PCP if that works out cheaper which it could unless you want to keep the car for a very long time
What car can you get on a PCP for only £10 more than the loan on your TT? Is the loan and the PCP over the same duration and what is the GFV on the PCP? How much are your TT loan payments and the new PCP payments? Without this info it's anyone's guess whether you made a good choice.
 

jassyo06

T-Cut King !
If you’re going to spend £26-7k on buying a car outright, you could get a LOT more car for your money than the S3.

I’m not one for paying extra for a newer car, when you can buy a better car for the money. I’m after maximum bang for my buck!

For £27k or under, you could buy

- A mint B7 RS4 (4.2 V8 - manual)

- 2014 B8.5 S4 (supercharged 3.0 V6 s-tronic )

- RS5 e.g 2011, (4.2 V8 s-tronic)

- RS3 2012 (5 pot)

- TTRS 2012 (5 pot)

Etc

The benefits are:
- More car for your money
- They’ve done most of their depreciating, so depreciation cost during ownership will be much lower meaning they should cost you much less than a newer car

If you’re worried about reliability- buy Audi used approved with an Audi warranty


Sent from my iPhone using Tapatalk

And every car you have listed will have far larger running costs as they are gas guzzlers
 
  • Like
Reactions: 4K

jassyo06

T-Cut King !
So my PCH lease is up in 10 months and the company said i can buy it now for £29K (plus 3k to get out of contract early)..so lets say i let the lease finish and i assume since im paying for their depreciation the car will prob be around 26-27K by the end of it.

Now that would be the most ive ever spent on a car and even the payments not spread over a stupid amount of years will still be quite hefty, so my dilemma is do i put myself 27K in debt for several years but own the car, or do i spend that amount leasing again (i could lease my s3 for another 5 years with the amount of money i would spend on buying it outright)

What would you guys do in that situation?

Madness to buy a leased car,they're basic spec and if l cast my mind back this is about the 3rd thread you have posted on this topic
 
  • Like
Reactions: 4K

Nicole Redfern

Registered User
What car can you get on a PCP for only £10 more than the loan on your TT? Is the loan and the PCP over the same duration and what is the GFV on the PCP? How much are your TT loan payments and the new PCP payments? Without this info it's anyone's guess whether you made a good choice.
S3 sportback with about £2k options, loan and pcp both over the same duration although obviously the TT would be fully paid off. I think the GFV is around 17k off the top of my head which looking at used S3s seems about right. £330 a month TT vs £340 a month.
 

Flowrider99

Registered User
S3 sportback with about £2k options, loan and pcp both over the same duration although obviously the TT would be fully paid off. I think the GFV is around 17k off the top of my head which looking at used S3s seems about right. £330 a month TT vs £340 a month.
Looks to me like over the same period you will be £17k (GFV) plus £10pm worse off with the S3 compared to keeping the TT. I get that these are very different cars and why you changed but don't think you are no worse off by changing.
 

Masslob

Registered User
The issue with leasing is always having payments, at least if you buy the car, one day (2-3 years in the future) you will have paid it off, own it and you will have x amount of disposable cash back every month that can lets say go towards paying off your mortgage. The car itself whatever value it has will always be able to part fund another car in the future if need be. Yes with leasing, you get a brand new car just as you like and dont worry about depreciation etc but for instance my car has cost me 12k over two years i lease again for another 2 years and i will have spent 25K on a car..i will have driven a spiffy new s3 for 4 years but at the end i give it back and and 25K poorer. Alternatively i could have spent that 25K on an older/high mileage s3 and now own it outright. These are the things i have to decide for myself...
 

Masslob

Registered User
Madness to buy a leased car,they're basic spec and if l cast my mind back this is about the 3rd thread you have posted on this topic

Mine isnt basic, she has 3K of options. The first 2 times i was just curious, i never had any intention of owning till about 3 weeks ago after getting a lecturing from my friends (none of which have ever leased)
 

DrEskimo

Registered User
I've just looked into lease vs PCP vs bank loan options. I bought my current TT as an Audi used vehicle with a bank loan intending to keep it for a long time. Less than a year later and it's unfortunately no longer suitable for me. If I can sell it privately for around the price I want, it will have cost me £7000 in this time (depreciation, service, MOT, tyres, new windscreen, stone chip repair, alloy refurb). I managed to get a PCP deal through carwow and my local Audi dealer for only £10 a month more than I was paying on my bank loan, and for £60 a month less than I would on a lease so it was a fairly obvious choice for me. Once I get it I won't have to worry about depreciation, the car will be brand new and in warranty. If I were you I'd just carry on leasing or PCP if that works out cheaper which it could unless you want to keep the car for a very long time

You had to get new tyres in less than a year...?

Service, tyres, new windscreen, stone chip repair and alloy refurb are not specific to used cars. You would have had all those costs on a PCP too!

I'm quite surprised by the figure of £7k though. What was the TT?? How old was it? You probably paid about £2/3k mark up from buying it from a dealer, but depreciation on a used car at the 3yr mark should not be in the £5k a year region....(unless it was a diesel...)?

S3 sportback with about £2k options, loan and pcp both over the same duration although obviously the TT would be fully paid off. I think the GFV is around 17k off the top of my head which looking at used S3s seems about right. £330 a month TT vs £340 a month.

A S3 with £2k options is RRP £37,800. 15% discount (highest I've seen) makes it £32,130. Assuming a 3yr/30k PCP, to get payments of £330 would require a deposit of about £4,700. So it's not just £330 a month...it's £330 a month and £4,700, or effectively £460 per month.

The settlement after 1yr on the S3 will be about £25k on the finance, whereas the trade in value is likely to around £23k. So you would have paid £4700 upfront + 12 payments at £330 + £2000 in negative equity = £10,660. The TT would in fact £3,600 cheaper to run over the 1yr period, and that doesnt include the fact that a service would also be required, as would windscreen repairs and alloy refurbs....(and tyres...seriously 1 yr! That's impressive!).

Are you putting £4700 on the TT upfront as well as the personal loan? As Flow says..not enough detail here really to compare.
Having said that, it’s the ‘obviously the TT would be fully paid off’ that’s makes quite a big difference...

The payment on the PCP is only paying for depreciation and interest. The loan on the other hand is paying for a small amount of interest, some depreciation but also capital on owning the car. So when you sell the car at the end of the loan you are effectively getting back that capital you were paying on the loan.

When you calculate the total cost at the end of the lease/PCP with the total cost of a used car paid in full with a loan, the used car will always be cheaper. It has to be. You are paying for a lower depreciating asset using a loan with lower interest charges than a PCP. It's when you add the additional maintenance costs that you start to work out if a used would be similar in costs over the long run, but every time I do the sums the high depreciation of a new car fair outstrips any potential repair costs (which are only theoretical. Depreciation on a new car is guaranteed....).

I'm all for leasing and PCP if that's where you want to spend your money, just don't get sucked in by the dealers and only focus on monthly payments. There are far more other costs going on that you need to account for as well....(and that includes used cars, which will incur more maintenance costs). You are buying a £33k car that will be worth about £19k in 3years time, along with high interest charges for the convenience of paying monthly with a defined sale price at the end. No getting around that pure and basic fact....
 

jassyo06

T-Cut King !
People should Not car jump as quickly Simples its stupid
 

Nicole Redfern

Registered User
You had to get new tyres in less than a year...?

Service, tyres, new windscreen, stone chip repair and alloy refurb are not specific to used cars. You would have had all those costs on a PCP too!

I'm quite surprised by the figure of £7k though. What was the TT?? How old was it? You probably paid about £2/3k mark up from buying it from a dealer, but depreciation on a used car at the 3yr mark should not be in the £5k a year region....(unless it was a diesel...)?



A S3 with £2k options is RRP £37,800. 15% discount (highest I've seen) makes it £32,130. Assuming a 3yr/30k PCP, to get payments of £330 would require a deposit of about £4,700. So it's not just £330 a month...it's £330 a month and £4,700, or effectively £460 per month.

The settlement after 1yr on the S3 will be about £25k on the finance, whereas the trade in value is likely to around £23k. So you would have paid £4700 upfront + 12 payments at £330 + £2000 in negative equity = £10,660. The TT would in fact £3,600 cheaper to run over the 1yr period, and that doesnt include the fact that a service would also be required, as would windscreen repairs and alloy refurbs....(and tyres...seriously 1 yr! That's impressive!).

Are you putting £4700 on the TT upfront as well as the personal loan? As Flow says..not enough detail here really to compare.
Having said that, it’s the ‘obviously the TT would be fully paid off’ that’s makes quite a big difference...

The payment on the PCP is only paying for depreciation and interest. The loan on the other hand is paying for a small amount of interest, some depreciation but also capital on owning the car. So when you sell the car at the end of the loan you are effectively getting back that capital you were paying on the loan.

When you calculate the total cost at the end of the lease/PCP with the total cost of a used car paid in full with a loan, the used car will always be cheaper. It has to be. You are paying for a lower depreciating asset using a loan with lower interest charges than a PCP. It's when you add the additional maintenance costs that you start to work out if a used would be similar in costs over the long run, but every time I do the sums the high depreciation of a new car fair outstrips any potential repair costs (which are only theoretical. Depreciation on a new car is guaranteed....).

I'm all for leasing and PCP if that's where you want to spend your money, just don't get sucked in by the dealers and only focus on monthly payments. There are far more other costs going on that you need to account for as well....(and that includes used cars, which will incur more maintenance costs). You are buying a £33k car that will be worth about £19k in 3years time, along with high interest charges for the convenience of paying monthly with a defined sale price at the end. No getting around that pure and basic fact....

It blew a tyre on the motorway, and as they weren't brand new when I bought the car I replaced as a pair. I've not just been going around spinning my wheels! Yes it's a diesel hence the higher depreciation.
£3500 deposit on the S3, £6000 on the TT. I agree that long term used cars are cheaper, I never thought I would ever buy brand new. but the money for the deposit is what I will have left after paying the bank loan plus some savings so for me it works out pretty well. I worked out full yearly costs of the TT, S3, and all other cars I looked at before I made a decision. I'm fully aware I won't have anything to show for it at the end of the term, but personally I'm happier with the new deal I'll have than what I do now as I can have a faster newer car for very similar monthly payments.
 

FaisalJ

Registered User
And every car you have listed will have far larger running costs as they are gas guzzlers

Yes - that’s fair, they probably do cost more to run than the S3.

The point I was making is that you can get more for your money buying used - because the biggest cost of car ownership is usually depreciation, which is obviously far higher for a new car.

I gave examples of performance Audi’s- as that’s what I’d think to be “better” replacements for an S3 - in my opinion of course.

If you put greater importance on running costs, it still doesn’t negate the point that the same money spent on a used car is going to get you a “better” car (whatever “better” means to you) than money spent on a new one.

Of course that’s not to say there’s anything wrong with buying/leasing/hiring a new car - just be aware of your options, and the full costs involved over the full period of ownership.

The kind of sums DrEskimo has highlighted should be what everyone does! I certainly do - which is why I don’t see myself ever buying new.

There are some car costs I’m happy to pay: fuel, routine maintenance, upgrades. The one I’m not happy to pay: depreciation.


Sent from my iPhone using Tapatalk
 

Masslob

Registered User
Yes - that’s fair, they probably do cost more to run than the S3.

The point I was making is that you can get more for your money buying used - because the biggest cost of car ownership is usually depreciation, which is obviously far higher for a new car.

I gave examples of performance Audi’s- as that’s what I’d think to be “better” replacements for an S3 - in my opinion of course.

If you put greater importance on running costs, it still doesn’t negate the point that the same money spent on a used car is going to get you a “better” car (whatever “better” means to you) than money spent on a new one.

Of course that’s not to say there’s anything wrong with buying/leasing/hiring a new car - just be aware of your options, and the full costs involved over the full period of ownership.

The kind of sums DrEskimo has highlighted should be what everyone does! I certainly do - which is why I don’t see myself ever buying new.

There are some car costs I’m happy to pay: fuel, routine maintenance, upgrades. The one I’m not happy to pay: depreciation.


Sent from my iPhone using Tapatalk

Fair comment. I never planned to buy a new car, was all in for the PCH lease and give the car back with nothing to show for it (other than the experience driving a new s3 for 2 years).

Whichever way i look at it the money ive spent over the last 2 years is wasted (whether im paying for the depreciation on a car i will own or one i leased). Only consolation being if i do end up buying my leased car at least the money i have spent the last 2 years is on MY property and not somebody elses.
 

jassyo06

T-Cut King !
Fair comment. I never planned to buy a new car, was all in for the PCH lease and give the car back with nothing to show for it (other than the experience driving a new s3 for 2 years).

Whichever way i look at it the money ive spent over the last 2 years is wasted (whether im paying for the depreciation on a car i will own or one i leased). Only consolation being if i do end up buying my leased car at least the money i have spent the last 2 years is on MY property and not somebody elses.
You can look upon this car situation from all different angles, for some people like myself cars are my only expenditure, others it ain't they have social life's etc buy nice clothes pay a big mortgage but add in a nice car there expenditure gets stretched even more. You have a leased car keep it to the end of the agreement and get rid of it, last time you posted you said it was in need some bodywork repairs, get these done if you haven't already as the leasing company will charge you big Audi repair rates, just content yourself you've got 10 months to decide what you want to do, then take it from there
 

4K

Registered User
I always planned to give it back, but my friends made a good argument for buying it outright (buying in general) so ive been doing some thinking

@4K where did you see that?.cheapest stock i have found is 35K
Stock S3's are 33K. With discount, that's likely to be 30K. I got 13% discount on mine.
 

Masslob

Registered User
You can look upon this car situation from all different angles, for some people like myself cars are my only expenditure, others it ain't they have social life's etc buy nice clothes pay a big mortgage but add in a nice car there expenditure gets stretched even more. You have a leased car keep it to the end of the agreement and get rid of it, last time you posted you said it was in need some bodywork repairs, get these done if you haven't already as the leasing company will charge you big Audi repair rates, just content yourself you've got 10 months to decide what you want to do, then take it from there

Thanks Jassy voice of reason always, ill park this till september :)
 

jassyo06

T-Cut King !
Thanks Jassy voice of reason always, ill park this till september :)
**** me mate September will fly in trust me, once we all get rid of this January blues **** our minds will resume back to normal programming, September nice time to get a new car, don't keep the existing car, you'll be well bored with it, buy a different car new or used it doesn't matter just one that will excite you mate hang in there
 

wab172uk

Now in an X3 M40i And a Yaris GR-Four
I've just looked into lease vs PCP vs bank loan options. I bought my current TT as an Audi used vehicle with a bank loan intending to keep it for a long time. Less than a year later and it's unfortunately no longer suitable for me. If I can sell it privately for around the price I want, it will have cost me £7000 in this time (depreciation, service, MOT, tyres, new windscreen, stone chip repair, alloy refurb). I managed to get a PCP deal through carwow and my local Audi dealer for only £10 a month more than I was paying on my bank loan, and for £60 a month less than I would on a lease so it was a fairly obvious choice for me. Once I get it I won't have to worry about depreciation, the car will be brand new and in warranty. If I were you I'd just carry on leasing or PCP if that works out cheaper which it could unless you want to keep the car for a very long time

But even if you look at a 3 year ownership, it's a false economy.

At the end of your bank loan, you own the car, so you now have no monthly payments, and if you are happy with the car, you just keep getting a service every year, and consumables when it needs it. Cheap motoring now. But it's not new shiny metal anymore.

If the PCP deal was only £10 a month more than your bank loan. After 3 years, you either have to buy the car in a balloon payment (with a bank loan if needed) which you'll find will be more than half the cars original price. Or you jump into another PCP deal, which keeps up your monthly payments, and you get a new shiny car. But if you find yourself in a position where you can no longer keep up those payments, or can't justify the monthly outlay every month, then you are stuck. No car.

I think PCP deals are good for some, but I just find them false economy. They are a great way to get into metal that would normally be out of your reach, but I think once interest rate start rising, and people come out of their PCP / Lease deals, they may be in for a shock, as those great deals won't be available any more.
 

AGAG

Registered User
But even if you look at a 3 year ownership, it's a false economy.

At the end of your bank loan, you own the car, so you now have no monthly payments, and if you are happy with the car, you just keep getting a service every year, and consumables when it needs it. Cheap motoring now. But it's not new shiny metal anymore.

If the PCP deal was only £10 a month more than your bank loan. After 3 years, you either have to buy the car in a balloon payment (with a bank loan if needed) which you'll find will be more than half the cars original price. Or you jump into another PCP deal, which keeps up your monthly payments, and you get a new shiny car. But if you find yourself in a position where you can no longer keep up those payments, or can't justify the monthly outlay every month, then you are stuck. No car.

I think PCP deals are good for some, but I just find them false economy. They are a great way to get into metal that would normally be out of your reach, but I think once interest rate start rising, and people come out of their PCP / Lease deals, they may be in for a shock, as those great deals won't be available any more.

Equally if interest rates go up and people stop buying brand new cars on PCP and start buying second hand then manufacturers might be in for a shock too. Not disagreeing with you by the way, it will be a nasty shock for PCP owners too, just adding that I think there might be some compromise to keep these high new car sales up to some degree. I was in a meeting at work the other day where some of the crazy discount prices coming from BMW and to a smaller extent Audi were being discussed, due to the sales decline in the UK and it was clear to see that sales volume is still being pushed over profit per vehicle.

For my preferences, PCP was a clear winner when it came to purchasing my A3. Buying outright would meant putting down my house deposit money on the car (and therefore not buying my house which is an appreciative asset as opposed to the car which is most definitely a depreciation asset). It would have meant trying to find a seller in 3 years time who wants to pay 20k-ish for a second hand car from a private seller (not as easy as it sounds, people want warranty's included and go to trade sellers or want to PCP). Then id have to make up the extra 10k to buy another one again. Even if I held on to it longer (which I would hate, I don't like having the same car for too long) id still find it a bad choice because I'm paying upfront for the whole value of a car that I'm only using for a portion of its life. For me it's buying the car that is very, very much the false economy. Buy appreciative assets, rent depreciative ones.
 
Last edited:
Top