Another car finance (PCP) question...

14
Found 16th Jun
Hi guys,

I'm about to go ahead and purchase an Audi A3 S Line 1.5TFSI COD 5dr in Daytona Grey with 2.4k miles on the clock and registered in November 2017. It has the optional tech pack with virtual cockpit too. The purchase price is £21460.

I'm using finance I'm getting offered through a colleague car scheme which offers preferential rates but I'm wondering if this quote is good for the car above.

Cash Price £21,460.00
Deposit £0.00
Followed by 48 monthly payments of £303.70
Optional Final Payment £9,761.49
Total amount payable £24,339.09
Duration of agreement 48 months
Interest rate per annum 4.51%
Representative APR 4.6% (Fixed)
Total amount of credit £21,460.00
Excess mileage 6.08 pence per mile

It seems not bad to me, but I want opinions on whether, based on other people's experiences, be able to bail out with no negative equity after 2.5 years approx.

Thanks
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Could get a loan from my bank for less for around 3.5% with Santander or nationwide as an existing customer but doesn’t seem to bad for Audi.

I did a pcp with similar amount of monthly cost (£295) based on 17k purchase price over 3 years at 0% with 18k miles per annum on a brand new car. £6k residual at end to buy it.
Edited by: "cmdr_elito" 16th Jun
Just when you think there won't be another car finance (PCP) question!
If you can't afford to buy it , you can't afford to lease it - although the accompanying blurb may lead you to believe you can
rogparki1 h, 3 m ago

If you can't afford to buy it , you can't afford to lease it - although …If you can't afford to buy it , you can't afford to lease it - although the accompanying blurb may lead you to believe you can


??? Most people have mortgages for their houses, if we all thought like that we all would be living on the street.
Edited by: "mds1256" 16th Jun
mds125622 m ago

??? Most people have mortgages for their houses, if we all thought like …??? Most people have mortgages for their houses, if we all thought like that we all would be living on the street.



I dare say many folks who "think" they can afford a new car via PCP (but can't) could be well on their way to doing just that . There is an "affordability check" when getting a mortgage - no such thing with PCP
My couple of points does it have to be an Audi, they are good cars but the badge premium is a lot compared with it better reviewed sister cars. What do you plan to do with it at final payment time, that important in helping you decide.
Edited by: "eslick" 16th Jun
mds125637 m ago

??? Most people have mortgages for their houses, if we all thought like …??? Most people have mortgages for their houses, if we all thought like that we all would be living on the street.


There has been rumours that the financial ombudsman will look at PCP deals as the next PPI because people don’t understand what they are getting into, yes we all think we know but that’s what we said about PPI and look what happened there.

The most recent news story to accompany the rumour was of a woman just about to go on maternity leave at £150 say don’t know the exact figure, she said and in the end got her money back the finance company should have made her a where that she couldn’t afford it on maternity leave, incredible.
Edited by: "eslick" 16th Jun
eslick9 m ago

should have made her a where that she couldn’t afford it


oh my days
Well the interest rate seems reasonable, the purchase price is also ok but nothing special. A brand new one can be had for £24k after discount, but that would be on Audi's finance rate of 6.4%.

Why is it important to be able to bail at 2.5 years? Can't you ask the finance provider to adjust the term to one that is preferable? Also, you mention the excess mileage rate, but not the contract mileage allowance. So you'll need to factor that into your sums.

You will need the car to be worth the same or more than the outstanding balance on the finance at 2.5 years, which will be in the region of £9761.49 + (18 x £303.70) = £15228.09 less an adjustment for interest not payable. I would say it's borderline if you will have any equity at 2.5 years. I wouldn't expect it to be much, if anything. I certainly wouldn't gamble if the affordability of this deal depends on it.

FWIW you won't be able to voluntarily terminate the agreement until you have paid at least half of the total amount payable of £24339.09, which works out to be around the 40 month point.
25 grand for a generic grey German hatchback.

If you must buy something soul sucking, you can buy one for £12k, 2015 plate.

Or go older and get an RS3 2012 for £20k.

Or something interesting like an old Supertourer 1998 S4 for £8k.

So no, it isn't a good deal.
Personally I would either buy a car for £15k with a bank loan so at the end you still have a caror lease a brand new car over three years (so it’s under warranty all the time you lease it). The car your looking at is going to be nearly 5 years old by the time you hand it back or pay £10k to keep it. The warranty will be long gone and it will have needed two MOTs.
Edited by: "Wadda" 17th Jun
rogparki14 h, 8 m ago

If you can't afford to buy it , you can't afford to lease it - although …If you can't afford to buy it , you can't afford to lease it - although the accompanying blurb may lead you to believe you can


I'm sure the thousands of people currently leasing cars because they didn't have the money to buy them outright would agree with me in saying you're wrong.
Edited by: "craigstephens" 17th Jun
You're paying over £3k in interest - is that a good deal?
Doesn't seem terribly good to me. But then I wouldnt be interested in paying £24k for an a3. You dont say anything about the mileage limits?

Are you looking to bail out because you expect to overcook the mileage and you've read about people doing a VT and avoiding excess charges?
Thanks for the advice guys, much appreciated!

Had a long hard think and decided that another lease is probably the best option for me.

Looking at a manual 5 door Golf GTI, would anybody recommend them? I've driven the R and that was just too quick and fuel heavy for a daily but I believe the GTI is slightly more conservative and can reach 35mpg relatively easily
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