PCP - Audi A4

[GavT81]

Hi all,

Hoping for some advice. I bought an Audi A4 S Line 15 months ago, I live in Ireland and put down around 6,000 Euro's deposit and have been paying 500E per month. I bought the car as I moved house and was commuting a long distance so I wanted a good comfortable car that was good on the motorways, recently I have unexpectedly moved house again and I am now very close to work, therefore I dont really need the car - Whilst it would be nice to keep and I love the car it just seems expensive to keep, I have been in touch with Audi and I have discussed swapping it for an A1 that would suit my mrs, dropping kids off to school ect and sell her car. This woud reduce payments to 375 per month and final payment from 18k (A4) to 8k (A1).

I know i'm going to lose alot of money. Does anyone have any ideas ? Technically I have already spent 12k on 1 years use, could I go to another dealership Ie Ford and see if they would settle my PCP ect ?

[PositronicRay]

Yes, a bit of negative equity is a real possibility though.

[rsbmw]

You can take it to any other dealer, WBAC or sell it privately, as long as you pay the finance off with the proceeds (or the buyer does that directly).

You may not be in negative equity given the large deposit, though it depends on what "price" you paid. 6k down + 500pcm does sounds a bit like you've been bent over though!

[malks222]

remember PCP is just another form of finance and as others said can be settled at any time. just phone up the finance company and ask for a settlement figure and see how that stacks up against WBAC/trade in/ private selling. you may be stuck paying a chunk to cover any negative equity in the car.

don't know if this was a 2/3/4yr PCP, but you can 'terminate' (aka hand the car back/walk away) once you have paid off >50% of the total value owed, but on the numbers below you are probably way off getting out that way!

2year deal:
deposit= 6k
24x 500= 12k
final payment= 18k
total borrowed= 36k
termination point= £18k so the very end of 2 year deal

3year deal:
deposit= 6k
36x 500= 18k
final payment= 18k
total borrowed= 42k
termination point= 21k or 30 months (6k + 30x 500)

4year deal:
deposit= 6k
48x 500= 24k
final payment= 18k
total borrowed= 48k
termination point= 24k or 36months (6k + 36x 500)

[mudster]

I think the principle is correct malks, but you've included his deposit in the amount borrowed, meaning the situation is likely to be a little better.