PCP deal calculation help
Discussion
crazy about cars said:
Did you get the quote on Audi website? With that figure I guess it's PCP? What's the GFV is you don't mind me asking.
Quote was direct from an Audi dealer. GFV was £17,609 ish.Usally better to selec lowest mileage on a PCP too as the chances of handing it back and walking away are close to nil so there won't be any excess mileage payments either.
AGK said:
Usally better to selec lowest mileage on a PCP too as the chances of handing it back and walking away are close to nil so there won't be any excess mileage payments either.
Bear with me as this is counter-intuitive, but reducing the mileage actually makes the car more expensive not less...If you reduce the mileage they increase the balloon payment (or GFV as they misleadingly call it) as the car is 'worth more' at the end of the agreement. Admittedly, this does reduce the monthly payments (as you're paying off less capital during the loan - its deferred to the end) BUT increases the amount (not the rate - the amount) of interest you pay as you are borrowing more money for longer.
You should never forget, you are BORROWING the balloon payment for the full term, unlike a personal loan or hire purchase where the capital is paid off as you go and for a given loan you pay less.
£220 a month, £13k down and still another 14k to find after 4 years to drive a hot-hatch (I will admit, a rather nice one)
Get a 13k loan and buy a 2012-13 low mileage car, drive it for 4 years and sell it for 10k
That or wait until the next M135i / Golf R lease comes about for 1.5k down and £250pm.
I would want to die if I had handed over that kind of deposit, made 4 years worth of monthly payments and then they still wanted a further 14k from me... Forgive me if I am wrong but if you give the car back at that point does it mean you have lost over 25k in 4 years on the car.
With such low mileage you cant even talk about potential repair costs, there will hardly be any. You are a prime lease candidate surely.
Get a 13k loan and buy a 2012-13 low mileage car, drive it for 4 years and sell it for 10k
That or wait until the next M135i / Golf R lease comes about for 1.5k down and £250pm.
I would want to die if I had handed over that kind of deposit, made 4 years worth of monthly payments and then they still wanted a further 14k from me... Forgive me if I am wrong but if you give the car back at that point does it mean you have lost over 25k in 4 years on the car.
With such low mileage you cant even talk about potential repair costs, there will hardly be any. You are a prime lease candidate surely.
Edited by Rick1.8t on Saturday 13th December 17:14
crazy about cars said:
According to the below assuming 0 admin fee I should be paying £180/month for 48 month term. Am I missing something or is the website wrong?
This one: http://www.pcpcal.co.uk is there or thereabouts the numbers you were given.Right put down £1,000 deposit which I'm told refundable. I will make a decision by tomorrow.
Below are the numbers for 36 month PCP.
Invoice price : £35,875
P/X : £13,000
Cash deposit : £0
Amount financed : £22,875
Final rental : £16,933.75
PCP term : 37 months
Annual mileage : 8,000 (Excess = 6p/mile)
Inclusive rental : £284.14
Brand new Black manual S3 with B&0, tech pack. Tempted but this will be my first PCP.
Below are the numbers for 36 month PCP.
Invoice price : £35,875
P/X : £13,000
Cash deposit : £0
Amount financed : £22,875
Final rental : £16,933.75
PCP term : 37 months
Annual mileage : 8,000 (Excess = 6p/mile)
Inclusive rental : £284.14
Brand new Black manual S3 with B&0, tech pack. Tempted but this will be my first PCP.
It doesn't seem great to me
I did a pcp once, but imo they only work well if you drop in a low deposit. I paid £18k at the time, but only laid in a £1k deposit. The GFV was also reassuringly low, meaning it was economic for me to extend and own the car.
At the moment, you own a £13k car outright. You are about to do a deal to chop that in for a car that will cost you nearly £300 a month and in 3 years you'll then have to pay another £15k to own it.......
If you must do it this way, I would spend the £35k on a used M3/911 or something, rather than an S3....
I did a pcp once, but imo they only work well if you drop in a low deposit. I paid £18k at the time, but only laid in a £1k deposit. The GFV was also reassuringly low, meaning it was economic for me to extend and own the car.
At the moment, you own a £13k car outright. You are about to do a deal to chop that in for a car that will cost you nearly £300 a month and in 3 years you'll then have to pay another £15k to own it.......
If you must do it this way, I would spend the £35k on a used M3/911 or something, rather than an S3....
As a comparison on a Golf R (which to be far isn't available now as the prices have risen) I'm paying £290 per month on a 24 month PCP, on top of that is a £1500 deposit. I did look at the S3 but at the time the monthly was around £400 with a similar deposit. The Golf prices are now closer to the S3, just make sure you get a good discount on the S3, Drive The Deal were doing around 10% last time I looked, any dealer can match that if they want to.
Little Lofty said:
As a comparison on a Golf R (which to be far isn't available now as the prices have risen) I'm paying £290 per month on a 24 month PCP, on top of that is a £1500 deposit. I did look at the S3 but at the time the monthly was around £400 with a similar deposit. The Golf prices are now closer to the S3, just make sure you get a good discount on the S3, Drive The Deal were doing around 10% last time I looked, any dealer can match that if they want to.
Blimey that's a cracking deal! You are right it will cost around £400+/month with a £3k deposit. No discount given at all on the S3 but it does come with loaded with the right toys. Must've been a cancelled order.Muzzer79 said:
It doesn't seem great to me
I did a pcp once, but imo they only work well if you drop in a low deposit. I paid £18k at the time, but only laid in a £1k deposit. The GFV was also reassuringly low, meaning it was economic for me to extend and own the car.
At the moment, you own a £13k car outright. You are about to do a deal to chop that in for a car that will cost you nearly £300 a month and in 3 years you'll then have to pay another £15k to own it.......
If you must do it this way, I would spend the £35k on a used M3/911 or something, rather than an S3....
I did use to own a E92 M3 once, cracking car but costly to maintain. I did a pcp once, but imo they only work well if you drop in a low deposit. I paid £18k at the time, but only laid in a £1k deposit. The GFV was also reassuringly low, meaning it was economic for me to extend and own the car.
At the moment, you own a £13k car outright. You are about to do a deal to chop that in for a car that will cost you nearly £300 a month and in 3 years you'll then have to pay another £15k to own it.......
If you must do it this way, I would spend the £35k on a used M3/911 or something, rather than an S3....
I do realise this is a bad financial decision as I'm putting myself into negative equity but part of me wants a nice new car...
General consensus seems to agree that price quoted (which I worked out to be around 7.1& APR) seems about normal without any dealer discounts.
It's just not very wise to throw 13k equity plus monthly payments into a PCP of a car retailing at £35k...
Sheepshanks said:
What do you intend to do at the end? If you're going to keep it then haven't you already established that straight HP will be a couple of £K cheaper?
To be honest I have no intentions of keeping it. I admit I'm a serial car changer just never really explored the PCP option.I'm looking at the 3 year PCP because it gives me enough time to save up for next car and also to time it before manufacturer's warranty runs out.
If you only plan to keep it for around six to twelve months,how about something like swap a lease or take my lease
There is currently a c63 with with sub 12 months left, the "seller" is willing to give a £1k incentive, meaning the net cost is likely to be about £530 (over 2k miles a month allowance)
Get it straight away, no deposit, keep your old car (or stick the money in the bank) and walk away sept next year
There is currently a c63 with with sub 12 months left, the "seller" is willing to give a £1k incentive, meaning the net cost is likely to be about £530 (over 2k miles a month allowance)
Get it straight away, no deposit, keep your old car (or stick the money in the bank) and walk away sept next year
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