Are the wheels about to fall of car finance?

[Ares]

daemon said:

Ares said:

gizlaroc said:

Granfondo said:

My wife's Audi Q5 retained 50% after 6 years!

Hence why they were on deals with a 2.0tdi S-Line for £189 a month plus VAT when they had only been out for a couple of years. That was with 9 month down mind, and limited to 10k miles a year.

But still, my mate jumped on that deal, and refinanced for another year last year.

So the question is, did your wife lose more than £2,721 per year on her Q5? I'm guessing she did, unless the list price for it was only £32k?

I'm not one to jump to GF's defence (this could be the first time ever) but £189+VAT * (23+9) = £7,257. Divided by two = £3,628 a year.

Also, whilst gizlarocs friend was able to extend the deal on the same terms for the 3rd year, i think we'd have to assume after the third year he'd have to go for a less financially palatable deal on the next car.

Edited by daemon on Tuesday 9th January 20:32

OK - did GF's wife's Q5 lose less than £7,000 in the first two years? I'm still guessing it did

[Granfondo]

daemon said:

Ares said:

gizlaroc said:

Granfondo said:

My wife's Audi Q5 retained 50% after 6 years!

Hence why they were on deals with a 2.0tdi S-Line for £189 a month plus VAT when they had only been out for a couple of years. That was with 9 month down mind, and limited to 10k miles a year.

But still, my mate jumped on that deal, and refinanced for another year last year.

So the question is, did your wife lose more than £2,721 per year on her Q5? I'm guessing she did, unless the list price for it was only £32k?

I'm not one to jump to GF's defence (this could be the first time ever) but £189+VAT * (23+9) = £7,257. Divided by two = £3,628 a year.

Also, whilst gizlarocs friend was able to extend the deal on the same terms for the 3rd year, i think we'd have to assume after the third year he'd have to go for a less financially palatable deal on the next car.

Edited by daemon on Tuesday 9th January 20:32

I am a bit confused with Grizlarocs example because the Q5 came out in 2008 meaning his mate got the deal 2010 on a 2 year deal and then last year 2016 he extended meaning he had the same car for coming on 8 years!
Can you do this on a lease?

[daemon]

Ares said:

OK - did GF's wife's Q5 lose less than £7,000 in the first two years? I'm still guessing it did

Agreed. It would have. I would say the deal i quoted would be cheaper than running a new one for two years now too.

[Granfondo]

Ares said:

Granfondo said:

Ares said:

gizlaroc said:

Granfondo said:

My wife's Audi Q5 retained 50% after 6 years!

Hence why they were on deals with a 2.0tdi S-Line for £189 a month plus VAT when they had only been out for a couple of years. That was with 9 month down mind, and limited to 10k miles a year.

But still, my mate jumped on that deal, and refinanced for another year last year.

So the question is, did your wife lose more than £2,721 per year on her Q5? I'm guessing she did, unless the list price for it was only £32k?

That is a lease not PCP if you are trying to prove my statement is wrong?

Makes no difference. Merely highlighting that financing can be better value.

Try reading what I wrote!
Buying outright will always be cheaper than PCP unless 0%.

[Ares]

daemon said:

Ares said:

OK - did GF's wife's Q5 lose less than £7,000 in the first two years? I'm still guessing it did

Agreed. It would have. I would say the deal i quoted would be cheaper than running a new one for two years now too.

QED. Even cars with unnaturally high residuals can be matched or bettered by finance deals.

[daemon]

Granfondo said:

I am a bit confused with Grizlarocs example because the Q5 came out in 2008 meaning his mate got the deal 2010 on a 2 year deal and then last year 2016 he extended meaning he had the same car for coming on 8 years!
Can you do this on a lease?

I am sure he will be along to explain

That was good going on the Q5. Their residuals are amazing.

[Ares]

Granfondo said:

Ares said:

Granfondo said:

Ares said:

gizlaroc said:

Granfondo said:

My wife's Audi Q5 retained 50% after 6 years!

Hence why they were on deals with a 2.0tdi S-Line for £189 a month plus VAT when they had only been out for a couple of years. That was with 9 month down mind, and limited to 10k miles a year.

But still, my mate jumped on that deal, and refinanced for another year last year.

So the question is, did your wife lose more than £2,721 per year on her Q5? I'm guessing she did, unless the list price for it was only £32k?

That is a lease not PCP if you are trying to prove my statement is wrong?

Makes no difference. Merely highlighting that financing can be better value.

Try reading what I wrote!
Buying outright will always be cheaper than PCP unless 0%.

I did. You're still wrong.

I've never had 0%.
I've always had cheaper than buying outright (otherwise I'd have bought outright).

[Granfondo]

Ares said:

Granfondo said:

Ares said:

Granfondo said:

Ares said:

gizlaroc said:

Granfondo said:

My wife's Audi Q5 retained 50% after 6 years!

Hence why they were on deals with a 2.0tdi S-Line for £189 a month plus VAT when they had only been out for a couple of years. That was with 9 month down mind, and limited to 10k miles a year.

But still, my mate jumped on that deal, and refinanced for another year last year.

So the question is, did your wife lose more than £2,721 per year on her Q5? I'm guessing she did, unless the list price for it was only £32k?

That is a lease not PCP if you are trying to prove my statement is wrong?

Makes no difference. Merely highlighting that financing can be better value.

Try reading what I wrote!
Buying outright will always be cheaper than PCP unless 0%.

I did. You're still wrong.

I've never had 0%.
I've always had cheaper than buying outright (otherwise I'd have bought outright).

You are wrong!
You show me the best PCP deal on any car that is not 0% and I will show it can be cheaper to buy outright!

Edited by Granfondo on Tuesday 9th January 20:47

[anonymous-user]

Granfondo said:

Ares said:

Granfondo said:

Ares said:

Granfondo said:

Ares said:

gizlaroc said:

Granfondo said:

My wife's Audi Q5 retained 50% after 6 years!

Hence why they were on deals with a 2.0tdi S-Line for £189 a month plus VAT when they had only been out for a couple of years. That was with 9 month down mind, and limited to 10k miles a year.

But still, my mate jumped on that deal, and refinanced for another year last year.

So the question is, did your wife lose more than £2,721 per year on her Q5? I'm guessing she did, unless the list price for it was only £32k?

That is a lease not PCP if you are trying to prove my statement is wrong?

Makes no difference. Merely highlighting that financing can be better value.

Try reading what I wrote!
Buying outright will always be cheaper than PCP unless 0%.

I did. You're still wrong.

I've never had 0%.
I've always had cheaper than buying outright (otherwise I'd have bought outright).

You are wrong!
You show me the best PCP deal on any car that is not 0% and I will show it can be cheaper to buy outright!

Edited by anonymous-user on Tuesday 9th January 20:47

Ah but one of you is talking about outright purchase and the other cost to own over a defined period.

So depending on the situation you are describing you can be both be right

[nickfrog]

Granfondo said:

My wife's Audi Q5 retained 50% after 6 years!

It was probably a better deal to buy it cash therefore. Sometimes owning it is cheaper. Sometimes it isn't.

Our last 3 family cars have proven cheaper to lease than to own. Conversely the Megane was far cheaper to own so I bought it.

It's the polarised views that are wrong, as always.

[daemon]

nickfrog said:

Granfondo said:

My wife's Audi Q5 retained 50% after 6 years!

It was probably a better deal to buy it cash therefore. Sometimes owning it is cheaper. Sometimes it isn't.

Our last 3 family cars have proven cheaper to lease than to own. Conversely the Megane was far cheaper to own so I bought it.

It's the polarised views that are wrong, as always.

[gizlaroc]

Granfondo said:

I am a bit confused with Grizlarocs example because the Q5 came out in 2008 meaning his mate got the deal 2010 on a 2 year deal and then last year 2016 he extended meaning he had the same car for coming on 8 years!
Can you do this on a lease?

No, he got on a 3 year deal. It was a personal contract hire and I think he was luck that they let him keep it for another year, probably due to the fact it was then out of warranty and they no doubt knew it wasn't going to loose much more with them only having done 25k miles in the first 3 years.

When I said it had been out for a couple of years I meant it had been out for long enough for them to know residuals were rock solid, it was not a brand new car where residuals are unknown and hence CH prices set quite steeply.

I was seriously tempted myself, a lot of car for peanuts, but by the time I applied the deals had finished. They offered a Q3 at the same price but too small for us.

[Granfondo]

nickfrog said:

Granfondo said:

My wife's Audi Q5 retained 50% after 6 years!

It was probably a better deal to buy it cash therefore. Sometimes owning it is cheaper. Sometimes it isn't.

Our last 3 family cars have proven cheaper to lease than to own. Conversely the Megane was far cheaper to own so I bought it.

It's the polarised views that are wrong, as always.

No polarised view here, leasing if a defined term suits then lots if not most white goods type cars are cheaper to rent but when it comes to PCP then unless it's o% and if you have the capital (and that's a big if for lots of PCP'ers) then outright is always cheaper!

Bought,rented,PCP'ed,HP or loans whatever gets you mobile and you are happy then crack on!

[djc206]

Granfondo said:

No polarised view here, leasing if a defined term suits then lots if not most white goods type cars are cheaper to rent but when it comes to PCP then unless it's o% and if you have the capital (and that's a big if for lots of PCP'ers) then outright is always cheaper!

Bought,rented,PCP'ed,HP or loans whatever gets you mobile and you are happy then crack on!

It’s really not that clear cut. There are plenty of people who PCP’d cars over the years with overly generous GFV’s who then laughed as they handed the keys over at the end of the term. Cash buyers would have been worse off. It’s not very common these days but during the financial crisis many of the premium brands such as Porsche had got GFV’s quite wrong as the arse fell out of the market.

[Granfondo]

djc206 said:

It’s really not that clear cut. There are plenty of people who PCP’d cars over the years with overly generous GFV’s who then laughed as they handed the keys over at the end of the term. Cash buyers would have been worse off. It’s not very common these days but during the financial crisis many of the premium brands such as Porsche had got GFV’s quite wrong as the arse fell out of the market.

Moot point because to "own" a PCP'ed car you have to make the final payment,but I do agree that GFV is a plus point!

[djc206]

Granfondo said:

djc206 said:

It’s really not that clear cut. There are plenty of people who PCP’d cars over the years with overly generous GFV’s who then laughed as they handed the keys over at the end of the term. Cash buyers would have been worse off. It’s not very common these days but during the financial crisis many of the premium brands such as Porsche had got GFV’s quite wrong as the arse fell out of the market.

Moot point because to "own" a PCP'ed car you have to make the final payment,but I do agree that GFV is a plus point!

It’s really not moot. Ownership is irrelevant, it’s cost you more to drive that car if you paid cash. You lost more money in depreciation that the person who PCP’d it.

Besides there’s nothing stopping someone handing it back and then buying it back from the dealer network if so inclined.

[anonymous-user]

djc206 said:

It’s really not moot. Ownership is irrelevant, it’s cost you more to drive that car if you paid cash. You lost more money in depreciation that the person who PCP’d it.

Besides there’s nothing stopping someone handing it back and then buying it back from the dealer network if so inclined.

Ah yes but what price do put on being able to tell people you didn’t use finance

[Granfondo]

RSK21 said:

djc206 said:

It’s really not moot. Ownership is irrelevant, it’s cost you more to drive that car if you paid cash. You lost more money in depreciation that the person who PCP’d it.

Besides there’s nothing stopping someone handing it back and then buying it back from the dealer network if so inclined.

Ah yes but what price do put on being able to tell people you didn’t use finance

Priceless!

[Granfondo]

djc206 said:

Granfondo said:

djc206 said:

It’s really not that clear cut. There are plenty of people who PCP’d cars over the years with overly generous GFV’s who then laughed as they handed the keys over at the end of the term. Cash buyers would have been worse off. It’s not very common these days but during the financial crisis many of the premium brands such as Porsche had got GFV’s quite wrong as the arse fell out of the market.

Moot point because to "own" a PCP'ed car you have to make the final payment,but I do agree that GFV is a plus point!

It’s really not moot. Ownership is irrelevant, it’s cost you more to drive that car if you paid cash. You lost more money in depreciation that the person who PCP’d it.

Besides there’s nothing stopping someone handing it back and then buying it back from the dealer network if so inclined.

If you did buy it back do you think you would be still better off?

[djc206]

RSK21 said:

djc206 said:

It’s really not moot. Ownership is irrelevant, it’s cost you more to drive that car if you paid cash. You lost more money in depreciation that the person who PCP’d it.

Besides there’s nothing stopping someone handing it back and then buying it back from the dealer network if so inclined.

Ah yes but what price do put on being able to tell people you didn’t use finance

I wouldn’t know I’m a dirty debt monkey.