Audi A3 Car Finance

[calumc]

Hi guys,

New to the forum and need some advice.

I'm about to go ahead and purchase an Audi A3 S Line 1.5TFSI COD in Daytona Grey with 2.4k miles on the clock and registered in November 2017. 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

EDIT: Just to add it has tech pack too with virtual cockpit.

Edited by calumc on Saturday 16th June 15:40

[bobtail4x4]

you could probably rent a new one for less

[Wooda80]

Assuming it's regulated by the Consumer Credit Act 1974 ( it likely will be and will say so in big letters near the top ) then you can return it with no neg eq when you have repaid half of the total amount payable.

TAP is £24399
Half is £12169 ( approx )
Divide by monthly payment ( £303 ) means you can return it after 40 months.

If you want to move the halfway point nearer to 30 months then select a higher mileage option ( even if you are not going to do the extra mileage ). That will reduce the final payment, increase your monthly payments and move the halfway point forward.

Alternatively just suck up the neg eq at 30 months, or pay it upfront as a deposit.

You have to take reasonable care of the goods. It's up for debate, either between you and the finance company, on a forum or in court, as to whether or not you have to pay any excess mileage charge in these circumstances.

Rate looks competitive. If you like the car and the cash price is competitive then go for it,

[Deep Thought]

calumc said:

Hi guys,

New to the forum and need some advice.

I'm about to go ahead and purchase an Audi A3 S Line 1.5TFSI COD in Daytona Grey with 2.4k miles on the clock and registered in November 2017. 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

The finance rate is good for a PCP deal, however you'd get a better rate on a straight loan from say, Halifax - 3.4% APR.

You havent told us if its a 3, 4 or 5 door, however the price seems fairly good, with only this 5 door with 5k miles bettering it on autotrader.co.uk

https://www.autotrader.co.uk/car-search?sort=price...

Be aware though that brokers will sell you a brand new car for similar money

Broadspeed (£22,716)

https://broadspeed.com/new_cars/Audi/A3/Choose_Num...

And drivethedeal (£22,265)

https://www.drivethedeal.com/buy-a-new-car/AUDI/A3...

Use a Halifax loan @ 3.4% years at £389 a month and after 5 years you'll own the brand new car outright.

https://www.halifax.co.uk/car-finance/calculator/

EDIT : You can get a loan from 2.9% APR from Sainsburys.co.uk at £384 a month.

Edited by Deep Thought on Saturday 16th June 15:51

Edited by Deep Thought on Saturday 16th June 15:52

[Sheepshanks]

calumc said:

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.

Unlikely, I would think. You'll only have paid around £9K but you'll save on the interest - maybe £1K or so - by terminating early so the car would need to be worth £14K+.

I think you'd be close if you were the first owner but not on a used one. What would this car's new price be, after discount?

[calumc]

Sheepshanks said:

calumc said:

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.

Unlikely, I would think. You'll only have paid around £9K but you'll save on the interest - maybe £1K or so - by terminating early so the car would need to be worth £14K+.

I think you'd be close if you were the first owner but not on a used one. What would this car's new price be, after discount?

Thanks everyone for the help - much appreciated.

It's a 5 door sportback.

For a brand new one through a broker with discount, including tech pack and metallic paint, I'm probably looking 24.5k minimum.

I've placed a holding deposit on the car whilst I make up my mind but my only worry is having to wait 40 months to get rid when 3 years would probably be more ideal.

Also, do any of you guys know much about the 1.5 COD engine and whether it's a good pick over the diesel engines? Heard they're fairly fuel efficient in comparison to some other petrols out there.

Edited by calumc on Saturday 16th June 18:18

[wemorgan]

You can lease a new one for 3yrs for the same money (not Inc tech pack)

Or better still a BMW M140 is only £500/yr more

[Wooda80]

calumc said:

my only worry is having to wait 40 months to get rid when 3 years would probably be more ideal.

If that's the case then you either need to adjust your budget or this isn't the right car for you.

Tell the dealer what you want to achieve re a 2.5 or 3 year handback. They won't mind, it's the finance company that will have to take it back not the dealer. They will be able to show you alternatives with an earlier "get rid" point by either increasing the deposit, reducing the final payment or shortening the term of the agreement.

Unfortunately all of these will end up either increasing the deposit or increasing the monthly payment.

Alternatively you could hand the car back at 3 years on your current quote, providing that you pay the sum necessary to make half the total amount payable. This would be equivalant to payments 37, 38, 39 and 40 ie about £1200.

You can budget for this amount if you know that the bill is coming or roll the negative equity into your next deal. That's the start of a slippery slope however.

Either that or take GAP insurance and set fire to it.....

( That last bit is illegal by the way and will likely end up with you in jail! )

[calumc]

Wooda80 said:

If that's the case then you either need to adjust your budget or this isn't the right car for you.

Tell the dealer what you want to achieve re a 2.5 or 3 year handback. They won't mind, it's the finance company that will have to take it back not the dealer. They will be able to show you alternatives with an earlier "get rid" point by either increasing the deposit, reducing the final payment or shortening the term of the agreement.

Unfortunately all of these will end up either increasing the deposit or increasing the monthly payment.

Alternatively you could hand the car back at 3 years on your current quote, providing that you pay the sum necessary to make half the total amount payable. This would be equivalant to payments 37, 38, 39 and 40 ie about £1200.

You can budget for this amount if you know that the bill is coming or roll the negative equity into your next deal. That's the start of a slippery slope however.

Either that or take GAP insurance and set fire to it.....

( That last bit is illegal by the way and will likely end up with you in jail! )

GAP insurance scam sounds up my street but we won't go there...

Decided in terms of value for money, a used A3 or a used car by any means isn't really worth it. So decided to look into getting a new Golf GTI on lease for about 280 a month. Definitely seems like more bang for my buck and a much better car at that.

Would anybody recommend the GTI/have experience with one?

Cheers!

[Pistonheader101]

280pm for a new golf gti sounds good. Got a link to the deal?

[calumc]

Pistonheader101 said:

280pm for a new golf gti sounds good. Got a link to the deal?

https://www.nationwidevehiclecontracts.co.uk/Volkswagen_golf-2-0-tsi-gti-5dr-81023.htm

Depends what mileage, term etc you'd like, but nationwide definitely looks the best place atm! Will post if I find anything better