PCP on a Used Car?
Discussion
Hi everyone, looking for some advice as I am pretty clueless when it comes to buying a car.
I've spotted a 66 Audi A6 Avant Black Edition for sale in cracking condition and low mileage. Trading in my old A4 gets me around £6500 and the garage are offering a deal at around £150 a month over 4 years with 12k miles per year. A friend works for the company so is able to get me the friends and family rate when it comes to the APR and what not.
I would probably look to get a new car after the 4 years rather than pay the GFMV which I think was around £9k.
As I have no knowledge of this process, does this sound like a decent deal and are there any issues with PCP should it come time to change cars? Having recently moved house I think a loan from the banks would be out of the question but I don't know if I am being sucked in by the low monthly payment?
Cheers
I've spotted a 66 Audi A6 Avant Black Edition for sale in cracking condition and low mileage. Trading in my old A4 gets me around £6500 and the garage are offering a deal at around £150 a month over 4 years with 12k miles per year. A friend works for the company so is able to get me the friends and family rate when it comes to the APR and what not.
I would probably look to get a new car after the 4 years rather than pay the GFMV which I think was around £9k.
As I have no knowledge of this process, does this sound like a decent deal and are there any issues with PCP should it come time to change cars? Having recently moved house I think a loan from the banks would be out of the question but I don't know if I am being sucked in by the low monthly payment?
Cheers
Hi, I used to work in new and used car sales for MB so can field this question.
In principle it is no different from taking PCP on a new car. The structure of the finance will be the same, with a mileage restriction and GFV etc.
However there is a few things to consider -
1. New car PCP is often subsidised by the manufacturer, so will have a lower APR in order to drive sales, and they will also give a stronger GFV as they have more control over the market. (However if you can get a decent APR <6% is good, <9% is acceptable, through your friend then i would consider it also)
2. Look at the total cost of the agreement over 4 years and then divide that down to give you a monthly expenditure. £150 a month is very low, but you've also just thrown £6500 of equity/cash into an agreement, that you're not going to see again (trust me, you won't). For example -
£6500 deposit
48 x £150
Total cost = £13700
Total cost per month = £13700/48 = £285.42.
Not bad. I'm a bit out of touch with costs but that seems like a reasonable amount of car for the money. I'd advise checking the 'leasing deals' thread to compare for something new.
3. This car is a 66 plate, it's already 3 - 3 1/2 years old. You're planning on putting a decent chunk of cash into a car which will be 7 years old by the end of the agreement. Is 7 years old for a modern car? No not at all, but it does mean it's out of warranty, will have a higher tax band, will have more running costs etc. This shouldn't scare you, but you should consider it.
With the above considered, I don't think what you've been offered sounds like a bad deal. If the car is right, and the APR is reasonable (look at total cost, not monthly) then sure. However, without seeing the details of the quote, it's not the deal of the century, and i think you are right in being lured in with the low monthly cost.
What would i do in your shoes? Keep your car. Live on that leasing thread until a stock A4/A6 deal comes up (Which they seem to a lot) and you could probably get a new car for basically the same money, without throwing £6500 into it. That is without taking into account any personal situation and whether you can be arsed/are the sort of person who's happy ordering a car off the internet/over the phone.
With all the above being said, with the quickest of searches, I couldn't find a A4 deal for <£300 a month, but again, thats on a new car.
In principle it is no different from taking PCP on a new car. The structure of the finance will be the same, with a mileage restriction and GFV etc.
However there is a few things to consider -
1. New car PCP is often subsidised by the manufacturer, so will have a lower APR in order to drive sales, and they will also give a stronger GFV as they have more control over the market. (However if you can get a decent APR <6% is good, <9% is acceptable, through your friend then i would consider it also)
2. Look at the total cost of the agreement over 4 years and then divide that down to give you a monthly expenditure. £150 a month is very low, but you've also just thrown £6500 of equity/cash into an agreement, that you're not going to see again (trust me, you won't). For example -
£6500 deposit
48 x £150
Total cost = £13700
Total cost per month = £13700/48 = £285.42.
Not bad. I'm a bit out of touch with costs but that seems like a reasonable amount of car for the money. I'd advise checking the 'leasing deals' thread to compare for something new.
3. This car is a 66 plate, it's already 3 - 3 1/2 years old. You're planning on putting a decent chunk of cash into a car which will be 7 years old by the end of the agreement. Is 7 years old for a modern car? No not at all, but it does mean it's out of warranty, will have a higher tax band, will have more running costs etc. This shouldn't scare you, but you should consider it.
With the above considered, I don't think what you've been offered sounds like a bad deal. If the car is right, and the APR is reasonable (look at total cost, not monthly) then sure. However, without seeing the details of the quote, it's not the deal of the century, and i think you are right in being lured in with the low monthly cost.
What would i do in your shoes? Keep your car. Live on that leasing thread until a stock A4/A6 deal comes up (Which they seem to a lot) and you could probably get a new car for basically the same money, without throwing £6500 into it. That is without taking into account any personal situation and whether you can be arsed/are the sort of person who's happy ordering a car off the internet/over the phone.
With all the above being said, with the quickest of searches, I couldn't find a A4 deal for <£300 a month, but again, thats on a new car.
GreatGranny said:
Depending if you're happy with £6500 for your old car then £13,700 for a 66 reg A6 Black Edition seems like a good deal IMO.
Looking on A/trader there aren't any 66reg for a similar price.
But it's £13700 to use it for 4 years. An additional £9000 if he wants to own it!Looking on A/trader there aren't any 66reg for a similar price.
Onetom said:
Hi, I used to work in new and used car sales for MB so can field this question.
In principle it is no different from taking PCP on a new car. The structure of the finance will be the same, with a mileage restriction and GFV etc.
However there is a few things to consider -
1. New car PCP is often subsidised by the manufacturer, so will have a lower APR in order to drive sales, and they will also give a stronger GFV as they have more control over the market. (However if you can get a decent APR <6% is good, <9% is acceptable, through your friend then i would consider it also)
2. Look at the total cost of the agreement over 4 years and then divide that down to give you a monthly expenditure. £150 a month is very low, but you've also just thrown £6500 of equity/cash into an agreement, that you're not going to see again (trust me, you won't). For example -
£6500 deposit
48 x £150
Total cost = £13700
Total cost per month = £13700/48 = £285.42.
Not bad. I'm a bit out of touch with costs but that seems like a reasonable amount of car for the money. I'd advise checking the 'leasing deals' thread to compare for something new.
3. This car is a 66 plate, it's already 3 - 3 1/2 years old. You're planning on putting a decent chunk of cash into a car which will be 7 years old by the end of the agreement. Is 7 years old for a modern car? No not at all, but it does mean it's out of warranty, will have a higher tax band, will have more running costs etc. This shouldn't scare you, but you should consider it.
With the above considered, I don't think what you've been offered sounds like a bad deal. If the car is right, and the APR is reasonable (look at total cost, not monthly) then sure. However, without seeing the details of the quote, it's not the deal of the century, and i think you are right in being lured in with the low monthly cost.
What would i do in your shoes? Keep your car. Live on that leasing thread until a stock A4/A6 deal comes up (Which they seem to a lot) and you could probably get a new car for basically the same money, without throwing £6500 into it. That is without taking into account any personal situation and whether you can be arsed/are the sort of person who's happy ordering a car off the internet/over the phone.
With all the above being said, with the quickest of searches, I couldn't find a A4 deal for <£300 a month, but again, thats on a new car.
All good points but this doesn’t include any consumables, breakdown, servicing or maintenance costs either - I would budget extra for this. In reality you can lease something of a similar size and spec for less - probably won’t be an Audi but Superbs are available for much less at the moment and that is hardly slumming it. My current V90 D4 is less than your pcp cost fully maintained. It just depends what’s on offer at the time you want to FTK. All I know is I would rather a brand new Superb etc over a second hand Audi where I would own any bills that could pop up. In principle it is no different from taking PCP on a new car. The structure of the finance will be the same, with a mileage restriction and GFV etc.
However there is a few things to consider -
1. New car PCP is often subsidised by the manufacturer, so will have a lower APR in order to drive sales, and they will also give a stronger GFV as they have more control over the market. (However if you can get a decent APR <6% is good, <9% is acceptable, through your friend then i would consider it also)
2. Look at the total cost of the agreement over 4 years and then divide that down to give you a monthly expenditure. £150 a month is very low, but you've also just thrown £6500 of equity/cash into an agreement, that you're not going to see again (trust me, you won't). For example -
£6500 deposit
48 x £150
Total cost = £13700
Total cost per month = £13700/48 = £285.42.
Not bad. I'm a bit out of touch with costs but that seems like a reasonable amount of car for the money. I'd advise checking the 'leasing deals' thread to compare for something new.
3. This car is a 66 plate, it's already 3 - 3 1/2 years old. You're planning on putting a decent chunk of cash into a car which will be 7 years old by the end of the agreement. Is 7 years old for a modern car? No not at all, but it does mean it's out of warranty, will have a higher tax band, will have more running costs etc. This shouldn't scare you, but you should consider it.
With the above considered, I don't think what you've been offered sounds like a bad deal. If the car is right, and the APR is reasonable (look at total cost, not monthly) then sure. However, without seeing the details of the quote, it's not the deal of the century, and i think you are right in being lured in with the low monthly cost.
What would i do in your shoes? Keep your car. Live on that leasing thread until a stock A4/A6 deal comes up (Which they seem to a lot) and you could probably get a new car for basically the same money, without throwing £6500 into it. That is without taking into account any personal situation and whether you can be arsed/are the sort of person who's happy ordering a car off the internet/over the phone.
With all the above being said, with the quickest of searches, I couldn't find a A4 deal for <£300 a month, but again, thats on a new car.
dodsi2000 said:
All good points but this doesn’t include any consumables, breakdown, servicing or maintenance costs either - I would budget extra for this. In reality you can lease something of a similar size and spec for less - probably won’t be an Audi but Superbs are available for much less at the moment and that is hardly slumming it. My current V90 D4 is less than your pcp cost fully maintained. It just depends what’s on offer at the time you want to FTK. All I know is I would rather a brand new Superb etc over a second hand Audi where I would own any bills that could pop up.
Yeah I alluded to the extra costs in one of my points, i guess i could have been more specific. I believe we're both on the same page with it! 
OP - if you can live without an estate, this is a stonking deal.
https://www.leaseloco.com/car-leasing/audi/a6-salo...
I would be tempted myself if i had any use for such a car.
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