Are the wheels about to fall of car finance?

[daemon]

NomduJour said:

Do you think the average punter getting finance saves money over buying it outright? The headline deals are the minority.

I would say with a few minutes effort you could find a lease or PCP deal that equals or betters a cash purchase over the same timeframe for the majority of new car purchases (obvious exceptions obviously being GT3 and somebodys wifes Q5)

If the average punter choses not to bother then thats their problem. We are, however, car enthusiasts on here, so not average punters.

Likewise just because a tiny minority of people do actually buy outright doesnt mean they're all in some way fabulous negotiators and got the bestest deal they could.

My BIL is a prime example of that. Changes his car every three years or so, recently bought a 3 month old Jag XJ from a main dealers, i've no doubt paid the asking price and i've no doubt in three years time will just accept whatever they tell him its worth. No doubt could have leased one cheaper. He neither knows this, nor cares.

Edited by daemon on Tuesday 9th January 19:29

Edited by daemon on Tuesday 9th January 19:30

[Granfondo]

NomduJour said:

Do you think the average punter getting finance saves money over buying it outright? The headline deals are the minority.

Buying outright will always be cheaper than PCP unless 0% to own outright!

[gizlaroc]

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.

[Granfondo]

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.

Very surprised at that because at the time it was more like £400 plus pm.

[daemon]

£270+VAT a month for the new model quattro Sport S Tronic, same terms, first place i looked.

https://www.contracthireandleasing.com/independent...

No doubt better deals out there if i were to take a few more minutes....

[Granfondo]

daemon said:

£270+VAT a month for the new model quattro Sport S Tronic, same terms, first place i looked.

https://www.contracthireandleasing.com/independent...

No doubt better deals out there if i were to take a few more minutes....

Yep, works out at £432pm amortised!

[daemon]

Granfondo said:

daemon said:

£270+VAT a month for the new model quattro Sport S Tronic, same terms, first place i looked.

https://www.contracthireandleasing.com/independent...

No doubt better deals out there if i were to take a few more minutes....

Yep, works out at £432pm amortised!

And your £400 a month deal was including VAT and 0 months deposit was it? Because thats not what your post implied.

[Granfondo]

daemon said:

Granfondo said:

daemon said:

£270+VAT a month for the new model quattro Sport S Tronic, same terms, first place i looked.

https://www.contracthireandleasing.com/independent...

No doubt better deals out there if i were to take a few more minutes....

Yep, works out at £432pm amortised!

And your £400 a month deal was including VAT and 0 months deposit was it? Because thats not what your post implied.

No it would have been £4** plus VAT plus deposit which would have made it even dearer than outright purchace!

[djc206]

Granfondo said:

No it would have been £4** plus VAT plus deposit which would have made it even dearer than outright purchace!

That’s extortion. The Q5 has always had very strong residuals and yet even with that history the PCP costs seem very high still. The example on their website is laughable.

[OddCat]

Granfondo said:

daemon said:

£270+VAT a month for the new model quattro Sport S Tronic, same terms, first place i looked.

https://www.contracthireandleasing.com/independent...

No doubt better deals out there if i were to take a few more minutes....

Yep, works out at £432pm amortised!

The downside, of course, being that you then have to drive around in an Audi Q5 diesel....

[Granfondo]

OddCat said:

The downside, of course, being that you then have to drive around in an Audi Q5 diesel....

To be fair it gave us no trouble over 60K miles and retained 50% of its value and was a good family workhorse!

[daemon]

Granfondo said:

daemon said:

Granfondo said:

daemon said:

£270+VAT a month for the new model quattro Sport S Tronic, same terms, first place i looked.

https://www.contracthireandleasing.com/independent...

No doubt better deals out there if i were to take a few more minutes....

Yep, works out at £432pm amortised!

And your £400 a month deal was including VAT and 0 months deposit was it? Because thats not what your post implied.

No it would have been £4** plus VAT plus deposit which would have made it even dearer than outright purchace!

Well lets hope others did their homework and didnt just assume that deals like the one gizlaroc posted werent achievable.

in fairness to you , you were keeping yours for a longer timeframe so a moot point as to what it might or might not have cost just over 2 years.

[Ares]

NomduJour said:

Do you think the average punter getting finance saves money over buying it outright? The headline deals are the minority.

I have 100% of the time over the last 10yrs. In the current state of the finance market, it's even more common.

[Ares]

Granfondo said:

NomduJour said:

Do you think the average punter getting finance saves money over buying it outright? The headline deals are the minority.

Buying outright will always be cheaper than PCP unless 0% to own outright!

Wrong. HTH.

[Granfondo]

Ares said:

Granfondo said:

NomduJour said:

Do you think the average punter getting finance saves money over buying it outright? The headline deals are the minority.

Buying outright will always be cheaper than PCP unless 0% to own outright!

Wrong. HTH.

Please explain?

[Ares]

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?

[Granfondo]

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?

[daemon]

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

[Ares]

Granfondo said:

Ares said:

Granfondo said:

NomduJour said:

Do you think the average punter getting finance saves money over buying it outright? The headline deals are the minority.

Buying outright will always be cheaper than PCP unless 0% to own outright!

Wrong. HTH.

Please explain?

My above post. My last 4 cars have cost me less by financing, than if I'd bought outright.
My current car will be the same (unless a 60,000 mile, 4yr old Alfa Romeo is still worth c£40,000 in 2021.)

[Ares]

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.