C7 PCP

[Ian_C]

Those figures don't sound right - £30k and 655x48 isn't enough to buy the car outright? But on the other hand that sounds too much for a PCP?

If the C6 was financed and you had 6-10k in it, those figures would however sound about right for a PCP. £10k cash deposit, £655x48, balloon / GFV would be something like £28/29k.

The GFV will always be pathetic after so many dealers got their pants pulled down in the recession. Hence if you just hand it back after four years and walk away, you are basically paying the over-inflated depreciation amount multiplied by the high interest rate

If the £26k C6 is yours and you can put an additional £4k cash in as you mention above - hence £30k total cash deposit - this massively opens your options up. Let's say you could get the windscreen price down to £60k for ease of figures, £30k cash deposit, £30k personal bank loan at 3.6% over 48 months

Loan £30,000
48 monthly payments of £672
Total interest £2,256
Total payable £32,256

Finance cleared after 48 months and I agree the car would still be worth 30-35k. You own the car outright, yours to sell

[S4WON]

I am thinking about financing a C7. I have seen a 14 plate with 6k on it for £64,000. Has sports pack. Those of you who have gone down the route of PCP, can you give me an idea of figures? I was thinking 10-15k deposit, is this too much? Should I be after dealer contribution? I don't totally understand PCP so advice much appreciated.

Cheers.

Try this thread

viewtopic.php?t=114375

Read it all, should explain a few truths about PCP....

I was about to pull the trigger on a 90k deal but couldn't get over the fact I was paying interest on the "whole amount" when GFVs are involved.

In short, PCP is a fantastic finance vehicle, for manufacturers and a great way to keep payments down but its enough of a ball ache to get hit by depreciation, I couldn't justify to myself the interest hit as well, but much like 99.9% cant buy houses outright, the same is true for luxury cars i guess.

Like someone else said, cash is king or a loan if you can afford it.

The car im buying is on a pcp deal, dont worry about that, you just pay the finance company direct.

[HYFR]

If you don't understand the numbers I would suggest you forget PCP.

[vestax32]

I don't have any finance on my C6, but yes I though those figures seemed wrong. There was also no mention of GFV. Either way, I am well and truly put off PCP. Have always owned my cars, so I think I will keep the C6 for another year and re-look at it then. What sort of money do you think the C7 will be going for by this time next year?

[Ian_C]

Great - if you own the C6 then you are quite literally laughing all the way to the bank! If you buy from a dealer and px the C6, they can take that as the 26k deposit and your private loan for the rest. And if you sell the C6 privately, you can then look at private sale cars as well, because of course you now don't need to go through a dealer to finance it. Great situation to be in.

Something like this?

viewtopic.php?f=63&t=116650

[HYFR]

You probably have a quote for HP

[vestax32]

Ian, yes I think that is more the route I want to be going down. Being able to buy privately would also be a bonus and open up a few more cars. I'm thinking now though that I may leave it for another year to let the C7 depreciate further. What sort of money do you guys think they will be commanding by summer next year? A worthwhile reduction. Obviously the C6 will have depreciated further too, but possibly not relative to the C7?

Hyfr, I think you are right. I have since spoken to a friend if a friend who works at oxford Audi, and roughly over 4 years with a 15k deposit, PCP would be £967 per month.

[S4WON]

I am truly stunned by the way the C7 is holding onto its value right now. At least i was till I drove one

I watched the prices daily for a few months and only ever saw one car dip below 60k on auto raider which was poverty spec.. It was then bizarrely back up for sale at 64k and then disappeared!

Fact is no one knows but I will be very surprised if they are under 50k in 18 months time, with the higher specs still commanding 60-80

They are a great car, secret is out and demand is high. Nothing else coming soon either (unlike the A4 platform) so id exepct them to hold firm.

Decent C6s from 2008/2009 are still going for mid 30s. C7 will do even better

[vestax32]

S4WON, yes I have been keeping an eye on prices and they do seem to be holding well. Still unsure what to do, so I will hold on to my C6 for a while and mull it over some more. I now know PCP is definitely not for me, so at least I have ruled that out, just need to decide now wether to try and make it happen now, or wait until next year. No rush so will think about it some more.

Thanks for all your advice and info guys.

[Ian_C]

The older cars will drop a bit when they hit three years old - as all German cars do - and that time is summer 2016. However I think you are right - it will be a while before they slump from 60k+ to 50k. Unlike the RS4 where thousands were built, there are nothing like as many C7s

[Dallas83]

Not sure why anyone would put cash into the deal on a PCP. I'm zero cash in and my build is around £88k. 4 year PCP @ £1020 + a GFV of £30k. Even if i do the full 8k miles on that car there is no way in hell the GFV will be £30k which only means that in the end i'll have equity in the car when it comes to trade and i'll get a nice little cheque for the amount + probably ordering another RS6.

All these dealers make the GFV rather high which makes your monthly payments lower (The GFV on AUDI UK was at £46k on RS6's at one point), but problem with that is that when the deal comes toward the end you'll have nothing into it and you'll have put a deposit of whatever amount which would have been better just sticking it in the bank. Deposit lost + 3/4 years later = Gotta put in another big deposit to keep your payments at a lower price - same old cycle over and over !!!

If you can afford the high monthly payments then just do that rather than wasting money on down payments, yes its a massive risk if something happens and you have to sell the car, but there are people with that kind of money that will pay top cash for your RS6. Big risk that comes with these motors so i would suggest that if your gut feeling is that you can't afford it then wait it out until your in a position to do it right without the added stress

[vestax32]

Dallas83 its not that I can't afford, it just doesn't sit right with me, after having done all this research, I am definitely a cash kind of a guy, even it I have to get a loan for a portion of it. But....

So 4 years at £1020 is £48960. Assuming you keep the car for the full term, what will you get back at the end? I presume after 4 years the car will probably be worth more like 45k, so will you get the 15k difference between the GFV and actual value? If so that means your outlay over the 4 years is more like 34k, which is probably about right for depreciation. If this is all correct, then it actually seems like quite a good deal?! Is your deal with Audi directly, or with a company like Oracle?

[Dallas83]

Hey Vestax

Sorry mate, i wasn't implying that you couldn't afford it. It was more as i have seen a thread a little like this with some sceptical individuals looking to pull the trigger on one - i was one of them myself ! Thought i would just share my finance deal for everyone else to hear about what i'm getting on my PCP deal as they are all very different from different dealers.

Your exactly right in saying the about, i think my car will be worth around £40-45k by the time i trade it in in 4 years time with that amount of milage , so effectively i'm looking at getting that money back + i'll order a new RS6 and do the same deal all over again.

My deal is directly with Audi UK on a PCP finance brand new build. Audi put in £7k + £4k from dealers with a total of just over £11k in discount off the £88k.

[vestax32]

When its put like that, it sounds like quite a good deal. My mileage is more like 12-13k a year. Would this affect the overall deal much do you think?

[Dallas83]

I guess the more miles you do the more money will come off the top end of the car, so with over 40k miles after 4 years you may be closer to the low £30k's...