Finance Help

[S4WON]

Gents

About to pull trigger on finance deal.. I have 2 on the table, have chosen 1 but something caught my eye.. On one it says

4.9% APR
4.72% Fixed

Other one it says

4.8% APR
2.X Fixed

(Cant remember X, on train)

Seems strange such a difference, both audi PCP deals

Any ideas?

[doodlebug]

One's got a typo. It's the same finance deal across the board.

Finance not actually done until car arrives and you sign the paperwork. At this point is quote and credit checks.

[S4WON]

Yep, you're right and I'm an idiot. Just noticed the 2.x was hand written to explain something else and its the same fixed rate on both offers.

I assume the fixed rate is calculated on the total amount of credit rather than the difference between the GFV and the amount of credit?

Oh well, thats the choice i guess!

[doodlebug]

Yep, full amount as that's the loan.

[S4WON]

You seem to be a good man to know. In general, pcp a decent way to go? Vs HP, bank loans etc?

[doodlebug]

Audi's offer with the discount that goes with it cannot be sniffed at. There's always going to be cheaper credit but whether it offers something cheaper overall is a different question.

[S4WON]

Thanks again.

[Markmyatt7]

What sort of deposit do you put down on a PCP? And do you pay the lump sum at the end so the cars yours?

[doodlebug]

Depends, Audi.co.uk is your friend, have a play with their finance calculator.

[S4WON]

Yep and their calculator is pretty far off what I'm being offered at the dealer.

their calculator also quotes 2.43% fixed... the dealers 4.72% fixed..

payments also a lot higher for the same "total amount of credit" and the same term, mileage...

something is amiss....

happy to send you the mail I just sent to Audi if you PM me your email address

[Markmyatt7]

Yep and their calculator is pretty far off what I'm being offered at the dealer.

their calculator also quotes 2.43% fixed... the dealers 4.72% fixed..

payments also a lot higher for the same "total amount of credit" and the same term, mileage...

something is amiss....

happy to send you the mail I just sent to Audi if you PM me your email address

Pm sent

[fabrs4]

Well done for going for the RS6 have you sorted which options your going for.

[S4WON]

Yep, all sorted, just getting these finance woes sorted then ill do a proper post. A couple of members have been really helpful but i cant help feeling a little let down at the way the pcp deal has been constructed.

Still time to put it right though i guess!

[Wotsirb]

The lower number is the fixed rate. For example 5% flat means you're paying £50 per £1000 borrowed over the term. This roughly translates to 10% APR.

APR will vary dependant upon term and deposit, so even if the flat rate is fixed at 5%, dependant on term the APR could vary from 9.7-10.1%

On a PCP you'll just need to be careful about the amount of deposit you put in as there will always be a good middle ground. Too much and you'll have to find that deposit again next time for a similar car of a similar price for a similar payment. Some people make the decision to put in 30% and then wonder why they don't have as much equity as their deposit/their payments go up... It's simple, deposit doesn't have an effect on the GMFV/Option to Purchase fee, so the amount of equity at the end will be the same. Higher deposits just mean lower monthly cost.

Hope this is all making sense!

[PSB1]

.. It's simple, deposit doesn't have an effect on the GMFV/Option to Purchase fee, so the amount of equity at the end will be the same. Higher deposits just mean lower monthly cost.

Hope this is all making sense!

I'm by no means an expert on these finance products but every time I think I have them fully understood, somebody throws a curveball

Is the quoted bit above correct? Surely it's all about attacking the balance and getting the greatest possible amount of daylight between the amount outstanding at the end of the agreement and the GFV? Doesn't this then drive the equity? Admittedly, I've only ever had balanced payment agreements but am considering pcp, hoping it offers flexibility beyond being able to exit early.

Would welcome enlightenment!