Best way to buy a B8

[Nickyboy]

You can go to 5k and no lower on the Audi system.

I'll call today to see if I can change it then.

[sixspeed]

I negotiated pretty hard in February with my deal. I got a £4200 contribution from the dealer. I believe the APR i'm paying is around 6.3%, i tried to push lower as Merc and BMW are/were lower but no joy. Also try and push them up on the end residual value as they tend to go on the low side. Your RS4 should be worth more than £20k in 3 years. They try a fob you off that you'll have more equity after paying the ballon payment, all a low residual does is push up the monthly. Oh and don't worry about how many miles you do, it only counts against you if you hand the car back at the end. go for the lowest miles option 5-6k a year, it boosts the residual...

Trying to get the lowest monthly payment is a short-sighted option, as all you're doing is paying less capital off the loan so your interest and overall cost of the loan is much higher. Like you say, unless you are going to just hand the car back (and who would do that?) then you're better off paying off more. The car will be worth what it is worth. If you've paid off more of the loan, you'll have suffered less in interest payments, and you'll have more "equity" in the car.

[doodlebug]

Agreed. I throw in a massive deposit, 50% or more, to offset any depreciation and to ensure if I need to flog it I definitely will not owe anything on it.

[Nickyboy]

Either way you are ploughing money into a depreciating asset.

Agreed on the interest thing though. I overpay my mortgage for this very reason. Hate interest.

[doodlebug]

Either way you are ploughing money into a depreciating asset.

Agreed on the interest thing though. I overpay my mortgage for this very reason. Hate interest.

[brn7y]

With a PCP it's a guessing and balancing game, you ideally want to put in a deposit equal to what the car will be worth over and above the final payment taking into account interest, depreciation etc.

This is just very rough but normally what happens.

Deposit = £5000
Estimated value in 3 years = £30000
Final balance = £25000
Retained = £5000

Deposit = £10000
Estimated value in 3 years = £30000
Final balance = £22500
Retained = £7500

If you get it right when you trade it in you retain your deposit value and it becomes like leasing without the initial 3 up front payments and the crap you have to deal with when you return the car "tiny stone chip here sir, have to paint whole front end, £1500 to return the car". You effectively pay the depreciation plus interest.

Audi's finance computer is good at working this out, sit down with a salesman and have a play.

[bam_bam]

...sit down with a salesman and have a play.

*snigger*

[Pid]

I negotiated pretty hard in February with my deal. I got a £4200 contribution from the dealer. I believe the APR i'm paying is around 6.3%, i tried to push lower as Merc and BMW are/were lower but no joy. Also try and push them up on the end residual value as they tend to go on the low side. Your RS4 should be worth more than £20k in 3 years. They try a fob you off that you'll have more equity after paying the ballon payment, all a low residual does is push up the monthly. Oh and don't worry about how many miles you do, it only counts against you if you hand the car back at the end. go for the lowest miles option 5-6k a year, it boosts the residual...

Trying to get the lowest monthly payment is a short-sighted option, as all you're doing is paying less capital off the loan so your interest and overall cost of the loan is much higher. Like you say, unless you are going to just hand the car back (and who would do that?) then you're better off paying off more. The car will be worth what it is worth. If you've paid off more of the loan, you'll have suffered less in interest payments, and you'll have more "equity" in the car.

I don't try and get the lowest monthly, i have my comfortable monthly value and aim for that. I usually put in a large deposit 30-40% so I'm always in positive equity. You obviously don't get your full deposit back at the end, but it's swings and roundabouts really, pay more a month or pay more upfront, either way you'll be down at the end.

[Nickyboy]

Money pit.

[Markmyatt7]

Depending on if I get offered a new contract come September in the RAF I have been given the go ahead to get a new RS4. Right I need to make a list of must haves and consider how much my B7 is worth.