Is it cheaper to buy brand new with PCP ?

Post by **Kiteral** » Thu Mar 26, 2015 11:22 am

As the RS3 launch has not endeared me to getting one, I was back in the dealer today asking about RS4'/5's

There is still a huge amount of unsold new RS4's in the network and the cheap finance deal is still available, £4k contribution and 4.9% apr, also there are a number of low mileage RS4's available also but of course you don't get the deal and a higher apr from Audi.

So am I right is better to buy new or second hand when using finance ?

Post by **miatang** » Thu Mar 26, 2015 12:01 pm

I see alot of the 2014 cars with decent spec have dropped into the mid to high 40s. That along with banks like First Direct offering 3.6% personals loans would probably sway me towards buying used right now

Post by **Kiteral** » Thu Mar 26, 2015 12:14 pm

Cheers Miatang.

Don't really want to drop £9k plus my car into a deal, max you can get on a personal loan is £25k

Also my car is worth feck all as a px, as it has a zorst (don't have the original) and a map.

Post by **markwm** » Thu Mar 26, 2015 1:50 pm

When there's decent discounts available on new cars, a lot of the Audi Approved prices are borderline laughable. And as you say, when you take into consideration the lack of contribution, worse finance rate, second owner etc etc then it's hard not to end up looking at new.

Post by **Kiteral** » Thu Mar 26, 2015 3:42 pm

Does anyone know how to work out the total cost of credit in those Audi pcp quotes, just trying to compare them with a personal loan credit cost.

Post by **RSphantom** » Thu Mar 26, 2015 4:32 pm

Kiteral wrote:Does anyone know how to work out the total cost of credit in those Audi pcp quotes, just trying to compare them with a personal loan credit cost.

Looking at the PCP deal on the RS4 on the website;

Total amount payable by customer = £58,377.54

Total cost of quoted car = £57,160.00

Therefore interest over the 3 year period = £1,217.54

However, the real interest paid is £5,217.54 but Audi absorb £4k of this due to the deposit contribution from Audi (£2k + £2K).

If you then apply further discounts on this car this will reduce the interest payable, likewise if your car has factory options (which I guess it will have) then this will increase the interest paid.

As an example if you get a car with a full price including options costing £62,160 and you manage to obtain a discount (not including the Audi deposit contribution) of £5K then the above figures are going to be pretty much the same.

This only applies for new cars though as a second hand car will not attract the deposit contribution and the APR from Audi will be potential higher. Therefore is this case a personal loan will potentially be more cost efficient against interest costs but it will cost you more per month as you are having to repay the full amount rather than just a part of it with a final payment at the end.

The best solution if you were in position to do it would be to buy new and get the additional deposit contribution, then take out a personal loan at a lower rate of interest, pay off the finance agreement with Audi within 30 days using the funds from the loan and additional capital. Sounds easy in practice

Post by **Kiteral** » Thu Mar 26, 2015 6:48 pm

Cheers RSphantom ! That has really helped to understand those pcp thingys

Post by **markwm** » Thu Mar 26, 2015 8:36 pm

How much would you expect to borrow on a personal loan and at what rate to make paying off the audi finance worthwhile?

Post by **marc1** » Thu Mar 26, 2015 9:47 pm

Kiteral wrote:Cheers Miatang.

Also my car is worth feck all as a px, as it has a zorst (don't have the original) and a map.

What's the spec of your car buddy?

Post by **Kiteral** » Thu Mar 26, 2015 10:59 pm

Pm'ed the spec.

Post by **Rustyruss67** » Mon Mar 30, 2015 12:57 pm

We use pcp all the time as a way of renewing our car every 3 years. They are not the best if u want to buy a car out right. We just bought a new RS5 fully spec, got £4500 Px on our Q5 and 4k with dealer contributions, they also chucked in gap insurance and auto glum and tracker. Screw them down they do have wiggle room.

and her she is

Post by **RossDagley** » Thu Jul 02, 2015 3:22 pm

Thread revival but thought it worth mentioning the difference in real terms.

I was about to sign on the bottom line for a 18 month old, 18k mile RS4 with pretty good spec. turns out thanks to PCP for £2k more (total!) - and heavy negotiating on my part and decent discounting on Audi's - I got a brand new, top spec car. All down to the APR differences on new Vs approved.

Post by **MikeFish** » Thu Jul 02, 2015 4:15 pm

The biggest downside of this right now is that you can't spec the car you want so you have to be either really lucky or happy to compromise on certain bits.

Post by **RossDagley** » Thu Jul 02, 2015 4:19 pm

MikeFish wrote:The biggest downside of this right now is that you can't spec the car you want so you have to be either really lucky or happy to compromise on certain bits.

Yes I should have touched on that, thanks mike. You're buying from stock - in my case a showroom car, but otherwise an unregistered dealer stock car. A quick search for UK cars with ceramics will put pay to most peoples spec list right there - I did exactly that (which is why I've ended up with a car with all of the spec I wanted, except without ceramics.

Post by **MikeFish** » Thu Jul 02, 2015 4:24 pm

Yes, i looked for a black car with black optics, buckets and ceramics. I dropped the ceramics and still can't find one (new OR second).
Quite like the black and red buckets in the black limited edition or even better the black and white seats in the blue limited edition, but no black optics on the LEs. Would have been nice to get the seats from the blue car in the black car with optics but that ain't gonna happen.

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