Finance?

[Leo-RS]

The 5k pa deal was pulled a couple of weeks ago, the figures were £46k.

I guess Audi are throwing caution to the wind, £46k for a 15k mile car vs £43k for a 30k mile seems a bit risky to guarantee to me. I guess they want people to go with the 10k mile option so forcing people that way with the figures. If you want to do more than quoted, the fine is only £90 per 1k over so it makes sense to go with the 10k per annum plan even if you plan on doing 15k per annum.

The £43k 3yr 30k mile deal is definitely correct with the dealers.

[RSphantom]

I think you can look at this two ways. The figure quoted as far as I'm aware is the "walk away value". Effectively its the "what you still owe" figure at the end of the contract based on the term and the agreed mileage. I guess Audi have calculated a reduced value to what they expect the car to trade at over the given period making sure they are not hopefully chasing individuals for outstanding balances as the trade value of the car is less than the amount outstanding and also to get you to sign up for another new car as there is some residual value left. Obviously the third option is for you to pay off the "what you still owe" figure and own the car outright.

The way I look at the finance contributions (3K + £3k) is not really a discount but based on current rates gives you effectively interest free borrowing over the term. Therefore, if you had the funds you could use them to potential generate a better return than putting them into the car.

As an example my car is on a two year deal, 12K per annum and the "walk away value" was £51K. However, I put a large deposit down and also increased my monthly payments so now my "what you still owe figure" is substantially less. Because of this I hope that there should be a large amount of residual value in the car to take forward to the next one.

In simple terms if you take the PCP on with the minimum deposit as quoted on the financial calculator then the "what you still owe" figure could also be your "walk away figure" or leave you with a small deposit for the next one. If like me you put a larger deposit down and up the monthly's then hopefully its a "what you still owe" figure.

The more deposit you put in, the more you pay off over the term and the shorter the term the less interest you pay - simples

[markwm]

and also to get you to sign up for another new car as there is some residual value left. Obviously the third option is for you to pay off the "what you still owe" figure and own the car outright.

I've never done a PCP deal through a dealer, only through an asset finance company. When you take the car back to the dealer at the end of the term, hasn't he got you over a barrel? Say you have a GFV of 40k, dealers offers you 42k but you know it will sell for 47k but you can't sell it privately as there's outstanding finance on it. What's the best way to end the term with the most cash left over for the next car?

As an example my car is on a two year deal, 12K per annum and the "walk away value" was £51K. However, I put a large deposit down and also increased my monthly payments so now my "what you still owe figure" is substantially less. Because of this I hope that there should be a large amount of residual value in the car to take forward to the next one.

Is that done by simply increasing the annual mileage? So you're paying a deal as if you were doing 30k a year, but instead you're doing 10.

Also, who sets the GFV's? are they the same across the dealer network?

[RSphantom]

True on the dealer front, but if they did that then I would simply go elsewhere and having a good relationship with a dealer comes in handy in this situation. I have never actually got to the end of the term but if you want to keep the car my dealer has told me if you haven't got the funds to pay for the car outright you can re finance the car as if you were buying it again as a second hand car. I would guess the APR would change though.

No, you don't increase the mileage, just tell them how much you want to put down as a deposit and how much you want to pay a month and the final payment is automatically calculated.

That's why I call it "what you still owe" figure as it shouldn't have any relevance to a GFV as its a lot lower. I guess the risk I take is that if the arse was to fall out of the premium car market and values dropped considerably I would be out of pocket as my potential GFV would be lower due to a higher deposit and repayments. This is my point around the GFV, if you put the minimum in it will protect you if the above happens, however you will pay more interest as a result.

[HYFR]

You can sell a car privately that has finance outstanding !

[W8PMC]

but i'd be fairly confident if the OTR price starts dropping then so will the GFV

Nope, GFV is completely unrelated to the negotiated OTR costs, it's fixed to the list OTR.

The GFV in that particular Audi finance cycle (they refresh values every few months) remains the same regardless of how much discount, contribution, deposit etc you have/get.

Cheers Kev, i didn't realise that. Always assumed the back end figure would drop if the front end figure dropped. Saying that it's a while since i've acquired a vehicle using PCP.

[W8PMC]

As above, there are 2 depreciation stats to look at. Standard Car...

Depreciation from List (£78k) - (10k pa) deal is £43.1/£78k = 55.25% and on the previous (5k pa) deal it is £46.2k/£78k = 59.23%
Depreciation from Personal Cost (£67k) - (10k pa) deal is £43.1/£67k = 64.3% and on previous (5k pa) deal it is £46.2k/£67k = 68.95%

Depreciation from the list price is completely irrelevant, the car is not £78k and hasn't been for a long time, with the £6k contribution from Audi, it's £72k. It is then possible to get another £5k off that price through negotiation with your dealer.

Those no matter what way you look at it are impressive retained figures. Well done Audi In reality however, add in some options and those figures will start to plummet, not sure there will be any standard spec RS6's going around.

Edit...

Infact, it's even better, Base price now down to £66.5k.

Makes these RS6's a very attractive purchase given the fact they're guaranteed to be worth £43k at 30k/36 months.

But the £6k deposit contribution has now gone from the Audi config.

Let's also be realistic in what these cars will be worth in 3yrs. A car that cost £66k today will not be worth £46k in 3 years with 30k miles. The market will know what the original price was & adjust accordingly. Audi have obviously decided (rightly so) that to shift metal they will subsidise the cars in the same way BMW, Jag & Merc have been doing. Great for the customer & half of me wishes this had been the case 12mths ago, but back then Audi were being stupid/greedy so lost business.

[markwm]

6k contribution is still showing in the offers section, says valid for cars ordered by 31st March, I don't imagine they'll stop doing it

[W8PMC]

6k contribution is still showing in the offers section, says valid for cars ordered by 31st March, I don't imagine they'll stop doing it

Wasn't there when I looked the other day but agree now Audi have dropped to a sensible price point they'd be foolish to remove these offers.

[W8PMC]

Just checked & it back.

Have you seen the drop in GFV for 15k miles per annum? Only £35k for a 45k miler. Also the bizarre 5k per annum deal is still there with it's lower GFV than the 10k per annum.

[Leo-RS]

It is bizarre, it's structured around the 30k deal and forcing buyers into that plan.

The plans above that mileage make no sense, even if you were doing more than 10k annual mileage. You would be better off just paying the 9ppm charge (£90 per 1000 miles) rather than going for the 15k plan.

Audi wont pull this offer, it's exactly where it needs to be. Makes it a very attractive buy in my opinion.

[markwm]

There's obviously a technical error with the RS6 calculator. Maybe it's something as simple as the code for the 5k and 10k buttons being the wrong way round, i.e., the 5k miles GFV should be 43k and the 10k GFV should be 40k. The RS7 calculator is correct.

[kieranp1]

Having read this thread in great detail it almost seems to me that Audi are trying to ensure they have a number of vehicles returning to the market at certain times and with varying mileages.
For instance there has been a number of posts showing what the current GFV's are for a given term and mileage;
2yr 5000pa £46662
3yr 5000pa £40225
3yr 10000pa £43117
Now there is always some lucky people that are not interested about a deal/discounts/monthly payments and will buy a car there and then for the list price, but only reading this forum shows that there are a lot of people that are interested. Now for me I am only interested in what I lay out each given month so the deal I struck about 5 weeks ago was on a 2yr 5000pa which at he time gave a GFV of £53575. This combined with my given deposit placed my monthly exactly were I wanted it to be so I bought the car. Looking at the GFV's currently being offered my targeted monthly figure would now fall in the 3yr 10000pa so this is were my deal would have been structured around.

The finance calculators may well not be broken but Audi have decided that there is going to be enough 2 year old 10000 mile RS6's available in 2 years time and want more 30000 mile 3 year old cars available in 3 years so as not to saturate the market and kill the values.

Having said all of the above, it might be complete B*****ks

Regards
Kieran (build week 13, not started yet)

[W8PMC]

Having read this thread in great detail it almost seems to me that Audi are trying to ensure they have a number of vehicles returning to the market at certain times and with varying mileages.
For instance there has been a number of posts showing what the current GFV's are for a given term and mileage;
2yr 5000pa £46662
3yr 5000pa £40225
3yr 10000pa £43117
Now there is always some lucky people that are not interested about a deal/discounts/monthly payments and will buy a car there and then for the list price, but only reading this forum shows that there are a lot of people that are interested. Now for me I am only interested in what I lay out each given month so the deal I struck about 5 weeks ago was on a 2yr 5000pa which at he time gave a GFV of £53575. This combined with my given deposit placed my monthly exactly were I wanted it to be so I bought the car. Looking at the GFV's currently being offered my targeted monthly figure would now fall in the 3yr 10000pa so this is were my deal would have been structured around.

The finance calculators may well not be broken but Audi have decided that there is going to be enough 2 year old 10000 mile RS6's available in 2 years time and want more 30000 mile 3 year old cars available in 3 years so as not to saturate the market and kill the values.

Having said all of the above, it might be complete B*****ks

Regards
Kieran (build week 13, not started yet)

Nice write up & defo goes to show that Audi are/were loading the GFV to stimulate sales. Nothing unusual as most Manufacturers do this, just surprised Audi didn't do it sooner on the pre facelift cars

[HYFR]

The Euro £ now makes UK sales more profitable thus more to play around with