Paying off PCP Early

[Cheib]

Getting fairly close to ordering a C7 and it's clear that to get the best deal I need to take out PCP. My intention would be to take out the finance and then pay it off pretty quickly. I have seen plenty of reference to paying off PCP early but has anyone actually done it? It sounds too good to be true. Looking at the PCP deals I have been shown it looks to me that instead of giving you zero rate finance Audi give you the £7k deposit contribution and then make this back in interest over a typical 36 month PCP term.

Paying it off early and keeping the £7k discount seems too good to be true!

[Eddie555]

I've paid off at 7 months on my S5. 20 months on the Q7. And recently at 9 months on the C7. Not once was any penalties applied.

[Cheib]

Sounds good. I was thinking weeks rather than months!

[wildbore]

I did it. Pay it off within 14 days - the legal "cooling off period" - otherwise there is a penalty against the supplying dealer.

I was squirming a little when I made the call because it's so obvious that you have just taken Audi Finance for a ride but, full marks to them, the guy at the call centre didn't make it awkward at all. I just said I wanted to exercise my right to withdraw and he said 'fine, you need to pay £45K within x days and you're clear'. End of phone call.

It was a no-brainer, £6K additional discount for (IIRC) about £30 in interest charges.

[Misanoredrs4]

Echo everyone else, I've done it, a no brainer. I am sure we shall all weep for poor Audi and their profits!

[drgav2005]

Did any of you refinance with another finance company or were you lucky enough to find £45k down the back of the sofa??!!

[footsoldier]

I was going to do it, but after paying 50% deposit, the monthly payments are only £175 so decided not to bother. Also, you never know what the car market is going to do, and I've at least underwritten how much it will cost with the GFV.

[Cheib]

I was going to do it, but after paying 50% deposit, the monthly payments are only £175 so decided not to bother. Also, you never know what the car market is going to do, and I've at least underwritten how much it will cost with the GFV.

That sounds like a pretty good idea...I might have a look at that.

[footsoldier]

There was a few £K off the list price, then the balance was split 50/50 between deposit and amount to finance PCP.
Audi and dealer then contributed a further £7k to my deposit, to give the total 'discount'.
Finance payable on the 50% balance @ 4.9% APR with a fixed final payment, or hand car back.

[Shinobi675]

I thought pcp was upfront interest? So if you pay off early, you only pay the interest to that point? Not the whole value you'd have paid if you'd just done it fully?

I like the get discount and then cancel the finance option!

[anth8910]

I took Audi finance but as I wanted to put more than 50% down I had to make an over payment once the finance was in place. Audi finance had no problem with this and I got the discount.

[Cheib]

I was going to do it, but after paying 50% deposit, the monthly payments are only £175 so decided not to bother. Also, you never know what the car market is going to do, and I've at least underwritten how much it will cost with the GFV.

That sounds like a pretty good idea...I might have a look at that.

Got a quote through on this basis from a dealer last night and also based on a £20k deposit. Had a very brief chat with the dealer when he sent them through but at first glance (and from what the dealer intimated) I think the GFV seems to be tied into how much interest you are going to pay over the period of the PCP. Which makes sense from Audi's perspective I suppose!

[mat776]

...... I think the GFV seems to be tied into how much interest you are going to pay over the period of the PCP. Which makes sense from Audi's perspective I suppose!

The GFV has nothing to do with the interest you will be paying. It is only affected by the length of the agreement, the model of the car, the agreed mileage and a prediction of the future market.

If you increase the deposit, you will pay less interest, because you are borrowing less.

Audi/BMW... Finance generally want to set the GFV at about or up to 10% less than they (through CAP) think the car will be worth at the end of the term. They want the customer to have equity in the car so that a new purchase is more appealing.

[W8PMC]

...... I think the GFV seems to be tied into how much interest you are going to pay over the period of the PCP. Which makes sense from Audi's perspective I suppose!

The GFV has nothing to do with the interest you will be paying. It is only affected by the length of the agreement, the model of the car, the agreed mileage and a prediction of the future market.

If you increase the deposit, you will pay less interest, because you are borrowing less.

Audi/BMW... Finance generally want to set the GFV at about or up to 10% less than they (through CAP) think the car will be worth at the end of the term. They want the customer to have equity in the car so that a new purchase is more appealing.

Porsche appear to do the same & openly state they want the customer to come back for a seamless transition into their next Porsche with equity in the car coming back. They also, which did surprise me don't increase the GFV if you start adding options. Now granted some toys will have little or no impact on the residuals, but surely the chunkier ones such as Ceramics & Carbon etc. must increase the value of the car, but this doesn't filter into the GFV.

[doodlebug]

Porsche appear to do the same & openly state they want the customer to come back for a seamless transition into their next Porsche with equity in the car coming back. They also, which did surprise me don't increase the GFV if you start adding options. Now granted some toys will have little or no impact on the residuals, but surely the chunkier ones such as Ceramics & Carbon etc. must increase the value of the car, but this doesn't filter into the GFV.

Which is why I don't really understand why you'd take Turbo over Turbo S.