Best way to buy RS4

[cmcm3]

I've currently got a 36k mile daytona grey B7 Avant and have read about the current discounts available on b8's especially when taking finance. What would be a sensible way to set up a finance deal on a car that post discount would come out at £52k? £20k-ish deposit, off the b7 then £500 a month and a suitable ballon or what? I've never had finance before...

Thanks guys.

[Andy_S]

PCP all the way.

You can use the calculator at http://www.pcpcal.co.uk to get a good idea of how the numbers will work out.

To give you a guide, if you do a PCP on an RS4 at 10k miles per annum over 48 months, then the lump sum at the end (GFMV) is £25,365. That's how I've done mine anyway.

With a £20k deposit, you'd be looking around £300 a month over 48 months with the current low interest offer.

However, if Audi do stick to the terms of the offer, the car has to be delivered before 30th June. If you do a new order now, you'll be looking week 30, July, before it's built...

HTH

[John Johnson]

So is that a 25k lump at the end you have to pay / re finance or give the car back and walk away

[Andy_S]

Yeah, the theory being that the car would be worth nearer £30k so you have a deposit for the next new car.

I knew someone who wanted to keep their car so they just phoned Audi finance who were quite happy to arrange a normal loan to pay off the balance.

[adsgreen]

PCP is great if you are looking to change cars regularly.
Just remember you ain't really buying the car... more like effectively renting it. sure you could buy it at the end by paying the balloon but if you are thinking that is an option it would be more efficient for conventional hp as the total paid could be lower.

Also need to be careful about wear n tear and mileage on a PCP plan.

Also one thing to bear in mind is that (and I could be mistaken on the details) but once you have paid a certain amount of a car finance agreement (33%) the dealer can not repossesses the car without a court order. Before this limit the dealer could take the car (after serving due notice) without you being able to stop them. They won't be able to enter your house without a court order but they could legally simply load it onto a flat bed and take it away (and then bill you for replacement keys).
With a PCP plan due to the nature of the finance being so skewed to the balloon payment you will never be in a position to hit this limit as the amount on credit will always be too much.

I know it's a bit doom and gloom but that's what credit is all about really and it's always better to know what you are getting into esp if it's new territory.

[adsgreen]

Yeah, the theory being that the car would be worth nearer £30k so you have a deposit for the next new car.

I knew someone who wanted to keep their car so they just phoned Audi finance who were quite happy to arrange a normal loan to pay off the balance.

The guaranteed value will always be cautious and a bit lower than what they think will happen.
Not really to do you any favours but it's a way of mitigating the risk to themselves should anything big happen to the market.

[cmcm3]

Ok, so when you get to the end of the PCP you are left with £30,000k-£25,365k=£4,645 as a deposit towards the next one?

I'm more thinking of HP, to own the car after the finance period - So something like £20k down, £32 of which say £15k ballon at the end, but as I've said, I've never had finance on a car before so don't know if I am missing a trick? I deal with property project and development finance every single day in my job, but car finance just blows my mind...

Note - I do a pretty much guaranteed 5-6k miles a year.

[adsgreen]

Ok, so when you get to the end of the PCP you are left with £30,000k-£25,365k=£4,645 as a deposit towards the next one?

Don't guarantee on this though.
Also don't bank on getting amazing deals if you are dealing with the dealer - they do kind of have a captive audience at this stage. If you don't like the deals on offer then you either stump up the balance and negotiate elsewhere or walk away.

[Mr V10]

Don't HP. PCP, get the contribution then call VWFS after the 36/48 month agreement and HP it for another 24 months and then you'll own it after that.

[Mr V10]

Yeah, the theory being that the car would be worth nearer £30k so you have a deposit for the next new car.

I knew someone who wanted to keep their car so they just phoned Audi finance who were quite happy to arrange a normal loan to pay off the balance.

The guaranteed value will always be cautious and a bit lower than what they think will happen.
Not really to do you any favours but it's a way of mitigating the risk to themselves should anything big happen to the market.

That, and if you hand it back you don't get the equity which you will if you PX it for another Audi.