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johny1980
27-01-2010, 05:00 PM
Looking for a new A4 on finance deal;

Local Audi in aberdeen has 2.0 TDi 143 s-lines executives lowered from 28.5k to 25.5k with a further £500 contribution towards deposit & 5.7% APR.

So basically entails minimum deposit of £3000 from me and 35 x £330

Final optional payment of £13k

1. Basically wanting to know if this a good deal ?

2. Not sure on these finance deals and thought you lost your deposit. Salesman said this is not the case as the car will be worth much more than 13k epsecially with the miles i do and anything over the 13k is money i ahve tied up for another trade. is this the case ?

3. It seems to be as the monthly payment on similair priced cars for other makes are way higher. I aslo cant find anywhere else that will do as good a deal on the same car, anyone know anywhere else ?

Id love 170ps(1k), Multitronic(1.5k) and sat nav(2k) but cant push the payments up much more. Been trying to get the salesman to give me these options reduced but he is not budging as the car is reduced already.

4. what full spec is the s line executives and does it come with bang and oulfsen/premium stereo ?

5. What is the round control unit over the gearbox trim on some pics i have seen. It was not in the one i test drove, sat nav control ?

I was concentrating more on how the car drove when i took it out other than the spec !!!

Geordie Amanda
27-01-2010, 06:30 PM
I’d recommend downloading the latest brochure from the Audi site as the ‘Build you Audi’ configurator is a bit out of date. As I recall the Exec S-Line has the Bose/Dab and 19” wheels.

johny1980
27-01-2010, 06:40 PM
I’d recommend downloading the latest brochure from the Audi site as the ‘Build you Audi’ configurator is a bit out of date. As I recall the Exec S-Line has the Bose/Dab and 19” wheels.

ok i will look into doing that

the test car only had 18"a and thats what the salesman said it would be exactly like that

i think audi might have stop making these, rebadged them as special editions and the s line exec are stock cars they have in aberdeen

Geordie Amanda
27-01-2010, 07:33 PM
ok i will look into doing that

the test car only had 18"a and thats what the salesman said it would be exactly like that

i think audi might have stop making these, rebadged them as special editions and the s line exec are stock cars they have in aberdeen


You are right, I think the Exec has been replaced by a Special Edition which has the big wheels and sound stuff. Although you lose the Alcantara inserts in the seats.

Gary_W
27-01-2010, 07:44 PM
I can't be sure on the terms of this deal, so all of this advice is based on a lease deal I had a few years back. So if I have this wrong, apologies in advance. But if this is a standard lease deal like I had, you will indeed be 'losing' your £3000 as it's the down payment on the car.

You are also signing up in blood to £330 x 35 = £11,550.

So, after 3 years you will have given them £14,550. You will have had 3 years motoring. At that point, you can either give them the car back and walk away with nothing (your deposit is indeed lost) or you can give them £13,000 as the balloon payment on the car. If you are doing this, your final outlay for the car will have been £27,500. It's a good price for a car of this nature if you've financed it.

So at this point you've got a 3 year old car with X miles on the clock. You can run it for as long as you like or trade it in. Look at what you could trade it in for vs a new one. Will you get back the £13k out of the dealer? Maybe. Maybe not. If you get £16k back from them, you've had 3 years motoring in the car and in depreciation it will have cost you the monthly payments (£11,550).

Another thing that concerns me here is this..... if you are saying you cannot afford to push the payments any further upwards, how are you going to afford to save up the £13k balloon payment over the 3 years? That's another £360 per month you'll have to put aside so as you can actually do anything with the car other than give it back at the 3 year point (and in giving it back you've lost your initial £3k and you've paid them the £11,550 over 3 years) Unless you know you've got a lump sum coming, this could be an unhappy experience!

Take a look at the APR on this deal and go along to the moneysavingexpert website. If you have a decent credit rating (which you'll need to get the lease anyway) then look at bank loans for this. What I'm getting at here is if you CAN aford to pay the extra that you'd need to save anyway then you'll get a cheaper deal on a bank loan to pay the full amount over the 3 years. Even if the lease deal is good, you really really really need to make sure you can cover that £13k at the end!

Also, look into finance gap insurance on this - if your car is wrecked then your regular car insurance may not pay out enough to cover the amount of finance you owe on the car!

For me, the lease worked out well - I was getting a car allowance from work instead of a company car and it covered the monthly payments. I had put down a couple of grand up front and I then had a balloon payment of £7k. My B6 A4 has been run for another 3 1/2 years after this and is now my wife's car. We've had our moneys worth.

Moving onto the spec..... As to features etc, look at the Audi config tool on the website. It may have B+O (Audi don't do Bose anymore). But look at the regular SE spec price vs the SE Exec and decide if the extra is worth it or if you could go for a different engine etc rather than the exec spec. Spec yourself a car worth £28,500 and then (once you've got yourself sorted with all the finance stuff above) go and see him and tell him you want that YOUR spec of car for £25,500 with the rest of the deal he has offered. Be willing to walk away. If he sees you dribbling then you won't get it :)

Hope this helps

Gary

ScottyUK
27-01-2010, 07:47 PM
Since I answered some of your same post on tyresmoke.net I'll refrain from doing so again but I'll just repeat that if you let me know the date of the car then I can send you the manual (from the last 18 months or so at least)

pitch3110
27-01-2010, 08:24 PM
[QUOTE=ScottyUK;469452]Since I answered some of your same post on tyresmoke.net I'll refrain from doing so again QUOTE]

ditto

Pitch

johny1980
27-01-2010, 08:54 PM
I can't be sure on the terms of this deal, so all of this advice is based on a lease deal I had a few years back. So if I have this wrong, apologies in advance. But if this is a standard lease deal like I had, you will indeed be 'losing' your £3000 as it's the down payment on the car.

You are also signing up in blood to £330 x 35 = £11,550.

So, after 3 years you will have given them £14,550. You will have had 3 years motoring. At that point, you can either give them the car back and walk away with nothing (your deposit is indeed lost) or you can give them £13,000 as the balloon payment on the car. If you are doing this, your final outlay for the car will have been £27,500. It's a good price for a car of this nature if you've financed it.

So at this point you've got a 3 year old car with X miles on the clock. You can run it for as long as you like or trade it in. Look at what you could trade it in for vs a new one. Will you get back the £13k out of the dealer? Maybe. Maybe not. If you get £16k back from them, you've had 3 years motoring in the car and in depreciation it will have cost you the monthly payments (£11,550).

Another thing that concerns me here is this..... if you are saying you cannot afford to push the payments any further upwards, how are you going to afford to save up the £13k balloon payment over the 3 years? That's another £360 per month you'll have to put aside so as you can actually do anything with the car other than give it back at the 3 year point (and in giving it back you've lost your initial £3k and you've paid them the £11,550 over 3 years) Unless you know you've got a lump sum coming, this could be an unhappy experience!

Take a look at the APR on this deal and go along to the moneysavingexpert website. If you have a decent credit rating (which you'll need to get the lease anyway) then look at bank loans for this. What I'm getting at here is if you CAN aford to pay the extra that you'd need to save anyway then you'll get a cheaper deal on a bank loan to pay the full amount over the 3 years. Even if the lease deal is good, you really really really need to make sure you can cover that £13k at the end!

Also, look into finance gap insurance on this - if your car is wrecked then your regular car insurance may not pay out enough to cover the amount of finance you owe on the car!

For me, the lease worked out well - I was getting a car allowance from work instead of a company car and it covered the monthly payments. I had put down a couple of grand up front and I then had a balloon payment of £7k. My B6 A4 has been run for another 3 1/2 years after this and is now my wife's car. We've had our moneys worth.

Moving onto the spec..... As to features etc, look at the Audi config tool on the website. It may have B+O (Audi don't do Bose anymore). But look at the regular SE spec price vs the SE Exec and decide if the extra is worth it or if you could go for a different engine etc rather than the exec spec. Spec yourself a car worth £28,500 and then (once you've got yourself sorted with all the finance stuff above) go and see him and tell him you want that YOUR spec of car for £25,500 with the rest of the deal he has offered. Be willing to walk away. If he sees you dribbling then you won't get it :)

Hope this helps

Gary

well the salesman said id have money tied up as long as i traded it in again

worse case scenario is i walk away which i might be willing to do and swallow the 3k loss

say car is still worth 16/17k

i can take a bank loan for 13k in 3 years and buy car and keep it or sell it pay loan off and use the 3/4k as a deposit again

looking at 3 year old audis i dont think its to unreasonable seeing as though i only do 7k a year

Geordie Amanda
27-01-2010, 10:24 PM
Looking for a new A4 on finance deal;

Local Audi in aberdeen has 2.0 TDi 143 s-lines executives lowered from 28.5k to 25.5k with a further £500 contribution towards deposit & 5.7% APR.

So basically entails minimum deposit of £3000 from me and 35 x £330

Final optional payment of £13k

1. Basically wanting to know if this a good deal ?

2. Not sure on these finance deals and thought you lost your deposit. Salesman said this is not the case as the car will be worth much more than 13k epsecially with the miles i do and anything over the 13k is money i ahve tied up for another trade. is this the case ?

3. It seems to be as the monthly payment on similair priced cars for other makes are way higher. I aslo cant find anywhere else that will do as good a deal on the same car, anyone know anywhere else ?

Id love 170ps(1k), Multitronic(1.5k) and sat nav(2k) but cant push the payments up much more. Been trying to get the salesman to give me these options reduced but he is not budging as the car is reduced already.

4. what full spec is the s line executives and does it come with bang and oulfsen/premium stereo ?

5. What is the round control unit over the gearbox trim on some pics i have seen. It was not in the one i test drove, sat nav control ?

I was concentrating more on how the car drove when i took it out other than the spec !!!


PCPs can be great. I sold cars for a living a while ago and PCPs can really offer a better deal than HP (they are not that different in finance terms).

The current Audi PCP is based on 5.8 APR over 3 years (wish they would deal in flat rates instead) and even though the final GFV attracts interest too, it is still a great deal. The Audi deal where the dealer puts in say £2,000 includes £500 from Audi so the dealer is only using £1,500 of his profit in the metal.

The other good thing about the deal is, it will almost certainly be covered by the laws of halves and thirds. This is when you have paid of a third of the amount of the vehicle (including your deposit) the car can only be repossessed with a court order and better still, when you have paid off a half of the vehicles cost you can give it back to the finance company and walk away. I did this with a SEAT Toledo that owed about £5,500 and was only worth £3,000. There was no point in me paying the final GFV for a car that was not worth anything like that amount and by giving it back early, I not only got out of the deal legally but went and changed cars to something slightly better.

Currently my BMW is about £700 behind what it owes and my local dealer has been saying I should just chuck it back at BMW finance as I have reached the half way point of purchase price and buy a new car. I may do this if I go for an A4.

The bottom line for me is as I am looking at a 330D as well as an A4 and the 2 cars are almost exactly the same price when spec’d the way I want them, the difference in the to manufactures PCP deals is around £100 per month!!!! The Audi is much cheaper, partly because the GFV is lower and partly because the APR is much higher. BMW are offering a £1,750 incentive towards the car and I have included this amount in the above quoted figure.

Another tip is always be roughly honest about the figure you estimate for your annual mileage, but use a figure slightly lower. The reason is that if you said you wanted to do 20,000 miles a year your GFV would be £XXXX. If you then came back and the car had only averaged 16,000 miles a year and the market had dropped a bit so your car wasn’t even worth the original GFV, this would mean you still had to pay the original figure as you wouldn’t be able to clear it with a straight trade in. ie the poor market had sucked up the extra value of your now lower than expected mileage car. If however you said you only did 16,000 per annum and your GFV was £YYYY, then if you did say 18,000 per annum then you would just pay the surplus mileage at the agreed rate (probably about 7 or 8p/mile-worth checking on the Audi site) on the plus side, if you actually did 16,000 a year then everything would be huncky dory and you would have been paying a slightly lower monthly payment for all that time.

I hope that all makes sense, but if not, a decent Business manager will help take you through it :)

I think it is a good deal and I will definitely take it up if I go for the Audi and the PCP offer is still running.

Geordie Amanda
27-01-2010, 10:29 PM
Looking again at your first post, it looks like the dealer is giving you most of the profit in the metal and most of his back end money to discount the car £3,000. The £500 will be the Audi contribution to the deal.

johny1980
27-01-2010, 11:44 PM
Looking again at your first post, it looks like the dealer is giving you most of the profit in the metal and most of his back end money to discount the car £3,000. The £500 will be the Audi contribution to the deal.

i understand your long post (mostly) but not the above

you basically saying thats it discounted as far as they will go as there making next to nothing anyway ?

also, as i said i followed you comments about finance but nothing about the deposit, will i loose the deposit or as the dealer said will i be able to use the difference if the car is worth over the 13k final payment ?

also to clarify the £330 deal is with mileage at only 7k (i dont commute and should stay under it). 8k max

Geordie Amanda
28-01-2010, 12:54 AM
i understand your long post (mostly) but not the above

you basically saying thats it discounted as far as they will go as there making next to nothing anyway ?

also, as i said i followed you comments about finance but nothing about the deposit, will i loose the deposit or as the dealer said will i be able to use the difference if the car is worth over the 13k final payment ?

also to clarify the £330 deal is with mileage at only 7k (i dont commute and should stay under it). 8k max

With a PCP you have several options.

1) Hand the car back at the end of the agreement and walk away (assuming that it is in good condition and within the agreed mileage. Excess mileage penalties will apply)

2) Pay the GFV and keep the car (obviously if the car is not worth the GFV then see option 1)

3) Part exchange the car to any dealer you wish and also if you want, before the end of the agreement. This means you could buy a Fiat if you wished and part ex the Audi if there was any equity in it, at any tome you like.

4) Take the car to an Audi dealer and ask if he would like to buy it for stock. If it is worth more than you owe on it at that point in time, then you would receive the difference (it does not have to be even with an Audi dealer, but there isn’t much point taking it elsewhere)


So at the end of your agreement you will only get anything back if the car is worth more than the GVF. A dealer may offer you more than it is truly worth (known as the SIV) as a trade in, but he is only taking profit from your next car in order to do so. You would not get back your £3,000 deposit if your car is not worth that much more than it’s trade value when you trade/sell it. Hence with a PCP you are covered if the market crashes and nobody wants a car that doesn’t run on goldfish power etc.

If you were to say get a 5 year loan, apart from the fact you wouldn’t get the low interest rate (although the APR of a PCP is a slightly odd thing owing to the none reducing GFV part) and decided that you would sell it at 3 years and pay the remainder of the loan off, your car would have to be worth a minimum of just over 40% to cover the outstanding loan. Perhaps in your case this might just about happen as you do low mileage, but I suspect it will be a close run thing.

As for the discount. I would reckon a dealer trying to hit target might be able to squeeze 12 % off a brand new car (unless it was a stock item or the dealer had a great incentive to sell), so to drop £3,000 off the car sounds like you wont get much more out of the dealer as it sounds a generous amount of discount. I don’t know how much profit Audi aim to make per vehicle sale, but when you think most people selling general items mark them up 100% , then you realise that a car manufacturer makes a miniscule % profit and has a relatively low turnover of items for sale. The cost of equipping the garage will be enormous too and there are a lot of dealer’s going to the wall. It is several years since I sold and I have spent the cast majority of my working life in the Media, but I do sometimes think dealers have a tough time.

To sum up. I believe the dealer is making a very small profit (I imagine he would want to make at least £1,500 min and your deal probably doesn’t give him that).

You will get the difference between what you owe and what the car is worth, assuming it is in positive equity.

Personally I think it sounds a decent deal and would be reasonably happy with it myself. :)

Gary_W
28-01-2010, 12:54 AM
i understand your long post (mostly) but not the above

you basically saying thats it discounted as far as they will go as there making next to nothing anyway ?

also, as i said i followed you comments about finance but nothing about the deposit, will i loose the deposit or as the dealer said will i be able to use the difference if the car is worth over the 13k final payment ?

also to clarify the £330 deal is with mileage at only 7k (i dont commute and should stay under it). 8k max

I hope I understand your question so I'll have a go.

After the 3 years, the car belongs to them UNLESS you give them another £13k. On a lease, this is known as the 'residual value' and is what they think the car will be worth at that point. If you tell them you are doing more miles (say 20,000 a year) then you'll find that the monthly payments will go up a whole lot but the residual value will come right down. It ensures that one way or another they get paid for the car in full.

£13k is what they think it'll be worth in 3 years time if you really do the described mileage of 7k a year. If you do more than this, they will charge you per mile for going over. If you do less than this, you can still buy the car for £13k at the end but your car will be worth more due to it being lower mileage.

If you go in there after the 3 years and say 'have the car back, it's got <21,000 on the clock and I don't want to give you the £13k', the only thing they'll say is 'thanks'. They are not going to give you your £3k deposit back; the £3k deposit is making your monthly payments lower as opposed to altering the residual value of the car. The thing that alters the residual value is the quoted mileage.

If your chap there is telling you that, after 3 years and 21,000 miles that you can give him the car back and get your £3k deposit back to put down on another car with them then I'd ask him to put it in writing. And then watch him wriggle.

If, at the 3 year point, you pay your £13k then you can trade the car in. But you cannot guarantee what they will give you for it, and neither can the salesman at this point in time. Yes, it 'should' be worth more but don't go into this thinking that your £3k is safe 'invested' in the car because it isn't.

If you're fine with all of the above then (as Amanda says above) it seems like a good deal.

Gary

Geordie Amanda
28-01-2010, 12:59 AM
A final thought is that the dealer seems to want just over 10% of the recommended selling price of the car and this seems reasonable. But it is wise never to put too much into the front end of a PCP without realising that you won’t get it back at the end. I am looking to put a large deposit down on my next car and expect to lose most of it, at the benefit of lower monthly payments. I do this as I am self employed and don’t like the idea of change of circumstances affecting my ability to meet my repayment schedule.

In case anyone wonders why I change colours, it because people whinge if I make long posts all in pink :D

johny1980
28-01-2010, 09:10 AM
With a PCP you have several options.

1) Hand the car back at the end of the agreement and walk away (assuming that it is in good condition and within the agreed mileage. Excess mileage penalties will apply)

2) Pay the GFV and keep the car (obviously if the car is not worth the GFV then see option 1)

3) Part exchange the car to any dealer you wish and also if you want, before the end of the agreement. This means you could buy a Fiat if you wished and part ex the Audi if there was any equity in it, at any tome you like.

4) Take the car to an Audi dealer and ask if he would like to buy it for stock. If it is worth more than you owe on it at that point in time, then you would receive the difference (it does not have to be even with an Audi dealer, but there isn’t much point taking it elsewhere)


So at the end of your agreement you will only get anything back if the car is worth more than the GVF. A dealer may offer you more than it is truly worth (known as the SIV) as a trade in, but he is only taking profit from your next car in order to do so. You would not get back your £3,000 deposit if your car is not worth that much more than it’s trade value when you trade/sell it. Hence with a PCP you are covered if the market crashes and nobody wants a car that doesn’t run on goldfish power etc.

If you were to say get a 5 year loan, apart from the fact you wouldn’t get the low interest rate (although the APR of a PCP is a slightly odd thing owing to the none reducing GFV part) and decided that you would sell it at 3 years and pay the remainder of the loan off, your car would have to be worth a minimum of just over 40% to cover the outstanding loan. Perhaps in your case this might just about happen as you do low mileage, but I suspect it will be a close run thing.

As for the discount. I would reckon a dealer trying to hit target might be able to squeeze 12 % off a brand new car (unless it was a stock item or the dealer had a great incentive to sell), so to drop £3,000 off the car sounds like you wont get much more out of the dealer as it sounds a generous amount of discount. I don’t know how much profit Audi aim to make per vehicle sale, but when you think most people selling general items mark them up 100% , then you realise that a car manufacturer makes a miniscule % profit and has a relatively low turnover of items for sale. The cost of equipping the garage will be enormous too and there are a lot of dealer’s going to the wall. It is several years since I sold and I have spent the cast majority of my working life in the Media, but I do sometimes think dealers have a tough time.

To sum up. I believe the dealer is making a very small profit (I imagine he would want to make at least £1,500 min and your deal probably doesn’t give him that).

You will get the difference between what you owe and what the car is worth, assuming it is in positive equity.

Personally I think it sounds a decent deal and would be reasonably happy with it myself. :)


youve been a great help mate and confirmed my line of thinking

worse case scenario is i have to hand the car back and loose my deposit

possibly a risk im willing to take to have such a lovely motor

however, with the fact i look after my motors very well and do low miles im quitely confident it will be worth more than 13k after 3 years to have some equity left. what are peoples thoughts on this ?

i get the impression the dealer is not willing to budge to much at all

the 5.7% deal is only on this spec and they have offered me 6k (its worth about 7k) trade in on mine

he tried to sell me a higher spec 30k car but it was 10.x % but offfered me 7.6k for my car but payments where £440 - to much for me

show he probaly doesnt have leavarage on the sline exec

my line of thinking is to maybe try and get extra's half price, whats there profit margings on these ?

i was gonna say i will take the car if you give me half price multitronic (1.5k), parking sensors, MMI & 170ps upgrade (1k) - around 3k halfed would be 1.5k

are thet more likely to go for this ? i could just about stretch an extra 1.5k onto the deal but not the full 3k for the extras

johny1980
28-01-2010, 09:12 AM
A final thought is that the dealer seems to want just over 10% of the recommended selling price of the car and this seems reasonable. But it is wise never to put too much into the front end of a PCP without realising that you won’t get it back at the end. I am looking to put a large deposit down on my next car and expect to lose most of it, at the benefit of lower monthly payments. I do this as I am self employed and don’t like the idea of change of circumstances affecting my ability to meet my repayment schedule.

In case anyone wonders why I change colours, it because people whinge if I make long posts all in pink :D

thanks

im probably the opposite as my pay is steady, pay the minimum - 15% and hope i get it back in equity

whats the best deal youve been offered on a 3.0tdi sline exec ?

johny1980
28-01-2010, 09:16 AM
2 more questions,

1. Does the MMI give you the control button next to the gear box as opposed to the dashboard even if you dont have sat nav ?

The idea of controlling that nice computer system from the dash is dangerous and if you get it with the MMi without sat nav it would have to be a definate purcahse

2. How is the multitronic box on these motors and what is hillstop ?

Legs
28-01-2010, 02:01 PM
Don't know much about the finance to give you advice on whether its a good deal or not. Your other questions.............

4. I ordered my A4 S-Line Exec in July and took delivery in mid Oct. At that time the exec upgrade offered Cruise Control, upgraded stereo (Concert to Symphony, NOT B&O!) and blue tooth phone prep (which is GREAT!!!!). At that time the Alcantara seats were standard S-Line kit, not exclusive to the exec.

5. The round control knob next to the gearstick is the MMI/SAt Nav control if specified. If you have the standard S-Line Exec this button is in the middle of the stereo system and is easy to operate imo.

Go for the 170 engine, not the 143. The 170 is the newer engine, it is my opinion that Audi will soon stop making the 143 version which will influence onward sale. Also, having tested both, the 170 engine is far better and well worth having.

johny1980
28-01-2010, 02:21 PM
Don't know much about the finance to give you advice on whether its a good deal or not. Your other questions.............

4. I ordered my A4 S-Line Exec in July and took delivery in mid Oct. At that time the exec upgrade offered Cruise Control, upgraded stereo (Concert to Symphony, NOT B&O!) and blue tooth phone prep (which is GREAT!!!!). At that time the Alcantara seats were standard S-Line kit, not exclusive to the exec.

5. The round control knob next to the gearstick is the MMI/SAt Nav control if specified. If you have the standard S-Line Exec this button is in the middle of the stereo system and is easy to operate imo.

Go for the 170 engine, not the 143. The 170 is the newer engine, it is my opinion that Audi will soon stop making the 143 version which will influence onward sale. Also, having tested both, the 170 engine is far better and well worth having.

ta

i will look into the 170, does it have start/stop to ?

is the dab worth it ?

Geordie Amanda
28-01-2010, 03:23 PM
thanks

im probably the opposite as my pay is steady, pay the minimum - 15% and hope i get it back in equity

whats the best deal youve been offered on a 3.0tdi sline exec ?


I don’t think you will get a 50% reduction from the dealer. I assume you are looking at a car that has not been built yet and you are looking at the Audi PCP deal. If so the PCP 5,8% finance should be on all A4s (except S4s etc) if the dealer is participating in the promotion. Dealers have a bigger margin of profit in dealer-fit options, but on a factory order the margins are the same as vehicle (possibly the odd exception) ie not a lot.

I would expect to lose your deposit, but be pleased if you don’t, at least that’s how I look at it. You are getting pretty cheap finance and a £500 bung from Audi so you are saving a bit over standard cheap finance. When it comes to the value of your trade car, check the paperwork when the dealer finally sorts out all the money. The figures on the paperwork that you sign will show the SIV of the trade vehicle. This is the true value of your vehicle as the dealer sees it. He would like to value it less on paper as it saves him VAT, but if they are caught, they get into serious trouble so the figure should be roughly the true value of your car. It’s the price to change that counts, as I am sure you know. The dealer tends to know how much he has to play with and distributes this like fairly dust around different points on the deal, a little bit more for ou trade in, a little bit of discount on the new car and perhaps some of his finance commission on the PCP.

A for a deal on the A4, I have only spoke numbers to one dealer and we are about £2K apart on monies, but I think he might move another £1,500 yet. This is using the 5.8% PCP model. I just can’t decide between the advantages of Quattro against the advantages of RWD and amazing economy of a 330D (sorry for mentioning the B word). Plus I would like to know when the updated 3.0tdi is coming to the A4

johny1980
28-01-2010, 03:30 PM
I don’t think you will get a 50% reduction from the dealer. I assume you are looking at a car that has not been built yet and you are looking at the Audi PCP deal. If so the PCP 5,8% finance should be on all A4s (except S4s etc) if the dealer is participating in the promotion. Dealers have a bigger margin of profit in dealer-fit options, but on a factory order the margins are the same as vehicle (possibly the odd exception) ie not a lot.

I would expect to lose your deposit, but be pleased if you don’t, at least that’s how I look at it. You are getting pretty cheap finance and a £500 bung from Audi so you are saving a bit over standard cheap finance. When it comes to the value of your trade car, check the paperwork when the dealer finally sorts out all the money. The figures on the paperwork that you sign will show the SIV of the trade vehicle. This is the true value of your vehicle as the dealer sees it. He would like to value it less on paper as it saves him VAT, but if they are caught, they get into serious trouble so the figure should be roughly the true value of your car. It’s the price to change that counts, as I am sure you know. The dealer tends to know how much he has to play with and distributes this like fairly dust around different points on the deal, a little bit more for ou trade in, a little bit of discount on the new car and perhaps some of his finance commission on the PCP.

A for a deal on the A4, I have only spoke numbers to one dealer and we are about £2K apart on monies, but I think he might move another £1,500 yet. This is using the 5.8% PCP model. I just can’t decide between the advantages of Quattro against the advantages of RWD and amazing economy of a 330D (sorry for mentioning the B word). Plus I would like to know when the updated 3.0tdi is coming to the A4

the cars are in stock

thats why there discounted

so it would only be dealer fitted extras then ?

can i ask why you think id loose my deposit, i cant see why the car will only be worth 13k in 3 years ?

Legs
28-01-2010, 03:58 PM
My 170 comes with start stop and the DAB is FAB!!! I listen to BBC Radio 5 Live a lot when in the car and, especially at night, the crystal clear DAB sound is night and day compared with old medium wave. I'm told the music stations are great too..............:o

Geordie Amanda
28-01-2010, 04:11 PM
the cars are in stock

thats why there discounted

so it would only be dealer fitted extras then ?

can i ask why you think id loose my deposit, i cant see why the car will only be worth 13k in 3 years ?


If the cars are stock, I would hope that you would be the first registered owner. It’s important you clarify this, although by the figures you give for the finance, it sounds like you probably are the first owner. You are of course correct that you can only get dealer fit accessories now. If it is pre-registered, then the dealer usually hangs on to the car for 3 months and can offer a big discount.

I always look on the dark side when it comes to the future value of cars as they rarely meet your expectations come trade in. If Audi offer big discounts on cars, this will ultimately filter down to the residual values. Guess we can’t have it both ways :( I’ve owned over a dozen cars and probably only 3 have come up trumps at trade in time (or private sale). Funnily enough my BMW 123D is worth less than I owe, but my Fiat Sedici 4x4 is worth exactly what I paid for it in 2008!!! Go figure eh :D

Geordie Amanda
28-01-2010, 04:39 PM
Here is an example (http://www.audi.co.uk/new-cars/a6/a6-saloon/finance-and-offers.html) that is similarish to your deal (its an A6 but the numbers are not a million miles away).

http://i52.photobucket.com/albums/g38/geordieamanda/A6financeexample.jpg

It is for a different car, but the model is broadly similar. The final GFV is lower so that will make the payments a tad higher for this example and you have an extra £500 being contributed by Audi (not the Dealer). So your amount of credit is £25.5k - £3k (your deposit) - £500 (Audi) = £22,000 of credit required.

The rough rule of thumb is for every extra £1,000 you borrow on a PCP, it will put your payments up £30 a month. So looking at the A6 example and your quotes, it looks like you have been offered a pretty fair deal.

The 5.5%APR in the A6 example is probably the same flat rate as on the A4 deal, as APRs are a ruddy menace and change up and down depending on how much you borrow and how long you borrow over. This is the case even though the flat/base rate remains unchanged.

Just for a matter of interest, here is an example using an on-line APR calculator for a £10 loan over one year using 5% flat rate of interest. The total interest to be paid is 50p and as mentioned the interest rate is 5%.



http://i52.photobucket.com/albums/g38/geordieamanda/APRSuprise.jpg




The APR is………………………………wait for it…………………………




……………………………….. over 180,000%!!!!!!!!!!!

It doesn’t mean you pay any more money, its just the way APRs work and why I don’t like them being used in finance quotes.

johny1980
28-01-2010, 04:53 PM
ok thanks groove

that le mans spec aitn bad

what spec/extras do you get with that ?