So who took out PCP?

[Akash]

Hi all,

Don't think I've ever gone onto the A7 side however a loaner while mine has gone in has got me thinking.
No idea if "prying" into finances is accepted with car payments but what the heck!

So what I wanted to know is who has taken out a PCP for their A7's and how much roughly are you paying?

My scenario is this - I have always had a HP on cars...whether I take it to the full term or pay it off early is another question but ultimately, I own the car at the end.
My current 2015/65 A6 is no different and I am fairly happy with it.
BUT this A7 3.0 272bhp changes things a little so I've asked the question now on what my options are.

Where things stand is I have 0 equity in mine being only a year old so essentially it would be a case of the finance paid off and start again.

HP on a used or new A7 is not an option - the payments are way above what I want.
PCP however works pretty much matching my current payments but throws out the window everything I believe in BUT if the final balloon is decent enough to split over a 5th year after the 4 year PCP deal, then maybe it is an option as I would not be too far off a standard 5 year HP but I suspect this is not the case.

I basically need to compute the next 4 years - currently, my A6 would be paid of with probably 35000 miles on the clock but it would be mine.
PCP would pay off essentially the same amount in the next 4 years as my A6 would be but at the end of the term, it goes back, or pay it off/refinance pay it off.

My other question is what happens in 6/12/18 months if finances change and the car is not affordable - aside from the usual voulantary 50%? return, does PCP allow a give back with the acceptance of loss on any payments made or would it have to be sold and finance paid off/given to Audi and get them to pay what its worth with a top up of the balance/paid up to the 50%?

THanks all : )

[AK88]

I think the final balloon payments are always too much in order to tempt you on to another new PCP deal after the term is up, the dealers have you right where they want you when you go down this route in my opinion, I think if you're open to PCP the range of cars to buy opens up massively (its awfully tempting and a lot of people go for it), I have no idea about what would happen if the car became unaffordable to the customer, my feeling is the dealership/finance company would not go out of pocket!

i think better off borrowing a proportion of the money from the bank and owning the car out right from the beginning, if this is an option, generally the bank interest rate is lower and you can do with the car whatever you want

I found the buying process quiet frustrating - ultimately the advertised price is the minimum you can pay for the car, which the dealer are reluctant to sell at - I stayed away from all finance so cant provide you with any figures,

[JayNana]

With PCP you're essentially paying the depreciation component for the years coupled with a high rate of interest paid for the borrowing.

You're better off if you can borrow/finance elsewhere at a lower rate of interest


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[M1tchy]

I've got PCP and specified my initial deposit and final balloon payment. That then gave me the monthly payments. The final payment is 11k which I will re-finance and pay off over an additional year.

As for what happens if your finances change, I don't know but suspect you have more leeway than pcp.


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[zurichman]

I've always financed my cars via a PCP. I've found Audi finance to be uncompetitive on interest rates better to shop around. I use a company called Capital Finance they can advise you on the offers they have and I have found their interest rates highly competitive as an example our A5 pcp is 3.1% flat.


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