Pcp vs lease- few questions

[damtom85]

Hello everyone.

As I've never bought car on pcp or lease I have got few questions regarding this types.

I love look of C7 but I can't afford it to pay £25000 for even approved used. The mileage I will be doing around 10k a year

1. Is audi offering leasing for private customers ??

2. Monthly payment - it will be cheaper on lease , am I right ?

3. Deposit also will be lower on lease ??

4. If all above is true so where is catch on lease? Why people are choosing pcp if they are returning cars every 3 years anyway, lease would cost them less.

5. Roughly - how much can be monthly payment on lease for 2.0tdi ultra (190 bhp) s-line and 3.0tdi (245bhp) s-line.

Thanks for help and answers.




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[johnsimcox]

Welcome to the forum


Hello everyone.

As I've never bought car on pcp or lease I have got few questions regarding this types.

I love look of C7 but I can't afford it to pay £25000 for even approved used. The mileage I will be doing around 10k a year

1. Is audi offering leasing for private customers ?? Leasing only really makes sense for a business customer and few companies offer private leasing, PCP is similar and far more common

2. Monthly payment - it will be cheaper on lease , am I right ? Not necessarily and with a lease deal you do not necessarily have the option to buy the car at the end of the lease. With a PCP you should (if the deal is properly structured) have equity in the car at the end of the term. Be careful as many leasing deals quote a rate excluding VAT whilst PCP deals include the VAT component

3. Deposit also will be lower on lease ?? ​Depends on the lease, some will ask for no deposit and others for maybe the equivalent of 3 months of payments. PCP tends to expect 10% of the price as a minimum but there are no strict rules

4. If all above is true so where is catch on lease? Why people are choosing pcp if they are returning cars every 3 years anyway, lease would cost them less. As above. With a lease you have no equity in the car so at the end of the term you hand the car back and get nothing even if the value of the car is more than they had anticipated at the start of the lease

5. Roughly - how much can be monthly payment on lease for 2.0tdi ultra (190 bhp) s-line and 3.0tdi (245bhp) s-line.

Thanks for help and answers.




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Hope that helps

[damtom85]

Helps a lot . Few more questions on my mind.


With a lease you have no equity in the car

In case of pcp , after 3 years I gain some equity in car. What happens with that when I decide to walk away


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[johnsimcox]

Helps a lot . Few more questions on my mind.



In case of pcp , after 3 years I gain some equity in car. What happens with that when I decide to walk away


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If you just hand the keys back then you would probably lose any positive equity, although conversely if the car is worth less than the guaranteed value then you would not have to make up the difference. Early PCP deals got a bad reputation for setting an artificially high residual to keep the payments down which then meant at the end of the term the car was in negative equity. However most PCP deals are structured such that the residual value is lower than the anticipated market price so that you have a deposit for the next car once the finance has been settled, it also means the finance companies are not having to deal with lots of cars being returned that are worth less than their book value and damaging their profits. If you do not plan to buy another car then, assuming the car was worth more than the guaranteed residual value, you would be better off selling the car, settling the finance and keeping the remaining cash rather than simply giving it back to the finance company and letting them pocket the additional cash. Also with Audi they tend to have generous Dealer/Audi UK contributions to the deposit (currently £4500) which are only available if you take their finance deal. Also the VWFS agreement seems to be one of the best around (most of the online brokers seem to default to the Audi PCP scheme rather than offer one of their own) as there are no penalties for early settlement. many on this forum have even bought their car using VWFS PCP in order to get the extra contribution and then immediately settled the finance deal. Whilst this is not attractive to the dealer as they (apparently lose out on the Audi UK part of the contribution if the deal is settled with 6 months) there is nothing they can do about it and they are probably more interested in the quarterly volume bonuses than the individual deal profits anyway.

[damtom85]

Thanks for that

Saloon S-Line Retail offer < Finance & offers < A6 Saloon < A6 < Models < Audi UK (http://m.audi.co.uk/new-cars/a6/a6-saloon/finance-offers/retail-finance-offer.html)

Looking on this website, indeed audi is giving £4,5k contribution but they expect customer to put over £5k deposit . You mentioned that is around 10% so in that case should be just over 3k.

How is that working??

And is £370 per month normal/usual payment ?????


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[johnsimcox]

Thanks for that

Saloon S-Line Retail offer < Finance & offers < A6 Saloon < A6 < Models < Audi UK (http://m.audi.co.uk/new-cars/a6/a6-saloon/finance-offers/retail-finance-offer.html)

Looking on this website, indeed audi is giving £4,5k contribution but they expect customer to put over £5k deposit . You mentioned that is around 10% so in that case should be just over 3k.

How is that working??

And is £370 per month normal/usual payment ?????


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The example on the website is just that an example the deposit can go lower (or higher) and the term can vary as well to suit individual needs, you will need to speak to the finance specialist at the dealer to work out the best deal for your situation. I am paying c£350 per month on a 4 year deal for 2.0 Avant SE. Also forgot to mention that the mileage penalty for exceeding the contracted mileage only applies if you hand the car back at the end of the term. If you use it as p/x or sell it privately then they do not care what the mileage is.

[damtom85]

The example on the website is just that an example the deposit can go lower (or higher) and the term can vary as well to suit individual needs, you will need to speak to the finance specialist at the dealer to work out the best deal for your situation. I am paying c£350 per month on a 4 year deal for 2.0 Avant SE. Also forgot to mention that the mileage penalty for exceeding the contracted mileage only applies if you hand the car back at the end of the term. If you use it as p/x or sell it privately then they do not care what the mileage is.


Is your audi with some optional spec ?? Or just standard equipment for SE spec.

And If I may ask what was your contribution ?


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[Whippy53]

I only gave £1k deposit. Depends how you want to structure it.

[damtom85]

I only gave £1k deposit. Depends how you want to structure it.

But then your monthly payment would be crazy high if we are talking about 3-4 years plan.


Did someone compare pcp with taking loan in bank or other companies ?


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[Whippy53]

Yes, but my case was different in that I only took the finance to get the discounts, paid it off straight away. But it does illustrate that you can tailor your own terms.

[Sam]

Did someone compare pcp with taking loan in bank or other companies ?

Hopefully every single person who has bought a car on finance.

It makes financial sense to research all options rather than dive in on the first deal you see?

[johnsimcox]

Is your audi with some optional spec ?? Or just standard equipment for SE spec.

And If I may ask what was your contribution ?


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Mine is a fairly standard SE. Only options were Metallic and AMI. They took a £3260 contribution which was the balance on my old car's PCP plus £500 cash deposit.

[damtom85]

Positive aspect of pcp is only 3-5 years and then you can walk away, and monthly payment are not that bad.

If you take loan for 5 years , value of car after 5 years will be only £10k and person paid over £35k. Also monthly payment for 5 years will be ridiculous high


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[Whippy53]

maybe i'm missing something here but pcp (finance) is only for 3 years. ??

[johnsimcox]

maybe i'm missing something here but pcp (finance) is only for 3 years. ??
Term is variable. I think Audi's minimum is 18 months. My own deal is 4 years and I think they go to 5 years

[damtom85]

Johnsincox posted above that he has 4 year pcp


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[Whippy53]

so he did, so he did.

[johnsimcox]

Positive aspect of pcp is only 3-5 years and then you can walk away, and monthly payment are not that bad.

If you take loan for 5 years , value of car after 5 years will be only £10k and person paid over £35k. Also monthly payment for 5 years will be ridiculous high


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Major difference, taking your £35k & £10k figures for an example is that. If you take a loan of £35k over 5 years you will have to repay the full capital amount over that period plus the interest, but you would have a car worth £10k to sell. In a PCP (and assuming the Guaranteed value after 5 years is also £10k) then you would still pay interest on the full amount, but only repay £25k of the capital, thus the monthly payments would be £167pm lower assuming identical interest rates. Obviously in this example for the PCP you would have no equity in the car and either hand it back or have to pay £10k to keep it.

[dmcconachie]

The PCP (versus a traditional loan) gives you floor protection from depreciation shock. If it depreciates faster than expected, hand it back at the end of the term, the dealer suffers the financial impact. If it depreciates slower than expected, buy it outright and then choose what you want to do with it. The A3 (listed in my signature) was on a 3yr PCP. At the end of the term I actually bought the car outright and ran it for a further 3 years.

[damtom85]

Major difference, taking your £35k & £10k figures for an example is that. If you take a loan of £35k over 5 years you will have to repay the full capital amount over that period plus the interest, but you would have a car worth £10k to sell. In a PCP (and assuming the Guaranteed value after 5 years is also £10k) then you would still pay interest on the full amount, but only repay £25k of the capital, thus the monthly payments would be £167pm lower assuming identical interest rates. Obviously in this example for the PCP you would have no equity in the car and either hand it back or have to pay £10k to keep it.

I understand that.


The last thing I want you ask. New or approved used on finance. Is that even worth it ?
I found some used audi's for £24k with spec I want. Would audi finance for approved used car be same as for new?
Anyone had something like that before ??




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[dmcconachie]

I understand that.


The last thing I want you ask. New or approved used on finance. Is that even worth it ?
I found some used audi's for £24k with spec I want. Would audi finance for approved used car be same as for new?
Anyone had something like that before ??
My current A6 was an approved used (5mths old) and I got the same type of contract on it.

[damtom85]

I did think about 2011-2012 years


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[johnsimcox]

I think the PCP offers on used cars are not necessarily from Audi but via whichever finance company the dealer has decided to partner with. You may find that the finance company is setting the Guaranteed value quite low thus driving up the payments and likewise the interest rate may not be as good (but could be better!)

[damtom85]

Thank you all for you replies, especially Johnsimcox, lots of useful info from you.


Now regarding c7 is front and rear lamps/ lights different on SE and S-line

And why is so hard to find used car with leather colour different than black, for me it is so boring inside


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[johnsimcox]

Thank you all for you replies, especially Johnsimcox, lots of useful info from you.


Now regarding c7 is front and rear lamps/ lights different on SE and S-line

And why is so hard to find used car with leather colour different than black, for me it is so boring inside


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SE has Halogen headlights and filament tail lights whilst S-Line (or SE with Xenon option) has Xenon Front and LED tail lights so rears are different (although I think the rear fog on the LED unit is actually a filament bulb not LED) Cars with Xenon fronts do not have front fog lights this function is provided by the LED DRL unit. This is one reason why cars with Active Cruise Control require Xenon or LED fronts as the radar assembly goes in the slot where the Fog Light would be. As to leather the only option on the S-Line is Black Leather (unless you go down the mega expensive Audi Exclusive route). I chose the SE over the S-Line because I do not like the black headlining that you have to have with S-Line. On the SE there is a greater choice, but with most cars being a shade of silver/grey or white they tend to default to black leather.

[damtom85]

But is the shape of indicator and stop light still the same in SE and s-line (rear lights) do you know what I mean?


I have seen c7 in red colour and cream/light brown colour leather, just one word OUTSTANDING ;)))


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[johnsimcox]

But is the shape of indicator and stop light still the same in SE and s-line (rear lights) do you know what I mean?


I have seen c7 in red colour and cream/light brown colour leather, just one word OUTSTANDING ;)))


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Overall shape of the unit is the same but the internals are different and thus the positioning and size of the lights are different. On the SE unit the tail/stop lights are at the top of the unit whilst on the S-Line the tail light is at the bottom of the unit and is a thin line. I considered getting a Blue one with Cream interior but had a look at a used A8 the dealer had and the leather looked fairly grubby and seemed especially prone to dye transfer from jeans so decided to go with Silver/Black

[Whippy53]

But is the shape of indicator and stop light still the same in SE and s-line (rear lights) do you know what I mean?


I have seen c7 in red colour and cream/light brown colour leather, just one word OUTSTANDING ;)))


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One of the members, Gilbert Frog I think, bought one in that very colour combo and said it looked fantastic.

[damtom85]

One of the members, Gilbert Frog I think, bought one in that very colour combo and said it looked fantastic.


I tried to find any like that on auto trader but no luck.

Is it possible if I choose used audi to ask dealer that all fascia and inlays from aluminium change to wood effect. At least that would be nice touch in car with black leather .


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[Wuffles]

Is it possible if I choose used audi to ask dealer that all fascia and inlays from aluminium change to wood effect. At least that would be nice touch in car with black leather

I look forward very much to hearing the cost on that. Do let us know.

[Whippy53]

I tried to find any like that on auto trader but no luck.

Is it possible if I choose used audi to ask dealer that all fascia and inlays from aluminium change to wood effect. At least that would be nice touch in car with black leather .


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A little expensive I think! Also, the aluminium inlays do tend to 'lift' the interior somewhat. I've seen wood in these and I think it looks a little odd and old fashioned. Mind you, the missus asked me to give her wood the other day, so it must be popular.

[damtom85]

A little expensive I think! Also, the aluminium inlays do tend to 'lift' the interior somewhat. I've seen wood in these and I think it looks a little odd and old fashioned. Mind you, the missus asked me to give her wood the other day, so it must be popular.



Have a look on a8 d4 with black leather. Don't you like all this wood inserts ? I think they look ok and it is something different then aluminium


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[Wuffles]

A little expensive I think! Also, the aluminium inlays do tend to 'lift' the interior somewhat. I've seen wood in these and I think it looks a little odd and old fashioned. Mind you, the missus asked me to give her wood the other day, so it must be popular.

And with a name like Mrs Whippy you're surprised? Better than mine, once in March and once in September, still it is better since the twice yearly registrations came in.

[Whippy53]

Have a look on a8 d4 with black leather. Don't you like all this wood inserts ? I think they look ok and it is something different then aluminium


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All taste is subjective, if you like it then go for it, personally I think it looks a bit 'boardroom' mind you, in an A8 it may just work, (but only just, and only with a light coloured wood)

[damtom85]

Anyway thanks all for help . Now I have to go and harass dealer for good discount ;)


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[Whippy53]

Good luck.

[Wuffles]

Cheers. I'll give her a glass of wine, see how it goes.