Audi Finance

[rajjy]

Bumping this thread.

When people are settling the finance, are you paying the whole amount including the balloon or just the amount covering the 36 monthly payments?

Apologies if this is a stupid question!

[sixfoottwo]

I received a document outlining the monthly payments. This has an account number, Ring Audi Finance for a settlement figure asap and this has to be paid within a short period - can't remember how long. This is considerably less than the monthly payments would amount to. Well worth doing. I couldn't believe it was so easy.

[rajjy]

Thanks,so it settles the monthly payments and the balloon is still outstanding. Will definitely be doing this

[retired99]

Thanks,so it settles the monthly payments and the balloon is still outstanding. Will definitely be doing this

What are you trying to achieve?

If you want to clear the whole finance deal and end up owning the car you need to ask for a settlement figure. This will give you the amount you need to pay and will include interest owed, any admin charges and the balloon. You need to pay the balloon to own the car.

If you want to reduce the term or reduce the payments you can ‘overpay’ to achieve this. Remember, even if you were to eliminate the payments entirely you will still be charged interest on the balloon as this is money you have borrowed.

[Timothy Nathan]

Thanks,so it settles the monthly payments and the balloon is still outstanding. Will definitely be doing this

It just settles. There was no balloon in my case, just monthly payments (and I am sure that my case was absolutely standard.)

I suspect that people are very cautious about this deal because it just seems too good to be true, but it seems, from my and everyone's universal experience, that it is quite as good as it seems:

1. Accept the massive discount for accepting finance
2. Pay off the finance at the first opportunity, which involves paying a small amount of interest on the first month (about 4% of the original discount, leaving you with 96%)
3. The car is yours for approximately £3860 less than it otherwise would have been.

There does not appear to be a catch.

[johnsimcox]

My understanding is that settlement means exactly that you pay off everything you owe which includes the balloon payment. With the PCP whilst you are only paying off part of the capital (purchase price less balloon payment) you are paying interest on the entire amount as that is what you actually owe.

[jbanfie]

We need a skicky on how to 'do' Audi Finance.

There are a number of options, but as per the Consumer Credit Act 1974, you have a 14 day cooling off period (The Right of Withdrawal) in which to settle the entire balance at a notional interest rate for the few days you actually borrow the money.

This should be detailed explicitly in the finance document detail from Audi, and famously 'You don't have to tell us why'.

Not done it with Audi, but over at Mini I 'Borrowed' £13,937.40 and had daily interest of £2.44 (about 6.4% apr), I think I waited till day 8 to settle!


Seperately from this you have a right to Early Repayment, but you are more at the mercy of Audi Finance terms if you use this route.

As Wuffles has experienced it is important that you check your credit records to see that the account has been 'Settled' if you use either process.

[jbanfie]

Sorry I should have added, that the whole point is that you can get the massive extra discount thing by using the finance package, but pay it off hassle free within 14 days for pennies of interest and play the system.