PCP on Used 3.2 A3

[Silky-S3]

Hi guys,

Just been to look at a nice 2006 3.2 A3 at an Audi garage, I’m thinking it looks pretty good for the money as its low miles and has everything i want.

The sales guys started tell me about PCP and how it can be a cheap way of paying for the car, now I was thinking of getting a loan (say 10k) and 12%ish over 4 years to pay for it, would PCP be a better deal? TBH i don’t really understand how it all works.

I do around 30k a year in my car so will that affect it, and I’m hoping to keep the car for around 4-5 years.

Any advice?

Cheers
Matt

 

[Amchlolor]

We'd need to know what the PCP was costing every month etc.
There are definite advantages to PCP though.
For starters, the monthly payments are usually less, because a certain amount of the car's value is deferred.
So you're not paying 48 monthly payments based on you arriving at a zero balance.
You would be paying 48 monthly payments, but with a residual balance of (say) £4k.
So you're paying 48 payments on £6k, not the full £10k.
At the end of the PCP contract, you can buy the car for the agreed residual balance, or you can just hand it back and make it their problem.

FWIW, I don't intend to ever buy a car again, in the traditional sense.
It'll be PCP or PCH for me from now on.
I will treat my cars just like my mobile phone.
Keep paying a monthly sum, then just 'upgrade' every three years.