Car Replacement

[RMJ891]

Hi

I've asked Jose about replacing his car, and this, I guess, is a similar question. I bought my first car (S1 Sportback) this year, and so it's my first time on a PCP deal. For those of you who are older / more experienced than me with these things, how long does it tend to be before you are 'in the black' as it were with your car, in terms of replacing with a new model? I am on a 36 month plan.

Do you tend to get a call from the dealer trying to flog something to you with a good deal?

I am by no means looking to the next thing (yet - actually if I were a millionaire I would love to keep my S1 forever - I think it'll be a mad little classic in 20 years' time like some Peugeot 205 GTI or a MK 1 Golf GTI) - but I can imagine a TT-S / RS or something may just tickle my fancy in a couple years...

 

[coddy85]

If you have a high spec and are under the annual mileage you may find you can do a deal as soon as 9 months. I'm doing it right now with my A3 saloon which is only a year old to get my S1 and it is just wiping it's face.

 

[RMJ891]

Oh wow, that's fast! Yeah mine is pretty high spec (quattro packs in and out, tech pack, privacy glass, arm rest, aluminium vents, aluminium gear stick etc.), and I reckon I'll only do 6-7k miles a year.

I take it that's only with Audi, by the way? I ask because I'd be tempted to keep it and save and then take it to Porsche in a few years with a hope of getting a Cayman or something... but I'm assuming you get a sweeter deal taking an Audi to Audi, to buy an Audi?

 

[Scottyg]

High end option cars can have the opposite effect as well. All depends on deposit paid and monthly payments. My last PCP it took me 2 years in to get to break even. VT-ing the car can only be done under 1/2 and 1/3 agreement once you have paid off half the total value including interest.

 

[RMJ891]

What is VT-ing the car?

 

[josedebardi]

Voluntary Termination of the agreement. It's not a great way to do it as you get no equity out. Just means you can hand the car back no strings after 50% of the loan is paid.

 

[RMJ891]

Ah I see - nah I'd rather wait and get some equity... would feel more like getting a discount, that way.

 

[josedebardi]

If there is equity in it at say 12 months in and before you've reached 50% paid you can still see about trading it in with the dealer. VT only really helps people that have a change of circumstances and just need rid of the monthly expense.

 

[Chiefbadger]

I am chopping in my 14 plate a6 for a new S4 after 13 months (on a 48 month pcp) and have £4.5k equity in the car to transfer to the s4. I put in a 6k deposit on the a6 and got a good deal on it, but was amazed at the amount of equity in it at this point!

Always worth asking the dealer for a settlement figure and a trade in price on yours. You never know!

 

[Scottyg]

PCPs are best utilised if you put down a tiny deposit. I've been there when putting down a 10k deposit and thinking there was a good amount of equity when in fact you're only get part of the deposit back that you've paid in. So in reality you've given them their monthly payment and X amount of your deposit. Lose lose!

 

[Benash20]

Hi

I've asked Jose about replacing his car, and this, I guess, is a similar question. I bought my first car (S1 Sportback) this year, and so it's my first time on a PCP deal. For those of you who are older / more experienced than me with these things, how long does it tend to be before you are 'in the black' as it were with your car, in terms of replacing with a new model? I am on a 36 month plan.

Do you tend to get a call from the dealer trying to flog something to you with a good deal?

I am by no means looking to the next thing (yet - actually if I were a millionaire I would love to keep my S1 forever - I think it'll be a mad little classic in 20 years' time like some Peugeot 205 GTI or a MK 1 Golf GTI) - but I can imagine a TT-S / RS or something may just tickle my fancy in a couple years...

Hi there I bought my S1 in September on a pcp deal and I am getting my new S3 Sportback this September without any financial shortfall. Hope this helps