What’s Everyones’s A3 Deals?

[SJR88]

I’ve been offered a A3 Black Edition SB 1.5 tfsi S Tronic (no extra spec) for £456 per month, 36 month PCP, £500 deposit, 8,000 miles.

I know it’s not the greatest deal but the dealership has offered to ‘erase’ the £4000 negative equity on my current PCP.

If you don’t mind sharing, I’d appreciate knowing what kind of deals others got on their A3.

 

[DrEskimo]

In order to compare apples to apples, you need to list the RRP and the discounted price. The discounted price is the most important.

Of course it gets tricky when you throw in a P/X as the amount they offer for your P/X and the discount they offer you are basically one and the same....

I would tell hem to forget the p/x and ask them what the discount is, broken down in terms of finance contribution and their discount off. Finding a good deal for your p/x is really an added next step!

 

[OST]

Agreed with above though whatever, that sounds pricey.

Whats the current car and how long left?

 

[SJR88]

Sorry, I’ll attach a pic of the only information I have on the deal offered.

Current car is a A4 (B9) S Line 150 diesel S Tronic. 17 months into 49 month contract.

They’ve agreed to erase the negative equity and take the car back due to being misled by salesman.

 

[SJR88]

 

[OST]

View attachment 135811

Im guessing this is a new car?

Whats the apr%?

 

[SJR88]

Im guessing this is a new car?

Whats the apr%?

Yeh it’s brand new, I haven’t got a clue. That’s literally all the info I have on it at the moment.

 

[B5NUT]

This will be the APR you will pay.

 

[SJR88]

This will be the APR you will pay.
View attachment 135813

Thanks!

 

[BarryG79]

Just been looking at the figures and basically you are being quoted the advertised list price minus standard finance deposit. If you had been going in to dealer with no negative equity and had been a shrewd negotiator then a 13%-14% discount may have been achievable and this is what they are using to pay the negative equity. They are offering the maximum discount which obviously gets you where you want to be, in a new car.

Just think of the poor people that go in and pay list price and are happy with the £850 contribution. When you look at it that way I think you are getting a decent deal.


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[SJR88]

Just been looking at the figures and basically you are being quoted the advertised list price minus standard finance deposit. If you had been going in to dealer with no negative equity and had been a shrewd negotiator then a 13%-14% discount may have been achievable and this is what they are using to pay the negative equity. They are offering the maximum discount which obviously gets you where you want to be, in a new car.

Just think of the poor people that go in and pay list price and are happy with the £850 contribution. When you look at it that way I think you are getting a decent deal.


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Thanks for the advice.
Ive just been looking at this myself and I was also looking at what cars like my A4 are selling for on the Audi used website (at my local dealership).

My car is selling for around 23,000, meaning that they will probably be able to pay off the remaining finance cost (inc negative equity), as they are only giving me a valuation of 19,500, plus they’re asking for a £500 deposit on the A3, which isn’t necessary according to the Audi Finance calculator.

Am I right in thinking this? Would this mean that they’re the only ones really benefiting in this case, as they’re not actually giving me any discount on the A3?

 

[DrEskimo]

Just been looking at the figures and basically you are being quoted the advertised list price minus standard finance deposit. If you had been going in to dealer with no negative equity and had been a shrewd negotiator then a 13%-14% discount may have been achievable and this is what they are using to pay the negative equity. They are offering the maximum discount which obviously gets you where you want to be, in a new car.

Just think of the poor people that go in and pay list price and are happy with the £850 contribution. When you look at it that way I think you are getting a decent deal.


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Yea looks that way to me as well. As you say, if they are paying the apparent £4k negative equity in the A4, then they are in effect giving you around 13% discount if you were not P/X.

What you need to challenge however, is the value they are giving you on the A4. Is it a fair trade in price? If it's well below market value, they are basically maximising the money you've paid on the A4, getting a good nearly new A4 to make further profit on by putting it on the used market, then getting additional profit off you for buying a A3 with zero discount applied....

I think when you work out what the A4 has cost you (including the £4k you are effectively paying to trade in early), then what the A3 will cost you, you might re-think the whole thing....

May I ask, why are you looking at changing so early? They aren't dramatically different cars?

 

[Rolly12]

View attachment 135811

I'd grudge paying that amount for anything other than an S3/RS3 from the A3 range. That's a lot of money...


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[B5NUT]

If they had to order a car then that is what the £500 is for, otherwise you could just order a car then just walk away if you deiced you don't want the car, so they are left base model BE they have to sell on.

 

[SJR88]

Yea looks that way to me as well. As you say, if they are paying the apparent £4k negative equity in the A4, then they are in effect giving you around 13% discount if you were not P/X.

What you need to challenge however, is the value they are giving you on the A4. Is it a fair trade in price? If it's well below market value, they are basically maximising the money you've paid on the A4, getting a good nearly new A4 to make further profit on by putting it on the used market, then getting additional profit off you for buying a A3 with zero discount applied....

I think when you work out what the A4 has cost you (including the £4k you are effectively paying to trade in early), then what the A3 will cost you, you might re-think the whole thing....

May I ask, why are you looking at changing so early? They aren't dramatically different cars?

Yeh I agree, I’ve been thinking about it and I feel like it’s just not the best deal, there’s A4’s basically the same as mine with more mileage for 23,000 on the Audi used site and they valued mine at 19,500 when we be any car valued it at 21,000.

The only reason I’m changing is because I’ve been misled into my current PCP.

I’ve written to Andre Konsbruck for some assistance with the situation.

 

[SJR88]

If they had to order a car then that is what the £500 is for, otherwise you could just order a car then just walk away if you deiced you don't want the car, so they are left base model BE they have to sell on.

The car is in stock. They had 4 to choose from

 

[DrEskimo]

Yeh I agree, I’ve been thinking about it and I feel like it’s just not the best deal, there’s A4’s basically the same as mine with more mileage for 23,000 on the Audi used site and they valued mine at 19,500 when we be any car valued it at 21,000.

The only reason I’m changing is because I’ve been misled into my current PCP.

I’ve written to Andre Konsbruck for some assistance with the situation.

Yea so tell them to forget the P/X, and ask whats the best deal they can do. When I was looking at a new S3, I didn't even mention my current S5. 1/ because it makes it easier to fiddle the numbers and 2/ you can always do things like sale or return, or ring around dealers and get a much better offer (case in point, just sold my S5 to a dealer for £1.5k more than WBAC).

What do you mean by misled mate?

 

[SJR88]

Yea so tell them to forget the P/X, and ask whats the best deal they can do. When I was looking at a new S3, I didn't even mention my current S5. 1/ because it makes it easier to fiddle the numbers and 2/ you can always do things like sale or return, or ring around dealers and get a much better offer (case in point, just sold my S5 to a dealer for £1.5k more than WBAC).

What do you mean by misled mate?

Ah ok thanks for the advice.

Well basically, March last year I went in looking for a PCH, I explained I don’t really keep a car for more than 2 years. I needed a car within a week. He didn’t even go over PCH deals, just said go for a PCP 49 months, he basically guaranteed me (obviously by his word, not on paper) that “at the 30 month mark, you can just hand it back to us, go to BMW or Mercedes without any charges”. Yeh I know I’m stupid for signing the papers and taking his word for it. Hopefully it helps that I’ve found a review from a person with a similar experience with the same salesman.

So I’m just generally not comfortable being in a contract I was misled into.

 

[DrEskimo]

Ah ok thanks for the advice.

Well basically, March last year I went in looking for a PCH, I explained I don’t really keep a car for more than 2 years. I needed a car within a week. He didn’t even go over PCH deals, just said go for a PCP 49 months, he basically guaranteed me (obviously by his word, not on paper) that “at the 30 month mark, you can just hand it back to us, go to BMW or Mercedes without any charges”. Yeh I know I’m stupid for signing the papers and taking his word for it. Hopefully it helps that I’ve found a review from a person with a similar experience with the same salesman.

So I’m just generally not comfortable being in a contract I was misled into.

Its a common tactic. They talk about how the balloon payment is set lower to guarantee you will have equity, but the reality is the more discounts they keep pushing, the more the used market suffers. As a result, the cars are struggling to maintain their value, often coming up lower than the final payment. This is OK if you plan on completing the term, as you can just hand it back and let the finance company take the hit, but not great if you want to change early.

My advice is always to go for the contract length that you want to keep the car for and put as much deposit as you can afford to minimise the interest you are paying. Go into the deal with the intention of completing the term and thinking that you will be unlikely to see any equity back in the car. As such, you end up treating it basically like a lease deal.

In this case, while I understand your wanting to change, I would be wary about doing so as it may end up costing you even more. You are having to pay to get out the current deal, and that is likely to negate any savings from switching.

If you do really want to change, then get dealers to give you the best price on your spec, then hunt around at the best way to maximise the trade in of your current car. Try WBAC and Evans Halshaw for better prices, and even local dealers for sale or return if that suits.

On a A3 SB you should be looking at around 10-13% discount.

Alternatively, have you looked at decent used versions and looked at personal loan route? Will be many many magnitude of orders cheaper, both in depreciation and interest paid.

Best of luck

 

[SJR88]

@DrEskimo Thanks very much for your advice.

I think after going to the dealership today, I just couldn’t think straight and didn’t know what to do about it, but everyone on here has been so helpful and I think I’ve got a better understanding of it all.

I’m definitely getting a better valuation from WBAC, but maybe I should try other dealers as you’ve advised.

Some people may think it’s a waste of money, but I’d acrually consider selling it for £21,000 and somehow finding the other £2,400 to settle the finance and just getting an A3 lease with no deposit (not directly through Audi) for around £280 per month. It would get me out of this contract and away from Audi dealerships, and would probably work out cheaper.

 

[DrEskimo]

@DrEskimo Thanks very much for your advice.

I think after going to the dealership today, I just couldn’t think straight and didn’t know what to do about it, but everyone on here has been so helpful and I think I’ve got a better understanding of it all.

I’m definitely getting a better valuation from WBAC, but maybe I should try other dealers as you’ve advised.

Some people may think it’s a waste of money, but I’d acrually consider selling it for £21,000 and somehow finding the other £2,400 to settle the finance and just getting an A3 lease with no deposit (not directly through Audi) for around £280 per month. It would get me out of this contract and away from Audi dealerships, and would probably work out cheaper.

Yup a lease deal might be the cheapest way. Particularly as you don't want any options.

Might struggle to find a 1+23 lease deal at £280 on the A3 though. At the moment there appears to be 9+23 deals at around £250?

Haven't looked thoroughly, but when I was looking at leases, I found deals on the A3 were few and far between....

I've hopefully just sold my S5 through something called Tootle, which basically is a broker that advertises your car to dealers, who give you offers to buy your car. Maybe set your target to clear the remaining finance and see what offers you get?

Found out about it on here, and while the sale isn't complete yet, I've potentially done well from it...!

 

[SJR88]

Yup a lease deal might be the cheapest way. Particularly as you don't want any options.

Might struggle to find a 1+23 lease deal at £280 on the A3 though. At the moment there appears to be 9+23 deals at around £250?

Haven't looked thoroughly, but when I was looking at leases, I found deals on the A3 were few and far between....

I've hopefully just sold my S5 through something called Tootle, which basically is a broker that advertises your car to dealers, who give you offers to buy your car. Maybe set your target to clear the remaining finance and see what offers you get?

Found out about it on here, and while the sale isn't complete yet, I've potentially done well from it...!

Yeh after looking at the A3 lease prices, I’m probably looking at £350 per month if I don’t want to pay a deposit, but even in this case it’d probably work out the better/cheaper option for me.

I will have a look at that website, thanks!

 

[S32B]

he basically guaranteed me (obviously by his word, not on paper) that “at the 30 month mark, you can just hand it back to us, go to BMW or Mercedes without any charges”.

On you finance agreement it will have a figure saying 'The total amount you will have to pay, including all interest and other costs' (the big figure) before you can hand it back and walk away you need to have paid back 50% of that amount, that 50% includes all the monthly payments you have made up to now plus any deposit. I'm on a 48 month deal and it was longer than 30 months before I hit it.

As for your px price they are having a laugh, one Audi dealership offered me 19k for my S3 when another normal car sales place was at £21,500

But your reg into this and see what they come back with http://www.mikebrewerbuysyourcar.com/

Edit* just worked mine out and it's 42 months before I could hand it back and walk away. But everyone is different depending on, APR%, deposit, payments etc.

 

[SJR88]

@S32B Thanks for this. I just requested a valuation and it it actually came in at almost £300 more than we buy any car and £1800 more than the dealership valuation.

I think the termination/ 50% mark on my contract is also around the 42 month mark.

 

[DrEskimo]

Yup VT is another good option if you want to settle a finance agreement before the end of the term.

I know this has been discussed on other threads, but I suspect the dealer was trying to suggest that the finance owed and the market value of the car will be the same at around the 30month mark into your 48months deal.

This graph shows the typical difference between the market value of a car, and the amount you owe on the finance, where invariable the depreciation in the first 2yrs will be more than the amount you are paying off the finance.

It could be that the dealer is right, since the depreciation curve starts to slow around the 3 yr mark, so your payments will 'catch up' and the lines will meet, but this relies on the car being worth more than the GFV. If the car is worth exactly the same as the GFV the lines will only ever meet at the end of the term. Remember the PCP only guarantees the value of the car at the end of the term, so if the car is worth much less half way through, that is reflected. This is why I advise you to get the PCP on a term length that you actually want (of course a dealer will suggest a longer term to get the monthlies down to get you to sign, and get you to pay more interest...). If the car is always worth less than the GFV (unfortunately this seems to be increasingly more common, but is obviously massively dependent on model), then the lines will never meet, but the advantage of a PCP is you can just hand the car back at the end and not worry about that negative equity.

This is all largely assuming a smallish deposit. You can put in a larger deposit and nearly always be in positive equity, but of course you have paid more upfront, rather than more each month, so in actuality you are paying very similar amounts.

Hope that helps

 

[SJR88]

Thanks @DrEskimo, this really does help!

 

[Rolly12]

On you finance agreement it will have a figure saying 'The total amount you will have to pay, including all interest and other costs' (the big figure) before you can hand it back and walk away you need to have paid back 50% of that amount, that 50% includes all the monthly payments you have made up to now plus any deposit. I'm on a 48 month deal and it was longer than 30 months before I hit it.

As for your px price they are having a laugh, one Audi dealership offered me 19k for my S3 when another normal car sales place was at £21,500

But your reg into this and see what they come back with http://www.mikebrewerbuysyourcar.com/

Edit* just worked mine out and it's 42 months before I could hand it back and walk away. But everyone is different depending on, APR%, deposit, payments etc.

Does this walking away once you've paid half of everything mean you also don't have to pay excess milage?


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[S32B]

Does this walking away once you've paid half of everything mean you also don't have to pay excess milage?


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I'd assume you would have to pay excess mileage, as the car is worth less than what they worked your figures out at.

 

[kevpuk]

I'd assume you would have to pay excess mileage, as the car is worth less than what they worked your figures out at.

Sadly, excess mileage is something that the finance company will come after one for.....

This has been a contentious issue over the years in regards to VT of Finance agreement. I believe that the technicality is something along the lines of suggesting that the contract law (the finance agreement) is usurped by the statute law, and that one could argue the toss over not paying the excess mileage....however, the reality is that the finance company can easily require payment, threaten court action and so forth....all of that can quickly result in CCJ potentially, missed payments or whatever.

I did consider the VT route on a previous PCP deal (10k p.a. over 3yr deal, was close to 45k approaching the end).....but, even with the concept of never getting judgement against on, decided the overall risk was too high....so sold privately, got enough to settle, all sorted

 

[kevpuk]

Oh, and to OP, as others have said I think you should look at the 'new car' and 'old car' separately. Negotiate the deal you are happy with, and then consider cut a deal for the current car - that way you clearly know what each is costing.....otherwise, if the £4k you mentioned is absorbed in to your new PCP, you will be in negative equity for the duration!

 

[SJR88]

Just to update anyone who’s interested... I’ve decided not to take the deal as they thought they were offering me the world, “giving” me £4000, when in fact they wouldn’t be giving me a penny.

I’ll be selling my car to We Buy Any Car, providing all that goes smoothly, I’ll pay what will be the remaining £2,300 on the finance and get a lease with lower monthly payments than I’m currently paying.

 

[cemerson]

I’ve been offered a A3 Black Edition SB 1.5 tfsi S Tronic (no extra spec) for £456 per month, 36 month PCP, £500 deposit, 8,000 miles.

I know it’s not the greatest deal but the dealership has offered to ‘erase’ the £4000 negative equity on my current PCP.

If you don’t mind sharing, I’d appreciate knowing what kind of deals others got on their A3.

They aren't 'erasing' the negative equity, they are bundling it into the cost of your new car. That sounds a lot.

 

[SJR88]

They aren't 'erasing' the negative equity, they are bundling it into the cost of your new car. That sounds a lot.

Yeh they’re not at all. They’d have made it back in the resale of my current car and I’d have been left with a basic deal on a A3 PCP with zero discount. So glad I seen them for what they are.

 

[S32B]

Yeh they’re not at all. They’d have made it back in the resale of my current car and I’d have been left with a basic deal on a A3 PCP with zero discount. So glad I seen them for what they are.

They are greedy mate...one dealership offered me £19k for my car, they had exactly the same car for sale on their forecourt for £26k!!! When I told them that they were greedy they said "It costs us £2,000 put a car ready for sale", IF that were true, they still have a £5k mark up!!!

 

[SJR88]

Haha, I genuinely don’t know whether they’re stupid or they just think that we’re the stupid ones!