Yet another payment question....

[Joe4842]

Right,

So my current thinking/question is what do you think is the best way for me, in my situation to buy an s3....

I had moved towards the idea of buying a second hand facelift model outright as I won't be purchasing until the end of this year (October) meaning it would allow me plenty of time to continue saving, by my calculations by then I should have in the region of 22k. I would lend 8-10k off of the family and pay them back on a 0% interest loan kind of dealio which I would pay off over a year or so.

Now my second thought that has sprung to mind is if I were to take out a PCP deal on a brand spanker (so that it arrives in early October. The reason for early October is that is when my 2nd year no claims comes in as I am only very young. If all goes as expected I would have around 22k by October meaning I would have enough to cover the entire 3 year PCP deal already.

So guys, my questions to you guys are, which in your eyes is better? im not too bothered about new or 6/12 months old as long as it is to a spec that I want.

And also I know that some of you genius' like to work out all of this mullarky money wise. Is one of those two scenarios going to leave me with more money come trade in/end of 3 year contract?

Thanks to anyone who can help or offer their point of view


Joe

 

[deanshaw24]

Buying outright will always save you the most money, the car will depreciate no different irrespective to how it is paid for. So your really asking do you want to give audi finance circa £2000 a year in interest or not?

The only benefit to having a PCP for you would be money in the bank

 

[Joe4842]

Buying outright will always save you the most money, the car will depreciate no different irrespective to how it is paid for. So your really asking do you want to give audi finance circa £2000 a year in interest or not?

The only benefit to having a PCP for you would be money in the bank

I see your point thanks Dean, Maybe hire purchase would be a good idea if I had 22k to deposit, pay off the outstanding 8-10k over two to three years and sell it after that two - 3 years and I would probably get my deposit back again?

More opinions are welcome, more the merrier

 

[Milnesafc]

Right,

So my current thinking/question is what do you think is the best way for me, in my situation to buy an s3....

I had moved towards the idea of buying a second hand facelift model outright as I won't be purchasing until the end of this year (October) meaning it would allow me plenty of time to continue saving, by my calculations by then I should have in the region of 22k. I would lend 8-10k off of the family and pay them back on a 0% interest loan kind of dealio which I would pay off over a year or so.

Now my second thought that has sprung to mind is if I were to take out a PCP deal on a brand spanker (so that it arrives in early October. The reason for early October is that is when my 2nd year no claims comes in as I am only very young. If all goes as expected I would have around 22k by October meaning I would have enough to cover the entire 3 year PCP deal already.

So guys, my questions to you guys are, which in your eyes is better? im not too bothered about new or 6/12 months old as long as it is to a spec that I want.

And also I know that some of you genius' like to work out all of this mullarky money wise. Is one of those two scenarios going to leave me with more money come trade in/end of 3 year contract?

Thanks to anyone who can help or offer their point of view


Joe

Migh be wrong but I believe you only get the dealer deposit contribution if you take the finance, might be worth taking the deal on PCP, make 2-3 months payments then settle the finance?

 

[Joe4842]

Migh be wrong but I believe you only get the dealer deposit contribution if you take the finance, might be worth taking the deal on PCP, make 2-3 months payments then settle the finance?

will it not be 6 and two 3's mate? because of the interest I would be paying? wouldn't that add up to something similar to the audi deposit contribution?

 

[Milnesafc]

will it not be 6 and two 3's mate? because of the interest I would be paying? wouldn't that add up to something similar to the audi deposit contribution?

From another thread -
↑
When I bought my S3 in January my salesman showed me an Audi internal document that showed the A3 was the only model without a manufacturer contribution. Is that still the case?
I'm not sure it's the only model but certainly none seem to be available. When I bought my TT for cash in May 2013 I negotiated a good discount (over 12% I think) and then I asked how I could access the finance contribution of £1500. Simple said my dealer. Just take out the finance package and then 'withdraw' from the agreement within 14 days. It made hardly any difference to the dealer (he said) and cost me about £4 in charges to withdraw. I did it over the phone with Audi Finance and yes you get to keep the finance contribution.

For anyone paying cash it's well worth doing - but there have to be those contributions available!

 

[Joe4842]

Ah right thanks for that info mate! definitely worth considering! I don't know if anyone can answer this but don't some dealers keep hold of the cars over this 14 day cancellation period so to stop this from happening? I might be wrong but im sure I've heard of it happening before, it might only be with lease cars though.

 

[h5djr]

I think you will find that dealers are now offering £800 on an A3. £500 from Audi and £300 from the dealer. That's on a A3 Sportback - not sure if it's the same on an S3.

 

[deanshaw24]

Ah right thanks for that info mate! definitely worth considering! I don't know if anyone can answer this but don't some dealers keep hold of the cars over this 14 day cancellation period so to stop this from happening? I might be wrong but im sure I've heard of it happening before, it might only be with lease cars though.

No, your finance cool off period starts the day you collect the car. You would just need to pay it off within 14 days, might be 30. Can't remember

 

[deanshaw24]

I think you will find that dealers are now offering £800 on an A3. £500 from Audi and £300 from the dealer. That's on a A3 Sportback - not sure if it's the same on an S3.

Yes, 3 door is even more at £1250 dealer and £1250 AUK

 

[Joe4842]

No, your finance cool off period starts the day you collect the car. You would just need to pay it off within 14 days, might be 30. Can't remember

Ok thanks Dean, so im assuming I could go to an audi dealer and speak to a salesman and he would be able to explain this to me?

So when I 'pay it off' would that be the full price of the car, or the price of the finance deal for however many years?(meaning that the 3 years worth of payments are catered for so it just goes back after 3 years)

Sorry for all the questions but I always try to get a good understanding

 

[deanshaw24]

No you will be paying off the amount you borrowed. No interest will be paid within the cooling off period

 

[Joe4842]

right so I would only pay off the finance part of the PCP Deal, meaning that all my payments will have been made interest free right? so that would just leave me with the car for the length of the agreed PCP contract, for example 2 years, then at the end the car either gets traded back in and use any equity for another car etc?

 

[richinsoton]

If you pay off the PCP they will want the whole value of the car & not just the PCP payments as don't forget at the end of the 3 yrs or whatever there is a balloon payment to make. If it's a £20k car that's what you'll need to pay off & not just the PCP payments for 3 yrs which will obviously be a lot lower e.g £250 per month X 36 months = £9000 + Interest would be the PCP payments & then there's the ballooon payment of £XXXX's outstanding.

 

[deanshaw24]

right so I would only pay off the finance part of the PCP Deal, meaning that all my payments will have been made interest free right? so that would just leave me with the car for the length of the agreed PCP contract, for example 2 years, then at the end the car either gets traded back in and use any equity for another car etc?

I'm afraid not. Even with a PCP you borrow the cost of the car minus your disposit. The same as a HP. There is s limit for a deposit for PCP for obvious reasons they want to make money from you. I think 30% deposit is the max. Might be a little more. If you can't borrow the money from family get a bank loan, these are generally cheaper than audis 6.9%.

 

[Joe4842]

the max deposit with audi is 50% which is what I was going to put down, (got told that from a dealer when looking at quotes at the dealership) however I thought with pcp you only paid for the depreciation, then you would pay the balloon payment at the end of the contract IF you wanted to keep the car. when I looked at getting one on PCP I was paying around 15k deposit and then 8k over 3 years, so only paying 23k for the car over that period, then if I wanted to keep the car it was a balloon payment of like 16k at then end? so really I was only financing 8k no? maybe someone can either second myself or dean rather than me firing 100 questions at him lol. Thanks for all this though mate, appreciate the time and help

 

[Joe4842]

If you pay off the PCP they will want the whole value of the car & not just the PCP payments as don't forget at the end of the 3 yrs or whatever there is a balloon payment to make. If it's a £20k car that's what you'll need to pay off & not just the PCP payments for 3 yrs which will obviously be a lot lower e.g £250 per month X 36 months = £9000 + Interest would be the PCP payments & then there's the ballooon payment of £XXXX's outstanding.

so would they want the balloon payment up front or at the end of the 3 years?

 

[richinsoton]

so would they want the balloon payment up front or at the end of the 3 years?

The balloon payment is at the end of the 3 yrs unless you're paying it off early e.g prior to the end of the 14 days cooling off period in which case they will want full payment for the car. As an example the car is £20k & you have £9k over 3 yrs as PCP payments & you pay it off in the first 14 days they will want £20k for the car not just the £9k / 3yrs worth of payments as it's still a £20k car isn't it.

 

[deanshaw24]

the max deposit with audi is 50% which is what I was going to put down, (got told that from a dealer when looking at quotes at the dealership) however I thought with pcp you only paid for the depreciation, then you would pay the balloon payment at the end of the contract IF you wanted to keep the car. when I looked at getting one on PCP I was paying around 15k deposit and then 8k over 3 years, so only paying 23k for the car over that period, then if I wanted to keep the car it was a balloon payment of like 16k at then end? so really I was only financing 8k no? maybe someone can either second myself or dean rather than me firing 100 questions at him lol. Thanks for all this though mate, appreciate the time and help

Technically you are only paying the anticipated depreciation but your paying interest on the whole amount. It may sound confusing but a PCP is just set up to make it cheaper to own a new car.

But Audi finance will still have to pay the whole amount of the car to AUK.

If you put down 50% deposit and pay the lower monthlies for 3 years once you come to the end of your agreement you can either give the car back and walk away, trade it in for a new one and keep the difference between what it's worth and what your GFV is or keep it and pay your GFV.

 

[Bayzoo]

Save your money mate - unless you've already done so stick the majority of it in an appreciating assert like a property.

 

[deanshaw24]

But if you want to pay the car off and not incur any charges then you need to take out the PCP deal with contributions and pay it off within 14 days. The whole amount I.e car was £35k and you took out a PCP with £10k deposit you would need to pay that remaining £25k

 

[Joe4842]

Save your money mate - unless you've already done so stick the majority of it in an appreciating assert like a property.

But a property doesn't have 310bhpand put a smile on my face lol, I don't plan on leaving home yet, want to enjoy having my money to spend before it gets tied into mortgage payments etc.

Fully understand what you are saying but I wont be after a house for a good few years yet, its too cheap living at home lol

 

[Jamie_88]

Save your money mate - unless you've already done so stick the majority of it in an appreciating assert like a property.

This!

 

[Joe4842]

This!

Like I say, not up for that stage of life yet, enjoying smart cars and nice things for a few years before the poverty stricken move onto the housing ladder.

 

[Jamie_88]

Like I say, not up for that stage of life yet, enjoying smart cars and nice things for a few years before the poverty stricken move onto the housing ladder.

Haha, I don't blame you. Not meant to sound patronising but it's certainly a good plan for the future (for everybody!). I pretty much plough all of my money into my tech company and other businesses but since joining this forum I've started to place a higher priority on my car for when I change it next year, lol!

Despite all of that, one guy I worked with a few months ago knew somebody who had an Aston Martin which APPRECIATED in value by 50k a year. Crazy! I think it was a DB5...

 

[dpaz]

You can actually get a better PCH deal these days compared to PCP if you do your homework but like others have said, cash is king.

If buying cash or PCP make sure you're getting prices from Carwow and Orange Wheels. Even if you just take the quote into your local dealer and ask them to match it, you can save a fortune.

If you're renting at the moment then I have to agree with Bayzoo. Get bricks and mortar invested in first and then look at spending £20k on a car. Earlier you get on the ladder the better. I've only had my house a couple of years but wish I'd started sooner.

 

[New S4 Man]

Hi, another option is to buy a high spec low milage car around the two year mark and self financing it (audi's APR on used HP/PCP finance is quite high so best not to bother with it ).

Are you dead set on getting a new car? Appreciate isn't everyones cup of tea but i'm really happy someone else paid for the first couple of years worth of depreciation for me.

 

[Jassyo06]

I have always found buying used is for cash buyers...ie drug dealers...buying from there illegal proceeds...lol or from peeps who borrow/save/trade in there old cars they own outright for another used car for longer term ownership,APR on a used car from Audi is around 10-8%....new from 5-2%- 6-8% model dependant. About 4 times a year Audi advertise there approved used car event,but S/RS cars are not included in this discount event.....yer ******** in all aspects as most nearly new face lift cars will ex demos....and its extremely difficult to find one in your spec and condition and mileage you want.....in other words......PCP.....more costly but yer getting a brand new YOUR CAR....hence why its so popular

 

[Milnesafc]

But a property doesn't have 310bhpand put a smile on my face lol, I don't plan on leaving home yet, want to enjoy having my money to spend before it gets tied into mortgage payments etc.

Fully understand what you are saying but I wont be after a house for a good few years yet, its too cheap living at home lol

Do it mate, you only live once, you never know how life's going to turn out so if you the opportunity to do something why put it off for another day.

 

[DrEskimo]

But a property doesn't have 310bhpand put a smile on my face lol, I don't plan on leaving home yet, want to enjoy having my money to spend before it gets tied into mortgage payments etc.

Fully understand what you are saying but I wont be after a house for a good few years yet, its too cheap living at home lol

You don't now, but in 3/4yrs time when you do, you will regret spending north of £15k on the depreciation of your S3 alone, and wish you had it in the bank to put towards your first property.

Sorry but IMHO that much money on a car your age is...unwise....

The insurance alone would put me off!

Put yea as above, if you do decide on buying, best do it with cash. Sitting in your bank earning 0.5% is stupid and you will save spending thousands more on the high interest you earn on a PCP.

 

[Milnesafc]

You don't now, but in 3/4yrs time when you do, you will regret spending north of £15k on the depreciation of your S3 alone, and wish you had it in the bank to put towards your first property.

Sorry but IMHO that much money on a car your age is...unwise....

The insurance alone would put me off!

Put yea as above, if you do decide on buying, best do it with cash. Sitting in your bank earning 0.5% is stupid and you will save spending thousands more on the high interest you earn on a PCP.

Utter rubbish, live your life while you can, only have 1 shot at it.

Whether he loses 15k in depreciation now or 4 years what does it matter?

 

[samo26]

All for living life but I bought my first property two years ago aged 23 and opted for an a3 2.0 sline instead of a s3.

Now I'm sorted in my house (best thing Iv done full renovation) im waiting on my S3!

 

[DrEskimo]

Utter rubbish, live your life while you can, only have 1 shot at it.

Whether he loses 15k in depreciation now or 4 years what does it matter?

Because in 4yrs time he might need that £15k to buy his first house.

It's extraordinarily difficult to get on the property ladder, and as investments go you can do a lot worse.

If I spent my deposit money on an S3 rather than on my first flat, I would of not been able to move out and still be at home saving that £15k up again.

Instead I sold that flat 3 years later, got a fantastic return from my original deposit and bought my second home. I lived in a lovely flat and made a good return on my investment over 3 years to allow me to climb the property ladder.

If I bought that S3 what would I have to show for it? 3yrs of driving about in a fast car and £15k down the pan...(at least by the way, insurance will be around £5k over that time...).

Once you're settled, then go for it, but there is no way I would of got my S5 if I hadn't already got on the housing ladder.

Just my 2cents.

 

[Joe4842]

Hi, another option is to buy a high spec low milage car around the two year mark and self financing it (audi's APR on used HP/PCP finance is quite high so best not to bother with it ).

Are you dead set on getting a new car? Appreciate isn't everyones cup of tea but i'm really happy someone else paid for the first couple of years worth of depreciation for me.

yeah im thinking about maybe getting a 6-12 month old model so I don't think it will cost me as much in depreciation over the 2-3 years that I would keep it... but at only 18 I think I can afford another couple of years before I go for a house

 

[vacant]

Just to he clear, if you "withdraw" from the finance agreement during your cooling off period, you're effectively cancelling it - including any deposit contribution.

You will want to "settle" it instead, which usually has to be done after the cooling off period not during.

 

[Joe4842]

Utter rubbish, live your life while you can, only have 1 shot at it.

Whether he loses 15k in depreciation now or 4 years what does it matter?

Thanks for both you guys' comments! Im pretty set on an S3 to be honest so unless something major pops up I will be going ahead with it in time, Im thinking second hand too so the depreciation isn't as much, and yeah when I end up looking at a house I may think man I could have had a better deposit etc. but it wont be the end of the world and im quite lucky that where I am right now I can save a stupid amount. after I get the car and save, should have a house deposit in another 2-3 years

 

[Milnesafc]

Thanks for both you guys' comments! Im pretty set on an S3 to be honest so unless something major pops up I will be going ahead with it in time, Im thinking second hand too so the depreciation isn't as much, and yeah when I end up looking at a house I may think man I could have had a better deposit etc. but it wont be the end of the world and im quite lucky that where I am right now I can save a stupid amount. after I get the car and save, should have a house deposit in another 2-3 years

Good boy!

 

[Joe4842]

Because in 4yrs time he might need that £15k to buy his first house.

It's extraordinarily difficult to get on the property ladder, and as investments go you can do a lot worse.

If I spent my deposit money on an S3 rather than on my first flat, I would of not been able to move out and still be at home saving that £15k up again.

Instead I sold that flat 3 years later, got a fantastic return from my original deposit and bought my second home. I lived in a lovely flat and made a good return on my investment over 3 years to allow me to climb the property ladder.

If I bought that S3 what would I have to show for it? 3yrs of driving about in a fast car and £15k down the pan...(at least by the way, insurance will be around £5k over that time...).

Once you're settled, then go for it, but there is no way I would of got my S5 if I hadn't already got on the housing ladder.

Just my 2cents.

Thanks for the 2 cents bro, its all gotta be considered! like I've said its gonna be a while til I even look at actually making a purchase (October) and I will have to consider how much it is going to cost me over the 2/3 years that I would keep it, Insurance and all. My other siblings have lived at home until around 25 and at the moment I will be out well before then (s3 included) and personally I just would not be ready to move out In the near future, personally I woulda said 18 is a bit young to be moving out but everybody is different, which is why im after this car, I don't see too much reason to have upwards of 15k sitting in a bank account for years and years until I want to move out.


Cheers for the input and wise words mate

 

[Milnesafc]

Because in 4yrs time he might need that £15k to buy his first house.

It's extraordinarily difficult to get on the property ladder, and as investments go you can do a lot worse.

If I spent my deposit money on an S3 rather than on my first flat, I would of not been able to move out and still be at home saving that £15k up again.

Instead I sold that flat 3 years later, got a fantastic return from my original deposit and bought my second home. I lived in a lovely flat and made a good return on my investment over 3 years to allow me to climb the property ladder.

If I bought that S3 what would I have to show for it? 3yrs of driving about in a fast car and £15k down the pan...(at least by the way, insurance will be around £5k over that time...).

Once you're settled, then go for it, but there is no way I would of got my S5 if I hadn't already got on the housing ladder.

Just my 2cents.

You do have a point however a few of my mates have made me realise there's only 1 shot at life and you never know what's round the corner.

Obviously I'm not advocating getting a 100k loan and buying a secondhand R8 and going to blow the rest in Vegas!

If the lads go the spare cash and like he says he can save it back up over the next 4 years then do it.

 

[DrEskimo]

Fair dos. I think it's incredible that you have saved so much money, and would hate for you to regret spending so much of it on a car, when in a few years time you wish you had it for a deposit. I've seen it time and time again so just giving you my insight to help make an informed decision.

Of course any car will cost you money, but a brand new S3 will cost you considerable more...! Would driving a S3 compared to a nice A3 really be worth the relative big cost difference..? That's the question I would be asking.

Anyway, back to your question, you might find that a new S3 will cost you about the same as a 6-12month old used one given the discounts you can achieve. I managed 14% off a S3 hatch last year and think that was comparable to a nearly new used car?

Have you looked at 13plate S3? Can get decent low mileage Ines for about £23k, where the depreciation is likely to start decreasing at a more linear rate.