PCP - Never seen a deal like it

[button]

Browsing at new cars and came across a new Audi A8 3.0 quattro, £450 down and 48 x £450 and then Final payment of £17.5k, total cost C.£39k. The car lists at £65k, dealer contribution £27k. This seems too good to be true. Apart from running costs struggling to find a catch. Am i missing something?

[BrowningB525]

How many miles per year?

 

That's a mega dealer contribution. They must have a target to meet.

Edited August 30, 2017 by BrowningB525

[Dave-G]

I know it's not quite the same thing but it strikes me that when the time comes to pay the final payment of 17.5K, that's less than what the car will be worth with a few miles on the clock.

[Davyo]

Browsing at new cars and came across a new Audi A8 3.0 quattro, £450 down and 48 x £450 and then Final payment of £17.5k, total cost C.£39k. The car lists at £65k, dealer contribution £27k. This seems too good to be true. Apart from running costs struggling to find a catch. Am i missing something?

Yeah the program on PCP rip off's last night lol

[button]

8000 miles a year but if you traded it in that would not matter as long as you clear £17.5k

 

Would like to think that a £65k car would be worth £20k after 4 years

 

That was my reasoning

[TIGHTCHOKE]

Buy, sorry rent one then.

[button]

Yeah the program on PCP rip off's last night lol

So what was the rip off?

[button]

Buy, sorry rent one then.

[BrowningB525]

8000 miles a year but if you traded it in that would not matter as long as you clear £17.5k

 

Would like to think that a £65k car would be worth £20k after 4 years

 

That was my reasoning

If it is worth less than the 17.5, just hand it back.

 

If you want a new car, pcp can be a really cist efdective way to get one.

[Davyo]

So what was the rip off?

Watch it, Over £400 a month to have restricted use of a car is mad.8000 miles it would end up parked up on my drive for 6 month out of 12.Also be prepared for a big bill if you hand it back with anything they don't class as fair wear any tear. Edited August 30, 2017 by Davyo

[TIGHTCHOKE]

Buy, sorry rent one then.

 

 

 

You've convinced yourself it is such a good deal, so rent one.

Edited August 31, 2017 by TIGHTCHOKE

[jam1e]

My daughter made the mistake of a lease/buy of a 1 year old Audi A3 S-Line diesel. Her old car worth 3k was the deposit, They said £300, then give back after 3 years or buy. But having a quick read through her paperwork, all was plus VAT, which i knew it would be, but she didn't realise. Must have Dealer service. New spec or similar value tyres. Limited to 10k a year. Or you pay a penalty at the end if you return. So much per 100 miles. THEY would decide at the end of the term what the "condition" of the car is classed at, and would tell you what you have to pay. From what i saw, they clawed back a bit here, a bit there and everywhere!. I told her not to do do, but she did and now regrets it...... Kids!!

[Dellbert]

8000 miles a year but if you traded it in that would not matter as long as you clear £17.5k

 

Would like to think that a £65k car would be worth £20k after 4 years

 

That was my reasoning

 

Well the cars worth £39000 as thats what your paying for it .

But we bought a Q7 for a customer from a Audi garage that was 11 months old ,it had sold for £72000 new we bought it for £42000 with less than 10000miles on the clock and the remains of a 3 year warrantey

 

Also all marks and damage will be charged for when you take it back for instance a scratch on a wing will need a wing repainted they normally charge this out at £400 a panel (sometimes you have to blend into other panels so a wing could be £1200 by the time its done )

some leases offer a guarateed end price ,check that out .

Also the price they offer will be trade (think we buy any car but slightly worse )

 

Good luck

[Davyo]

So what was the rip off?

Financial Conduct Authority, are looking into it,as 90% of salesmen lie about the future value being greater than the documented future value.Giving customers the impression that they will have enough asset left at the term end to pay off the contracted payment, plus have enough to go towards another car as deposit.They also stated that a salesman can not predict or guarantee that the car will be worth more than the GFV on the contract. Plus when customers ask about the option PCH (personal contract hire),they lie about not having PCH,when in actual fact they do. (cheaper than PCP if the boats your boat ,although higher deposit.But no GFV to worry about).

The difference saved on PCH to PCP can be thousands, ie reason they dont mention it.

Edited August 31, 2017 by Davyo

[Red-dot]

The only free cheese is usually found in a trap...

[BrowningB525]

Is so your own research. A lot of comments on here are from people who don't understand how Pcp works.

 

Pcp can be one of the cheapest ways to get an executive car.

 

Have a listen to this podcast

 

https://omny.fm/shows/mark-my-words/3-2-champagne-cars-for-lemonade-money

[Mungler]

Browsing at new cars and came across a new Audi A8 3.0 quattro, £450 down and 48 x £450 and then Final payment of £17.5k, total cost C.£39k. The car lists at £65k, dealer contribution £27k. This seems too good to be true. Apart from running costs struggling to find a catch. Am i missing something?

 

This looks like the cheapest comparable "business" Lease deal over 3 years : https://www.contracthireandleasing.com/independent-brokers/fleetprices-co-uk-limited/audi/a8/226163648/

 

10k miles p.a.

£369.50 plus VAT per month (£443)

£2217 down (and probably plus VAT on top)

 

 

4 year old cars are £25k to £30k so buying at the end of lease term for £17.5k seems like a good deal to me.

 

Indeed, if you want a brand new A8 and are planning on keeping it for at least 4 years, this appears to be the cheapest way of doing it.

 

The bills come when you don't keep the car - I think they work on:

 

1. you will want a change by then

2. you won't have £17.5k (and give or take the VAT) ready to go and on the hip (in 4 years time) for a car you've already had for 4 years and might have got used to / bored with

3. if you hand it back or roll it into a new deal, then they will pull your pants down

 

Contrary to the ney-sayers on here there are some very bizarre deals out there.

 

The best deal I saw (and indulged in) was a few years back for a new Merc E250 cabrio on a business lease; broadly, the cost for the car for 3 years was £10k (and that included road tax, tyres and servicing) but the car would have done two if not three times that in depreciation. It didn't make any sense. More so in that when I handed the car back (I did have it properly cleaned before) there were no extra bills for damage, dented wheels or missing dust caps. That was a straight up bargain and they are out there.

.

Edited August 31, 2017 by Mungler

[BrowningB525]

People talk about damage charges. There are guidelines for fair wear and tear. The card don't have to be perfect. Although they do have to be in better condition than a car in my care would be.

[SxS]

Apart from running costs struggling to find a catch. Am i missing something?

 

You know there's a new A8 due out very soon (you can't even spec one online at present)? Suspect you'll find that the deal basically applies to cars they have already built and just need to get shifted.

 

The current one is undoubtedly a nice car, but being the "old" model isn't going to help its residual value in four years time (by which time there will already be "new model" 3 year old PCP'd cars and exec hires in the used car market).

[Pistol p]

Don't do it. It's £65,000 pound car, not a hifi system from Kay's catalogue. £450 a month and a £17500 final payment!. That would get you a serious pension scheme.

I work in the car game, it's full of mugs, don't become one.

[Dellbert]

Don't do it. It's £65,000 pound car, not a hifi system from Kay's catalogue. £450 a month and a £17500 final payment!. That would get you a serious pension scheme.

I work in the car game, it's full of mugs, don't become one.

 

Exactly

[Davyo]

8000mls would restrict you to only 21mls a day.Youd be paying £14 a day to drive just 21mls and thats before you even put fuel in the thing.Ok though if your going to pay the balloon price and keep the car.You can select a higher annual mileage with them.That however increases the GFV and the monthly payment.

Edited September 2, 2017 by Davyo

[AVB]

A lot of people have more than one car and so 8,000 miles on any one car is quite achievable.

 

I have only every returned one car at the end of a PCP where the value was less than the guaranteed value. That was a Merc C class and they tried to pull my pants down in respect of so called 'damage' to the car. However the person who collected the car had neglected to sign for it so I simply refused to pay for anything as it must have happened when being returned. I would have paid reasonable costs but they were just being ridiculous. They didn't even fight me for the money.

 

I normally either roll over the equity onto a new car or sell the car privately and pocket the difference. My Disco 4 comes up for renewal this month. £16K balloon payment but it is worth about £23K. I am probably going to keep it for a while.

[Whitebridges]

I like cars but detest buying them from the tossers that sell them. Smoke and mirrors or what ! They look at you as though you're from Mars if you want to buy something for cash.

[bear-uk]

I like cars but detest buying them from the tossers that sell them. Smoke and mirrors or what ! They look at you as though you're from Mars if you want to buy something for cash.

Thats exactly why I use the actions