PCP question

[junglie]

Mods - if this fits better elsewhere (car leasing?) then please move.

Good evening,

I am after some advice please related to PCP. My better half has an Audi Solutions PCP contract on her Audi A3.

We are trying to work out when we can terminate the contract.

The following are the basic details (nearest sensible number over exact figures) and I can provide more if there are specific questions:

Contract start Feb 18
Contract term 48 months
Contract end Mar 22

Car price £22,500
Deposit £2,900
P/X £3,100
Balloon £9,500

Finance (10.8%) £16,000
Monthly payment £250
Total amount £28,000

After 2 years 9 months the total remaining on finance is approx £13,500 as most of the monthly payment has been with driving down the interest.

I think there needs to be half of the finance and half of the balloon to terminate early but I am not sure.

Does anybody know the answer?

Thank you

[GTiWILL]

You can voluntarily terminate (with no additional payment) once you’ve paid 50% of the total price payable. The docs should say the total payable so you can work it from that.

[gss100]

The half value (half of the Total Amount Payable) will be stated on the PCP (HP) contract. You should however (I believe) be entitled to vt prior to reaching half of the TAP if you pay the shortfall at that point. Not a great economic approach but might give you an option if you need it. Give the finance company a call.

[The Rotrex Kid]

48x £250 = £12000
Balloon = £9500
Tot deposit = £6000

Total payable £27500

Deposit paid £6000
Payments paid 32 @ £250 (you said 2 yr 9 months, I reckon 32 paid) £8000

Total £14000 paid so far.

Half of £27500 = £13750 so yes, if your numbers are right you are just there.

[jontymo]

Ring up the Finance company, they are usually really helpful as VTing is an everyday occurrence nowadays with the dealers advising customers to do this when entering into a new agreement.

[Driver101]

The Rotrex Kid said:

48x £250 = £12000
Balloon = £9500
Tot deposit = £6000

Total payable £27500

Deposit paid £6000
Payments paid 32 @ £250 (you said 2 yr 9 months, I reckon 32 paid) £8000

Total £14000 paid so far.

Half of £27500 = £13750 so yes, if your numbers are right you are just there.

The OP numbers are wrong somewhere, but this looks about right.


10.8% interest is far too much to be paying.

[The Rotrex Kid]

Driver101 said:

The Rotrex Kid said:

48x £250 = £12000
Balloon = £9500
Tot deposit = £6000

Total payable £27500

Deposit paid £6000
Payments paid 32 @ £250 (you said 2 yr 9 months, I reckon 32 paid) £8000

Total £14000 paid so far.

Half of £27500 = £13750 so yes, if your numbers are right you are just there.

The OP numbers are wrong somewhere, but this looks about right.


10.8% interest is far too much to be paying.

10.8APR sounds too low if he was borrowing £7000 and paying back £12000.

Not sure where he got the £16000 in the OP from mind!

[timbo999]

The Rotrex Kid said:

10.8 sounds about right if he was borrowing £7000 and paying back £12000.

Not sure where he got the £16000 in the OP from mind!

Its what he borrowed in total... so including the balloon. A common misconception that you don't borrow (and therefore pay interest on) the balloon.

[junglie]

Thanks for the replies so far.

To clarify, the amount of finance was nigh on £16,000 as car was £22,000 (plus £500 admin or something) minus deposit and pax which is circa £16,000.

It is with Audi but they have been useless at answering any questions for us.

Interesting if it is half the total amount payable (£28,000) as if payments so far (£8,000) plus deposit and PX (£6,000) then we must be there but it sounds to easy!

[Dohnut]

Audi finance have a website... https://myaudifinance.vwfs.co.uk/customer-portal/e...

You should be able to get your answer there.

[gss100]

numbers stack up


Advance (finance) 16000
Deposit 6000
Interest 5500

Total amount payable (excluding the fee situation which is unknown) 27500
Half is 13750 as mentioned above

APR is c10.9% (is it a used Audi which might explain the higher rate?)

assuming all payments made to end of november (first payment made March 2018) then you have paid c. 14250 (assumed term 48+baloon)

Don't forget you are about 33 months into a 48 month contract with a decent deposit so it does make sense

[Sheepshanks]

timbo999 said:

The Rotrex Kid said:

10.8 sounds about right if he was borrowing £7000 and paying back £12000.

Not sure where he got the £16000 in the OP from mind!

Its what he borrowed in total... so including the balloon. A common misconception that you don't borrow (and therefore pay interest on) the balloon.

OP seems to think that as well "half of the finance and half of the balloon". It's all finance!

[junglie]

The car was approved used and about 1 year old (I think) when she bought it.

Audi website does not answer the question unfortunately but we are hoping to hear back from Audi soon (not the first time we have called and heard nothing back).

[ZX10R NIN]

Jasey_ said:

You may be better doing a private sale if you haven't already looked at that.

You should definitely call vw finance and check the vt status and get a settlement figure then take if from there.

This, sell privately clear the finance & pocket a little profit.

[Dr mojo]

anyone know if vwfs would be willing to negotiate on a GFV. Car is in negative equity and I would like to keep it but not at the GFV? should I make them an offer or just hand back?

[junglie]

To provide some feedback.

We have finally heard back from Audi finance who have offered a variety of options.

We owe £0.00 for VT so we can hand the car back.

They have sent the forms through to fill out and then they come to pick it up.

There are a couple of very small scratches on the rear bumper but bigger than those allowed under fair wear and tear.

The prices Audi are charging actually seem very reasonable and comparable to a specialist company to repair.

Any thoughts from those who have done it before; specialist or main dealer to sort?

[Mfoulds]

Hi,

New to all this so would really appreciate some advice here. Got a deal that I'd like to share but not sure whether to go ahead or not.

Cost of car: £41,000
Monthly: 48x£390
Deposit: £2000
Balloon: £17,048
Interest: 2.9% (I think)

There is also a contribution from the dealership that I think is around 6k.

Does this sound like a good deal? Sorry if I've missed key bits of info out here! Thanks

[timberman]

Mfoulds said:

Hi,

New to all this so would really appreciate some advice here. Got a deal that I'd like to share but not sure whether to go ahead or not.

Cost of car: £41,000
Monthly: 48x£390
Deposit: £2000
Balloon: £17,048
Interest: 2.9% (I think)

There is also a contribution from the dealership that I think is around 6k.

Does this sound like a good deal? Sorry if I've missed key bits of info out here! Thanks

Can't really say without knowing exactly what car it is,

2.9% is a pretty good rate, plenty of manufacturers offer low rates but if the car is overpriced to start with you haven't really benefited much.

[Mfoulds]

timberman said:

Mfoulds said:

Hi,

New to all this so would really appreciate some advice here. Got a deal that I'd like to share but not sure whether to go ahead or not.

Cost of car: £41,000
Monthly: 48x£390
Deposit: £2000
Balloon: £17,048
Interest: 2.9% (I think)

There is also a contribution from the dealership that I think is around 6k.

Does this sound like a good deal? Sorry if I've missed key bits of info out here! Thanks

Can't really say without knowing exactly what car it is,

2.9% is a pretty good rate, plenty of manufacturers offer low rates but if the car is overpriced to start with you haven't really benefited much.

It's an m235i if that helps? I've been looking for months and this is the best deal I've found. Can't make my mind up! A few people in other threads on here are saying deals will get better in the new year. But who knows...

[interstellar]

Look up trldeals on Facebook or online based at Berry bmw. He will give you the best deal more than likely