Audi A1 PCP vs Cash

Dr_Crypto

Hello! I'm planning in buying an A1 (1.4 petrol manual, sport trim, metallic, comfort pack). Best price for the car so far is £15,759 from ukcarbroker. I'm part-ex my Polo which has been valued at about 5.5k by dealers.

Various dealers are talking about pcp. I've always bought cars for cash so am unfamiliar with it. I was planning on buying the Audi for cash too (cost to change £10k).

A dealer has offered me the following:
Cost of car 16.4k
Cash back 2.5k, leaving a deposit of 3k
36 monthly payments of 215
Guaranteed future value 7.5k (estimated actual value 9.5k)

This would give me a cost of ownership of £7,743 over the 3 years, 2.5k cash in bank and about 1.5-2k equity for the next car.

If I paid cash
I'd buy from ukcarbroker.
Cost to change 5.5k from the Polo and 10.2k cash
Say it's worth 9.5k in 3yrs the cost of ownership has been 6,259 but with 9.5k towards a new car.

Does this sound about right? Dealers are pushing the best prices on pcp but it doesn't seem to work out. I'm tempted to buy it on pcp then just pay it off right away? Has anyone any words of wisdom? Thanks!

zabi89

I've never really used PCP. I've always bought with cash. From what you've said I would say it sounds about right. PCP of course has interest on the money borrowed so of course the cost of ownership is going to be higher If I was you I would save and pay cash for the car but I realize sometimes that isn't possible or will take a long time

Hope you get the car you want! (A1 is a very nice car!)

anotherbaldrick

A lot of people take the finance , pay it off after a few months (with VW Finance you can do this without penalty) and pocket the cashback. I did !!!!!!!!!!!

Hintza

Take cash from bank and buy the car you are receiving next to nothing on it anyway. Set up direct debit to put £200-£250 back in to your savings account each month.

I would be exploring anotherbaldricks suggestion and I would be basing future value lower than you are just now to be safe and not hugely disappointed in 3 years. Remember you don't know what is going to happen in the next three years.

PS Have just had a quick look on Parkers and you might not be far away, but I would just err on the side of caution.

Dr_Crypto

Thanks. If I can get Audi to match ukcarbroker on price with finance and cashback then I'll take it and just clear the finance the next month. I did ask the salesman and he said there wasn't any penalty for early settlement but obviously I'll get it in writing before signing anything.

I did read about people agreeing to finance, getting the salesman to reduced the price of the car as as way of including various con-insurances like bodyguard then saying at the last minute they didn't want them and then just paying cash for a heavily reduced car. This means the dealer can either be left with the car or take the money. Has anyone tried this? Sounds a bit risky to me.