PCP - 3 or 4 years?

geek1981

I am purchasing a brand new Audi A1 sportback through online broker using audi solutions finance @ 6.8%. i will be putting 4k deposit to make monthly payments a bit cheaper, but not sure if i should go for 3 year or a 4 year contract.

Looking at the GFV, there is only a £1000 depreciation from third to fourth year, so is it better to stay with 3 year? What are the advantages of longer PCP other than making monthly payments more affordable?

cheers!

InsideInsurance

The length of PCP only effects price. As the most depreciation occurs in the earlier years the longer the length the cheaper it should be.

What other considerations did you think there would be other than price?

Warranty can be the only other consideration

Building_Surveyor

Are you planning on keeping the car at the end of it?

Ultrasonic

If you don't mind me asking, what are the monthly payments for 3 and 4 years?

geek1981

Not thinking about keeping the car after the contract. Monthly payment is just under £150 with a difference of £10 between 3 and 4 years.

Ultrasonic

So the difference would be a saving of £360 over three years. You need to weigh that up against the flexibility of not being tied into keeping the car for the extra year, as well as the slightly higher monthly payment committment.

What are the terms regarding MOT tests and servicing?

geek1981

5 year free servicing, but will have to get MOT myself on the 4th year. Also warranty covers only three years too.

Ultrasonic

In that case I'd go for the 3 year PCP.

(Well actually I would be buying a cheaper second hand car, but of your two options the 3 year contract looks more appealing. The 4 year deal is more restrictive by tying you to the car for longer, and runs the risk of ending up more expensive if any faults crop up in the 4th year.)

geek1981

Audi a1 sportback are pretty new so buying brand new works out cheaper than secondhand with he discounts, warranty and other options.

Ultrasonic

There one or two other cars in the world .

But I wasn't trying to talk you out of your purchase as it sounds like you know exactly what you want, so enjoy .

geek1981

Lol! Cheers for your comments anyway!