Voluntary Termination - Audi Finance PCP

StuMcBill

motorguy wrote: »

Because you can simply continue make the payments until the end of term and take the time to sort out a new car on your own terms not be knee jerked in to it by a salesman.

Because its not impartial advice. Hes giving you advice that benefits him, not you

The negative equity wont be your problem. Currently - you're winning. You've a situation whereby they got it wrong. Relax and enjoy it, it doesnt happen often.

Thats fine, do that, just dont VT now.

Thanks for all the replies, they've been a great help.

One, hopefully final, question. What happens in June? Will I get a letter from Audi before the end of the term asking what I want to do, then just tell them I am ending the contract and handing the car back to them?

Cornucopia

StuMcBill wrote: »

One, hopefully final, question. What happens in June? Will I get a letter from Audi before the end of the term asking what I want to do, then just tell them I am ending the contract and handing the car back to them?

Yes - they will write setting out your options, and confirming the Balloon payment that you would need to make to keep the car.

If your new car is from VAG, you can probably get into discussions with a Dealer before that point, and have them handle the taking back of the Audi as part of the new car purchase, whilst still exploiting the Guaranteed Value aspect of your existing contract.

neilmcl

StuMcBill wrote: »

Thanks for all the replies, they've been a great help.

One, hopefully final, question. What happens in June? Will I get a letter from Audi before the end of the term asking what I want to do, then just tell them I am ending the contract and handing the car back to them?

Pretty much, yes and I'd probably expect a call from your Audi dealer before this to try and start a new deal on new car.

missile

It would appear you went to Ripoff & Co. You did not ask for / understand the options for your new purchase.

My local Audi dealer is giving spectacularly good deals to customers wanting to renew their PCP. Visit any dealer and ask to speak with the finance manager. They will be very keen to get your business and should explain your options in writing.

StuMcBill

missile wrote: »

It would appear you went to Ripoff & Co. You did not ask for / understand the options for your new purchase.

My local Audi dealer is giving spectacularly good deals to customers wanting to renew their PCP. Visit any dealer and ask to speak with the finance manager. They will be very keen to get your business and should explain your options in writing.

I went to Aberdeen Audi, and they were offering me a lower spec than my current car, for more per month and requiring a £2k deposit. I fully understood my options, and they were crap.

IamNotAllowedToUseMyName

As a side note, another example of someone having been in PCP and not having really understood what they signed up to. In this case, it appears the OP hadn't grasped the big selling point of PCP is that if they get the value wrong, you simply walk away, you are not responsible for disposing of the car at the end of the PCP agreement.

The other thing they cannot make you responsible for is fair wear and tear - there is a pretty much industry wide set of standards for checking the car, so the odd mark does not count.

Cost of a car is deposit, plus monthly plus final balloon. People look at the monthly and think that is the cost of ownership, forgetting the deposit. Final balloon is normally only worth paying if a) you have the money (including financing at a low rate from a bank for example) b) the trade value of the car is at least that of the balloon payment and c) you like the car and it is in good condition.

An Audi A5 three years old and 30,000 is barely run in. Unfortunately, you are unlikely to be able to buy it back at trade value rather than balloon payment but it might be worth asking the question of the Audi dealer of how much they want for it - it depends whether they see it as a car they can sell for a good profit or whether they are just going to run it through the auction so a painless sale that keeps a service customer has some advantages to them.

motorguy

IanMSpencer wrote: »

An Audi A5 three years old and 30,000 is barely run in. Unfortunately, you are unlikely to be able to buy it back at trade value rather than balloon payment but it might be worth asking the question of the Audi dealer of how much they want for it - it depends whether they see it as a car they can sell for a good profit or whether they are just going to run it through the auction so a painless sale that keeps a service customer has some advantages to them.

The Audi dealer dont get it back - the finance company do.

They will dispose of it through their trade / auction network. They are incredibly unlikely to offer the car back at less than the residual value

AdrianC

StuMcBill wrote: »

Ive got an Audi Q5 on a 3 year PCP plan, which runs out in June.

It's March on Thursday. So that's three to four months.

I found out today its because at the moment, and even at the end of my term, I'm going to be in negative equity

At the end of the term, you won't be in -ve equity, because "just hand it back" is one of the inherent options in PCP. All you need to know then is whether it's worth you saying "Soddit, I'll buy the car for the balloon, then sell it and make some money" (it won't be)

If you try to change the contract beforehand, then the deals are trying to wrap up the difference between the debt and the value in the new finance - you're financing something for 36 months that won't be an issue in 3-4 months.

and I've been recommended to do a voluntary termination and hand the car back and get a new deal.

But you don't like any of the current deals...

As for VT - remember that magic 50% includes the balloon - because that's money you've borrowed (and been paying interest on). So what's the balloon, compared to the total start price of the financed amount?

My yearly mileage limit was 10,000 and I've done 27,000 so I'm under the limit, however, is this pro-rata'd? Ie could I possibly be due them some cash when I hand it back?

If you VT, then mileage isn't relevant, although they may try to claim it is.

Either way, it'll cease to be an issue soon enough - and you're pretty close to being on-the-money on the mileage come June. 10k/year is 833/month, so you've got about 2,500 to 3,300 left.

almillar

The outstanding finance is £23000, but I'm only looking at getting £19000 or so for the car, and even when its up in June, the negative equity will still be in the same ballpark?

Ding! There's no such thing as negative equity for you at the end of the PCP, unless a salesman gets his way. You have a GFV, a Guaranteed Final Value, that was agreed at the start. That is the amount that you would have to pay to buy your car at the end (and should be what they think the car is actually worth, too). OR, you just hand the car back and walk away. If they tell you about negative equity, it just means they want to get a few grand out of you before they even start talking about the price of the car. Just hand back, go somewhere else, and start from zero, not minus four thousand!

loskie

Another mug who has taken out PCP without being aware of what they were signing up to