car loan- what would you do??

afcafc

Hey guys,

I currently have a Audi A4 58 plate on a 5 year HP agreement which I pay exactly £200 per month for. I have 2 y 9m left on the agreement at a rate of 6.9%. I am 3 payment away from reaching the 50% VT STAGE.
At the moment I am in 2 minds whether to give the car back and get a cheaper vehicle or keep the car and get a loan to lower the apr. The car is in very good condition and only advisory was break pads on the last mot. I’m looking to save money but I don’t want to risk getting a different second hand car and have problems galore. Is it worth me keeping the Audi and paying that £200 per month because it’s never given me an issue? What would you do?

System

There's a lot of mileage in the phrase "better the devil you know" when it comes to cars. Keep what you've got, see if you can get a 0% money transfer card and pay off the loan with that to save interest.

https://www.moneysavingexpert.com/credit-cards/money-transfers/

afcafc

True, it!!!8217;s got 87k on the clock as well so I suppose that!!!8217;s nothing for a Diesel engine

Clive_Woody

Will you definitely have paid 50% of total costs in 3 months time? I appreciate you will be half way through the 5 year deal but I believe it's the total cost you need to look at. Is there any kind of final payment to be made on your HP deal.

afcafc

Hello Clive

Yes I would definitely have paid 50% off the total amount. I have the motonovo finance app which I’m keeping up to date with.
What would you do in this situation?

Thanks

DrEskimo

I would be surprised if your 58plate is depreciating as much as £2,400 a year at this point.

For me terminating contracts is a last resort. If you didn't have finance, and bought the car, you would just be looking at what it could sell for, and therefore how much the car has cost you over the period you owned it.

Just apply the same thing here. I would be very surprised if the car is worth less than what is outstanding on your settlement, so if you want to change, sell it, settle the outstanding balance, and then put any of the difference + savings towards a cheaper car (or borrow money at a cheaper APR if necessary, although it's always worth avoiding if possible to save on the interest).

foxy-stoat

Keep it, unless its an auto.

DrEskimo

foxy-stoat wrote: »

Keep it, unless its an auto.

Many of the issues with the multitronic gearbox where on the B7, not so much the B8. Although it's advised to get the gearbox oil done every 48k miles.

If it was a 2.0TFSI I would be worried about the horrendous oil consumption issue it had (although Audi finally accepted liability and will fix it for free)...

afcafc

Mine is an Auto! Does that change anything? Are these models know for faults. Unfortunatley I owe 5800 and the car is worth 4K.
The model is an Audi A4 se tdi cvt.

So it’s riskier keeeping the auto?

DrEskimo

afcafc wrote: »

Mine is an Auto! Does that change anything? Are these models know for faults. Unfortunatley I owe 5800 and the car is worth 4K.
The model is an Audi A4 se tdi cvt.

So it’s riskier keeeping the auto?

Who says it's valued at £4k?

afcafc

I checked the auto trader valuation for part ex which was £4010 and we buy any car was £3990. When I went to my local Evans halshaw theybvalued it at 4060.

So I’m basically going off that.