Audi paying off loans

Mark2788

Ive got an vauxhall astra that 5 years old with 40,000 miles on, I used. A bank loan to pay for it and have £3,000 left to pay, I want to get a new audi A3 s line on pcp but would audi pay off my £3000 to join there finance deal? I just want a rough answer before I go fully in, thank you 

facade

I doubt it, you are asking for £3k cashback.  If it was on HP or PCP, they just pay the finance and add it to your new deal.

More likely they will give you a part exchange price, or you can use the car as a deposit. A bank loan will be unsecured, and you can sell the car if you like, and keep the loan.

neilmcl

No, they absolutely wont be paying off your loan. What made you think this is something they would even consider? They may consider taking your astra as part-ex but don't expect much for it, you may get more selling it privately. then using what you've got to pay off the bank loan.

AdrianC

The Audi dealer will give you the value of your Astra in PX against the new Audi.

Let's say that's £6k, and the new car is £20k. You are now needing to finance £14k on the Audi. If the Audi dealer give you £3k PX and £3k cash, then you need to finance £17k.

Yes, you need to settle the £3k loan that's secured against the Astra before selling it.

WaywardDriver

Just been through similar with a Skoda on PCP against a new Audi. You need a settlement figure for your car from the finance company which may be higher than the £3k you mention. Whatever the Audi dealer values your car at above this figure can be offset against the Audi. In my case it was all within VAG so the process was very straightforward.
As an aside, the Audi deal (on a Q2) was much better than against a new Skoda (Kamiq) to similar spec. Maybe only applies to Q2 but possible alternative to A3.

motorguy

Mark2788 said:

Ive got an vauxhall astra that 5 years old with 40,000 miles on, I used. A bank loan to pay for it and have £3,000 left to pay, I want to get a new audi A3 s line on pcp but would audi pay off my £3000 to join there finance deal? I just want a rough answer before I go fully in, thank you 

Please dont fall for this sort of thing that a manufacturer or dealer will "pay off" your current loan because they want you as a customer so much.

If they do anything it will be to use discount you'd otherwise have got off your new car, but really they'll just roll your debt in to your new loan and you'll end up paying for the loan amount of your old car long after its actually gone.

Mercdriver

Sounds like a lamb to the slaughter to me.  Why do you want to change to a car that is very similar to what you have already, having car that is 100% yours to effectively renting one for 3 years and then having nothing to show for it.  Don't fall for the "there will be equity left in the car at the end to pay the next deposit" line, as that is rarely the case.  Personally at 5 years and 40k miles the Astra has so much life left in it.  Personally I would keep it until you have finished paying off the loan, and start from the position of zero rather than at minus 3k.  

It's your life and your money, but at least with a normal loan it isn't secured against the car and should you get into difficulties (God forbid) then at least you still have a car to get you to work.

KimJongUn88

I presume the bank loan isn’t tied to the car and is therefore an unsecured loan. Why would Audi pay that off for you? Why don’t you ask them to pay off your credit cards too.

neilmcl

WaywardDriver said:

Just been through similar with a Skoda on PCP against a new Audi. You need a settlement figure for your car from the finance company which may be higher than the £3k you mention. Whatever the Audi dealer values your car at above this figure can be offset against the Audi. In my case it was all within VAG so the process was very straightforward.
As an aside, the Audi deal (on a Q2) was much better than against a new Skoda (Kamiq) to similar spec. Maybe only applies to Q2 but possible alternative to A3.

The OP's car isn't under finance, he purchased it with a bank loan so there's no settlement to consider.

WaywardDriver

The OP's car isn't under finance, he purchased it with a bank loan so there's no settlement to consider.

Sorry misread OP. So current finance needs settled first before costing options of selling privately or part-exchanging.

KimJongUn88

WaywardDriver said:

The OP's car isn't under finance, he purchased it with a bank loan so there's no settlement to consider.

Sorry misread OP. So current finance needs settled first before costing options of selling privately or part-exchanging.

No.  
Current finance isn't secured on the vehicle as someone else has pointed out to you.  Therefore, OP can just carry on with this £3k loan, sell or trade in his car and go for more finance if he so wishes.