Car finance and voluntary termination query...
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Jmbrown41500
Posts: 3 Newbie
in Loans
Hey guys/girls ,
Hoping someone can help or point me in the right direction, my situation is as follows;
- I have a pcp agreement with Audi and have done since May 2016. 4 year agreement.
- my car is in significant negative equity,( like 2,000 even after 2 and a half years of my contract ) I can only assume due to Audi’s initial calculations/ diesel scandal
- I have now reached the 50% paid of the total amount borrowing to allow me to voluntarily terminate my contract in line with the consumer rights act.
Audi have been trying to sell me a car now since December. I am interested in getting the new Audi A5. Initially Audi said that the negative equity was going to be added to the a5 meaning I would pay £480 on my desired pcp contract, Audi have now informed me if I VT the car this would go down to £417 which is what I initially wanted.
Audi have said if I want to now part ex the vehicle they will transfer negative equity and still offer £417 per month??
I am growing quite tired of this now basically and this could well sound pedantic, I would like to part ex and walk away from my agreement taking out a new agreement with no penalty. If I have to go through the process of VT why would I bother even staying with Audi?
I just feel part ex is slightly cleaner and although my vehicle is in GREAT condition ( must better condition than when I bought it due to correcting the paint work myself ) I would just like to return my vehicle and not need to stress. I have just completed the purchase of my first property so need minimal worry now!
Do you think I can push Audi to accept px? At the of the day bank lends money - Audi sells car - Audi settles with bank... what possible difference is there in VTing the car? Audi still have to pay the negative equity?
Profuse apologies, I am sure that I am just being incredibly thick here and all of you will put me right!
Best wishes
Justin
Hoping someone can help or point me in the right direction, my situation is as follows;
- I have a pcp agreement with Audi and have done since May 2016. 4 year agreement.
- my car is in significant negative equity,( like 2,000 even after 2 and a half years of my contract ) I can only assume due to Audi’s initial calculations/ diesel scandal
- I have now reached the 50% paid of the total amount borrowing to allow me to voluntarily terminate my contract in line with the consumer rights act.
Audi have been trying to sell me a car now since December. I am interested in getting the new Audi A5. Initially Audi said that the negative equity was going to be added to the a5 meaning I would pay £480 on my desired pcp contract, Audi have now informed me if I VT the car this would go down to £417 which is what I initially wanted.
Audi have said if I want to now part ex the vehicle they will transfer negative equity and still offer £417 per month??
I am growing quite tired of this now basically and this could well sound pedantic, I would like to part ex and walk away from my agreement taking out a new agreement with no penalty. If I have to go through the process of VT why would I bother even staying with Audi?
I just feel part ex is slightly cleaner and although my vehicle is in GREAT condition ( must better condition than when I bought it due to correcting the paint work myself ) I would just like to return my vehicle and not need to stress. I have just completed the purchase of my first property so need minimal worry now!
Do you think I can push Audi to accept px? At the of the day bank lends money - Audi sells car - Audi settles with bank... what possible difference is there in VTing the car? Audi still have to pay the negative equity?
Profuse apologies, I am sure that I am just being incredibly thick here and all of you will put me right!
Best wishes
Justin
0
Comments
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Is the renewed deal identical to the one where you VT? If so, then yes this would be far less hassle as you don't have to deal with the auction house collecting the car.
Are you sure you are getting the best possible deal on the new Audi? Have you checked online brokers like CarWow, OrangeWheels, Coast2Coast and BroadSpeed? If you can get it cheaper elsewhere, and VT, then it doesn't make sense to stay with that dealer, even with the better P/X.
General question, why are you switching already? Why did you sign up for a 4-year deal if you wanted to change after less than 3yrs?
In the spirit of MSE, is buying brand new Audi's ever few years with high interest cost finance really what you want a large proportion of your income to go towards...? Have you thought about savings, other cost items you want (holidays, refurbing house, moving costs for moving up the ladder), investing for the future and pensions? Buying used, outright and keeping for 5/6years will save you an absolute fortune...!
This is coming from someone who had a 2year PCP on a S5 a couple of years back btw, so I do understand, but have so much regret over doing it!0 -
This being MSE I suppose the first thing to ask would be, how old is the car you have, and do you really need to get a newer car?0
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This is not really a case of money.. my mortgage is around 25% of my monthly income, the car around 15%... I have little in the way of other expenses apart from the usual bills. I am a manager in the nhs so the pension is decent. Generally I go for 4 year deals as they are cheaper on monthly repayments and I do around 15k miles per annum. I have little intention of buying a car outright as I generally like to move to newer models every 2/3 years. I guess the main frustration for me right now is I am paying for something that is losing money even after 2 and a half years and most probably will never balance out..0
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Point taken, I think I will hold off. I have only just recently bought and thing maybe managing monthly bills initially will help to see where I am at in terms of what is left. The place doesn’t need work as it’s only 2 years old but would be nice to see savings build, as I am still only 24 and now have only a bit of money left in the pot. Thanks for the points.0
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Jmbrown41500 wrote: »This is not really a case of money.. my mortgage is around 25% of my monthly income, the car around 15%... I have little in the way of other expenses apart from the usual bills. I am a manager in the nhs so the pension is decent. Generally I go for 4 year deals as they are cheaper on monthly repayments and I do around 15k miles per annum. I have little intention of buying a car outright as I generally like to move to newer models every 2/3 years. I guess the main frustration for me right now is I am paying for something that is losing money even after 2 and a half years and most probably will never balance out..
Fair enough.
I would just urge you to challenge the mantra that buying brand new with PCP finance is the 'best' way to finance cars, even if you do change every 2/3years.
1/2year old versions are for all intents and purposes, identical to the new ones! Side by side in a car park, if you covered the plate and odometer you would be none the wiser, so where is the value in paying so much more in depreciation?
Buy 2 year old to save on depreciation costs, buy with cash to save on interest costs and sell privately to maximise price and do that every 3 years. I'm more than sure you will find that for minimal extra work, it will result in the same experience at thousands less....
(off topic, but what NHS trust..?
) 0 -
If you decide to go ahead, just VT your current car. Don't do px, dealer will roll negative equity into your new contract or give you worse price for new car.
Find new car and then do VT of current one. If you're below your miles and car is not damaged, you won't have a problem. VWFS has really low fees for damage anyway.
You can consider leasing - PCH as well. There were some offers on A5 recently, check leasig.com or whatcar.com PCH includes road tax, so in case of car with RRP over £40K, you will save on road tax.
When changing car every few years for new one, you should look into total cost of ownership. That will be depreciation during your time of ownership (PCP). Then you can compare it against PCH and see if PCH is cheaper. If it's cheaper, then it's good or excellent deal.0
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