Would you buy another diesel?

IronGiant

So PCP isn't necessarily a bad thing if you are happy with the monthly payments.  Just be aware you may well have to hand it back at the end.  Certainly much safer than buying a diesel for cash at the moment. If I were you I'd hang onto your existing car "until the wheels fall off" and see what the EV market looks like at that time.

un1eash

Cheapest way to buy my M140i was on PCP, paid £26.5k OTR for a £35k car. You simply wouldn't get that much discount if buying cash.
Biggest cost of having that new car smell is always depreciation.

un1eash

That's an example of a bad deal unless its mega high mileage. My PCP M140i doesn't even cost that much and the VRs we've ordered is only going to cost £5600 over a 2 year PCH.

IronGiant

So she's making £6000   but only if she commits to another car.

ChuckMountain

Oh they will let you think you get a deal but sorry its not going to be the same as a finance deal, they won't match it end of.

You go in and ask for a cash deal and sure they will give you something but as an example look at this from un1eash...

You ain't get to match that as a cash buyer end of.  The way the model works is the finance company, usually owned by the car group, provide a substantial finance contribution that is generally fixed and not at the discretion of the dealer.  You simply don't get that as a cash buyer.

Theseus

I wish I could get that many miles out of my cars!

ChuckMountain

Why would she need to pay £800 unless that is to get to 50% VT amount.

For me the issue with PCP is getting incorrectly stung at the end for this type of thing and or bad "advice"\deal from the garage.

The bigger one is though the 5k deposit, if you are putting down a deposit to lower the monthly payments fine it reduces the interest paid, especially if you have older car owned outright as the deposit.  If this is a 3 year deal and she has zero equity in the car then she should have been saving ~£140 to her next deposit per month for her next car.

The total monthly payment is therefore really £340.  If you can't afford that you shouldn't be buying the car.

jonna

I’m just relaying what I heard at the Audi garage. The £800 figure was the difference between the amount owed and the car value if she handed her car back early.
It is a 3yr deal but as they called her up she wanted to see what the offer was . She owns her own business so I don’t know if  she claims any tax back. It’s me who’s in disbelief of  the devaluation figures not her.

IronGiant

Devalued how? she's paid £9000 in PCP and they've offered £15000 off a new one.   Was that to buy or to take out a new PCP?

It's hard to judge what the deal was without knowing whether the monthly payments were going up or down, or staying the same.

jonna

No, they wanted her to put down a minimum of £5000 for a trade in for a Q2 .
On a PCP, that was to keep her monthly payments around the same figure as she was already paying.