New Audi Q7 Finance question...

turbo

turbo

turbo

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Hey guys

Just looking for a bit of advice really. Just put down a £1000 deposit on an 18 reg Q7. 3500 miles, spec isn't amazing but it comes with the black out pack, 21" alloy wheels and the technology pack.

I've been offered two different finance deals and just want some perspective views on them please...

The first is with the finance at 6.9% with £15000 down. I have put a link below so that you can see the exact breakdown.

https://1drv.ms/u/s!AhLts4uLFwaqxjb2EJrmMNjVCi8l

The second is at 9.9% with £15000 down but includes two free services.

https://1drv.ms/u/s!AhLts4uLFwaqxjd9IndGi3RrqkGb

Which one looks like the best deal. Chances are with the mileage I am doing we wont see the need for two services as they are staggered at 20k miles or two years whichever comes sooner. I think realistically we will be in the car for 3 years and do tops 25k during that time.

Which one should I go for? I think obviously the lower APR but I'm not an expert on these things.

Thanks for any input...

Phil
 
The first deal, obviously? It's total payable is nearly 4 grand less... two services aren't worth that much!

If your credit rating is any good, you'll get a personal loan with an even lower rate and use that instead, or settle it later if there's any advantage to getting the PCP.
 
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Presumably that would cost even more?

Frankly it seems over spec, why would you want 21 inch low profile tyres on a car like this.
 
MichaelAwkward said:
If your credit rating is any good, you'll get a personal loan with an even lower rate and use that instead, or settle it later if there's any advantage to getting the PCP.
Click to expand...
this, i'd have thought...
9.9% APR (or even 6.9%) sounds hideously expensive (£11.5k/£7.7k in loan interest over 4 years for a depreciating asset...)
and that's not even factoring the final balloon payment after 4 years should you want to keep the car...
 
Assuming you don’t have enough cash to get the loan needed under £25k the first deal isn’t too bad as far as interest rate goes, but you might find that your bank will do a PCP at a lower rate (mine offered 4.3% vs dealer 6.9% for an otherwise nearly identical deal).

Also (maybe) obvious, but how well priced is the specific car in question? Is there any opportunity to get a better deal on the sticker price?
 
turbo said:
Which one should I go for? I think obviously the lower APR but I'm not an expert on these things.

Thanks for any input...

Phil
Click to expand...

Asking that question in the first place makes me worried.

As others have said, have a look around and a good google on how people across forums have financed cars. You can get quotes from the finance company, rather than going through the dealer, likely at a much lower rate.
 
I also find used cars have very poor rates. You might actually get a better deal and rate on a new Q7. Check Carwow and Broadspeed.

Audi's website talks about 4.9% representative and a £3750 deposit contribution. Broadspeed is saying you should get at least £6k off a base Q7 so that's £10k towards a brand new car already.
 
Looks like you are paying £58.3k for an S Line, bear in mind you can get a brand new one with a bunch of extras for £58.8k here i.e. over £14k off list price: https://www.drivethedeal.com/SpecialOffers.aspx
Admittedly with finance total amount payable will be higher, but APR is lower at 4.9%, so perhaps about £63k total.
Alternatively a stock S Line seems to be around £46.5k so lets say ~£50k including interest depending on what options you go for.
So if you can handle the monthlies it would be cheaper to just buy a brand new one and tailor the specs to your needs.

With these deals you are kind of getting shafted by the massive >£20k balloon payment, because you will be paying interest on all that through the term rather than paying down all the capital like you would with a normal loan. So although the headline APR is 6.9% you are actually spending a staggering £7.7k on interest.

To answer the question definitely don't go for 9.9% APR option.
 
I wouldn't be going with either, both have horrendous APRs considering it's a secured loan.

The 9.9% APR - Works out to £777.71 per month over 4 years and still £25k left to pay at the end
The 6.9% APR - Works out to £790.54 per month over 4 years and still £20k left to pay at the end

Whilst I'm not suggesting you do this you wouldn't even pay that on a brand new lease:
https://leasing.com/independent-brokers/motorlet-limited/audi/q7/330816831/

Personally I'd take a bank loan of £25k (usually the maximum you can borrow with a low interest rate), put in your £15k cash and buy a £40k Q7. Something like this:
https://www.autotrader.co.uk/classified/advert/201811092290265

If you have a good credit history you'll get APRs of around 3%, which will save you a fortune.


Edit: Just to context, you are worried about the 2 free services yet are prepared to pay £11,576 in interest over 4 years. That's £241 per month in interest or more than the cost of a service every single month.

Swap to a 3% bank loan of £25k (taken over 5 years then settle it when you swap the car) and you'll pay between £1,500 and £2,000 in interest over the same 4 year period, saving you nearly £10k in interest or £200 per month over the 4 years.

That's how you save yourself £200 per month in interest, and even more money overall as you'll only owe about £9k on the car after 3 years instead of the £25k you'll owe VWFS :D:D
 
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Thinking this through even further, you are paying £200 per month more for a used car than you can get a brand new one for. Seriously I'd walk away from the deal they are pulling your pants down.

Brand new Q7:
You'll also get an APR of 4.9% that is better than either of your quotes.

This should work out to about £250 per month with a similar PCP. The below aren't exact numbers but should hopefully help you compare against the finance quotes you've had so you can see why it's over £200 per month less to buy one brand new:
  • Car price -£ 48,567.80
  • Less Dealer contribution - £2,000
  • Less Customer Deposit - £15,000
  • Add Charges - £5,577
  • Balance - £37,144.80
  • Balance payable by 47 monthly payments of £253
  • Followed by a final rental of £25,000
  • Total monthly payment - £253
(calculated using https://www.carwow.co.uk/pcp-calculator)
 
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