My experience of buying a car on a PCP deal
I bought my third car in the UK on a PCP deal.
A bit about PCP deals
You can get any car ( new/approved used ) from a dealership
You pay a deposit
You pay a monthly amount
At the end of the contract you can either keep the car after paying a balloon payment , give the car back and dont have to pay extra ( other than the extra miles you have done or any damage to the car) or upgrade when you have paid the amount you were contracted to pay.
Background
My first car in the UK was a 2001 Peugeot 206 ( which I bought on cash for 1,000 GBP).
https://www.pakwheels.com/forums/t/my-first-car-in-uk-peugeot-206/257585 which I bought in October, 2015.
I bought an Audi A3 ( 65 plate ) in January 2017. I paid around 4000 GBP deposit and was paying around 240 GBP a month for a 4 year contract with 5000 miles per annum.
https://www.pakwheels.com/forums/t/my-second-car-in-uk-audi-a3-1-4l-tfsi-s-line/442847
I decided to change it when I was three and a half years into the contract. I still had to pay 2500 GBP ( the remaining amount on my PCP deal )
It was in perfect condition but I wanted a bigger car with more annual mileage. I had a few options :
1.NHS fleets solutions
I was getting a very good deal on a brand new BMW 530e for 570 GBP a month with no deposit on a special offer in June, 2019.
Pros:
It was brand new car
The 570 GBP included insurance.
Cons:
The 5 series was due for a replacement soon.
I would have to pay 2500 GBP ( my remaining amount on the PCP deal) which I was not very keen on spending.
2.Keep the Audi A3 and then upgrade it by the end of the PCP deal.
It was a perfect car but I had that annoying itch to get something bigger.
Pros
I would not have to pay anything extra other than damage/extra mileage and get a new car.
Cons
I had done quite a few extra miles hence it would have cost me around 500 GBP extra just for the miles.
Plus they look at the smallest scratches. If you live in the UK and have fancy alloys ( which the A3 had) , you will definitely scruff them against kerbs, etc. And my car had some of these very subtle damages ( which in my opinion are more wear and tear rather than major damage )
3.Talk to Audi now and get a good deal.
Pros
I would be able to get rid of the A3
Cons
I thought I would have to pay a deposit in addition to the remaining PCP deal and hence end up broke.
I was wrong !
I decided to email a few Audi dealerships by contacting them via Autotrader in September and see what deals I could get. These were my criteria
It should be approved used/new from an Audi dealership ( as opposed to private)
It should be the current generation Audi A6 ( which was launched in late 2018)
I would control myself and not go spending 10,000 GBP in one go just because I like the car. Hence, I set my deposit to not more than 1000 GBP and monthly payment not more than 500 GBP.
I started getting emails. They all asked me about my current car and the condition. I gave my honest opinion ( mentioned the minor damage , total mileage , current PCP deal ).
The general deals I was getting were :
They would take my Audi A3 and they would pay off the remaining PCP
I would have to pay a deposit which I decided to be the minimum possible- ie 1,000 GBP.
I would not pay anything above 500 GBP.
To my luck , all of the dealerships were offering this on a 19' plate Audi A6. I then narrowed down my options ( ie black colour, S line , less than 5,000 miles driven, some specifications, etc).
I decided to talk to Manchester Audi as I was going there anyway to sort out my passport renewal. I arranged an appointment. Luckily , my relative who knows all about Audis ( and has owned 3 Audis , knows what the best specs are and knew what deals I was getting ) was also in Manchester.
My wife , him and I went to the dealership and met the dealer. He took us as potential customers ( as opposed to the Audi dealership I got my A3 from - at that time , I dosnt know much about PCP, what best deals I could get and what car specs I wanted ) .
This is how I ( actually it was my relative more than me ) changed
We knew what we wanted
We new the exact specs we wanted
We were confident and knew what deals they could offer ( I had proof in the form of emails from other Audi dealerships)
We saw a few cars first before deciding as we were confused about certain specifications ( like the standard ambient lighting which is just white as opposed to the extended ambient lighting pack - which has loads of colours) , virtual cockpit vs the standard option ( after actually viewing the A6 with the standard and virtual cockpit, I realized that there wasn't a lot of difference), seats material ( the Alcantara leather didn't look that nice on the A6 and it did in my current A3).
All of this made it clear what specific car I wanted. It helped the dealer narrow the cars down as well - which came to one!
This particular car had done less than 1,000 miles , was registered in June 2019 and was used as a courtesy car for customers who left their executive cars ( ie audi R8, A8, Q7 , etc ) at the dealership for servicing and this car was given to them as a replacement for a day.
It had loads of options in particular
Valcona leather
Was vesuvius grey in color ( a lovely new metallic color Audi introduced recently)
19 inch alloys
Matrix LEDs with dynamic rear indicators
S line package with sports seats
Extended ambient lighting
Privacy glass
Electric front seats with memory
Folding ,heated , memory electrically adjustable exterior mirrors.
I then requested the dealer to show the car to me and I loved it. We all loved it. It was love at first sight ! We had viewed a few other A6's but this was something special- I guess it had the specifications we all wanted.
The dealer then handed me the keys to test drive it. It was brand new in condition and had indeed done less than 1,000 miles. I decided to go for it.
So after the test drive, we all sat down at the dealership and rediscussed the financial options.
The dealer tried to increase our deposit and monthly payments and we were trying to reduce them.
Initially they wanted
1300 deposit ( they stated that the A3 had minor damage)
510 GBP a month
They saw how keen we were to get the car however we had decided to stick to what we had agreed among ourselves ( ie 1000 deposit , less than 500 GBP a month ).
After alot of negotiation ( and puppy dog eyes) this is what they agreed on
1000 GBP deposit
480 per month
17,000 miles per year
I would pay for any servicing ( the first one was due at 18000 miles ).
This would include gap insurance.
They would take the A3 off us.
I couldn't have got a better deal. All the other cars I had seen online didn't meet the specifications of this particular car and hence we shook hands and signed the paperwork.
Given that they needed to do some paperwork and clean , polish the car , they asked me to collect it in a week. They would not lend it to any customer from that day. I paid the 1000 GBP deposit as well.
The following day , I got a call from the manager who informed me that they had brought down the monthly payments to 467 GBP a month.
Total finances:1,000 GBP deposit
467 GBP a month
80 for insurance per month
40 GBP a month for car tax
This is my advice to anyone who plans to get a car on PCP
Look for good deals. Audi had a "September event" when I got mine which offered 2500 GBP deposit contribution on new Audi A6s ( given that my car had done less than 1000 miles , they considered it new ).
So your research. Email other dealers first. See what deals everyone offers so that you have an idea of a baseline and can see if you can afford it or not.
You don't have to buy a car the same day you go to a dealership. View all specifications, test drive a few variants if you're not sure. But do not act confused. There are some amazing YouTube videos on all specifications and hence you should act confident when you walk into a dealership.
Take someone who knows about that particular brand. I love cars and I owned an Audi for 3 years. But I didn't know much about the A6. My relative had owned an A6 and 2 A5's and hence had a better idea of the specifications in this segment.
They are looking at every move. When the dealer goes to "talk to his boss ", there is someone sitting in an office looking at you - seeing if you nod or shake your head when the dealer goes. I "acted" confident and the dealer knew I couldn't budge and was also a serious customer.
At the end , the dealers still go into a profit. This is how much Audi financial services earned from me in the past 3 years : 4000 deposit plus 240*36 for A3 plus 1000 deposit plus 467*48 for the A6 which equals around 36,000 GBP. Our current A3 is worth 11,500 ( which they will sell for 13,000 as approved used ) and the A6 will cost around 15000 in 4 years when we return it. So they have made a huge profit !
Go for the car you actually like. However you should know when that car is due for a replacement- there is no point of getting a car which is due for a facelift- minor subtle changes /replacement- major changes which are quite noticeable in a few months. Usually , in the UK facelifts come every 2 years and the model is replaced every 4 years. This matters more in luxury brands.
Do not be disappointed! I was refused a finance deal from Volkswagen and got it from Audi 2 months later when I got the A3. There is always something better waiting for you.
Cars will always depreciate ! The car I bought had lost 15,000 GBP in value in just 3 months. And it was parked at the dealership most of the time. Go for a deal which prevents it being heavy on your pocket.
Ask as many questions as you want. We asked questions for at least 2 hours before we went for the deal. I had sent around 15 emails before we walked into the dealership.
Once you sign the paperwork, that is it! So be sure you want that car.
Always view the car and test drive it. Check everything from scratches on the alloys to stains on the seats.
If there is something wrong after buying the car , take pictures/make a video /describe it and then show it to the dealership. The A3 I bought had a q side mirror, stains on the seat which I identified when I got the car ( and I got them sorted under warranty within a week ) and then the S tronic gearbox produced a weird sound ( which I started noticing in a month ) and this was replaced for free. This would have cost me more than 1000 GBP had I not got it sorted in warranty.
See what extras the dealership is offering - my A3 came with 2 free services, gap insurance, 3 year warranty. The A6 came with gap insurance, 4 year warranty but no fre services.
Decide about the annual mileage and dont fall into the trap of going for less just because it will cost less. I was lucky that the dealership didn't charge me for the extra mileage otherwise it would have been 7 pence per extra mile.
Haggle, haggle and haggle ! The dealership is making a huge profit.
Be aware of dealerships who are not willing to budge. I remember going to a dealership a few months ago ( although to be fair , there was no "discount event" going on but they refused to take the Audi A3 , said I would have to put down a deposit of around 5000 GBP for an approved used Audi A5 , pay the remaining PCP , any extra damage and extra mileage on my A3 ). As mentioned above , email loads of dealerships and get an idea of what the general offers are.
Go for the specifications you like rather than what the dealer likes. They can give suggestions but always compare it to the standard equipment just to see if it is worth the extra cost.
There are a million different options to choose from - alloys , color , engine variants, trim , interior options , you can easily waste a lot of time seeing what's best for you. Its always good to narrow down at least the brand and model to make your life easier.
Watch videos on YouTube ( especially carwow - this will give you an idea of what UK specc'd cars are like , what the best options are , etc.)
ALWAYS check the insurance before you even think of contacting a dealership. You can check the insurance for the particular car and model by entering the registration number of the car you like ( which you have seen on Auto trader or on the approved used dealership website) and compare insurance rates using these 2 helpful websites:
https://www.comparethemarket.com
https://www.confused.com/
This is a link to the review of the car I got:
https://www.pakwheels.com/forums/t/my-third-car-in-the-uk-audi-a6-2-0-tdi-s-line/1182491
A bit about PCP deals
You can get any car ( new/approved used ) from a dealership
You pay a deposit
You pay a monthly amount
At the end of the contract you can either keep the car after paying a balloon payment , give the car back and dont have to pay extra ( other than the extra miles you have done or any damage to the car) or upgrade when you have paid the amount you were contracted to pay.
Background
My first car in the UK was a 2001 Peugeot 206 ( which I bought on cash for 1,000 GBP).
https://www.pakwheels.com/forums/t/my-first-car-in-uk-peugeot-206/257585 which I bought in October, 2015.
I bought an Audi A3 ( 65 plate ) in January 2017. I paid around 4000 GBP deposit and was paying around 240 GBP a month for a 4 year contract with 5000 miles per annum.
https://www.pakwheels.com/forums/t/my-second-car-in-uk-audi-a3-1-4l-tfsi-s-line/442847
I decided to change it when I was three and a half years into the contract. I still had to pay 2500 GBP ( the remaining amount on my PCP deal )
It was in perfect condition but I wanted a bigger car with more annual mileage. I had a few options :
1.NHS fleets solutions
I was getting a very good deal on a brand new BMW 530e for 570 GBP a month with no deposit on a special offer in June, 2019.
Pros:
It was brand new car
The 570 GBP included insurance.
Cons:
The 5 series was due for a replacement soon.
I would have to pay 2500 GBP ( my remaining amount on the PCP deal) which I was not very keen on spending.
2.Keep the Audi A3 and then upgrade it by the end of the PCP deal.
It was a perfect car but I had that annoying itch to get something bigger.
Pros
I would not have to pay anything extra other than damage/extra mileage and get a new car.
Cons
I had done quite a few extra miles hence it would have cost me around 500 GBP extra just for the miles.
Plus they look at the smallest scratches. If you live in the UK and have fancy alloys ( which the A3 had) , you will definitely scruff them against kerbs, etc. And my car had some of these very subtle damages ( which in my opinion are more wear and tear rather than major damage )
3.Talk to Audi now and get a good deal.
Pros
I would be able to get rid of the A3
Cons
I thought I would have to pay a deposit in addition to the remaining PCP deal and hence end up broke.
I was wrong !
I decided to email a few Audi dealerships by contacting them via Autotrader in September and see what deals I could get. These were my criteria
It should be approved used/new from an Audi dealership ( as opposed to private)
It should be the current generation Audi A6 ( which was launched in late 2018)
I would control myself and not go spending 10,000 GBP in one go just because I like the car. Hence, I set my deposit to not more than 1000 GBP and monthly payment not more than 500 GBP.
I started getting emails. They all asked me about my current car and the condition. I gave my honest opinion ( mentioned the minor damage , total mileage , current PCP deal ).
The general deals I was getting were :
They would take my Audi A3 and they would pay off the remaining PCP
I would have to pay a deposit which I decided to be the minimum possible- ie 1,000 GBP.
I would not pay anything above 500 GBP.
To my luck , all of the dealerships were offering this on a 19' plate Audi A6. I then narrowed down my options ( ie black colour, S line , less than 5,000 miles driven, some specifications, etc).
I decided to talk to Manchester Audi as I was going there anyway to sort out my passport renewal. I arranged an appointment. Luckily , my relative who knows all about Audis ( and has owned 3 Audis , knows what the best specs are and knew what deals I was getting ) was also in Manchester.
My wife , him and I went to the dealership and met the dealer. He took us as potential customers ( as opposed to the Audi dealership I got my A3 from - at that time , I dosnt know much about PCP, what best deals I could get and what car specs I wanted ) .
This is how I ( actually it was my relative more than me ) changed
We knew what we wanted
We new the exact specs we wanted
We were confident and knew what deals they could offer ( I had proof in the form of emails from other Audi dealerships)
We saw a few cars first before deciding as we were confused about certain specifications ( like the standard ambient lighting which is just white as opposed to the extended ambient lighting pack - which has loads of colours) , virtual cockpit vs the standard option ( after actually viewing the A6 with the standard and virtual cockpit, I realized that there wasn't a lot of difference), seats material ( the Alcantara leather didn't look that nice on the A6 and it did in my current A3).
All of this made it clear what specific car I wanted. It helped the dealer narrow the cars down as well - which came to one!
This particular car had done less than 1,000 miles , was registered in June 2019 and was used as a courtesy car for customers who left their executive cars ( ie audi R8, A8, Q7 , etc ) at the dealership for servicing and this car was given to them as a replacement for a day.
It had loads of options in particular
Valcona leather
Was vesuvius grey in color ( a lovely new metallic color Audi introduced recently)
19 inch alloys
Matrix LEDs with dynamic rear indicators
S line package with sports seats
Extended ambient lighting
Privacy glass
Electric front seats with memory
Folding ,heated , memory electrically adjustable exterior mirrors.
I then requested the dealer to show the car to me and I loved it. We all loved it. It was love at first sight ! We had viewed a few other A6's but this was something special- I guess it had the specifications we all wanted.
The dealer then handed me the keys to test drive it. It was brand new in condition and had indeed done less than 1,000 miles. I decided to go for it.
So after the test drive, we all sat down at the dealership and rediscussed the financial options.
The dealer tried to increase our deposit and monthly payments and we were trying to reduce them.
Initially they wanted
1300 deposit ( they stated that the A3 had minor damage)
510 GBP a month
They saw how keen we were to get the car however we had decided to stick to what we had agreed among ourselves ( ie 1000 deposit , less than 500 GBP a month ).
After alot of negotiation ( and puppy dog eyes) this is what they agreed on
1000 GBP deposit
480 per month
17,000 miles per year
I would pay for any servicing ( the first one was due at 18000 miles ).
This would include gap insurance.
They would take the A3 off us.
I couldn't have got a better deal. All the other cars I had seen online didn't meet the specifications of this particular car and hence we shook hands and signed the paperwork.
Given that they needed to do some paperwork and clean , polish the car , they asked me to collect it in a week. They would not lend it to any customer from that day. I paid the 1000 GBP deposit as well.
The following day , I got a call from the manager who informed me that they had brought down the monthly payments to 467 GBP a month.
Total finances:1,000 GBP deposit
467 GBP a month
80 for insurance per month
40 GBP a month for car tax
This is my advice to anyone who plans to get a car on PCP
Look for good deals. Audi had a "September event" when I got mine which offered 2500 GBP deposit contribution on new Audi A6s ( given that my car had done less than 1000 miles , they considered it new ).
So your research. Email other dealers first. See what deals everyone offers so that you have an idea of a baseline and can see if you can afford it or not.
You don't have to buy a car the same day you go to a dealership. View all specifications, test drive a few variants if you're not sure. But do not act confused. There are some amazing YouTube videos on all specifications and hence you should act confident when you walk into a dealership.
Take someone who knows about that particular brand. I love cars and I owned an Audi for 3 years. But I didn't know much about the A6. My relative had owned an A6 and 2 A5's and hence had a better idea of the specifications in this segment.
They are looking at every move. When the dealer goes to "talk to his boss ", there is someone sitting in an office looking at you - seeing if you nod or shake your head when the dealer goes. I "acted" confident and the dealer knew I couldn't budge and was also a serious customer.
At the end , the dealers still go into a profit. This is how much Audi financial services earned from me in the past 3 years : 4000 deposit plus 240*36 for A3 plus 1000 deposit plus 467*48 for the A6 which equals around 36,000 GBP. Our current A3 is worth 11,500 ( which they will sell for 13,000 as approved used ) and the A6 will cost around 15000 in 4 years when we return it. So they have made a huge profit !
If you start thinking about profits for a dealership, you wont be able to get a car you always wanted to. 3 years ago, i couldn't afford the A3 on cash and today , I couldn't be able to afford the A6 on cash either.
Go for the car you actually like. However you should know when that car is due for a replacement- there is no point of getting a car which is due for a facelift- minor subtle changes /replacement- major changes which are quite noticeable in a few months. Usually , in the UK facelifts come every 2 years and the model is replaced every 4 years. This matters more in luxury brands.
Do not be disappointed! I was refused a finance deal from Volkswagen and got it from Audi 2 months later when I got the A3. There is always something better waiting for you.
Cars will always depreciate ! The car I bought had lost 15,000 GBP in value in just 3 months. And it was parked at the dealership most of the time. Go for a deal which prevents it being heavy on your pocket.
Ask as many questions as you want. We asked questions for at least 2 hours before we went for the deal. I had sent around 15 emails before we walked into the dealership.
Once you sign the paperwork, that is it! So be sure you want that car.
Always view the car and test drive it. Check everything from scratches on the alloys to stains on the seats.
If there is something wrong after buying the car , take pictures/make a video /describe it and then show it to the dealership. The A3 I bought had a q side mirror, stains on the seat which I identified when I got the car ( and I got them sorted under warranty within a week ) and then the S tronic gearbox produced a weird sound ( which I started noticing in a month ) and this was replaced for free. This would have cost me more than 1000 GBP had I not got it sorted in warranty.
See what extras the dealership is offering - my A3 came with 2 free services, gap insurance, 3 year warranty. The A6 came with gap insurance, 4 year warranty but no fre services.
Decide about the annual mileage and dont fall into the trap of going for less just because it will cost less. I was lucky that the dealership didn't charge me for the extra mileage otherwise it would have been 7 pence per extra mile.
Haggle, haggle and haggle ! The dealership is making a huge profit.
Be aware of dealerships who are not willing to budge. I remember going to a dealership a few months ago ( although to be fair , there was no "discount event" going on but they refused to take the Audi A3 , said I would have to put down a deposit of around 5000 GBP for an approved used Audi A5 , pay the remaining PCP , any extra damage and extra mileage on my A3 ). As mentioned above , email loads of dealerships and get an idea of what the general offers are.
Go for the specifications you like rather than what the dealer likes. They can give suggestions but always compare it to the standard equipment just to see if it is worth the extra cost.
There are a million different options to choose from - alloys , color , engine variants, trim , interior options , you can easily waste a lot of time seeing what's best for you. Its always good to narrow down at least the brand and model to make your life easier.
Watch videos on YouTube ( especially carwow - this will give you an idea of what UK specc'd cars are like , what the best options are , etc.)
ALWAYS check the insurance before you even think of contacting a dealership. You can check the insurance for the particular car and model by entering the registration number of the car you like ( which you have seen on Auto trader or on the approved used dealership website) and compare insurance rates using these 2 helpful websites:
https://www.comparethemarket.com
https://www.confused.com/
This is a link to the review of the car I got:
https://www.pakwheels.com/forums/t/my-third-car-in-the-uk-audi-a6-2-0-tdi-s-line/1182491
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