nordberg Posted April 26, 2006 Report Share Posted April 26, 2006 In my quest to screw my dealer to the wall, I'm in the process of negotiating a decent finance deal. Anyone here use Audi finance to purchase their car? I'm pushing for a flat rate that begins with a 3 rather than the ubiquitous 4.25%. Am I being realistic? Has anyone had a such a deal? I'm nearly there. Found the car and now need to find the deal..... Cheers, Matt Link to comment Share on other sites More sharing options...
Sparky Posted April 26, 2006 Report Share Posted April 26, 2006 I went with Audi Finance, but I got screwed well and truly. I doubt you'd get 4.25% APR though. Well, not from my dealer! Link to comment Share on other sites More sharing options...
nordberg Posted April 26, 2006 Author Report Share Posted April 26, 2006 Not 4.25% APR, I'm after 3.x% flat. The motor industry persist in using flat rather than APR which really gets up my nose.... Link to comment Share on other sites More sharing options...
Sparky Posted April 26, 2006 Report Share Posted April 26, 2006 Yeah, mine too. I was offered 4.75% flat. Somehow turned out to be a lot more I think. Link to comment Share on other sites More sharing options...
rjgreen4 Posted April 26, 2006 Report Share Posted April 26, 2006 I have 7.1% Apr on a PCP deal with Hitachi Capital, I thought that was a good deal for £33000 over 4 years Link to comment Share on other sites More sharing options...
rjgreen4 Posted April 26, 2006 Report Share Posted April 26, 2006 ditto, it makes them look low when comapred to high street Apr's Link to comment Share on other sites More sharing options...
Phantom Posted April 26, 2006 Report Share Posted April 26, 2006 I have just negotiated my second Lease purchase deal with Audi Finance, the new one is at about 6.5% over four years. I was in the position where my current car was with AF and in order to guarantee a part exchange with my current cab I decided to stay, rightly or wrongly , with AF. The rate will depend on the type of finance you take out, as I will buy my new at the end of the lease, I am making a £5k deposit, then monthly payments for four years and a final baloon payment of about £14k. Link to comment Share on other sites More sharing options...
nordberg Posted April 26, 2006 Author Report Share Posted April 26, 2006 Is the 6.5% APR or flat? Link to comment Share on other sites More sharing options...
sidicks Posted April 26, 2006 Report Share Posted April 26, 2006 [ QUOTE ] I have just negotiated my second Lease purchase deal with Audi Finance, the new one is at about 6.5% over four years. I was in the position where my current car was with AF and in order to guarantee a part exchange with my current cab I decided to stay, rightly or wrongly , with AF. The rate will depend on the type of finance you take out, as I will buy my new at the end of the lease, I am making a £5k deposit, then monthly payments for four years and a final baloon payment of about £14k. [/ QUOTE ] APR is the important rate, flat rate can easily distort the true cost of a loan Sidicks Link to comment Share on other sites More sharing options...
PetrolDave Posted April 26, 2006 Report Share Posted April 26, 2006 So far I've used Audi Finance twice. First time, in 2003, I got 3.5% flat. I've just been offered 3.35% flat on an RS4. I just tell the Business Manager that I can either pay cash and lose x% interest on my savings, or borrow from him IF his rate is lower - that is IF he wants a nice fat commission payment ... Link to comment Share on other sites More sharing options...
Booster Posted April 26, 2006 Report Share Posted April 26, 2006 [ QUOTE ] So far I've used Audi Finance twice. First time, in 2003, I got 3.5% flat. I've just been offered 3.35% flat on an RS4. I just tell the Business Manager that I can either pay cash and lose x% interest on my savings, or borrow from him IF his rate is lower - that is IF he wants a nice fat commission payment ... [/ QUOTE ] I can assure you that even when financing an RS4, on a flat rate of 3.35% he is not receiving a fat commission payment Link to comment Share on other sites More sharing options...
nordberg Posted April 26, 2006 Author Report Share Posted April 26, 2006 I'm looking to do a 4 year lease purchase on a £24k car. I'll be putting about £1000 down and the final payment will be around £8.5k. Can I expect anything below 4% (flat)based on those figures? Link to comment Share on other sites More sharing options...
sidicks Posted April 26, 2006 Report Share Posted April 26, 2006 [ QUOTE ] I can assure you that even when financing an RS4, on a flat rate of 3.35% he is not receiving a fat commission payment [/ QUOTE ] As I think I may have stated before (!!) Flat rates are irrelevant, APR represents the true cost of a loan (for comparison with the interest forgone on a bank account etc.) sidicks Link to comment Share on other sites More sharing options...
techieboy Posted April 26, 2006 Report Share Posted April 26, 2006 I couldn't when I financed my Sline Special Edition using Audi's lease purchase scheme last month, even with (or maybe because of) my £16k deposit and £7.5k final payment. Link to comment Share on other sites More sharing options...
nordberg Posted April 26, 2006 Author Report Share Posted April 26, 2006 [ QUOTE ] As I think I may have stated before (!!) Flat rates are irrelevant, APR represents the true cost of a loan (for comparison with the interest forgone on a bank account etc.) sidicks [/ QUOTE ] That's all very well and true but when the motoring trade only ever quote in flat terms, it's left to use to do the rough calculation into APR. Link to comment Share on other sites More sharing options...
sidicks Posted April 26, 2006 Report Share Posted April 26, 2006 [ QUOTE ] [ QUOTE ] As I think I may have stated before (!!) Flat rates are irrelevant, APR represents the true cost of a loan (for comparison with the interest forgone on a bank account etc.) sidicks [/ QUOTE ] That's all very well and true but when the motoring trade only ever quote in flat terms, it's left to use to do the rough calculation into APR. [/ QUOTE ] Are you sure? I thought it was a legal requirement for customer finance applications to display the APR. Sidicks Link to comment Share on other sites More sharing options...
nordberg Posted April 26, 2006 Author Report Share Posted April 26, 2006 You can ask them for the APR, and they just basically double the flat rate which is not 100% accurate of course.... Link to comment Share on other sites More sharing options...
sidicks Posted April 26, 2006 Report Share Posted April 26, 2006 [ QUOTE ] You can ask them for the APR, and they just basically double the flat rate which is not 100% accurate of course.... [/ QUOTE ] Depending on the pay-off profile, it is not even remotely accurate !! sidicks Link to comment Share on other sites More sharing options...
nordberg Posted April 26, 2006 Author Report Share Posted April 26, 2006 [ QUOTE ] [ QUOTE ] You can ask them for the APR, and they just basically double the flat rate which is not 100% accurate of course.... [/ QUOTE ] Depending on the pay-off profile, it is not even remotely accurate !! sidicks [/ QUOTE ] Sounds like you know a lot more about than me! Perhaps you can ellaborate? Cheers, Matt Link to comment Share on other sites More sharing options...
UBM Posted April 26, 2006 Report Share Posted April 26, 2006 |Time for someone to explain the difference between flat and APR again....not me this time.... Link to comment Share on other sites More sharing options...
sidicks Posted April 26, 2006 Report Share Posted April 26, 2006 [ QUOTE ] Sounds like you know a lot more about than me! Perhaps you can ellaborate? [/ QUOTE ] I've posted something similar previously, but here goes: Consider a loan of £10,000 paid off in 3 different ways: 1) A lump sum of £10,500 paid at the end of 1-year 2) Twelve Equal payments of £855.56 paid at the end of each month 3) A payment of £5,000 after 1 day and a payment of £5,250 after 1-year The flat rate for option 1) is 5% The flat rate for option 2) is 2.7% The flat rate for option 3) is 2.5% The APR (and effective rate of interest is 5% in all cases). Where payments are equally spread throughout the period (i.e. no balloon payments etc) the APR is very roughly twice the flat rate (5.0% versus 2.7%) Sidicks Link to comment Share on other sites More sharing options...
nordberg Posted April 26, 2006 Author Report Share Posted April 26, 2006 Jeez - wish I'd stayed awake in maths... So based on my figures posted earlier, what would you say my APR is? Link to comment Share on other sites More sharing options...
Booster Posted April 26, 2006 Report Share Posted April 26, 2006 [ QUOTE ] [ QUOTE ] I can assure you that even when financing an RS4, on a flat rate of 3.35% he is not receiving a fat commission payment [/ QUOTE ] As I think I may have stated before (!!) Flat rates are irrelevant, APR represents the true cost of a loan (for comparison with the interest forgone on a bank account etc.) sidicks [/ QUOTE ] I was merely commenting on the fact that there is bugger all margin for commission to the dealer on that rate . I agree with you 100% that all dealers should quote an APR in all cases. They rarely do. They should also have their Consumer Credit Licence on display and also, depending on their placing of credit advertisements, next to the CCL they should have a sign stating the typical APR of credit offered. Link to comment Share on other sites More sharing options...
the911sc Posted April 26, 2006 Report Share Posted April 26, 2006 I got 3 % flat rate on my B7 A4. I actually brought in my old 1.8T sport at 12.5K and took a cheque away from them for that amount, put it into my mortgage offset account. The cost for finance (which is the really important thing!) is about £800 per year for £24K so thats pretty good. Link to comment Share on other sites More sharing options...
sidicks Posted April 26, 2006 Report Share Posted April 26, 2006 [ QUOTE ] The cost for finance (which is the really important thing!) is about £800 per year for £24K so thats pretty good. [/ QUOTE ] Presumably the capital outstanding is reducing over the period? Let's assume this is loan is over 3 years, and that the balance outstanding at the end of year 1 is £17,000 at the end of year 2 is £9,000 with zero at the end of year 3. (not £24,000 -> £16,000 -> £8,000->0, as in the early years more interest is paid and hence less capital is paid off) In year 1, the average amount outstanding is around £20.5k In year 2, the average amount outstanding is around £13k In year 3, the average amount outstanding is around £4.5k So while £800 fees on £20.5k in year one may seem reasonable, £800 fees o£13k in year 2 and £800 fees in year 3 £4.5k seems much more expensive............The flat rate doesn't take into account the reducing capital balance over the period. Sidicks Link to comment Share on other sites More sharing options...
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