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Audi Finance

4.2K views 33 replies 18 participants last post by  kam100  
#1 ·
Has anyone used them and are their rates attractive ?

The reason I ask here is that surprise surprise the Audi dealer has failed to contact me ! I know I can get a bank loan at 5.9% just wondered if anyone had got anything better from Audi Finance.
 
#5 ·
How do Audi fare (any got any experience) with regards to PCP, PL & CH etc?
 
#6 ·
blagman said:
They are a total rip off contact Kamran Saleen at MHC Finance Ltd and save yourself thousands of pounds tel 0121 6221369 they sponsor this web site by the way 8)
Thanks Blagman for the referral.. we can help beat down Audi finance and offer the best packages for your circumstances/requirements.

We don't have a multi million pound showroom/large workforce to salary, so we can cut our margins and pass on the savings to you!

We welcome any quote comparison:
Kam@Mhasnain.co.uk

(New website is being constructed right now.. so the banner is leading to a blank page right now..)
Thanks..
 
#7 ·
Northern Rock @5.8%

My experience with dealers is that if you haggle you can get it lower. At the end of the day its their commission thats reducing.
 
#8 ·
Definitely agree with you there.. dealers surprise us with the differing quotes that they give customers. Some guys they give 9% APR to others 7.5% and we have seen two examples recently where the finance was rivalling full blown Credit Card rates! crazy..

If you want a rival quote to show Audi, to help beat them down, would be pleased to help. Our aim is to make Audi decline and hence us win the business, but we have assisted in the past simply helping clients get dealer finance down.

We don't have much problem usually with most VAG finance as most of the quotes go through VW finance, but they do have 3rd party lenders too, i.e. Cap Bank/Black Horse.. which are always worth a shot with too.

We're brokers for Cap bank, and RBS, so we get a mix of quotes too and reduce margins to ensure we're lower then most Audi dealer/VAG quotes. Also we can raise balloons if required on a personal application basis, to make things even more affordable, so another way of cheaper finance.

We do this purely for goodwill building.. if we help you out, even if we get nothing out of it, its a forum thing! you'll remember us and the forum and that makes these forums/groups worthwhile..
 
#9 ·
VERY competitive - much more so than anywhere else - flat rates or around 4.7% or APR's of about 8%

Will not find much better elsewhere. They haven't passed on any of the last 3 BoE base rate increases YET.

Will be going with them for my new TTR - either PCP or Lease Purchase I think.
 
#10 ·
nmorgan said:
VERY competitive - much more so than anywhere else - flat rates or around 4.7% or APR's of about 8%

Will not find much better elsewhere. They haven't passed on any of the last 3 BoE base rate increases YET.

Will be going with them for my new TTR - either PCP or Lease Purchase I think.
forgive my ignorance...but who Audi or MHC Finance
 
#12 ·
We're currently doing 7.25% APR and 3.75% Flat, which is 2 above base.
So you're choice. Audi advertise at 9%, so you'll have to push for the 8%!

The balloons they are willing to underwrite against aren't the best on the market, and there is no movement in these even if you're credit file is superb.

Sometimes we have a need to finance for clients over 5 years with a balloon, VAG finance is currently only over 4 years with balloon.. So limits some clients as they can't hit their monthly installment target.

Like i said give us a whirl.. be glad to help..
 
#14 ·
Philr said:
but, if you cant buy outright, you can get a loan at 5.3% APR from a bank.
Very true and there is nothing wrong with this way 8) but for the self employed and busuness users there are other more cost effective and flexible ways to finance the car at much cheaper rates than offered by Audi Finance.

I am in no way conected to any finance house just a happy punter, in that I have found for me a competative way to purchase my new car :)
 
#15 ·
If you can get a loan for £30k from the bank then its fair enough, but getting a cash loan for that much without securing it on your house/other asset is difficult. Plus you have to pay it off over a certain amount of years.. with no deffered balance at the end known as the balloon which on a car loan you can get calculated on your particular vehicle.

Also if you obtain a cash loan, on your credit file, if during the loan period you apply for a loan/mortgage or any other form of credit, it will show on your credit file as a cash loan, which doesn't look as good depending on your income, to a secured/unsecured vehicle HP agreement, as underwriters assume this debt is covered partially or totally by disposing of the car which is the asset wholy purchased with the loan in question.

Plus we always get people coming to us initially saying, why finance when you can buy it outright, or if you finance, you can't afford it. when in reality if you couldn't afford it, the bank wouldn't lend it to you in the first place and secondly most of our clients do have the option of paying cash for the vehicle, however cars are 100% cash traps, most cars are guaranteed to loose cash, finance is just simply loss management, so you can drip feed your loss, instead of loosing wads of cash over a short space of time. If you had that money invested elsewhere gaining money/even just earning interest, at least you have access to that cash, during the period of ownership of the car, so if circumstances changed, you can utilise the cash which is in liquid form rather then sitting on your driveway doing nothing but depreciating.

The cost of finance, if you have the cash sitting there, say 5% interest is gained on your cash, and 7.25% is the cost of borrowing the same amount on finance plan, then the net cost of borrowing the cash is 2.25%, which by some clients is seen as the opportunity cost of having the £30k or whatever the cash alternative is, sitting in the bank account readily accessible. Plus if you go on an agreement with no early settlement etc, you can pay it off whenever you want and just pay the interest for the term of finance you actually use.

Arguments remain, that some individuals, are in a position where they have enough cash to not need to invest anything further, so why bother with the finance, but people in that circumstance, why buy a TT, why not a Nice new R8 and use the £30k as a down payment on one of these? or another bracket vehicle, which your income will allow to maintain/run this asset?

Its the whole finance vs. cash debate which could go on for ages, and obviously you know which camp im in.. hehe.. whatever way you buy your cars, having the car is what matters afterall!
 
#16 ·
kam100 said:
If you can get a loan for £30k from the bank then its fair enough, but getting a cash loan for that much without securing it on your house/other asset is difficult. Plus you have to pay it off over a certain amount of years.. with no deffered balance at the end known as the balloon which on a car loan you can get calculated on your particular vehicle.

Also if you obtain a cash loan, on your credit file, if during the loan period you apply for a loan/mortgage or any other form of credit, it will show on your credit file as a cash loan, which doesn't look as good depending on your income, to a secured/unsecured vehicle HP agreement, as underwriters assume this debt is covered partially or totally by disposing of the car which is the asset wholy purchased with the loan in question.

Plus we always get people coming to us initially saying, why finance when you can buy it outright, or if you finance, you can't afford it. when in reality if you couldn't afford it, the bank wouldn't lend it to you in the first place and secondly most of our clients do have the option of paying cash for the vehicle, however cars are 100% cash traps, most cars are guaranteed to loose cash, finance is just simply loss management, so you can drip feed your loss, instead of loosing wads of cash over a short space of time. If you had that money invested elsewhere gaining money/even just earning interest, at least you have access to that cash, during the period of ownership of the car, so if circumstances changed, you can utilise the cash which is in liquid form rather then sitting on your driveway doing nothing but depreciating.

The cost of finance, if you have the cash sitting there, say 5% interest is gained on your cash, and 7.25% is the cost of borrowing the same amount on finance plan, then the net cost of borrowing the cash is 2.25%, which by some clients is seen as the opportunity cost of having the £30k or whatever the cash alternative is, sitting in the bank account readily accessible. Plus if you go on an agreement with no early settlement etc, you can pay it off whenever you want and just pay the interest for the term of finance you actually use.

Arguments remain, that some individuals, are in a position where they have enough cash to not need to invest anything further, so why bother with the finance, but people in that circumstance, why buy a TT, why not a Nice new R8 and use the £30k as a down payment on one of these? or another bracket vehicle, which your income will allow to maintain/run this asset?

Its the whole finance vs. cash debate which could go on for ages, and obviously you know which camp im in.. hehe.. whatever way you buy your cars, having the car is what matters afterall!
Kam,

What's your view on balanced payments? - pro's and con's?

Cheers
 
#17 ·
Kam100,
You put some good arguements forward. My TT is on order, due to arrive in June. Meanwhile, I have the full cash amount sitting in my iF account as an offset to my mortgage. As you'll know, this gives me reduced interest payments on my mortgage loan, and is also tax efficient in terms of interest of savings accounts.
I am torn between using this cash to pay for the car or to seek out a finance company that would give me a high-balloon-payment loan over 3 years, and therby drip-feed the monthly payments (and balloon payment) from the cash held in the iF offset fund. I'm trying to work out what loan % I would have to beat. Any ideas you have would be appreciated. PM me if you'd prefer.

.
 
#19 ·
In Response:

Balanced Payments(Variable Lease Purchase)
Pro's:
1/ No front loaded interest.
2/ No fixed terms, i.e. no early repayment exit/penalties
3/ Allows bulk payments to be paid into the deal.
4/ Balloons are based on Glass'/Cap guides, so are relatively realisting future values and balloons are higher then on PCP agreements where they are guaranteed therefore less monthlies.
5/ Monthlies stay the same, so no immediate effect of rising rates (in today's market).
6/ For people who change cars frequently, lets you have ur cake and eat it.. i.e. lower monthlies, spread over 5 years, but you can change your car every year if you plan it right.
7/ As there is no front loaded interest, you pay off capital borrowing from month 1, therefore keep up with depreciation on your car quicker then on any other payment agreement.

Against:
1/ Rising interest rates : balloon will increase at the end.
However counter argument is: Rates are cheaper to begin with anyway, and you can refinance whenever you want, so make the savings while you can!

PCP agreements are best for business users/people who follow strict changing patterns governed by jobs/payments etc.. but if you want to change ur car regularly, you're set for a sting on PCP. GFV aren't really that much benefit with performance/luxury cars where residuals are relatively predictable, and if the balloons are set sensibly you can stay in positive equity.

Not a lot of clients i know of do go with Hand back option, as their car holds equity as they planted a signficant deposit into the deal at the beggining, so want that cash back. Some fleet operators offer equity back if the car is sold for more when it goes back to them, but no guarantees of this, so i would rather be in control myself.

Any questions/queries relating specifically to your case: kam@mhasnain.co.uk

Marcus, personally i would keep the cash and drip feed the car (its what i do myself on my own cars..) i don't even place a deposit in!

"Also Kam, if you have cash for a TT but not a Vantage/R8 I dont see any benefit in getting a large loan to buy something you cant afford right now." and Philr, not wishing to engage in any specific argument, i think its best to just admitt: we sit on different sides on this argument, its a personal/circumstantial opinion, and all depends on what alternatives you have to spend your money on. And to answer that statement, if you have to cash for a TT, i would rather an AMV8 myself, but only if my monthly income would allow. Loans on cars, as long as planned correctly and paid off correctly, i.e. sensible balloon, high enough monthlies to not leave u in neg equity, the loan itself can be paid off easy enough using the car itself, as cars don't generally at the point where our clients buy them, have a £0 scrap value at the end of their use (i.e. 1-3 years typical) so the car will cover the loan left, not leaving the client in a mess.

The benefit i see in taking the loan, is you can have the AMV8 or other expensive car now, and not have to wait! You only live once and all that, but thats my personal opinion.

I don't personally put a penny into my cars now as i find alternative vehicles of investment, which at least will return me the 7.5 odd % im paying out per annum on my car. We're in the BTL property game ourselves, but there are plenty of other vehicles of investment which are preferable compared to cash trap assets such as cars.. any IFA would beable to advise you accordingly.

I invest cash abroad/in the UK in bricks and motar/land and most of our clients, being of the asian origin do the same also, and i can tell you, don't do too bad out of it thank you very much.

www.churchgateuk.co.uk - Alex Ogden (UK)
www.goldcity.tr.com - Guzide (Turkey)
www.zero4.ae - Neema Kataria (Dubai)
www.movewithus.co.uk - Luke Whitehouse (UK & Argentina)
To name but a few of our affiliated/recommended companies
 
#20 ·
If you are planning to change cars after a certain amount of time, say 18 months, then ask for an expected 18 month settlement figure, including charges, when you get the quote - you will be surprised at the variation between loan types.

Fixed rate loans are obviously easier to work with, but with variable-rate loans (like BF), ask for a quote at current rates, then another at a higher rate (i.e. assume that the bank puts the base rate up to 6.5%). That way you will have a margin to work in, and hopefully that will minimise the surprise at the end of the 18 months.

With the software they have out there, it's not too hard for these finance gurus to run the numbers. And at the end of it all you should be able to chose a product that balances affordable monthly payments wih a realistic settlement figure.

Just make sure you compare apples with apples and ask for exactly the same amount over the same period for each product type.
 
#22 ·
The original quote I had from Audi Finance worked out to be £600 more on a 15K loan over 36mths compared with the best rate I could get from my bank....I quite simple said to the dealer match the bank rate or you won't get the business...hey presto, ten minutes later the price matched penny for penny! I wish it was that easy to get discount on the actual car!
 
#26 ·
Its all pretty straight forward. You own the car in all circumstances other than contract hire. For lease purchase, PCP or HP, the loan is secured on the car whereas if you go to a bank etc and take out an unsecured loan then it is as it says. The drawback of the latter is that you cannot typically borrow more than £20-25k as clearly there is no security other than you and given how easy it is to go bankrupt in England these days, that is not worth much unless you are a homeowner.