[Phill-uk]

Althought I have ordered the car I have not finalised my PCP with the dealer and thought I'd ask a few questions about the way Audi PCP works.

I am planning to pay the full 50% allowed deposit £16.5 so I'll be financing the other £16.5k. I want to own the car fully at the end.

My question is, is it possible to keep the monthly payments low and overpay the balloon (end payment) in chunks or are you only allowed overpay and reduce the monthly payments/term? Meaning the balloon I choose now I'll be stuck with for the 3 years..?

Hope this makes sense!

 

[reilsab]

My understanding is the law changed a few years ago and you're allowed to make extra payments whenever and they have to recalculate the monthly figure. For instance i could phone them up today and stick a grand in my pcp, this would reduce my remaining payments. It's all detailed in the agreement

http://www.vwfs.co.uk/content/sites...05_download.download.pdf/FAQFinal26_10_10.pdf

Sorry i can't put in the active link, my ipad won't let me!!

 

[rontheman]

I don't think you can reduce the monthly payments and tag the shortfall onto the balloon. The reverse is completely ok, as reilsab says.

A reduction in the monthly payments would possibly be regarded as a default

 

[Phill-uk]

OK, thanks guys, dealer confirmed, once set, the balloon cannot be reduced

 

[Hallow1842]

My dealer confirmed at thd time i picked up mh vehicle that I can overpay at anytime and the monthlys will reduce in line, however if I chose to pay off the full amount (only leaving the balloon) do you think I would have to make the final payment or would it only be due at the end of the agreement?

 

[reilsab]

I would have thought you could pay it all except the balloon, you're still paying interest on the balloon sitting there for the rest of the agreement so you would still have to make a monthly payment?

 

[Hallow1842]

I though the "ballon" was the future gareenteed value and hence fixed?

 

[Phill-uk]

I though the "ballon" was the future gareenteed value and hence fixed?

Yes, but you can set it any lower amount you want if you want to own the car - which I do, hence why I am putting down the highest deposit possible which is 50% value. I really wanted to overpay the balloon over the 3 years but it turns out I'm not allowed
For example, their first PCP quote to me was something like:My 50% deposit - £16k, £115 p/m, £15k balloon.
I then asked them to give me the lowest end payment they could, which was:My 50% deposit- £16k, £450 p/m, £1.5k balloon

 

[reilsab]

Can you not just get a straight 36 month finance deal with no balloon and you own the vehicle at the end?

 

[Phill-uk]

I don't want high monthly payments and you wouldn't get the Audi/Dealer contributions without going PCP.

 

[reilsab]

They really do get you both ways