Sound ok?

Tinkerbell4484

Just looking for opinions as ive never done this before.
I have an audi A6 2013, around €12000 left on finance, i purchased it 2 years ago. Looking at a 172 audi a6.
Dealer says in his exact words, finance will be €23000 plus your car, and ill need 10% cash deposit.
I was under the impression, he would maybe cover my trade in, and i would start finance on the new car. But he seems to be using my trade in, and adding the settlement figure of my car on top of my finance, then i have to give him 10% deposit.
Does this make sense?
Any advice appreciated.

david

What's the finance price on the 172 with no trade in?

Tinkerbell4484

david wrote: »

What's the finance price on the 172 with no trade in?

It is €34000 on the website.

frozenfrozen

can you sell your car privately and clear the loan? I presume the 12k you owe is less than the value of the car going by a quick look at donedeal

Tinkerbell4484

frozenfrozen wrote: »

can you sell your car privately and clear the loan? I presume the 12k you owe is less than the value of the car going by a quick look at donedeal

Might be an option, the 12k is alot less then the value, but seems the dealer is giving 12k as a trade in too, so im not sure.
I thought he might do it as, maybe give me 13-14k for my car, clear the finance, the 1-2k remaining goes off the 172, and i start again on finance on the 172.

Mjolnir

frozenfrozen wrote: »

can you sell your car privately and clear the loan? I presume the 12k you owe is less than the value of the car going by a quick look at donedeal

Assuming it's the 2L thing the highest at the min is €19,800 from a dealer you'd want to be incredibly high to pay that for a 7 year old a6.
Lowest is €10,450 at 12k op could be waiting a while to sell, especially if manual as there's a few autos around 12k. Then remember haggling too.
At present unless it's the 3L bi turbo he's at about equal value to balance or slightly over on the balance.
At 34k pre trade in there's plenty on dd through dealers for less. Cracking looking car though.
Op take a better look around contact other dealers see what they offer.

Mjolnir

Tinkerbell4484 wrote: »

Might be an option, the 12k is alot less then the value, but seems the dealer is giving 12k as a trade in too, so im not sure.
I thought he might do it as, maybe give me 13-14k for my car, clear the finance, the 1-2k remaining goes off the 172, and i start again on finance on the 172.

A dealer will rarely if ever give the value of a car on trade in they don't want to end up holding it for ages and not be able to get anything out of it.

tweaf1

€34K sounds expensive for a 172 A6

Mjolnir

tweaf1 wrote: »

€34K sounds expensive for a 172 A6

Much cheaper around with decent millage and great spec from dealers.

Tinkerbell4484

Mjolnir wrote: »

A dealer will rarely if ever give the value of a car on trade in they don't want to end up holding it for ages and not be able to get anything out of it.

To be fair he would sell this very quick. Its black edition, excellent condition, has windscreen projector ect. It would definitely sell for €15-16k.

Tinkerbell4484

Mjolnir wrote: »

Much cheaper around with decent millage and great spec from dealers.

While i agree, its the colour and extras that are making it more expensive i think. He has a lot of interested parties.

bazz26

The cost to trade up plus what your already owe in finance and what you want borrow are muddying the water here.

You need to get a break down of the 23k figure from the dealer otherwise they are just figures pulled from the sky.

You know you owe 12k on your existing car. He should be providing how much he is giving you for your A6. How much he wants with your A6 for the 172 A6. It needs to be more than 12k to have some equity. And how much of the 23k is the actual cost of the car versus how much of it is interest on financing that amount.



OP, not having a go or judging you but you might want to consider talking to someone like an independent financial adviser. Owing 12k on a car that is now 7 years old is not ideal, your now looking at moving that loan including interest along with topping it up adding more interest onto a car that is still 3 years old. You may find yourself in negative equity where you will owe more than the car is worth in a few years.

bazz26

Tinkerbell4484 wrote: »

While i agree, its the colour and extras that are making it more expensive i think. He has a lot of interested parties.

Lol, you can be sure the dealer didn't give the previous owner extra money for it because of the colour or the extras. They are very good at playing these things down when your trading in but ask more for them when selling. Also telling you he has lots of interest is an old sales trick to pressurize you into making a quick decision. Let them sell it to someone else in that case but don't rush into any purchase just because there is "plenty of interest". There will always be another car.

Mjolnir

Tinkerbell4484 wrote: »

To be fair he would sell this very quick. Its black edition, excellent condition, has windscreen projector ect. It would definitely sell for €15-16k.

Not really as far as I'm aware 5 years is the pcp cut off and not many people have €15k to shell out for a 7 year old car. Hud is a nice addition and black edition is more desirable than a base spec but you haven't stated its millage or gear box.

Mjolnir

bazz26 wrote: »

Lol, you can be sure the dealer didn't give the previous owner extra money for it because of the colour or the extras. They are very good at playing these things down when your trading in but ask more for them when selling. Also telling you he has lots of interest is an old sales trick to pressurize you into making a quick decision. Let them sell it to someone else in that case but don't rush into any purchase just because there is "plenty of interest". There will always be another car.

This x1000
Anyone who believes that old hack I've a small island in the canaries to sell ya.
100 people could be interested in the car how many could afford to buy it or have intention to is another story.
Also agree with ending up under water on it.

Tinkerbell4484

bazz26 wrote: »

The cost to trade up plus what your already owe in finance and what you want borrow are muddying the water here.

You need to get a break down of the 23k figure from the dealer otherwise they are just figures pulled from the sky.

You know you owe 12k on your existing car. He should be providing how much he is giving you for your A6. How much he wants with your A6 for the 172 A6. It needs to be more than 12k to have some equity. And how much of the 23k is the actual cost of the car versus how much of it is interest on financing that amount.



OP, not having a go or judging you but you might want to consider talking to someone like an independent financial adviser. Owing 12k on a car that is now 7 years old is not ideal, your now looking at moving that loan including interest along with topping it up adding more interest onto a car that is still 3 years old. You may find yourself in negative equity where you will owe more than the car is worth in a few years.

Thanks for this. There is no real breakdown of the 23k. It is what the dealer wants,along with my car. So he is giving €11k as my trade in
He is then putting through my finance proposal as €35k this is the amount he wants €23k plus my €12k settlement figure.
The €35k will then be minus €3.5k this is the 10% deposit he also wants.
So i will be financing €31.5k. This will then have apr added
This is what i take it as whats happening anyway.
I still think it would be easier for him to repay my finance and i start afresh with the new car as it saves alot of confusion. This is a very roundabout and confusing way of doing things.

Tinkerbell4484

Mjolnir wrote: »

Not really as far as I'm aware 5 years is the pcp cut off and not many people have €15k to shell out for a 7 year old car. Hud is a nice addition and black edition is more desirable than a base spec but you haven't stated its millage or gear box.

Milage is 71000 miles, automatic gearbox.

Mjolnir

Tinkerbell4484 wrote: »

Thanks for this. There is no real breakdown of the 23k. It is what the dealer wants,along with my car. So he is giving €11k as my trade in
He is then putting through my finance proposal as €35k this is the amount he wants €23k plus my €12k settlement figure.
The €35k will then be minus €3.5k this is the 10% deposit he also wants.
So i will be financing €31.5k. This will then have apr added
This is what i take it as whats happening anyway.
I still think it would be easier for him to repay my finance and i start afresh with the new car as it saves alot of confusion. This is a very roundabout and confusing way of doing things.

It would be easier for you but remember the motor industry is hurting and is likely to be for the foreseeable and are planning for a possible second wave of the virus.
They need to mitigate all risks especially after lockdown.
Think of it this way if we get another lockdown because of a resurgence of the virus he would have it sitting for a long time with all other stock and no income only outgoings .

Mjolnir

Tinkerbell4484 wrote: »

Milage is 71000 miles, automatic gearbox.

2L tdi?

bazz26

Tinkerbell4484 wrote: »

Thanks for this. There is no real breakdown of the 23k. It is what the dealer wants,along with my car. So he is giving €11k as my trade in
He is then putting through my finance proposal as €35k this is the amount he wants €23k plus my €12k settlement figure.
The €35k will then be minus €3.5k this is the 10% deposit he also wants.
So i will be financing €31.5k. This will then have apr added
This is what i take it as whats happening anyway.
I still think it would be easier for him to repay my finance and i start afresh with the new car as it saves alot of confusion. This is a very roundabout and confusing way of doing things.

The trade in value the dealer is giving you is 1k less than you already owe on your existing car so you owe 1k to settle this finance. With that out of the way you are now financing a newer car worth 34k plus the 1k you still owe on the old car - 35k. 10% deposit from you then means going forward your still borrowing 31.5k for the newer car.

So in essence the dealer is buying your car for 11k so that you can put it towards the 12k you still owe on it. I'd be trying to squeeze them to improve their trade in price to cover the entire 12k you owe on the existing car or push them for more off the price of the 35k newer car.

Tinkerbell4484

bazz26 wrote: »

The trade in value the dealer is giving you is 1k less than you already owe on your existing car so you owe 1k to settle this finance. With that out of the way you are now financing a newer car worth 34k plus the 1k you still owe on the old car - 35k. 10% deposit from you then means going forward your still borrowing 31.5k for the newer car.

Yup

Tinkerbell4484

Mjolnir wrote: »

2L tdi?

Yeah the 190bph

Tinkerbell4484

Tinkerbell4484 wrote: »

Yup

But he is also getting a car that he will sell for at least 14k, plus 3.5k as deposit. So hes getting 17.5k out of this deal.

bazz26

But you came into the deal already owing 12k on top of what he wants for the newer car. Also dealers buy cars for less than they sell them for to make a profit.

Tinkerbell4484

bazz26 wrote: »

But you came into the deal already owing 12k on top of what he wants for the newer car. Also dealers buy cars for less than they sell them for to make a profit.

And i will be refinancing that and clearing it myself with the way he is doing the finance.

bazz26

No matter which way you want to do the figures its the same thing.

You owe 12k, he is allowing you 11k so you still owe the finance company 1k. You are then financing a newer car selling for 34k plus the 1k you already owe them = 35k, less a 10% deposit from you = 31.5k. What he sells your old car for after wards is irrelevant, that's his profit.

Tinkerbell4484

bazz26 wrote: »

No matter which way you want to do the figures its the same thing.

You owe 12k, he is allowing you 11k so you still owe the finance company 1k. You are then financing a newer car selling for 34k plus the 1k you already owe them = 35k, less a 10% deposit from you = 31.5k. What he sells your old car for after wards is irrelevant, that's his profit.

Is pcp on a 191 a better option in your opinion?

Mjolnir

bazz26 wrote: »

No matter which way you want to do the figures its the same thing.

You owe 12k, he is allowing you 11k so you still owe the finance company 1k. You are then financing a newer car selling for 34k plus the 1k you already owe them = 35k, less a 10% deposit from you = 31.5k. What he sells your old car for after wards is irrelevant, that's his profit.

Again bazz speaks sense, in all reselling what the reseller buys and sells as well as profits is no one else's concern.

Even if you sell it privately op you'll still end up financing a similar amount.
Assuming you personally sell it for let's say €15k, clear the finance and put another €500 to the €3k deposit you'll still have to finance €31,500.

Depends the deal you're getting on the 191 car op as well as the cost to upgrade.

bazz26

Tinkerbell4484 wrote: »

Is pcp on a 191 a better option in your opinion?

Your problem is that you have no equity in your existing car, the best you could probably do is break even and sell/trade it to wipe out the existing finance. To then go PCP on a 191 A6 you will probably have to stump up a sizable deposit of about 10% to keep monthly repayments reasonable.

I suggest you probably should have a rethink around your existing car given that you still owe so much on it. I'd focus on clearing that debt first before even thinking about borrowing for a newer car as all you are doing is snowballing finance including large amounts interest from one depreciating asset to another without making any real headway in reducing what you owe. You will be back in the same position in 3 or 4 years time but your negative equity may be worse.