Anyone test drive an R and GTi and still choose the GTi

[mk7gti]

Some interesting numbers for sure. That would mean a cash buyer could run an R for 3 years for £241 pm and a GTI would cost £288 (assuming 10% discount). The R really is a bargin...

[monkeyhanger]

Some interesting numbers for sure. That would mean a cash buyer could run an R for 3 years for £241 pm and a GTI would cost £288 (assuming 10% discount). The R really is a bargin...

I plan on doing exactly that with an S3 in about a years time, maybe it'll cost me closer to £280 a month

[mk7gti]

And those numbers assume the GFV after 3 years. If you look after your car the monthly figures will be even lower . It makes you realise how expensive car finance actually is..

[monkeyhanger]

And those numbers assume the GFV after 3 years. If you look after your car the monthly figures will be even lower . It makes you realise how expensive car finance actually is..

Aye, it certainly does, VW engineer it that way - the higher the GFV, the higher the amount of interest they get out of you. Interest on a GTD/GTI/R will easily add £100 a month over 3 years, if you're easy on the options and don't put a huge deposit down. The Audi dealer quoted me £17600 GFV on an S3, but said Audi are very conservative on theirs, and to expect £3k on top of that if it's in good condition and nothing screwy happens with the used car market during ownership duration. VW seem to quote on the high end of reality. Probably only another grand on top of GFV in p/x if we're lucky, but then the R GFV is already set higher than the S3's.

VAG finance is currently running at 6.5-7.5% APR for most models, they are making a killing on finance, considering how low interest rates are in the UK and across the Eurozone right now. When we had a base rate of 4.5%, finance and personal loan interest rates were barely higher, certainly lower than they are right now, with a base rate of 0.5%. The Germans get to buy VWs on VW finance for less than 2% APR.

[carl1]

Some interesting numbers for sure. That would mean a cash buyer could run an R for 3 years for £241 pm and a GTI would cost £288 (assuming 10% discount). The R really is a bargin...

Am i being thick but how do you come to £241 a month for a R ? I'm a potential cash buyer.

[monkeyhanger]

Some interesting numbers for sure. That would mean a cash buyer could run an R for 3 years for £241 pm and a GTI would cost £288 (assuming 10% discount). The R really is a bargin...

Am i being thick but how do you come to £241 a month for a R ? I'm a potential cash buyer.

If you wangle a 10% discount and have no options (they are the bane of depreciation, major ones like leather and DSG hold about 20% of cost, lesser ones can add between 0 and 10% of their RRP to your p/x price), you'll be paying £26991, GFV is £18104. If you get no more than GFV at 3 years old, you'll have lost £8887. Split that over 36 months and you have lost £247 a month on it. That's £247 with nothing else down, compared with leasing on 6+23 terms for a 2 year lease or 6+35 terms on a 3 year lease and ultimately paying about £1200 more out.

If you add £3k worth of options however and they're adding £600 to future p/x value, you've lost £2400, or added £67 a month to your costs. £3k options on a £30k car adds 33% to the cost of your purchase's depreciation - something to think about! For someone buying on finance, those options will be costing them an extra £100 a month when interest is factored in.

[mk7gti]

Thanks monkeyhanger you beat me to a response.

Imagine the scenario of leaving an immaculate R back to the dealers in three years and they give you 1k more over GFV. That would mean a depreciation of ~£7887 or £219 PM. A ford fiesta would cost as much. Sorry i'm getting carried away selling an R to myself...

[carl1]

^^^^ monkeyhanger and Mk7gti  I'm a bit lost excuse me  Do you mean selling it private for at least the GFV or on PCP

[mk7gti]

Yeah sell it privately or a good trade-in value.  The forecourt price will always be above the GFV unless the market goes Pete Tong.

[carl1]

Oh yes i'm with you now, i nearly bought a white 5dr with nav for 26k privately with less than 2k miles. That was a good buy but i couldn't be bothered in the end too far away. I saw it on the VW site last week 30k, it sold within days.