Hello everyone,
I have been driving a Peugeot 206 1.4 auto for more than a year now (https://www.pakwheels.com/forums/t/my-first-car-in-uk-peugeot-206/257585) and I decided to change it. I wanted to get a nice car and with my savings I could not buy a car with full payment. After a lot of discussions with colleagues and family, I thought that the best way to go about it is to get a car on monthly installments with an initial deposit. The personal contract plan (PCP) option looked the most favorable and nowadays everyone buys nice cars on this finance package.
Then I had the option of a Ford Fiesta,VW golf, Mercedes A/C class, BMW 1/3 series or Audi A3/A4 - the Audi A3 seemed to be the most reasonable option.
So I went to my local Audi dealership 2 days ago, they showed me various cars and I agreed to get the best spec'd car.
The dealership explained the Finance options to me and the PCP plan suited me the best (https://www.audi.co.uk/explore-models/finance.html)
The cost:
As I am in UK on a work visa since 2016, I did not have a good credit history ( which usually means residing in UK and maintaining a regular account in UK for at least 3 years). The Audi finance department advised me that I should pay a deposit of 20% of the net worth of the car.
So this was the deal:
I put in 4,044 GBP (Net worth was 20,000 GBP)
The dealer contributed 500 GBP
My old car (https://www.pakwheels.com/forums/t/my-first-car-in-uk-peugeot-206/257585) was part exchanged for 150 GBP
Now I have too pay a monthly sum of 244 GBP to Audi for the next 4 years.
The annual tax on this car is 30 GBP.
The insurance on this car is 120 GBP per month ( The insurance on my previous car was 150 GBP per month)- I have just got my UK drivers license and have 1 year no claims bonus on my previous insurance.
So in summary, I get to drive an almost new car for around 360 pounds per month ( which is 210 GBP extra per month than what I was paying for my Peugeot)
Here's a link to my guideline:-
