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Discussion Starter · #1 ·
Hi all, my car is due for delivery for the first quarter of 2009, can anybody recommend a good finance company for the R8, I am looking for a PCP or balanced repayments scheme but am not sure which way to go. Any advice would be welcome.
 

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Hi all, my car is due for delivery for the first quarter of 2009, can anybody recommend a good finance company for the R8, I am looking for a PCP or balanced repayments scheme but am not sure which way to go. Any advice would be welcome.
Dude! You're buying an R8 and you're asking about a "finance company"? Maybe you need to rethink this purchase.
 

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Not sure why he should. I couldn't have bought one with out a loan.

Is the car only for the very rich?

You could ask Audi for their best rates
 

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If your cash tight, make sure that Audi does not reward your long wait with a price hike. I'm going through this now. Ordered the car mid last year, will take delivery sometime in the next months and get the benefit of the new, higher list price - courtesy Audi..
 

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Dude! You're buying an R8 and you're asking about a "finance company"? Maybe you need to rethink this purchase.
I know my $150k this car will cost me is better invested in something else. I can finance the R8 instead of throwing that kind of money into it.

Also most of my assets are in companies. Taking $150k out will mean taxes, taxes I can defer over 4 or 5 years instead. Around here you can't justify a $150k car as your company car either so no use putting it in my company...
 

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Financing an expensive depreciating asset's a bitch! I have a friend who financed about $100k of a $200k boat on a 15 year loan to keep the payments low, 5 years later he sold the boat and barely got enough to pay off the loan balance, forget about recovering the original $100k (I think he must have seen that coming, but it still sucks!)
If your in the US at least, some sort of home equity tax deductable loan is definitely the way to go.
 

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I may be wrong but "finance company" to me implies high interest rates. I agree with 996TT that financing a depreciating asset is ill advised.
 

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I have a decent balanced payments agreement, financed by Lombard, and sourced through a broker. I put a chunk of my own cash down, and factored the final 'balloon' payment so ensure I got all (at least) of my own cash back - so effectively my cash is simply offset against the total, thus reducing overall interest.

It works out quite well - I know exactly how much the interest is costing me over the finance period, and being a balance payments scheme, the interest is spread evenly over the term, so I can sell the car on at any time without incurring penalities, and without having paid mostly interest (and no capital) off the amount borrowed.

I used 2 different brokers for my last 2 cars (both of which financed in the same way) and will happily provide details and personal recommendations on request.

Financing a depreciating asset is no more or less stupid than purchasing it outright with cash, if you go about it the right way. Obviously purchasing it with 'Store Card APR' would be financial suicide... but if you work out the pros and cons of what you could do with the sticker price instead of handing it directly to the dealer, the net 'cost' for using finance is probably negligible - and in some cases may not be a 'cost' at all, if you are one of those people that can get a decent return on £85k over and above what you'd get if you put it in the bank... ;)
 

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Pike

Not sure which country you're in but I got my car a few weeks back and best finance deal I managed to negotiate was with VW-Audi finance via my dealer.

APR rate 5.5% with the usual admin fees refunded.

Re. price hike - they honoured the price in force at the time that I confirmed my specs.
 

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Discussion Starter · #11 ·
I am in the uk in fact not far from yourself just down the road in oldham. which dealership have you used! 5.5% seems a good deal!
 

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I used York but of course all Audi dealers should have access to the same deal.

5.5% APR applied to a HP arrangement and to get the lowest rate I had to lend the maximum 85% and repay over the shortest term, 18 months.

PCP arrangement would have been slightly dearer but still less than 6% APR.

Whoever you go with make sure you ask the salesmen if they will refund the admin fees. Most will if it seals the deal to get them their commission.
 

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Financing a depreciating asset is no more or less stupid than purchasing it outright with cash, if you go about it the right way. Obviously purchasing it with 'Store Card APR' would be financial suicide... but if you work out the pros and cons of what you could do with the sticker price instead of handing it directly to the dealer, the net 'cost' for using finance is probably negligible - and in some cases may not be a 'cost' at all, if you are one of those people that can get a decent return on £85k over and above what you'd get if you put it in the bank... ;)
Good luck in the world markets right now. Had you been investing these last two months and do anything other than shorting and day trading, I'd say you probably lost more money than with a credit card apr.

Unless you can gaurantee yourself that you will make atleast the same interest on your investment as the financing, it doesn't make any sense. You are losing money to interest, plain and simple. If you can buy it outright and are financing so that you can have some spare cash set aside for possible investments or emergencies, you shouldn't be buying it in the first place, as breaking the bank for a car doesn't make sense to me.

Just my two cents.
 

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Hi all, my car is due for delivery for the first quarter of 2009, can anybody recommend a good finance company for the R8, I am looking for a PCP or balanced repayments scheme but am not sure which way to go. Any advice would be welcome.
Not to come across as a snub or a party pooper but for a car that cost more than 100k you need to either pay cash for it or put at least more than half down, I personally was fortunate enough to have bought google when they went public and sold some to pay for the car in full otherwise I would have never thought about R8 to begin with.

But I know there are companies that finance cars for 10-15 years but with thid economy god knows what the interest rate would be.
 

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Not true, I put £1500 down as my deposit and then when the car was ready was prepared to pay for it in cash. As a financier by profession tho' I thought I'd ask around to see what finance deals were available particularly as the so called credit crunch had just happened. For me the most important factor was the lowest real interest rate so when the dealer offered 5.5% APR all in, I didn't hesitate. To get this rate tho' I had to pay the minimum in cash and take an 18 month repayment plan. So the cash that was intended for the car is now sat in the bank or on the markets as theres no better time to invest than when the markets are volatile and Joe Public is steering clear.
 

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Discussion Starter · #18 ·
Reading the two pages of reply’s it seems our US friends don’t have any experience nor need for car finance! They are so busy investing in google that they have forgot they are leading a world recession! Brilliant!:)
 

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Speak for yourself, Krassy...

I have cash and capital, but would prefer not to liquidate enough to spend the full asking price of the R8 outright.

More to the point, I have an excellent monthly cashflow which means I can afford to pay a high ongoing amount on a continuing basis.

So it isn't necessary to pay the entire car (or even half of it) in cash. I could have put a bigger amount down if I had wanted to, but there was no point. The extra cost of interest is measurable, and is negligible versus putting less down and retaining more of my cash/capital in the bank/property/bonds/stocks or whatever.
 

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Reading the two pages of reply’s it seems our US friends don’t have any experience nor need for car finance! They are so busy investing in google that they have forgot they are leading a world recession! Brilliant!:)
The problem is that there is no good investment right now that will really offset your financing interest safely. Markets are still too volitile, and no CD or bond will get you the same % as your financing.
 
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