Audi Approved Used & Solutions PCP Explained

Audi Approved Used and Solutions Personal Contract Plan: Your Guide

Embarking on the journey to purchase an Audi Approved Used vehicle is an exciting prospect. These vehicles represent a commitment to quality, reliability, and the sophisticated engineering that defines the Audi brand. When it comes to financing your dream car, Audi offers a variety of options, with the Solutions Personal Contract Plan (PCP) being a popular choice for many. This guide delves into the specifics of combining an Audi Approved Used purchase with a Solutions PCP, exploring what it entails, the benefits it offers, and key considerations to keep in mind.

What is an Audi Approved Used Vehicle?

An Audi Approved Used car is more than just a pre-owned vehicle; it's a testament to Audi's rigorous standards. Each car undergoes a comprehensive multi-point inspection by Audi-trained technicians, ensuring it meets stringent quality benchmarks. Beyond the inspection, Audi Approved Used vehicles typically come with a range of benefits designed to provide peace of mind, such as:

• A minimum of 12 months' warranty (and often more, depending on the specific offer).
• A 12-month roadside assistance package.
• A thorough vehicle history and mileage check.
• A complimentary 'Drive Away' insurance policy.
• A 30-day exchange plan, should any issues arise.

These assurances are crucial for buyers seeking the confidence of a nearly-new car experience without the brand-new price tag. The Approved Used status signifies a commitment from Audi and the dealership to deliver exceptional quality.

Understanding Solutions Personal Contract Plan (PCP)

A Solutions Personal Contract Plan is a flexible finance agreement that allows you to drive a new or used car with lower monthly payments compared to traditional hire purchase. The core principle of PCP is that you defer a significant portion of the vehicle's cost – known as the Optional Final Payment or Guaranteed Minimum Future Value (GMFV) – until the end of the contract. This deferred amount is based on an estimate of the car's value at the end of your agreed term.

Here's how a typical PCP works:

1. Initial Deposit: You'll pay an initial deposit, which can be a fixed sum or a percentage of the car's price.
2. Monthly Payments: You then make regular monthly payments over an agreed term (typically 2-4 years). These payments cover the depreciation of the vehicle over the contract period, plus interest.
3. Optional Final Payment: At the end of the contract, you'll have three choices regarding the car, which is often referred to as the balloon payment.

Can I Buy an Approved Used Audi with a Solutions PCP?

Yes, you absolutely can purchase an Audi Approved Used vehicle using a Solutions Personal Contract Plan. In fact, it's a widely available and encouraged financing method by Audi dealerships. This combination allows you to benefit from the assurances of an Approved Used car while enjoying the financial flexibility of a PCP agreement.

Audi often provides incentives to encourage the use of their Solutions PCP for Approved Used vehicles. For instance, there can be a deposit contribution offered by Audi Financial Services on used vehicles up to three years old (excluding battery electric vehicles). This contribution can be applied towards the cash price of the vehicle and/or your deposit, effectively lowering your overall financial outlay and monthly payments.

Important Note: While many cars advertised will be available as Audi Approved, it's always advisable to confirm with your local Audi Centre to ensure the specific vehicle you are interested in meets the Approved Used criteria.

The Three Options at the End of Your PCP Agreement

When your Solutions PCP contract concludes, you'll face a crucial decision. The three primary options are:

1. i) Retain the Vehicle: If you wish to keep the car, you will need to pay the Optional Final Payment. This payment settles the remaining balance and transfers ownership of the vehicle to you. You can often arrange to finance this final payment through another agreement, subject to status.
2. ii) Return the Vehicle: You can choose to hand the car back to the finance company. However, this is subject to certain conditions. You must ensure the vehicle has not exceeded the agreed mileage allowance (excess mileage charges will apply if it has) and that it is in good condition, adhering to the fair wear and tear guidelines. Failure to meet these standards may result in additional charges.
3. iii) Replace the Vehicle: You can part-exchange the car. If the vehicle's market value is higher than the Optional Final Payment, you will have positive equity, which can be used as a deposit towards your next Audi. This is a popular route for customers who like to upgrade regularly.

Benefits of Choosing Solutions PCP for an Approved Used Audi

Opting for a Solutions PCP with an Audi Approved Used car offers several distinct advantages:

• Lower Monthly Payments: As mentioned, the deferred Optional Final Payment means your regular monthly instalments are typically lower than those on a traditional finance plan, making higher-value vehicles more accessible.
• Flexibility: The three end-of-agreement options provide significant flexibility, allowing you to choose the path that best suits your circumstances at the time.
• Access to Newer Models: PCP can help you drive a newer or higher-specification Audi Approved Used model than you might be able to afford with a standard loan, as the lower monthly payments are more manageable.
• Manufacturer Contributions: Audi often provides contributions towards your deposit or the vehicle's cash price when you finance through Solutions PCP, further reducing your costs. For example, a £250 deposit contribution is often available on used vehicles up to 3 years old.
• Predictable Costs: With Audi Approved Used vehicles, you often receive comprehensive warranty and roadside assistance packages, adding to the predictability of your ownership costs.

Additional Benefits and Offers

When you purchase an Audi Approved Used vehicle from a participating Audi Centre and finance it with a Solutions Personal Contract Plan, you can often benefit from a package of added value. This can include:

• Service Plans: These can cover essential maintenance such as oil services, inspection services, pollen filter replacements, and even MOT tests, offering significant savings over time. For example, a Service Plan might cover 1 x Oil Service, 1 x Inspection Service with replacement Pollen Filter and up to 2 MOTs, subject to terms and exclusions (e.g., for engines 4.0L and above or fully electric vehicles).
• Warranty Enhancements: While all Approved Used cars come with a warranty, some offers might extend this coverage or provide additional peace of mind.
• Key Cover and MOT Cover: These complimentary products can protect you against the cost of lost keys or unexpected MOT failures.
• Electric Vehicle Offers: For those considering an electric Audi, there are sometimes special offers, such as contributions towards a home EV charger (e.g., a 7kW Ohme Home Pro or ePod with standard installation) when purchasing specific electric models with PCP. These offers are subject to terms and conditions, including residency and property requirements.

The total added value can be substantial. For example, a purchase might include £355 for Servicing and MOT value, £516 for a 1-year warranty, and £120 for Roadside Assistance, totalling £991 in added value for petrol/diesel models. For electric vehicles, the breakdown might differ, with potentially £308 for servicing, £516 for warranty, and £120 for roadside assistance, totalling £944.

Commission Disclosure and Your Rights

It's important to be aware that dealerships and their appointed representatives often act as credit brokers, not lenders. They have relationships with a limited number of lenders and may introduce you to the manufacturer's finance company or other independent providers. Listers Group, for example, clearly states their role as a credit broker and their commission disclosure policy.

If you are an individual, sole trader, or small partnership, and the credit agreement is regulated under the Consumer Credit Act 1974, you have the right to ask the dealer to disclose the commission they will receive for arranging the finance. This disclosure should be made in good time before you enter into the agreement. Dealers do not charge you a fee for these financial services; instead, they receive commission from lenders.

This commission can be a fixed fee or a percentage of the amount you borrow, and lenders may pay different rates. Some lenders might also offer preferential rates on vehicle stock or provide financial support for training and marketing. Crucially, dealers do not have the discretion to negotiate or adjust your interest rate, APR, or other credit charges. Your interest rate and APR will typically vary based on the vehicle's age and the amount borrowed.

Important Considerations

When considering an Audi Approved Used car with a Solutions PCP, keep these points in mind:

• Mileage Restrictions: PCP agreements have an annual mileage limit. Exceeding this limit will incur excess mileage charges at the end of the contract. Choose a mileage allowance that realistically reflects your annual driving needs.
• Wear and Tear: The vehicle must be returned in a condition that meets the 'fair wear and tear' guidelines. Minor scuffs and scratches consistent with normal use are acceptable, but significant damage will result in charges. Audi centres will provide detailed information on these guidelines.
• Battery Health for EVs: For electric Audi models, remember that lithium-ion batteries have a finite lifespan and their capacity reduces over time. While Audi offers an 8-year/100,000-mile new car battery warranty, the performance (including range) of a used EV will be influenced by the battery's condition. New car performance figures are for comparison only and will not reflect used vehicle performance.
• Exclusions: Be aware of any vehicle exclusions for specific offers. For example, deposit contributions might exclude battery electric vehicles, and certain warranty or service plans might not cover high-performance models like R8, S, RS, or A8 variants.
• Terms and Conditions: All finance offers are subject to status and availability. Terms and conditions can change, and offers can be varied or withdrawn at any time. Always ensure you have the latest information and understand all the terms before signing any agreement.

Frequently Asked Questions

Q1: What happens if I want to end my PCP agreement early?
You can usually end your PCP agreement early, typically after you have paid half of the total amount payable (including the Optional Final Payment). You can either return the car (subject to mileage and condition) or pay the remaining balance to own it. Speak to your Audi Financial Services provider for exact terms.

Q2: Can I buy an Approved Used Audi that is older than 3 years with a PCP?
Yes, you can purchase Approved Used Audis older than 3 years with a Solutions PCP. However, the specific deposit contributions or special offers may only apply to vehicles up to 3 years old.

Q3: Is the Optional Final Payment fixed?
Yes, the Optional Final Payment, also known as the Guaranteed Minimum Future Value (GMFV), is calculated at the start of the agreement and is fixed. This provides certainty about the car's minimum value at the end of the term.

Q4: What is the difference between Solutions PCP and Hire Purchase?
With Hire Purchase (HP), your monthly payments are higher because you are paying off the entire value of the car over the term. At the end of an HP agreement, you automatically own the car. With PCP, monthly payments are lower as they only cover depreciation, and a large final payment is due if you wish to own the car.

Q5: Can I negotiate the Optional Final Payment?
The Optional Final Payment is calculated by Audi Financial Services based on predicted depreciation and mileage. It is generally not negotiable, but the value reflects the anticipated market value of the car at the end of the contract.

In conclusion, purchasing an Audi Approved Used vehicle with a Solutions Personal Contract Plan is a smart and flexible way to drive a meticulously prepared Audi. It combines the peace of mind offered by Audi's rigorous inspection and warranty standards with the financial advantages and flexibility of PCP finance, making your next Audi experience both enjoyable and accessible.

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