Finance Options

[Lauren]

Has anyone had any thoughts on this?

I had a brief look whilst at the dealer yesterday and have since played around with the finance options on the aygo website.

Have decided i would like:

Sport (can't be doing without a rev counter but would happily ditch the pointless fog lights i'll never use).

Air con

5 speed

in Chilli Red

on a PCP it works out for a model of this spec @ 15K miles with a 2.88K deposit at £106 per month over 36 months with a trade in deposit value of 2.8K for another one in three years time.

Tbh £100ish a month is pretty good i think for trouble free cheap motoring.

[Al J]

Seems reasonable enough to me.

[System~G]

Lauren, with all this test driving, posting in the Aygo forum and general enthusiasm for the little car...

Am I wrong in thinking you're getting one?

[KidKoala]

You're not wrong!

[Lauren]

Lauren, with all this test driving, posting in the Aygo forum and general enthusiasm for the little car...

Am I wrong in thinking you're getting one?

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Yep i plan to get one next year.

[SMW]

the future value is not a deposit against another one it's to settle the outstanding amount isn't it ?

[Fidgits]

the future value is not a deposit against another one it's to settle the outstanding amount isn't it ?

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Thats what I thought...

Its the 'final crippling payment' - I thought with PCP, you either pay that lump sum to own the car, or give it back...

And you pay interest on that lump sum over the period as well dont you?

[Blaze]

if you want to change the car at the end the lump sum goes ontop of your next car.

[Lauren]

if you want to change the car at the end the lump sum goes ontop of your next car.

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I thought it was a deposit against your next car?

[aygo]

if you want to change the car at the end the lump sum goes ontop of your next car.

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I thought it was a deposit against your next car?

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the lump sum is the gmfv guarenteed manufactures future value. u still owe this so u can

a. give it back and walk away providing u have not gone over the allocated mileage u own nothing

b. pay what u own either all at once or re finance it

c. give it back and get another new car. say lump some is £2500 and they value yours at £2800 u will have £300 towards a new one

hope that helped im not a very good speller

[SMW]

PCP -

A made up example for explanation - OK here goes . . . . .

Car costs £15 000.

You haggle £500 off and get £1 000 for your old banger.

You need to finance £13 500.

The future value is £6 000.

Over 36 months you pay the interest on £13 500 and the capital on £7 500. £6 000 of capital is deferred to the end of the agreement (sometimes referred to as a balloon payment).

(there are also usually some arrangement fees and other cons as well).

In 3 years time you can either:

1. sell your car privately and repay £6 000 to the finance company (so if you sell for £6 600 you pocket £600, if you put it on e bay and get £5 400 you will need to add £600 from your own money)

2. hand over £6 000 from savings or a loan to keep the car

3. hand the car back and you owe nothing (you have basically hired the car for 3 years) - might have to pay fees if you have exceeded mileage agreed etc.

4. change to a new car - the dealer will value your car at say £6 200 (it must be at least the guaranteed future value but how much over that is out of your hands) - they then take £6 000 to repay the finance and you would have £200 deposit on your next car. Of course the dealer might value it at £7 000 giving you £1 000 deposit on your next car and you might feel well chuffed but be careful - you probably could have got £1 000 off anyway - this is just a free lunch to get you to sign another 3 year deal (all that lovely interest ! )

BTW - expect stupid interest rates as well - they sell these things as if they are doing you a favour !

Not saying don't do PCP but do the sums . . . it can be expensive.

The best way to do it is to haggle a low APR and then save monthly to have the lump sum ready in 3 years - easier said than done I know !

And in case it's not clear . . . worse thing to do is hand car back.

HTH.

[Lauren]

PCP -     

A made up example for explanation - OK here goes . . . . .

Car costs £15 000.

You haggle £500 off and get £1 000 for your old banger.

You need to finance £13 500.

The future value is £6 000.

Over 36 months you pay the interest on £13 500 and the capital on £7 500. £6 000 of capital is deferred to the end of the agreement (sometimes referred to as a balloon payment).

(there are also usually some arrangement fees and other cons as well).

In 3 years time you can either:

1. sell your car privately and repay £6 000 to the finance company (so if you sell for £6 600 you pocket £600, if you put it on e bay and get £5 400 you will need to add £600 from your own money)

2.  hand over £6 000 from savings or a loan to keep the car

3. hand the car back and you owe nothing (you have basically hired the car for 3 years) - might have to pay fees if you have exceeded mileage agreed etc.

4. change to a new car - the dealer will value your car at say £6 200 (it must be at least the guaranteed future value but how much over that is out of your hands) - they then take £6 000 to repay the finance and you would have £200 deposit on your next car. Of course the dealer might value it at £7 000 giving you £1 000 deposit on your next car and you might feel well chuffed but be careful - you probably could have got £1 000 off anyway - this is just a free lunch to get you to sign another 3 year deal (all that lovely interest ! )

BTW - expect stupid interest rates as well - they sell these things as if they are doing you a favour !

Not saying don't do PCP but do the sums . . . it can be expensive.

The best way to do it is to haggle a low APR and then save monthly to have the lump sum ready in 3 years - easier said than done I know !

And in case it's not clear . . . worse thing to do is hand car back.

HTH.

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Cheers for that. Makes perfect sense now i think about it. Its basically the old adage, if it sounds too good to be true it normally is.

cheers.

[popwud]

Lauren..what do you mean you dont need fog lights....you have to switch them on in the daytime. :)

[Lauren]

Lauren..what do you mean you dont need fog lights....you have to switch them on in the daytime. :)

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I wish front fogs would be banned tbh... if i had a sport i would never switch them on, ever.. ;)

[T600]

Lauren..what do you mean you dont need fog lights....you have to switch them on in the daytime. :)

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I wish front fogs would be banned tbh... if i had a sport i would never switch them on, ever.. ;)

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Well they're quite handy sometimes - like when it's foggy :D

[Lauren]

Well they're quite handy sometimes - like when it's foggy  :D

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I wish someone would tell that to the tw*ts that put them on in the rain, in the daytime and throughout the entire winter..

;)