Finance And Final Payment

[GeeUK]

Why do they do this? Why cant you just leave a big deposit and then pay off the rest monthly?

Have been looking at some deals on cars and they are over 3 years with a last payment of £3000+, I dont have money like that laying around.

How have others got around this, etc? Or are you all rich?

 

[fUbAr]

bank loan mate, much better than car finance.

 

[iceblue182]

people dont often pay it off.

most people give the car back and get a new one.

dealers do it so they get repeat business, buyers do it so they can have a new carevery 3 years with warranty etc

 

[dailyd]

I wouldnt ever get a new car, and I would avoid finance if I could, I hate debt, I save before I buy anything, best way to avoid debt.

 

[geordieclio]

your car will be worth that or more (possibly) if so you part ex it and but the difference between the final payment and the value of your car down as a deposit on a new car or get a loan from a bank for example and pay the final payment that way

 

[MattyMarsh]

You simply take out a new loan to pay off the balance.

Without this type of finance package, youd have to take out an 8 year loan, or pay very high monthly installments.

 

[GeeUK]

Dont like these bloody options! Mite have to stick with the sh*tty 1.2

 

[rory182]

I got my 182 on one of these monthly payment + final payment thing. I dont plan to keep it when the 42 months are up, the cars been given a guaranteed value I think 40% after 3 years or something so I could pay the final payment (£4500) and then sell the car privately for £7k or something.

I always said Id never buy a new car, but its cheaper than running my old 205gti when I take the fuel savings and repairs bill into account - insurance aint much dearer either.

 

[GeeUK]

Im too poor for all this Cant help wanting more power thou.

 

[fUbAr]

http://www.fubarnet.com/forsaleCLICK ME

 

[GeeUK]

Dont like PH 1s.

 

[rory182]

Get a 106gti for about £4 - £5k

 

[GeeUK]

Quote: Originally posted by rory182 on 19 January 2005


Get a 106gti for about £4 - £5k

Sounds good, but what REG plate could I get for that price?

 

[Toypop]

Most of these schemes have a negligable deposit. So you do what I do - put what was your deposit in an ISA for the three years.

The interest you earn on the ISA can compensate for the interest you pay on the finance. At the end of the agreement you already have the final payment to buy the car outright. If you hand the car back you have 4 grand in cash or whatever sitting around for a deposit on another car.

 

[rory182]

Quote: Originally posted by Toypop on 19 January 2005


Most of these schemes have a negligable deposit. So you do what I do - put what was your deposit in an ISA for the three years.

The interest you earn on the ISA can compensate for the interest you pay on the finance. At the end of the agreement you already have the final payment to buy the car outright. If you hand the car back you have 4 grand in cash or whatever sitting around for a deposit on another car.





So what does that mean, u pay the deposit and put the same money aside? Or are you doing this instead of paying a deposit?

 

[davebem]

VTR?

 

[GeeUK]

C2 VTR

 

[Toypop]

Quote: Originally posted by rory182 on 19 January 2005

Quote: Originally posted by Toypop on 19 January 2005


Most of these schemes have a negligable deposit. So you do what I do - put what was your deposit in an ISA for the three years.

The interest you earn on the ISA can compensate for the interest you pay on the finance. At the end of the agreement you already have the final payment to buy the car outright. If you hand the car back you have 4 grand in cash or whatever sitting around for a deposit on another car.






So what does that mean, u pay the deposit and put the same money aside? Or are you doing this instead of paying a deposit?

Normally you save up a deposit for a car right? Well when you get smaller cars like the 1.2 16v Clios on a selections scheme you barely pay any deposit. On my 1.2 it was £200 and I cut out a coupon in the paper that cut that down to zero deposit.

So I stuck the few grand I had save up for a deposit in an ISA - £3k was the amount of the final payment so I knew I had the cash to keep the car at the end. I earned nearly £400 in interest off that deposit over those three years.

I handed the car back anyway and was left with loads of money for a deposit on another car as I had saved up even more during those three years.

 

[Ads_172]

For 4/5k you can get a really clean 106 GTi mate, ranging from a T upwards.

So... what kind of initial deposit, monthly payments, and final payment would I be looking at if I wlaked into my Renault dealer tomorrow and said I wanted to buy a 182?

 

[GeeUK]

Quote: Originally posted by acrebo on 19 January 2005


For 4/5k you can get a really clean 106 GTi mate, ranging from a T upwards.

So... what kind of initial deposit, monthly payments, and final payment would I be looking at if I wlaked into my Renault dealer tomorrow and said I wanted to buy a 182?

Im after a Pug 106 GTI now

 

[paul g]

i bought my cup 53 plate with 4k on the clock last june and put down £150 deposit , min, and im paying 228 a month for 5 years (i know) but after 5 years thats it bought.

 

[rory182]

Quote: Originally posted by GeeUK on 19 January 2005

Quote: Originally posted by acrebo on 19 January 2005


For 4/5k you can get a really clean 106 GTi mate, ranging from a T upwards.

So... what kind of initial deposit, monthly payments, and final payment would I be looking at if I wlaked into my Renault dealer tomorrow and said I wanted to buy a 182?

Im after a Pug 106 GTI now

miami blue or black imo but diablo red looks good too, my mate has a gold one.

 

[Swervin_Mervin]

Gee, you can put down a big deposit if you wish, and then monthly payments. Thats a normal HP agreement.

The one youve highlighted is a PCP. These can be good on makes like Citroens where residuals are poor, as youre guaranteeing a final value with them that you can use on buying from them again (if you know thats likely to happen).

To get good finance though you really have to know what youre demanding in terms of rates etc as this is where most dealerahips and traders now make their money. Theres actually very little markup on the cars.

Bank loans are usually a far better way of financing anything though.

 

[ukaskew]

I got my 1.2 Dynamique on a 0% PCP, put £800 down to start with (minimum was £100), now have 35 monthly payments of £140 and a bill for about £3030 in June 2005. Havent quite figured out what to yet though as its based on 10k a year and Im potentially going to end up on 34k which at 6p per mile over is going to be a huge hit. Reading the details I can hand it back once Ive paid half the total amount which I am seriously considering, then I can get a brand spanking new 182 Cup within a matter of months.

As it stands though its working well, dont even notice £140 per month as its a fairly small amount and Ive got used to it now, the final payment is there but people rarely pay it, just trade up for a new model. Not the cheapest way to drive but its a new car every 3 years and due to the warranty, the AA cover and lack of MOT its very cheap to actually run the car

 

[Levo]

Ive been reading my agreement too. Same as ukaskew above. Can give mine back when Ive paid half total agreement price (Im about £1k short at the mo), or wait till Dec then pay £2777 to buy the car outright - totally agree thats its a proper ball-ache - I want to get shut of it now! Am considering getting a loan for a new car (or bike) with £1k extra to pay off Renault.

 

[ben_p]

wot group insurance are 106s gtis

 

[GeeUK]

Group 14 ! Might aswell get a 172 !

 

[daz182]

Bank loan the whole car...

£12000 over 5 years etc....

or

Pay the finance for 3 years then get a bank loan to pay the rest(final Paymeant)

Or

hand it back and get a shiny new one, after the 3 years

Or

go out and theive one

Or

use public transport

 

[fizzy_drink]

Hi Gee,

I got mine on an Ad-Hoc sheme with RFS. Barely any deposit, then price of the car over four years at 8.3%apr.

At the end of 4 years, I own the car.

I think its under £350 a month that way. After two years, if youve not done too many miles, the car will be worth more than whats remaining on the finance. Thats a good position to be in.

If you take out finance over too long a period, youll find it difficult to get rid of the car, because youll owe more than its actually worth for quite a long period (you will obviously catch-up after a while, but the sooner you break even, the better).

PS The PUG is a nice car anyways!

 

[benhwolves]

Being boring here mate but id keep your car for a while and save some dosh, it may only be a 1.2 but it looks decent and im sure its cheap to run and im sure many ppl on here would love a car like it

 

[GeeUK]

Yeah mate, already decided to keep it for a while. I have already spend over £4-5000 on it and I havent even had it a year! Need to get some pleasure out of my cash!

Would love bucket seats and engine mods etc, but just dont see the point with 1.2.

Hard knock life eh.

 

[Ads_172]

Quote: Originally posted by GeeUK on 24 January 2005

Group 14 ! Might aswell get a 172 !

Wouldnt recommend getting a 106 simply to save on insurance though. VFM is the important factor and the odds are that the 172 will continue to depreciate over the next couple years, until you can pick one up for a few grand. The chances are that a £4000 GTi will still be worth £2500 or so in a couple yrs, therefore not losing as much.

Plus, to get an equivalent-quality 172 or GTi, the prices will be about £7000 for the 172 and £4000 for the 106.

The sensible choice is to keep your current car mate but Im in the same boat and Ive written that option off after the summer!

 

[fizzy_drink]

Gee, now I remember seeing your post in the pics section, and I must say that its the best-looking modded 1.2 Ive ever seen.

Plenty of people would love to have something as nice as that... but you already do...

 

[GeeUK]

Cheers Omar and thanks for the replies ev1. Heres some pics for good measure

http://erc.qmuc.ac.uk/cliosport/gallery/full/1104352538__MyClio48.jpg

http://erc.qmuc.ac.uk/cliosport/gallery/full/1103802633__DSCF0647.jpg

 

[casiodan]

Quote: Originally posted by Levo on 24 January 2005

Ive been reading my agreement too. Same as ukaskew above. Can give mine back when Ive paid half total agreement price (Im about £1k short at the mo), or wait till Dec then pay £2777 to buy the car outright - totally agree thats its a proper ball-ache - I want to get shut of it now! Am considering getting a loan for a new car (or bike) with £1k extra to pay off Renault.

The first car i bought on finance was when i was 19 and i got stung completely. It was my own fault but i had load of cash in them days and i liked the car.

2 1/2 years later when i realised i was paying stupid money for a car that actually wasnt that great i took up the option to hand the car back after 50% has been payed.

I thought there was a catch but there isnt. I just phoned up , they sent an assessor to look at it and told me where i needed to take it and when.

That was it, no more payments (or crap car) and no adverse credit.

The only thing to watch is that the assessor doesnt try to rip you off. The car i had was 8 years old at this stage and they tried to get me to pay for a respray because of key marks round the lock!

They said i would have to pay £1800 (repairs etc) to finish the agreement but after some argueing (not much TBH) i got it down to £80 for 2 new tyres. Most of the £1800 was for the paint job but they realised that keymarks round the locks was to be expected on a car that age and i also told them that they were there when i bought it.

It was a better option in my case to cut my losses and cancel the whole deal and start again with some better finance deals.

So you know how bad it was, i was paying £141 per month for 5 years on a 6yr old (when i bought it) FORD FIESTA 1.1 ..............i said i got stung. The interest rate was about 20%apr.

And that was from a well known lender and quite a big second hand car place, not a back street garage whos best mate is a loan shark.