Strange offer from Honda, new car for old for less money...

Soldato
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I'm a big believer of not getting anything for nothing, and certainly not trusting car dealerships! So when my mother told me about a call they've just received from the Honda dealership it has me very suspicious!

Basically my parents buy a new Honda every 2/3 years and they pay it off monthly rather then buying it outright. Their current one is just over a year old. The dealership have called to offer them a brand new car, exactly the same spec/colour as their current one for £50 less a month and there will be no increase in the number of the payments. So that's swapping a one year old car for a new one and asking for less money then they currently owe. The only proviso is they must take up the offer by the end of the month.

What's the catch? Has anyone heard of such a thing before? What do they get out of this?!?

The only thing I can think of it's related to the end of the tax year and they have to meet a quota for car sales or something along those lines...
 
A "no increase in the number of payments" could simply mean "its still 36 payments like your old car was at the start"

Would need more info to see for sure:

Current payments
term left

New payments
New term.
 
If they swap there car every 2/3 years anyway, and even if it does re-start the payments.

Still doesn't sound a bad deal.
 
Is it for a new civic by any chance? They seem to be getting desperate to move them out the door now.

Still can't really comment on the "deal" without details really
 
A "no increase in the number of payments" could simply mean "its still 36 payments like your old car was at the start"

Would need more info to see for sure:

Current payments
term left

New payments
New term.

If it was that it would make sense as the money paid so far would account for the depreciation/trade in costs etc. But apparently it's explictely the same remaining term. i.e.

Currently £250 per month (i don't know the actual monthly costs they're paying)
Term left 24 months

New payment £200,
Term left 24 months.

They going into the dealership tomorrow to go over the details. I've just told them to make sure they're presented with the total costs they'll be paying once everything is completely paid for and the car is 100% theirs.

It just seems odd/unlikely.
 
Is it for a new civic by any chance? They seem to be getting desperate to move them out the door now.

Still can't really comment on the "deal" without details really

It is, one of the hybrid type ones that charges whilst you brake. I dislike it because it's uncomfortable but they love it!
 
Is there a hybrid version of the new civic? Thought it was only the insight now. I hate the civic because its one of the ugliest cars I've ever seen!
 
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Flog a new Civic they can't sell to your parents before the end of the tax year, and get back a nearly new used Honda they should be able to shift easy?

Meet their new car quota and make a sale of an approved used. Maybe thats the plan?
 
Is there a hybrid version of the new civic? Thought it was only the insight now. I hate the civic because its one of the ugliest cars I've ever seen!

I assumed it was a civic, just comparing my memory of what it looks like to the pictures on the website. It's definitely got the power regeneration thing though.
 
Make sure they aren't trying to sell them a PCP. Could be £50 cheaper with 24 months with the 'you'll have enough guaranteed value for the deposit on another new one in 2years' sales line
 
I assumed it was a civic, just comparing my memory of what it looks like to the pictures on the website. It's definitely got the power regeneration thing though.

Might well be an Insight 2. I have one.

I thought it was just the Insight, Jazz and CRZ hybrids that had regenerative braking now. There is a new Civic hybrid but it's not available in the UK.
 
They going into the dealership tomorrow to go over the details. I've just told them to make sure they're presented with the total costs they'll be paying once everything is completely paid for and the car is 100% theirs.

It just seems odd/unlikely.

Yep that's what I would be focussing on - total amount payable and make sure they've done their own sums in terms of the current deal for comparison. Check there are no hidden costs for them ending their current finance deal early or other changes in conditions like baloon payments and guarenteed future value.

On face value I'd be biting their hands off as it is identical spec and colour:
-More resale/tradein value
-Extra years' warranty (maybe not a big deal as they change cars before it runs out anyway)
-Over a grand cheaper
-Free tax for the first year
-New car smell!

Possibly might impact on insurance costs slightly (admin fees and possibly a small premium adjustment) but nowhere close to the finance payment savings.
 
I'd be very surprised if this isn't just a new agreement with lower payments, eg. they currently have 24 months @ £250 to pay, new agreement will be 36 months at £200 or whatever.
 
Its probably legit. I'm sure they could get more for their car / a better deal. But this kind of thing is aimed at people who really couldn't be bothered with all the hassle, and quite like driving up to a dealership and stepping into a new car every couple of years.
 
Dealerships get huge bonuses if they hit their volume target from the manufacturer so they'll occasionally be willing to sell a car at a loss in order to hit their volume target. Go in, get the facts but I wouldn't be that concerned about total costs if they are on a PCP as pretty much everyone changes after 2 years.
 
Have gotton a bit more detail! Quite a con! My mum insisted on them putting the whole deal in writing including all the finance paperwork so she could look over it overnight before agreeing anything. The salesman was very unhappy and gave it the "this is a very special special offer, I might not be able to do it tomorrow..." He insisted she would be saving every month as it was £50 cheaper. Anyway she got the paperwork and looking through the detail is where the penny drops. The final payment at the end of the 24 months is £7000!!!! My Mum swears this was never mentioned this at all! It's the kind of detail that would normal stand out when hearing about a finance agreement!

So all in all very glad nothing has been agreed to or signed and my position on cars salesman is unchanged!
 
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