Buying a new car

Phate · 17 Mar 2006 at 18:36

Hey people read this
and this
before you continue

ok so im looking at a new car, now whilst in vauxhalls today i spoke to the nice lady with a decent rack on her and she said about this deal they are doing

i can get a brand new Astra 1.6 SXi with all the trimmings with a 500 quid deposit and then 260 a month thereafter for over 3 years, and anything goes wrong i take it to them and they sort it under waruntee, then at the end of the 3 years ive got 3 options

1. Pay off the rest of the money and keep the car

2. Give the car back to them and leave it at that

3. Trade it in part exchange for a new vauxhall (They said itll be worth about 4 grand by then) and go on the same deal so in effect i get a new car every 3 years

now i am sorely tempted by this, so i contacted my insurer (Churchill) and asked if i could move my current policy over to a new car and just pay the extra, they said thats absolutely fine (£600 more),

now its 0% interest over the 3 years so i wont pay anymore than i have to.

Like i say im very tempted by this, does it sound ok to go for? i think it does but want other peoples opinion.

Any questions feel free to ask.

Cheers

L0rdMike · 17 Mar 2006 at 18:37

With your current car such a Fire risk and having major electrical issues do you really want another Vauxhall?

-westy- · 17 Mar 2006 at 18:38

i think you'd get bored of the same car for 3 years, I know I would, and i'm not much older than you.

Phate · 17 Mar 2006 at 18:39

L0rdMike said:
With your current car such a Fire risk and having major electrical issues do you really want another Vauxhall?

yes because in all fairness the car has been in 2 accidents before (before i got it) i dont no if it was repaired by vauxhalls before so it could have been repaired by any shoddy person who simply hasnt done a proper job

Koncordski · 17 Mar 2006 at 18:42

It's ok if you're prepared to be locked in a finance agreement. I've done this a few times and it works ok. A more cost effective way to do it is get a personal loan at about 6.5% and buy the cra for cash. Then if you want to get rid it's easier. You'll take a hit on depreciation though.

For you i'd recommend getting a dealer second hand car with initial depreciation gone but reasonable warranty and paying cash (with loan).

Sam · 17 Mar 2006 at 18:53

-westy- said:
i think you'd get bored of the same car for 3 years, I know I would, and i'm not much older than you.

I agree , i find it hard to keep a car 6 months let alone 3 years :eek:

Jonners · 17 Mar 2006 at 19:02

-westy- said:
i think you'd get bored of the same car for 3 years, I know I would, and i'm not much older than you.

Whilst I feel the same and being a bit older than you, I have no choice but to stick with what I have.

If I could afford insurance on something decent, i'd jump at the chance.

Ev0 · 17 Mar 2006 at 19:17

That's just a PCP deal is it not (i forget the proper term if it's not a pcp).

Every manufacturer will do it, you pay a deposit, monthly payments for x years.

They give you an agreed value for the car at the end so you either pay off the final sum and keep it, give it back and walk away, or trade it in. Or if the agreed value is less than market value you can always pay it off and then sell it for more

Looked on broadspeed, and based on doing 15k a year the payments would be:

36 Months 45000 Miles £243 incl. VAT £4500, with approx 500 deposit.

Less miles per year means less monthly payments but higher final payment.

That's for brand new etc etc at a broker price.

Phate · 17 Mar 2006 at 19:26

well the deal was for 12k in miles a year im yet to do over 1k a month as i dont use it for work and it was for 260 a month, and then got the lump sum at the end of 4k which ill probably put to a new car

[TW]Fox · 18 Mar 2006 at 03:03

Buying a brand new depreciation disaster on dealer finance is an utterly stupid idea - you will end up in negative equity quick as a flash becuase the car will be worth £2k eventually despite the fact you'll still owe about £8k..