Recommend a good Citroen or Hyundai

Kenai · 7 Jan 2018 at 13:48

Casdawer said:
My company car allowance is £270 so that car is only costing me £45 per month.

Well no, it's costing you £315 (plus your car as a deposit presumably and a final balloon). The car allowance is just money, no different to the rest of your pay packet. If you didn't spend it on the car, you'd have it in your pocket just the same as the rest of your salary.

Presumably at those figures you're on a PCP deal, so they'll probably catch you somewhere along the line for the £44 per month 'discount' he gave you.

Casdawer · 7 Jan 2018 at 13:51

[TW]Fox said:
No you're not, the finance company is. Which means you're going to be right back in the same negative equity situation

This would be true no matter what I did. When buying new, unless you pay it all upfront, you're always going to have negative equity.

The cost of the DS4 is £15,167 (it's a Pre Reg, 25 miles) with the total cost of the finance being £16,828.

Is this the best deal in the world? of course not but I was stuck between a rock and a hard place with my C1 not being up to the longer journeys plus my annual mileage being limited to 6k and me needing 15k.

There are no mileage limits and I will own the car at the end of this agreement.

[TW]Fox · 7 Jan 2018 at 14:29

Casdawer said:
This would be true no matter what I did. When buying new, unless you pay it all upfront, you're always going to have negative equity.

No you're not - if the deposit is large enough then you'll never be in negative equity.

Maybe the way out of constant negative equity is to not keep going for brand new cars with high depreciation if a decent deposit isn't an option.

Casdawer · 7 Jan 2018 at 14:32

[TW]Fox said:
No you're not - if the deposit is large enough then you'll never be in negative equity.

Maybe the way out of constant negative equity is to not keep going for brand new cars with high depreciation if a decent deposit isn't an option.

True.

In all honesty than Fox, if you were in my position, what would you do? If you think I have better options, I'm more than willing to listen

Jez · 7 Jan 2018 at 14:37

Buying £16,800 brand new Citroens does not seem like the best option when finances are clearly really tight like this. What was ever wrong with a good old £5000 Ford Focus or something sensible like that? :confused:

PeterNem · 7 Jan 2018 at 14:38

Casdawer said:
Later that day, I got a call from the Sales Manager and he told me what price (sensible) I'd be willing to pay and I said as £315 would be my limit and he agreed to sell me the car at that price.

This is the problem. Stop focussing so much on the monthly figure. What is the total cost over the term now compared to the original monthly figure you were quoted? I very much doubt the sales manager has discounted anything at all - he's not doing you a favour!

Casdawer · 7 Jan 2018 at 14:39

Jez said:
Buying £16,800 brand new Citroens does not seem like the best option when finances are clearly really tight like this. What was ever wrong with a good old £5000 Ford Focus or something sensible like that?

What would I do about the settling the 7.7k I owe the finance company?

Jez · 7 Jan 2018 at 14:48

Yo

Casdawer said:
What would I do about the settling the 7.7k I owe the finance company?

You mentioned £2700 of negative equity on the C1. If you literally have no savings then worst case suggestion, simply personal loan/homeowner finance say £7.7k, pay the car finance off, then buy a sensible ~£5k little Ford Focus or similar? You'd get a nice little car outright and wash your hands of this finance cycle you are in.

Casdawer · 7 Jan 2018 at 15:03

Jez said:
Yo

You mentioned £2700 of negative equity on the C1. If you literally have no savings then worst case suggestion, simply personal loan/homeowner finance say £7.7k, pay the car finance off, then buy a sensible ~£5k little Ford Focus or similar? You'd get a nice little car outright and wash your hands of this finance cycle you are in.

A 7.7k loan over 2 years is £331 @ 3.3% so I might as well keep the DS4 and then change it after the 2 years? What would I be gaining apart from a higher monthly payment a second hand car?

Peerzy · 7 Jan 2018 at 15:03

Casdawer said:
My plan is to keep this for 2 years and then trade it in for something a bit bigger i.e. the DS5 or DS7.

You realise this will never happen right?

By 'lowering the monthly payments' the Sales Manager has just upped how much negative equity you'll be in at the end of the term (assuming the length didn't change).

All you are doing is having a new car for 2 years and then instead of being in £2k of negative equity it'll be £5k and you'll be back at the dealer lubing up to accept a rubbish overpriced car because you "had no other option".

Borrow £8k, pay off the negative equity and buy a £5k car. Pay that £8k loan off over 2 years and at the end of 2 years you'll owe nothing and have a car worth £3k. This could then be used as a deposit towards a newer / better car (or you could just keep the £3k car and be £315 better off each month).

Casdawer said:
A 7.7k loan over 2 years is £331 @ 3.3% so I might as well keep the DS4 and then change it after the 2 years? What would I be gaining apart from a higher monthly payment a second hand car?

At the end of 2 years the 2 options result in:

1) DS4 - massive negative equity, unable to pay it off so stuck getting another rubbish finance deal.
2) Positive equity, no debt and a working car that you actually own.

The dealer could knock another £100 pcm off your payments if you ask him nicely? You'll just be in £10k of negative equity come the end of the term instead of £5k. All he's done is moved the debt to the end of the term and screwed you in 2 years time.

Your deal is awful, I'm not recommending this but as an example if you only want to consider monthly payments:

https://www.selectcarleasing.co.uk/.../saloon/20i_prestige_4dr_auto/78734-2018.html

Jaguar XF (£35k list)
10k pa
£6501 over 24 months = £270pcm

Why are you paying £45 extra a month for a Citroen (hint - the answer is because you spiralling into more and more negative equity with each deal)?

Jez · 7 Jan 2018 at 15:22

Casdawer said:
A 7.7k loan over 2 years is £331 @ 3.3% so I might as well keep the DS4 and then change it after the 2 years? What would I be gaining apart from a higher monthly payment a second hand car?

Notsureifserious

What you would gain is at year 2 you would then completely own the car!! At that point it would be worth (guess) ~£3k and you'd then be paying nothing, or could sell it and net £3k.

rodenal · 7 Jan 2018 at 16:19

There's also absolutely nothing restricting you to a two year settlement period - stretch it out to say 4 years and reassess where you are in two years. Might only break even but it'll be a hell of a lot of a better situation than the current one!

Casdawer · 7 Jan 2018 at 16:39

Well I’ve not signed anything yet so where do I stand?

Jumper118 · 7 Jan 2018 at 17:16

lol this thread so much fail.

leases rubbish car they cant afford > takes back car and gets another rubbish car they cant afford.

Peerzy · 7 Jan 2018 at 17:22

Casdawer said:
Well I’ve not signed anything yet so where do I stand?

Have you paid a deposit?

Casdawer · 7 Jan 2018 at 17:24

Jumper118 said:
lol this thread so much fail.

leases rubbish car they cant afford > takes back car and gets another rubbish car they cant afford.

I can afford this, quite easily.

Peerzy said:
Have you paid a deposit?

Yes, over the phone.

[TW]Fox · 7 Jan 2018 at 18:14

Casdawer said:
I can afford this, quite easily.

So settle the old C1 agreement and start fresh with a decent value lease.

Casdawer · 7 Jan 2018 at 18:16

[TW]Fox said:
So settle the old C1 agreement and start fresh with a decent value lease.

If I settle, I'd have to take out a small term loan + pay the lease on the other car. It's still going to be around the £300 mark for both isn't it?

Armageus · 7 Jan 2018 at 18:20

Casdawer said:
If I settle, I'd have to take out a small term loan + pay the lease on the other car. It's still going to be around the £300 mark for both isn't it?

Which suggests you can't actually afford this, "quite easily".

Best option financially is probably to put up with the c1 until that lease finishes and then get a small loan for a reasonable 2nd hand car, or explore better value leases then.

Peerzy · 7 Jan 2018 at 18:23

Casdawer said:
If I settle, I'd have to take out a small term loan + pay the lease on the other car. It's still going to be around the £300 mark for both isn't it?

You've started the damage by having a finance agreement on the current car and being in negative equity. Think - at the end of the C1 you are £2k out of pocket, at the end of the next deal you'll be £4k out of pocket, the next one £6k etc....

You won't be able to escape the cycle as you'll constantly just be rolling up more and more negative equity. The deals will get more expensive but you won't be able to escape. The £2k of current negative equity is already making a pretty rubbish Citroen more expensive over 2 years than a Jaguar XF.

Phone up and cancel the order, get your deposit refunded and go to your bank and get an £8k loan (same monthly payments). Buy a £5k car and pay off the negative equity. End of the 2 years you'll be £3k in the positive (car you own valued at £3k) rather than £4k in the negative (£7k difference!). You'll then be in a much better position to get another £8k loan (again, same monthly payments) and you can get an £11k car that you'll own outright.

Alternatively just get the new Citroen you've seen and we'll have this same conversation in 2 years time except the money owed number will be doubled.