Elect 3 (Citroën Finance)

[kirkie]

I am thinking of purchasing the Citroen C4 Picasso as I have had Citroen's for the last 3 cars and have been very happy. I usually buy a car that is around 6 months old then trade it in just before it's MOT.

I have been reading about Elect 3, but wanted to know what people thought and if anyone had 1st hand experience of it...


DRIVENOW ELECT3

If you want a new Citroën car every two or three years with monthly payments structured to suit your budget, DRIVENOW Elect 3 is for you.
With DRIVENOW Elect 3, you pay a deposit, between 10% and 35% of the vehicle price, and then fixed monthly payments over a term of 25, 31 or 37 months, best of all there’s no need to worry about the car’s future value as we’ll guarantee it.
Elect one of three options at the end of the agreement to suit your own particular needs. You can make the final payment and own the car outright, return the car to Citroën or part exchange your vehicle for a new Citroën using any equity as the deposit in a new DRIVENOW Elect 3 package.
Don’t forget, DRIVENOW also offers excellent optional protection to cover your finances against unforeseen circumstances, with DRIVENOW Payment Protection (http://www.citroen.co.uk/new-cars/finance/payment-protection.aspx) and DRIVENOW Shortfall Insurance (http://www.citroen.co.uk/new-cars/finance/shortfall-insurance.aspx) as well as perfectly tailored DRIVENOW Motor Insurance (http://www.citroen.co.uk/new-cars/finance/motor-insurance.aspx).
Find out more about DRIVENOW Elect 3 (http://www.citroen.co.uk/Assets/pdf/finance/car/drive-now-elect3.pdf)
Finance subject to status. Finance available from Citroën Financial Services, written quotations available on request from Citroën Financial Services. Over 18’s only. A guarantor may be required. Terms and Conditions apply.
Citroën Financial Services is a trading style of Banque PSA Finance UK which is authorised and regulated by the Financial Services Authority for the conduct of UK business. Registered address: Quadrant House, Princess Way, Redhill, Surrey, RHI 1QA. Registered in England No: FC023556. Banque PSA Finance is a limited liability company registered in France.

[AdrianHi]

I am thinking of purchasing the Citroen C4 Picasso as I have had Citroen's for the last 3 cars and have been very happy. I usually buy a car that is around 6 months old then trade it in just before it's MOT.

I have been reading about Elect 3, but wanted to know what people thought and if anyone had 1st hand experience of it...



For a reasonably hassle free economical way to have the use of a car I rather like the way you are doing it now.

If you must buy new a PCP (Personal Contract Plan) which is what this Elect3 scheme is, might be a good way to do it subject to the interest rate charged.
If you are thinking of PCP I would also search the web for leasing proces on the same vehicle which might beat or get near the dealers PCP scheme for total amount spent over 36 months. Remember to check if VAT is included in any lease quotes you see, you need to pay VAT for a personal lease, business users don't. Advantage of leasing is low deposit 3 + 35 montly payments is common. Some MSE'ers are saying lingscars is very good on price.
The gottcha's with PCP's is usually early settlement, they are often front loaded with interest payments so asking for some settlement illustations at 12 and 24 months should tell you what is going on there.
Also beware of the shortfall insurance which often does no more than cover negative equity between value of vehicle and outstanding finance. Regular insurance usually pays original invoice value for a write off in the first 12 months. RTI (Return To Invoice) GAP insurance not a bad idea but get competitive quotes before taking the dealers policy. gap4less is one places to search out and try.

Personally I's stick with buying pre-reg / up to 6 months old and keeping until near MOT time as you do now.