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  • FIRST POST
    • brat02
    • By brat02 10th Jan 18, 8:45 AM
    • 24Posts
    • 2Thanks
    brat02
    My contract expires with Arnold Clarke, need advise
    • #1
    • 10th Jan 18, 8:45 AM
    My contract expires with Arnold Clarke, need advise 10th Jan 18 at 8:45 AM
    Hi all,

    I have been with Arnold Clarke for 2 contracts now(brand new cars) and now my second contract expires in 3 month so they gave me a call and gave me an appointment to explain my options.

    So basically need advise what I need to watch out for when they offer me something, can someone experienced advise?
Page 1
    • Herzlos
    • By Herzlos 10th Jan 18, 8:57 AM
    • 6,334 Posts
    • 5,694 Thanks
    Herzlos
    • #2
    • 10th Jan 18, 8:57 AM
    • #2
    • 10th Jan 18, 8:57 AM
    What kind of contracts? This just sounds like a sales pitch to sell you on a new contract, so just consider all of the options and don't be talked into anything.
    • Shaka_Zulu
    • By Shaka_Zulu 10th Jan 18, 9:00 AM
    • 1,456 Posts
    • 3,399 Thanks
    Shaka_Zulu
    • #3
    • 10th Jan 18, 9:00 AM
    • #3
    • 10th Jan 18, 9:00 AM
    Hi all,

    I have been with Arnold Clarke for 2 contracts now(brand new cars) and now my second contract expires in 3 month so they gave me a call and gave me an appointment to explain my options.

    So basically need advise what I need to watch out for when they offer me something, can someone experienced advise?
    Originally posted by brat02
    What are we talking about here?

    Lease? PCP?

    The most important thing is to do your homework before you go to see them so that you know what a ggod/bad deal looks like.

    Look at all the ways to buy a car.

    Banger? Cheap and hopefully cheerful but not the end of the world if it fails.

    Go to copart (my normal choice) and buy a decent write off can get a lot of car for your money but you need to be on good terms with a decent body shop and be able to source cheap parts to make this work and don't expect retail price IF you decide to sell it. Best for long term, run in to the ground cars where the residual is not important.

    Decent second hand car 6 years old hopefully with full service history and belts etc already done.

    2-3 year old car with some remaining warranty.

    Nearly new

    Pre-Registered

    PCP (probably what you have) not normally a great deal and ties you in

    Lease - Need for a loan as such but will need 3-6 months up front (look for unpopular cars or run out models and you should get a good deal, if you decide on the model then look for a deal you will probably be disappointed)

    Buy new.

    You then have to decide on most of these options how you will finance it.

    Buying a car is all about research, more research and even more research normally with a spreadsheet and a bit of a calculated guess on residuals 2,3,4 years time.
    • brat02
    • By brat02 10th Jan 18, 9:12 AM
    • 24 Posts
    • 2 Thanks
    brat02
    • #4
    • 10th Jan 18, 9:12 AM
    • #4
    • 10th Jan 18, 9:12 AM
    I used to get brand new cars from them on 3 years contract with their finance company I believe where I pay monthly and at the end of the contract(or before) I can pay the last big payment and keep the car(don't want) or get a new card from them and carry on paying
    • TadleyBaggie
    • By TadleyBaggie 10th Jan 18, 9:16 AM
    • 2,555 Posts
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    TadleyBaggie
    • #5
    • 10th Jan 18, 9:16 AM
    • #5
    • 10th Jan 18, 9:16 AM
    Sounds like PCP.
    • neilmcl
    • By neilmcl 10th Jan 18, 9:25 AM
    • 10,437 Posts
    • 7,362 Thanks
    neilmcl
    • #6
    • 10th Jan 18, 9:25 AM
    • #6
    • 10th Jan 18, 9:25 AM
    I used to get brand new cars from them on 3 years contract with their finance company I believe where I pay monthly and at the end of the contract(or before) I can pay the last big payment and keep the car(don't want) or get a new card from them and carry on paying
    Originally posted by brat02
    Don't take this the wrong way but you sound like the person who shouldn't be taking out finance if you don't even understand the basics of the agreements you're signing up to.

    Sounds like you'll have 3 options, which all would've been explained clearly if you read your original documentation btw. You can either pay off the optional final payment (balloon payment/GFV) and keep the car, hand it back and walk away, or take out another agreement on another new car.

    The only reason the dealer want you to come in now is for the latter where it's in their interest to get you into another new car and finance agreement.
    • wgl2014
    • By wgl2014 10th Jan 18, 10:17 AM
    • 495 Posts
    • 304 Thanks
    wgl2014
    • #7
    • 10th Jan 18, 10:17 AM
    • #7
    • 10th Jan 18, 10:17 AM
    Do you want a brand new car every 3 years and not mind paying out for this? If so PCP may be suitable for you. Also look online at how much a lease is on the same spec car, it may be less (add up ALL the costs for each deal).

    If you don't mind having a second hand car why not buy one second hand that is a year or two old, most will be virtually as new but at significantly less cost. You may be able to get a bank loan with similar payments to what you have now that will cover the purchase price, the benefit comes three years down the line when you will own the car and can either keep it and have no more monthly payments or sell it and get something back.

    Don't just get trapped doing the same thing without considering your options.

    If you want some more advice could you tell us what kind of car and monthly payments you are looking at?
    • IanMSpencer
    • By IanMSpencer 10th Jan 18, 11:03 AM
    • 1,291 Posts
    • 975 Thanks
    IanMSpencer
    • #8
    • 10th Jan 18, 11:03 AM
    • #8
    • 10th Jan 18, 11:03 AM
    They are not there to help you and explain your options, they are there to help themselves to as much of your money as they can get within the law.

    Starting point is to ignore monthly payments but check how much the car will cost in total for the term.

    They will not be offering discounts, they will be offering list price and making it sound like there is no negotiation, that's just how it is. They have plenty of scope and if they are not offering a repeat customer a starting point of 10-15% discount on list, they are not even trying to be nice.

    They want to get you locked in before the end of your contract to stop a soft touch going to another company. They will do things like taking the remaining finance on the current car and adding it into the new deal - you will not escape paying off the old car, it will just be hidden.

    Your starting point is to decide what you want and how much you are prepared to pay. You are not a car salesman benevolent fund. If they haven't got GOOD deal, you simply walk away and say you are going to look around. It is a fair bet you will get a response like "What do I need to do to sign up today?" and then they might start offering something. There are also no such things as "I can only offer this today" - if they want to make money out of you, then they will always find a way to do the same deal tomorrow after you have had time to think.

    You can always get an offer, ask for time to think and post it here and people will happily rip it apart and explain it to you.
    • rus4u
    • By rus4u 10th Jan 18, 11:06 AM
    • 78 Posts
    • 4 Thanks
    rus4u
    • #9
    • 10th Jan 18, 11:06 AM
    • #9
    • 10th Jan 18, 11:06 AM
    Thanks for all your replies.

    Yes, I want to get a new car again , pay a bit extra and don't worry about anything rather then get an old car and spent hundreds on repairing it time to time, been there, tried it, not for me.

    My main question is what I need to watch out for when signing a new deal with Arnold Clarke finance department when getting a new car in my situation and not where else I can go and get an old car
    • rus4u
    • By rus4u 10th Jan 18, 11:12 AM
    • 78 Posts
    • 4 Thanks
    rus4u
    Do you want a brand new car every 3 years and not mind paying out for this? If so PCP may be suitable for you. Also look online at how much a lease is on the same spec car, it may be less (add up ALL the costs for each deal).

    If you don't mind having a second hand car why not buy one second hand that is a year or two old, most will be virtually as new but at significantly less cost. You may be able to get a bank loan with similar payments to what you have now that will cover the purchase price, the benefit comes three years down the line when you will own the car and can either keep it and have no more monthly payments or sell it and get something back.

    Don't just get trapped doing the same thing without considering your options.

    If you want some more advice could you tell us what kind of car and monthly payments you are looking at?
    Originally posted by wgl2014
    you make a very good point to be honest but don't they all ask for a big deposit to pay on these deal at retailers ?
    I probably won't mind if the car 1-2 years old(not older than that).
    At the moment I am paying £170 for Vauxhall Corsa 1.4 Sting edition 15 plate.

    What car do I want? something similar, not big hatchback .... was thinking about Ford Focus, Honda Civic but don't really want to pay more than £200 a month
    • tykesi
    • By tykesi 10th Jan 18, 11:24 AM
    • 1,935 Posts
    • 2,693 Thanks
    tykesi
    Why have you changed usernames?
    £2018 in 2018 - £416.84

    £2017 in 2017 - £7097.88

    £2016 in 2016 - £3087.89
    • BoGoF
    • By BoGoF 10th Jan 18, 11:30 AM
    • 2,858 Posts
    • 2,106 Thanks
    BoGoF
    So if we assume you got in March 15 if its got 3 months to ago you will have paid £6120 (36 x £170). Was there a deposit paid?
    • wgl2014
    • By wgl2014 10th Jan 18, 11:42 AM
    • 495 Posts
    • 304 Thanks
    wgl2014
    As rough calculations:

    10k bank loan over 4 years can be had for £220 per month with no deposit. That would get you a 2016 Civic or Focus.

    In 4 years time the car will be worth in the region of 3.5 to 4.5k. Whilst some maintenance and repairs are inevitable overall this is s much cheaper way to have what is still a newer car.

    Your current deal would see you paying £8400 over 4 years (assuming you went for a similar deal at 3 years and changed cars) and you end up with nothing other than use of the car.

    Worth considering even if you decide it's not for you.
    • brat02
    • By brat02 10th Jan 18, 12:17 PM
    • 24 Posts
    • 2 Thanks
    brat02
    Why have you changed usernames?
    Originally posted by tykesi
    sorry, different internet browser had different login saved and I thought I have lost it forever
    • brat02
    • By brat02 10th Jan 18, 12:19 PM
    • 24 Posts
    • 2 Thanks
    brat02
    So if we assume you got in March 15 if its got 3 months to ago you will have paid £6120 (36 x £170). Was there a deposit paid?
    Originally posted by BoGoF
    only £100 at the start of each contract so £200 in total
    • almillar
    • By almillar 10th Jan 18, 1:15 PM
    • 7,141 Posts
    • 2,878 Thanks
    almillar
    My main question is what I need to watch out for
    If they say the words 'negative equity' just hand the car back (cost £0 unless you're over miles or car is in unreasonable condition), and walk into another dealership, where you start from zero again, instead of 'negative'.

    A good way to look at it, if you never intend to own the car, is take the monthlies, multiplied by, say, 35, plus the deposit. Divide that by 36, and that's your real monthly cost, taking the deposit into account.
    • Cornucopia
    • By Cornucopia 10th Jan 18, 1:52 PM
    • 9,659 Posts
    • 9,320 Thanks
    Cornucopia
    What car do I want? something similar, not big hatchback .... was thinking about Ford Focus, Honda Civic but don't really want to pay more than £200 a month
    Originally posted by rus4u
    It's unlikely that you'll get a new Civic for under £200pm.

    The slightly smaller Jazz could be leased for c. £175pm, with an initial downpayment of c £1000. Some dealers are also offering a 0% PCP which is £199pm and £199 down over 4 years.
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    • brat02
    • By brat02 10th Jan 18, 2:04 PM
    • 24 Posts
    • 2 Thanks
    brat02
    If they say the words 'negative equity' just hand the car back (cost £0 unless you're over miles or car is in unreasonable condition), and walk into another dealership, where you start from zero again, instead of 'negative'.
    Originally posted by almillar
    can you advise who is out there as good and as big with the same offers as Arnold Clarke please?

    A good way to look at it, if you never intend to own the car, is take the monthlies, multiplied by, say, 35, plus the deposit. Divide that by 36, and that's your real monthly cost, taking the deposit into account.
    Originally posted by almillar
    I don't quite get these calculations, can you please explain a bit more?
    • brat02
    • By brat02 10th Jan 18, 2:14 PM
    • 24 Posts
    • 2 Thanks
    brat02
    Also am I right or wrong here?
    New 2018 plates come out February/March and if I get 2016/17 plate car then it will be much cheaper than now?
    • Tarambor
    • By Tarambor 10th Jan 18, 2:17 PM
    • 1,964 Posts
    • 1,399 Thanks
    Tarambor
    I don't quite get these calculations, can you please explain a bit more?
    Originally posted by brat02
    Most PCP muppets think their car only costs them the monthly payment, it doesn't. So lets say they have a car on £200 a month on PCP. They seem to think it only costs them £200 a month. But what they're not factoring in is the deposit as well.

    Lets say its a 3 year agreement, £3600 deposit, £200 a month. To get the real cost per month you split the deposit over the term so 3 years is 36 months. £3600 deposit divided by 36 = £100 a month over the 3 years. Add the £200 a month you're paying and the REAL COST is £300 a month, not £200, its just that you're paying the £3600 up front to make the monthly cost look better.

    Its all about psychology. If you said to someone that their car payments were going to be as much as their mortgage they'd not take out the car finance. However have a deposit and/or a large balloon payment and you can reduce those monthly payments and all of a sudden the same deal looks a whole lot better "Ooh look Johnny, its only £125 a month for a brand new car, that's nothing!"
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