What o you think of this deal? New Ford Fiesta £65 per mth 4.9%

jam_tomorrow

Hi, wondered if any body could tell me whether this is a good deal.

New Ford Fiesta Zetec 1.25 3 door
RRP 10,765
Our price 9,461
Saving 1,304
£65 per month

FINANCE EXAMPLE
On the road price £9,461
Deposit £3,311.35
Amount of credit £6,149.65
Total charge for credit £562.75
Balance payable £6,712.40
Optional final payment £5,140
Total amount payable £10,023.75
24 monthly installments £65.10
typical APR 4.9%

Any opinions on the car & the deal would be welcomed. Thanks

Kingsd316

You have to think whether you think the car will be worth more that £5140 at the end of the term, if not you end up getting stuck in a cycle with ford of getting a new car on HP each time, and starting all over with no deposit, or they let you finance the £5140 at a different rate over another 2 years, usually a Flat Rate % which sounds good but usually ends up being double the actual rate they quote

Lemonade_Pockets

I'm assuming this is a ford options (PCP) quote and not some kind of lease purchase.
There is no reason to get stuck with Ford, regardless of the cars value when its is 24months old.

If it is worth less than £5140 just give the keys back and walk away. That is the whole point of a pcp (ford options) which people seem to miss.

If this is a fair price to pay for the model of fiesta you are looking at, go for it you won't go far wrong. You are protected if the car market crashes further, but you get to keep the profit if residuals go up. Happy days.

The only real cost is the interest. Which unless you've got £9k lying around you'd pay that on any type of finance. Even if you had £9k lying around to plow into a car, the oppurtunity cost of not investing it elsewhere would be £500 at least.

Like i said if £9461 is one is a fair price for this car then its a no brainer imo

P.s. Car is fantastic and arguably the best small hatch around atm. But get a 1.4 if you can.

Kingsd316

Lemonade_Pockets wrote: »

If it is worth less than £5140 just give the keys back and walk away. That is the whole point of a pcp (ford options) which people seem to miss.

I didnt miss it and know how ford options work, thats what i meant when i said about the deposit, the OP has obviously saved or part exchanged to the value of £3,311.35, so if she/he handed the keys back after 2 years cause the value was less, she would have no deposit to put on a new car.

And Agreed, the fiesta is an excellent car

Lemonade_Pockets

Kingsd316 wrote: »

I didnt miss it and know how ford options work, thats what i meant when i said about the deposit, the OP has obviously saved or part exchanged to the value of £3,311.35, so if she/he handed the keys back after 2 years cause the value was less, she would have no deposit to put on a new car.

And Agreed, the fiesta is an excellent car

Sorry wasn't meaning specifically you, i've read many post on this forum over the past few months and peoples views on PCP's generally seem to miss the mark.

What you say about the deposit is correct in one sense, but it is not any different to any other method of purchase you would lose this money regardless.

Hintza

Ling is currently doing deal on 2 year lease which will make it cheaper:-

http://www.lingscars.com/Ford/Fiesta/5135-(New_Shape)_1.25__16v_(59bhp)_Studio__Hatchback_3dr_1242cc.html#chinese

jam_tomorrow

Thanks for your answer, just looking to back up my argument for a new car (partner needs convincing!) It seems to me that the small car used market, 5-6k is doing okay and I have found it difficult to find a bargin even at bca auctions hense me looking at deals on new ones

seanshark

If you assume that the car is worth the final payment (£5140) or less at the end of the two years then your total outlay would be approx £4874 approximately £203 per month. You can lease the same car for less than this but would not have the possibility of equity at the end of the period.
4.9% is certainly a good APR especially for a PCP. You might want to check the price of the Fiesta with another garage or two.

Sean

Lemonade_Pockets

+1.

If you can find the same car for less than £163+Vat pm on 3+23 deal then you will be better off financially but the only option you will have at the end is to hand the car back and start from scratch.

Ling_Valentine

Me

Lemonade - "start from scratch" is a bonus, you get to change you car for whatever is the freshest thing on the market, and people's circumstances change, have kids, move jobs etc.

Seanshark - who ever has equity in a car?

Cars lose money, equity is not really the right concept, they are depreciating assets. All that happens is you pay far too much and then get a small amount back on resale. And you are gambling with what the market says it's worth unless you have a fixed GFV.

PCP is not easy to work out, there are variables, you need to be careful.

Why not just pay rentals, and dispose of the car? If you do 10k a year, you will have one small service, 100% free road tax and never get into other costs or MOT. You can accurately plan your motoring down to the last penny, which is half the battle.

Not having your name on the V5 is the difference, but that is totally sensible. Not owning a depreciating asset is better than owning it. In my view it is all down to financial planning.

A 1.4 TDCi Style Fiesta (inc aircon) is just about the perfect small basic car at the moment, and is so cheap.

New cars are better for safety, having the latest designs and features. And they are best on CO2. And they are completely unworn (of course).

But, I would say all that...

- Ling

DealDrivers_company_representative

Some genuine advice...if you're going to do it you need to do it today as new shape Fiesta are all going up by an average of around £700 on Monday...along with all the Ford range which is having its price increases...Citroen, Peugeot and Vauxhall are also all releasing new priclists from Monday...
Audi will be changing pricing on some models on Feb 23rd and Mercedes on some models on 1st April....

A Fiesta 1.25 3dr Zetec mfr list price is currently £10,765, from Monday is is going to be £11,495. Metallic paint will be going up from its current £367 list price to £395.

The pricing our own dealers have been running on that spec' since 1st Jan until today is £8,976 inc metallic on the road...to give you an idea. They will be moving it to £9,639 inc metallic from Monday.

We have been telling our customers all week and via our website that they need to order by today....as you will save yourself some serious money by not waiting until next week.
January is the month to order if you're going to ...for a March plate. By Feb' the prices change and you're left choosing from remaining ready-built stock instead of ordering the specification you really want.
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