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

Lemonade_Pockets

Ling_Valentine wrote: »

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.

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?


- Ling

Ling i'm assuming you are ling of lings cars fame. So i must say i admire your work taking on the big boy's and for the most part beating them at their own game.

I totally agree the option to start from scratch is great. But with a CH/lease this is your only option. With a pcp you still have the same option, but you have the (slim) chance of profiting from any equity instead of the lease co. Also if you wanted to you can buy the car - borrow money from the bank and refinance over a few years. My point is it gives you the benefit of a lease + a few more options. So if choosing between a lease and pcp that cost the same overall it would have to be pcp everytime - i don't see how you can argue otherwise.

p.s. I'm baseing this arguement on the proviso that nearly all pcp's have GFV's. Those that don't - more commonly known as lease purchase are althogether more complicated beast and not be taken on unless you know what ur doing.

Premier_2

Nice car

Shame it looks likely to cost you about £2500 per year :eek:

Have you considered buying a nearly-new one which will aleady have had a hefty amount of depeciation knocked off.

Ling_Valentine

DealDrivers wrote: »

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.
We have had permission to post here since May 2006.

Not quite correct

I have ordered a further 20 price protected Fiestas, 1.4 TDCi Sytle, Zetec S and Titaniums, majority black and silver (most popular colour). So I should have some until mid/late-next week.

My view is that there are ALWAYS car deals around and no one should feel rushed. It is the worst kind of buying mistake. If Fiestas go, there will be other stuff coming along. Yes, there are list price rises coming, but these simply put retail boyz under even more pressure. List prices are cloud-cuckoo land.

- Ling

Ling_Valentine

Premier wrote: »

Nice car

Shame it looks likely to cost you about £2500 per year :eek:

Have you considered buying a nearly-new one which will aleady have had a hefty amount of depeciation knocked off.

That will by why used car sales are doing SO WELL in the current economic climate!

My 1.4TDCi Style (aircon) will cost you £2k a year in payments. Hard to get a new Fiesta with aircon for less than that! Trouble is, there are always people on here who will take this more and more to extremes, and will work out you can run a "perfecty good" 9-year old one, pre-pre version with just 85,000 miles and it will only cost you 13p a week (plus repairs).

Who wants new when they can have worn? Expect much more servicing costs, less warranty, closer MOT and don't forget the bogies under the seats even on nearly new models .

Seriously, it is hard to save money buying nearly new when rentals on brand-new are so cheap.

- Ling

jam_tomorrow

Glad you've all carried on without me, makes very interesting reading,and thanks for all the advice.
To Dealdrivers, re advice on price increase.Did you actually mean TODAY or would placing an order over the weekend avoid price increase?

I have another question: I've had a good nosey over the net at different sites but all quotes come out at a much higher figure than the £65 per month that I'm interested in. Do you think I will struggle to match this? I was originally going to buy something used 3k-4k (ie 4-5 yrs old) but when I saw the 35% deposit & 24 mths at £65 @4.9% APR seemed like a good option.

If I end up not being tied to the 1.25 zetec which model would you lot recommend I'm 43 so insurance not a problem but Iam interested in fuel economy I do 10-12,000 per year and definately would like aircon.
Any opinions on colours? ( may aswell canvas opinions on everything!)
Thanks

Premier_2

Ling_Valentine wrote: »

...Yes, there are list price rises coming, but these simply put retail boyz under even more pressure. List prices are cloud-cuckoo land.

- Ling

List prices are the prices that manufacturer's use to set the selling price to their dealers (with a % discount of course), at least with Ford, Vauxhall, etc.

Price changes only affect new deliveries, not the prices of the 100's of vehicles dealers have in their compound (often located remotely from their dealership location)

What is more difficult to know, unless you have some good contacts , are the various other discounts or rather bonuses the manufacturer may from time to time offer dealers to shift their cars. These can affect those cars held at the dealership, but whether the dealership opts to pass them onto their customers either in part or in full is up to them - there is no obligation to do so.

Premier_2

Ling_Valentine wrote: »

...Seanshark - who ever has equity in a car?...

You'll be surprised
Not everyone buys their car on the drip.

Just because it's depreciating asset, the owner can still have equity in it.

Ling_Valentine

Premier wrote: »

You'll be surprised
Not everyone buys their car on the drip.

Just because it's depreciating asset, the owner can still have equity in it.

Yes, perhaps, but usually that "equity" is really masking a loan or some other finance/borrowing that they are slowly paying off. Most people are in neg equity (just as bad).

Anyway, why on earth would anyone want real cash "equity" in an asset that day by day loses value? You could equally lose it on the lottery - at least there you stand a very small chance of winning. No one wins with cars. That's why they market them as lifestyle items, not consumer goods. To trick you to rationalise the loss.

I might not be an accountant, but you may as well have a pile of cash and burn a £10 note every day, because that's what's happening to the equity in a car... larger cars and 4x4 owners can burn £20 notes.

You never know when you might need your cash liquid. Converting it to metal and saving it in a heap of steel which currently are about the hardest things in the world to liquidise at a good price, is monetary madness. Buy gold, not pressed steel. For goodness sake, under the mattress is better than that!

Why do people get so emotional about cars? You would never talk about having "equity" in a cooker, or a fridge or a TV. Car is a (dangerous) transport tool, a consumer good - so spend as little as possible, taking the smallest risk, balancing against the greatest safety. And don't pour liquid cash into it. There is no tangible benefit to say you "own" it instead of "rent" it. It is a habit to own things. Owning things which lose value (unless you can write them down and offset it tax-wise) is just waste.

All these car dealers with massive premises, staff and overheads... you pay for their lifestyles! They laugh (more of a groan at the moment), when you buy a car. Remarkably, they complain I distress new car prices - doesn't anyone think that if the car dealers are upset with me, I may be onto something ???

goldspanners

so ling where do all your cars go when they have finished thier lease? into the used car market im guessing,where people will own them.
so if nobody buys your ex lease cars then that means the price of leasing would go up.
so leasing isnt for everyone.

anewman

Ling_Valentine wrote: »

There is no tangible benefit to say you "own" it instead of "rent" it. It is a habit to own things.

There are benefits to ownership for some people. For example, changing the stereo or those who are into modifying cars and remapping etc that you just could not do with a rented car. I remember reading some story on the internet of someone who was buying a car under finance ending up in loads of trouble because he had modified the car (and technically it was not his to modify) Admittedly these are things most people are not interested in doing though.