Car Buying Cost Cutting System Article Discussion Area

AdrianHi

lilsuths wrote: »

Hi

I'm currently looking to buy a new car. I'm really interested in the new Fiat Punto. They currently have a £2000 off retail price offer on which leaves the total price at roughly £7500. I don't really have any savings and wondered if anyone can offer me some step by step advice about what to do now?

Thank you in anticipation

x

First off check out Fiat's I-Deal, it's a PCP (Personal Contract Plan).
http://www.fiat.co.uk/content/?id=2574
Low initial deposit, monthly payments that cover the depreciation on the car over the 3 year period, at the end of this period you pay the "balloon" payment (3 year residual value of the car which you will have to save up for) and keep the car, or return the car and start a new PCP or lease with Fiat or anyone else.
Make sure you could afford to do this, even if you choose to finance it another way because you then know you can afford to replace the car with something similar in the future.
Also check out the details on What Car for this car and look at the "Lease this car" for lease deals keeping in mind you have to add VAT (multiply by 1.15) and figures you see. This might be good for you too, low deposit, monthy payments, hand back the car after 3 years.
Compare the above with buying nearly new, usually the cheapest option but you may have to fund it with a more traditional loan which means higher monthly payments.

LittleC_2

Hi

This calculator is good for performing a calculation of ownership, and it spits out the cost per mile of ownership. Very good at taking in all the costs. There are 2 columns so it is possible to make a side by side comparison for 2 cars.

Car cost calc

hope that helps, I have used it and it did help me narrow down a decision

Wee_Pea

Hi,

I have been a MSE forum browser for quite a while, but while reading this thread, I decided that I finally needed to get my act together and register and post something...

As well as the sites mentioned in the main article, I would also recommend

www.freelance-car-broker.com

I know a number of people who have made use of the services of this guy to get new cars at vastly reduced prices, and they have been delighted with the service and, even more so, with the results.

His service is slightly different in that it is more of a personal service, rather than buying from a large online company. For example, with a lot of the sites mentioned, I think you have to commit to an order before knowing (a) where in the country the dealership supplying the car is, and (b) how long it is likely to be until the car will be ready for collection/delivery. However, not only did this guy beat the online brokers' prices for my friends, he gave them all the information about the car, so they knew all the details up front.

Best of all, the service is free! I recommend anyone looking for a new car checks it out. I'll definitely be seeing what prices he can come up with when I change my car later this year.

prettyinpinkuk79

I have a car on finance. I have had it nearly three years and the finance is over 5 years. Can anyone tell me when and if I should trade it in for a newer model?

sconch

I recently bought a car from a franchised dealership. I made it clear to the dealer, that my bank had offered me 9.3%APR (HSBC), and if the dealer finance was better than that, then I'd take that, and let them gain any commission from the finance. I was told that it was an APR of 5%. I thought this was an incredible deal. After some research, I realised that I'd probably been quoted a flat rate, but the dealer did say it was the APR. When I checked this with him, he then told me it was flat, and not APR. He at no point quoted the APR. He insisted it would be a good deal. I also never realised that it was hire purchase. I bought the car in a hurry, and was rushed by the dealer to sign the documents. I never read them in detail, as the dealer was a friend of a friend, and I expected fair and honest trading. I am partly at fault for not reading all the agreement in detail (I won't make that mistake again!) I feel I've been mis-sold a HP finance agreement that I never wanted. If I'd been given clear and honest facts, I would've acted very differently, and not have taken out the HP. I would've preferred a bank loan, as the car would be mine immediately. Now it belongs to the finance company, until the final payment has been made. According to the agreement, I have no right to cancel, and there is no cooling off period. I'm led to believe that if I could cancel, which I possibly can't, then the car would belong to the finance company, and I'd have to return it to them at my cost. I'd like to cancel the HP, and take a bank loan out. The HP APR was 11.3%, and there was a larger final payment. I feel I've been misled by the dealer, and that unfair practices have taken place to coerce me into a decision that I otherwise wouldn't have made. The verbal agreement did not match up with the documents. Do I have any rights in law to get out of this agreement, even though I've signed it; and then pay for the car with my own finance? Trading standards said it would be difficult, as it would be my word against the dealer's, and if it went to court, the only hard and fast evidence would be the documents, and I did sign those, technically acknowledging that I'd read and understood them.

PLEASE HELP!!!!!!

AdrianHi

When comparing finance deals there is in the end only one number to look at - total amount paid including any administration fees for the whole deal and never let anyone rush you into any deal without taking the time to study and compare with other options first. Even comparing APR figures like for like can be mis-leadign as you may still find administration fees excluded from the APR quoted even though APR is meant to include all costs. Some deals are front loaded with interest payments too, so your not reducing the capital owed early in the deal either.

One thing you can do half way through the HP deal is throw the keys back at the dealer and walk away and stop making any further payments. This might be a good move if the car has depreciated by enough to be worth less than the outstanding finance amount.

The other option is to just get a settlement figure out of the HP company and borrow the money as originally planned to pay it. You'll just have to check on any fees payable to make sure this actually works out cheaper for you.

In the end you signed the contract, what was said before hand is not relevant except for how it affects your atttitude to dealing with this car dealer in future.

timchris

When discussing car discounts on new cars what is a reasonable percentage of discount when purchasing a new car?

jack_spratt_2

There is no set amount of discount to ask for !! different cars have different amounts as an example a car which is not in demand or about to be replaced will have a large amount off it !! a car which is in demand or short supply you may not even get a discount .
The thing to do is to look at a few car broker sites and see what the price and how much discount is off that particular car and use that as a guide .
Do not forget it is the cost to change if you are trading a car in !! its no good getting a discount on your new car if they just knock your trade in down .
The best thing is to find what your car is going for in the trade and work your sums out from there !! but be realistic you cannot expect to get a top trade in price and a big discount

chrisstiles

Hi - I've contacted broadspeed to try and find me a car (used Focus).

I note that if I take broadspeed up on their offer I end up paying 299 pounds - what are the chances of me being able to haggle with the dealers they find in order to get them to reduce their price by a further 300 pounds to cover my fees?

Lemonade_Pockets

I'm not sure if you'd be able to get the dealer to go £300 less than broadspeed (its worth asking) but i think there is a reasonable chance of them matching broadspeeds price.