Can someone knowledgeable take a look at this please

claire8370

http://www.lookers.co.uk/special-offers-car-sales/VAUXHALL-CORSA/4313

This seems a little too good to be true, can anyone see any catch

I have a car eligible for scrappage, I can afford £135 a month and I havent got much of a deposit so this looks perfect.

Also I work out 60 x monthly payments of £135.04 = £8102.4 ?? Confused

Chippy_Minton_2

£8102.40 plus the scrappage allowance sounds about right. Lets be honest who would pay over 10k cash for a basic Corsa?

emmell

It actually works out £8375.40. Can't you find a car with a list price of less than £8375 then knock your scrappage allowance off. I think 5 years is a long time to be paying for a car regardless of the deal.
ML.

ozvaldinho

OK, the car costs £10,255.
Vauxhall, the dealer and the government contibute £3500 for your scrapper.
You pay back £135.04 a month for 5 years = £8102,
You also pay a fee of £273 for the loan arrangement.

The total payable is £11875.40, of which you will pay £8375.

The difference is in the 9.2 APR interest, which includes the fee. You're paying £1347 in interest over the five years of the finance agreement, as well as the £273 fee.

motorguy

ozvaldinho wrote: »

OK, the car costs £10,255.
Vauxhall, the dealer and the government contibute £3500 for your scrapper.
You pay back £135.04 a month for 5 years = £8102,
You also pay a fee of £273 for the loan arrangement.

The total payable is £11875.40, of which you will pay £8375.

The difference is in the 9.2 APR interest, which includes the fee. You're paying £1347 in interest over the five years of the finance agreement, as well as the £273 fee.

£1347 / 60 = £22 a month in interest, or £5 a week. Doesnt seem excessive to me?

Also, i'd estimate it'd be worth maybe £2750 after five years, so you're talking just over £1000 a year in depreciation, which cant be bad?

claire8370

Thanks for your replies people

I thought it seemed quite reasonable and I like the new look Corsa, bit like the Astra shape I think
So does everyone think this is legit, no catches to be found anywhere, apart from the fact i will have to pay the finance over five years?
If say in this five years I wanted to get a different car how does that work?
Sorry for all the questions its the first time I have bought myself a car

Thanks

emmell

If you wanted to change your car before the 5 years is up, the dealer will give you a p/x price against another vehicle that will be used to pay the finance off and any (if any) remaining equity will go towards the purchase of the next car. If you have negative equity that will be added onto the next finance. The dealers have ways and means to do most things by fudging figures. If you want to sell the car outright, you must settle your finance first. The car (although registered to you) will be owned by the finance company until the final payment is made. A bank loan gives you more flexibility because you own the car from day one and you can sell it anytime you like, but the debt still has to be paid of course.
ML.

jeannieblue

Nothing personal against Lookers - but if you fancy the Corsa, why not try other dealerships to see what they have on offer? And ask for a better deal - if they won't give you one, walk out.

Try phoning a dealership and saying 'Lookers are offering ...... what can you offer me?' You have to try and think like a dealer ..

Inactive

I would not pay that much for a basic Corsa, outrageous price.

harveybobbles

Can get a decent 2 year old Audi or BMW for 10,000!

motorguy

harveybobbles wrote: »

Can get a decent 2 year old Audi or BMW for 10,000!

Thats nice, but what can you get for the O/Ps budget of £6750?

I suspect a 4 or 5 year old (and thus well outside manufacturers warranty) car with much higher insurance group, running costs, etc?