Advice re: Mini Finance

ha04225

Hello

I wrote my car off a little while ago and I have £3000 to play with.

I am interested in buying a Mini One and have been to the local dealership. Initially I was interested in a reasonably new second hand one, using the £3000 as a deposit.

The dealer, no surprise, is trying to sell me a new one.

I am no money expert and he has offered me the following on their PCP/Select

Deposit : £3000
Monthly repayments: £235 pcm for 48 months and then a guaranteed future value of 5120.

Ideally I would only like to pay £200 so it will be a stretch but is this a good deal and do you think,as this is an initial offer, that I will be able to get them any lower?Is it worth getting a bank loan instead?

Also what are peoples thoughts on the whole new car issue? Should I just buy a newish second hand one?

Thanks!!

ha04225

Is the guaranteed future value something I am expected to foot at the end of the contract or can I put it towards a new car. If the latter is the case does it not mean I will be paying £15000(odd) - the value of the car.

motorguy

ha04225 wrote: »

Is the guaranteed future value something I am expected to foot at the end of the contract or can I put it towards a new car. If the latter is the case does it not mean I will be paying £15000(odd) - the value of the car.

You would be expected to pay that OR give the car back at that point.

motorguy

MrCEO wrote: »

My reckoning is that even if its a top model your finance is probably over 10% APR.

it shouldnt be.

Sounds like the op may have put a lot of extras on it.

daveyjp

The salesman appears to have sensed you haven't a clue about what you want or what it will cost you so he is looking at you for a nice fat bonus.

4 years is a long time to pay a car off.

ha04225

Thanks for the help guys. So how far do you reckon is appropriate to try and negotiate? Realise that is a bit of a 'how long is a piece of string' question but any help/advice would be helpful.

motorguy

ha04225 wrote: »

Thanks for the help guys. So how far do you reckon is appropriate to try and negotiate? Realise that is a bit of a 'how long is a piece of string' question but any help/advice would be helpful.

Whats the spec of car you are looking at?

What price is it?

ie, are you adding any extras?

ha04225

Spec - it's a 1.6 in Midnight black with pepper pack and 16" alloy wheels. The value is £15660 and they've taken off £660. Deposit is £3000.

matt1987

pfft. Wouldnt touch it!

My partner bought a Mini One in December. Went for Oxygen Blue Mini One - With no fancy packs - just the Bluetooth and USB. Think she paid about 12k. Put about £5k down on it and pays £160 a month over 3 years - and she will own the car outright when the term finishes.

I wouldnt touch these PCP deals. Just ask for a quote on their straight forward HP plan. I think our rate is 7.4% which is a good rate.

gordikin

Apologies OP...but I think you're being taken for a mug.

motorguy

matt1987 wrote: »

pfft. Wouldnt touch it!

My partner bought a Mini One in December. Went for Oxygen Blue Mini One - With no fancy packs - just the Bluetooth and USB. Think she paid about 12k. Put about £5k down on it and pays £160 a month over 3 years - and she will own the car outright when the term finishes.

I wouldnt touch these PCP deals. Just ask for a quote on their straight forward HP plan. I think our rate is 7.4% which is a good rate.

160*36 = 5760. + 5000 = £10760.

Something not right there in those figures?