0% Finance really worth it?

Cos2k3

Looking at the vauxhall offers they have 0% deals on the new astras which I one day intend to buy.
My original intention was to wait for a few months saving a deposit and taking out a loan.

But I dont quite understand this option

Taken from the website-

Typical 0% Choices Finance example::
Term: 39 months
On-the-road RRP*: £14,350.00
Finance Deposit Allowance: £500
Your deposit payment: £0.00
Amount of credit: £13,850.00
38 monthly instalments of: £258.87
Final payment to buy$$: £4012.88
Total amount payable: £14,350.00
Charges for credit: £0.00
Typical APR: 0%
Eligibility
Subject to agreed conditions and mileage the vehicle must be returned in an acceptable condition as set out in the guarantee offer. If the original contracted mileage has been exceeded you must pay an excess mileage charge.
$$ Final payment is based on 10,000 miles per annum, conditions apply.

Could anyone explain why there is a mileage limit? Do you actually own the car on this finance? Or once you paythe final payment to buy is the car yours?

yeslek

email and ask them

chuckles1066

Cos2k3 wrote:

Looking at the vauxhall offers they have 0% deals on the new astras which I one day intend to buy.
My original intention was to wait for a few months saving a deposit and taking out a loan.

But I dont quite understand this option

Taken from the website-

Typical 0% Choices Finance example::
Term: 39 months
On-the-road RRP*: £14,350.00
Finance Deposit Allowance: £500
Your deposit payment: £0.00
Amount of credit: £13,850.00
38 monthly instalments of: £258.87
Final payment to buy$$: £4012.88
Total amount payable: £14,350.00
Charges for credit: £0.00
Typical APR: 0%
Eligibility
Subject to agreed conditions and mileage the vehicle must be returned in an acceptable condition as set out in the guarantee offer. If the original contracted mileage has been exceeded you must pay an excess mileage charge.
$$ Final payment is based on 10,000 miles per annum, conditions apply.

Could anyone explain why there is a mileage limit? Do you actually own the car on this finance? Or once you paythe final payment to buy is the car yours?

The car is yours only when you make the final payment; the mileage limit is there to protect them from you handing back a car after 3 years with 100k on the clock

Petmidget

The final payment I would imagine is optional so you can hand it back, the restricted mileage is to protect the residual value.

If you intend to keep it I would imagine they will have no problem with you going over the mileage.

dollarjon

these types of schemes are designed for people who change cars every 3 years, its not HP so they are not getting ripped off each month with 14% etc apr but they can choose at the end of it to pay the final fee or carry on paying and get a brand new car.
To be frank have a look at your local car supermarket they will probably have the same or similar car for a good 3-4 grand less with a much more flexable finance package (if you want to keep the car that is )

Happy_frank

These schemes are designed to make you replace your car every 3 years.
You take out the agreement and get a brand new car.
You get used to paying the £200 -£300 per month for 3 years.
The end of the term comes and you have failed to save up the £4000 final payment, and the car is sometimes not even worth that.

So the options you have are

1) Pay the £4000 (which you don't have) and keep the car
2) Hand back the car and buy a secondhand car with the £4000 (which you don't have)

Or

3) Take out a new deal paying £200 - £300 per month (which is no problem you have been doing it for the last 3 years) and drive away in a brand new car. Putting the problem off for another 3 years.

A_Nice_Englishman

Let's see. Under this deal you are paying about £250 a month to drive round in a 0-39 month old car. After the 39 months you could borrrow £4000 to buy it. This might cost around £150 a month for three years and after that the car is yours for as long as you want to keep it

Alternatively you could but a 39 month old car for £4000 and take a loan out to pay for it. Over three years that would be the same cost (say £150 a month) and after that the car is yours for as long as you want to keep it.

So the extra cost of driving a brand new car as opposed to one three years or so older would be 39 * £258.87 = just over ££10,000.

Your call!