0% APR PCP deal for new car

cepheus

It's worth finding the car on that list to make sure you have been offered the right price, the most expensive 'Fire version' from drive the deal is

Toyota AYGO
1.0 VVT-i Fire 5dr [AC] MMT
New £9,964 save £986

View terms and conditions
Toyota are offering PCP finance at 0% APR Representative over 2 to 3
years with a deposit of between 0% - 20% of the cost of the car. The dealer that we put you in touch with will arrange the finance if required. Subject to
Status. Written quote available on request.

I took a new Aygo for a test drive 3-4 years ago and could feel every bump in the road. I eventually opted for a second hand Hyundai Getz, it was a far superior ride at a quarter of the price. I don't think it's worth getting a low mileage/new car if you don't do much driving anyway.

silo24

Don't also forget that you need to make sure they are offering you a good deal on your part exchange vehicle.

Also, try to find out how much the Service Package is worth. Once you know these you can evaluate the full deal.

natscat84

Thanks guys - I'm now armed with the drive the deal info, and I've had a look at the Parker values and stuff for what I expect to be offered in terms of p/ex for my car. I'm off to the dealer this afternoon to look through the paperwork, have them appraise my car and test drive the Aygo - if I'm not happy with either of them, I'm not going to go ahead and take my time looking for something else

Captain__

At 0% per annum finance, could you not put the money into a safe investment portfolio, and at the end of the finance agreement, pay off the balance outstanding? Would 3% interest on an£5k investment give you £150 per annum return before tax?

My warning if the above works out is:- whatever you do, don't spend the money as if your circumstances change, you have to find money (potentially a new financial arrangement with interest) to pay down that bulk payment or return the vehicle and have no car!

pheonixrising21

Just to note, the guaranteed furture value of the car is not the deposit on your next car. This is the balloon payment at the end of the agreement, and is an estimate of what the car will be worth at the end of the agreement, with the agreed number of miles or less. Here you have three choices:

1) Pay the balloon payment - either cash or further finance and then the car is yours
2) Trade in for a new car. Here they will assess the current value of the car based on the actual mileage and condition (scratches, etc) as they would with any part exchange. If they decide that the car is worth more than the GFV, then this extra is your depsoit for the next car.
3) You hand in the keys and walk away with no car. At this point they will assess the mileage and condition of the car. If you have gone over the agreed mileage, they will charge you x pence per mile and charge you for any repairs required. i am unsure if you will get some cash back if the car is worth more than the GFV or not.

An additional point to note is that a lot of dealers I have spoken to about this sort of thing all state that the PCP does not tie you in to either the brand of car nor the dealer chain. They all say that you can take your PCP financed Toyota and walk into a Volvo dealership run by a completely different dealer at the end of your agreement and swap for a PCP (or other finance option). What will happen is that they will pay the balloon payment for you and then take that money out of your part ex value, leaving any remainder as a deposit - same as if you went back to the same dealer.

This is a good option to lower monthly payments, especially if you often finance the car over a longer period than you generally keep it for. If you usually finance over 4-5 years (to ensure lower payments) but then always change after 3 years,then you are always rolling debt over anyway. With PCP, they just don't end you the last part of the value of the car, they only lend you the "bit in the middle" between your deposit and the GFV, thus reducing the monhtly payments further.