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Peugeot "Just Add Fuel"?
Does anybody have opinions about the Peugeot "Just Add Fuel" deal?
http://www.peugeot.co.uk/just-add-fuel/
Essentially, you pay a monthly amount over three years to cover the lease of the car, insurance, servicing and road tax. The amount depends on your estimated milage and projected insurance costs. At the end of the three years you can either pay an amount to buy the car outright or trade it in for a new one.
On the surface it looks like a good way of getting a new car but I wanted to know if anybody had any opinions or experience with the scheme.
This would be for my husband, who is considering the new 208 1.4 diesel, which apparently can do 70+ mpg.
http://www.peugeot.co.uk/just-add-fuel/
Essentially, you pay a monthly amount over three years to cover the lease of the car, insurance, servicing and road tax. The amount depends on your estimated milage and projected insurance costs. At the end of the three years you can either pay an amount to buy the car outright or trade it in for a new one.
On the surface it looks like a good way of getting a new car but I wanted to know if anybody had any opinions or experience with the scheme.
This would be for my husband, who is considering the new 208 1.4 diesel, which apparently can do 70+ mpg.
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Comments
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All these deals are for the manufacturers benefit, so read the small print at least three times.
Mileage limit for the lowest cost is only 6,667 miles per year. You will be lucky to see your 70+ mpg if your annual mileage is at this level and if it is, its questionable if a diesel is the best option, they thrive on high mileage.
If mileage is more you need to consider the extra cost per mile.0 -
Consider the total cost of the deal (try not to get sucked in with what looks like a low monthly figure) and what you'll have in your possession at the end of the three year period.
French cars aren't exactly known for their reliability & build quality, I wouldn't want to rely on one to get me to/from work but that's a separate matter. :A0 -
If you go to the website http://www.peugeot.co.uk/just-add-fuel-terms/
the only 208 available appears to be the 1.0VTi that is petrol and not diesel. There are also a couple of interesting bits in the abbreviated T&Cs:
35 monthly rentals. If you choose to pay off the optional final rental, you can pay an annual rental equivalent to one of your monthly rentals but will not own the car. Ownership is possible with JAF Passport, ask your Peugeot dealer for details. Presumably the JAF Passport has a cost to it?
Routine servicing included only. Excludes wear parts. So if Peugeot decides that the car needs new discs and pads due to wear at a service these would be an additional cost.
As above these schemes are generally for the financial benefit of the dealer with the individual getting a new car but at a cost!0 -
The quotation we were given was assuming an annual mileage of 15000. Assuming that we bought the car at the end of the three years, then the total cost comes to around £2k more than the "list price" This is counteracted by the free insurance, servicing and road tax, and also the interest that we could make if we put the same amount of money into a savings account for three years.All these deals are for the manufacturers benefit, so read the small print at least three times.
Mileage limit for the lowest cost is only 6,667 miles per year. You will be lucky to see your 70+ mpg if your annual mileage is at this level and if it is, its questionable if a diesel is the best option, they thrive on high mileage.
If mileage is more you need to consider the extra cost per mile.
Considering that we probably would want to do a trade-in after the three years is up, the consideration is then how this deal compares with the sort of car that we could otherwise afford to buy. As a comparison consider the following options:
1) Get a brand new 208 using this deal. We have been given a quotation which would cost around £11k over the three years, including servicing, insurance, tax and a warranty. At the end of the three years we trade it in - and any money in excess of the final loan amount goes towards the new car (e.g. we have been told that the final pay-off to buy the car is around £5600, but the car might be worth around £7k, and so in this circumstance there would be a £1-1.5k deposit for the trade-in).
2) Buy a second hand car. We have seen a 308 with a 2010 plate for £8.5k that would be suitable. On top of this you have insurance, tax and servicing to pay for, which would be in the region of £2k. In addition there is the risk that the car needs a repair due to something failing. At the end of the three years the car can be traded in for a depreciated value (say £3k? Possibly more?)
From a financial point of view the two options appear to be similar but in the first instance you get a new car to drive with a much lower initial outlay and limited risk of having large repair bills to pay. It's tempting...0 -
We have been given a quote for the "passport" scheme which gives you the option to buy the car when the 3 years are up. The quote is for the 208 "Active" model, 1.4 diesel. I guess that the individual dealers are able to offer models different to the ones on the website at their discretion. The free servicing is for their standard service plan - and so I think that if, e.g., the brake discs are scheduled to be replaced then they are covered under the plan. However, if they wore out early then you have to pay extra. But I will ask for clarification on this.Nearly_Old wrote: »If you go to the website http://www.peugeot.co.uk/just-add-fuel-terms/
the only 208 available appears to be the 1.0VTi that is petrol and not diesel. There are also a couple of interesting bits in the abbreviated T&Cs:
35 monthly rentals. If you choose to pay off the optional final rental, you can pay an annual rental equivalent to one of your monthly rentals but will not own the car. Ownership is possible with JAF Passport, ask your Peugeot dealer for details. Presumably the JAF Passport has a cost to it?
Routine servicing included only. Excludes wear parts. So if Peugeot decides that the car needs new discs and pads due to wear at a service these would be an additional cost.0 -
We have been given a quote for the "passport" scheme which gives you the option to buy the car when the 3 years are up. The quote is for the 208 "Active" model, 1.4 diesel. I guess that the individual dealers are able to offer models different to the ones on the website at their discretion. The free servicing is for their standard service plan - and so I think that if, e.g., the brake discs are scheduled to be replaced then they are covered under the plan. However, if they wore out early then you have to pay extra. But I will ask for clarification on this.
Are brake pads and discs EVER part of scheduled maintenance?0 -
2) Buy a second hand car. We have seen a 308 with a 2010 plate for £8.5k that would be suitable. On top of this you have insurance, tax and servicing to pay for, which would be in the region of £2k. In addition there is the risk that the car needs a repair due to something failing. At the end of the three years the car can be traded in for a depreciated value (say £3k? Possibly more?)
That 308 looks to be a bit overpriced as there are quite a few around the £7k mark; e.g. http://www.autotrader.co.uk/classified/advert/201301114873769/sort/default/usedcars/maximum-mileage/up_to_40000_miles/maximum-age/up_to_3_years_old/fuel-type/diesel/model/308/make/peugeot/onesearchad/used/postcode/ls74dn/page/1/radius/1501?logcode=p
You do need to check about the "scheduled" servicing as looking at typical servicing worksheets including Citroen (Peugeot/Citroen share engines, etc) the only listed scheduled service items are:
Oil
Filters - oil, air and pollen
Brake fluid - usually changed every 2 years but can vary.
Anti-freeze - coolant usually changed every 3 years but can vary.
Even the fluid for the DPF on the Citroen is not scheduled, brake pads, discs, etc are generally not scheduled as the wear rate varies considerably between different drivers.
Good luck whichever way you decide to go.
PS I had 3 French cars (Citroen Xantias) as company cars and covered over 400,000 miles and only had to call the AA once in 10 years. Our current winter, shopping, general car is a 10 year old Citroen C5 on 115k that is still going strong!0 -
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The thing to also consider that once the free insurance has finished, you will need to arrange your own insurance. They will treat you as a new customer and you will have no NCB.Never Knowingly Understood.
Member #1 of £1,000 challenge - £13.74/ £1000 (that's 1.374%)
3-6 month EF £0/£3600 (that's 0 days worth)0 -
notanewuser wrote: »No. Never.
nor the clutch or exhaust probably0
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