New Car / Financing Opinions

NM1984

Hello. I'm on the market for a car and I've got a blistering headache from the wealth of information out there that I have been trying to process the past couple of days. I live in the city and don't have children so I'm after one that is small/cheap to run. I've been eyeing up the new Volkswagen Up!, looks perfect for what I need and it's got great reviews on various sites.

If I go ahead I will be getting it on finance and the offer Volkswagen are doing atm is:

Duration 3 years
36 monthly payments of £79
Deposit £2,294.68
Retail cash price £8,095
Acceptance fee* £125
Optional final payment £3,942.90
Option to purchase fee** £60
Total amount payable £9,108.58
Total amount of credit £5,800.32
Representative APR 7.1% APR
Rate of interest 5.8% fixed

My options after the 3 years is to buy the car for £3,942.90, or give it back and pay nothing else or trade it in for a different model.

This looks like a good deal to me, what are your thoughts?

I have a £4000 in savings and was originally looking at getting a used car and paying for it in full but I don't really want to deplete all my savings in one go. Plus getting a new car will give me some piece of mind that if anything goes wrong it's guaranteed.

Any advice/ opinions would be greatly appreciated.

Cheers

bengalknights

Personally i would just buy a ex corporate used car for £3k and keep the rest of the cash for anything that may cropup this way the depreciation and niggles are usually out the way.

Bonking_Mad

bengalknights wrote: »

Personally i would just buy a ex corporate used car for £3k

Where can I find those deals? :money:

forgotmyname

If you have £2000 deposit why not buy a car for £2000 and have no loan?

Is it worth spending £8000 because it does an extra 5mpg over a £2000 car?

daveyjp

You can find a used C1 or 107 for £3-4,000. Use your savings and pay yourself back.

NM1984

forgotmyname wrote: »

If you have £2000 deposit why not buy a car for £2000 and have no loan?

Is it worth spending £8000 because it does an extra 5mpg over a £2000 car?

No, I'm not bothered about speed! Reliability is my primary concern, then it needs to be cheap to run, which this car is.

Considering the depreciation it is a bad idea to get a new car, even with the finance deal. I'm just finding it hard to find second hand cars that fit the criteria atm.

NM1984

daveyjp wrote: »

You can find a used C1 or 107 for £3-4,000. Use your savings and pay yourself back.

Thanks, been looking for these in my local area, though not having much luck so far.

forgotmyname

The best cars are probably not the ones on your doorstep. Unless you have time to wait for them to come to you. You need to travel to see them.

I had it all arranged a 309mile journey door to door to see a car.. But a few days before i spotted the advert for the one i have now.
Otherwise it would have been a trip to the bottom depths of Cornwall.