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Please Please Help - Personal Loan vs PCP Citroen Deal
Ok Guys -
I'm wanting advice please as I have my heart on buying a Citroen DS3, but can't decide which way to purchase one.
The options being either Personal Loan and buy one that is a few years old ..... or buy a brand new one direct through Citroen with their PCP finance.
For info i currently have a Seat Leon - i have done my research and its valued at £3k for a private sale or £2.3k if I traded it in.
I own this vehicle outright and there's no outstanding finance on it.
As a budget I would be comfortable paying around £160 per month in buying a new car, but wouldn't want to go too much higher.
Scenario 1 -
Sell my Seat Leon for £3k privately , then take a bank loan out for £5k, i have been quoted by Natwest that the full repayment on a £5k loan would be around £5.8k paid back over 4 years - this would be a monthly outgoing payment of around £120 a month.
I would then have a budget of say £8k and could purchase a Citroen DS3 around a 2012 plate (3years old) with around 25,000 miles on if i shopped around.
I see the pro's of this being that i would own the vehicle outright after 4 years, i would not be losing too much money on depreciation as its not a brand new car, the £120 monthly payment is pretty low.
I see the negatives being - it will require MOT and will no doubt start needing parts, if i bought privatly i run the risk of buying somebody else's problem, it would also need abit of juggling selling my car and being without a car until i bought a new car.
Scenario 2
I have been to Citroen and they have offered me £3k for my Seat (this has made me suspicious as its only worth £3k if sold privatly) - they want this £3k to be used as deposit to finance a brand new 15 plate DS3.
They have stated the new DS3 Would be £13,760
This would be broken downs as follows.....
Deposit of £3,200 - they will give me £3k for mine and want £200 cash.
Monthly payments for 36 months would be £141
They have offered me Guaranteed Future Value of £5,479
I see the benefits of this deal being - 3 years warranty so if anything goes wrong they will fix, no MOT's, i get a brand new car for the first time in my life, i get the option to buy the car in 3 years time at a cheap price as it would not be possible to buy one in todays market for £5,479, i am able to trade the car in after 3 years for another new car.
I see the negatives in the deal being - i dont actually own the car at the end of the 3 years and would have to take out further finances, i will have totally lost the Seat that i have originally traded in, i may incurr fees if i go over any mileage allowance.
Are there any other factors i need to consider please and can anyone tell me which scenario they would go for??
I'm wanting advice please as I have my heart on buying a Citroen DS3, but can't decide which way to purchase one.
The options being either Personal Loan and buy one that is a few years old ..... or buy a brand new one direct through Citroen with their PCP finance.
For info i currently have a Seat Leon - i have done my research and its valued at £3k for a private sale or £2.3k if I traded it in.
I own this vehicle outright and there's no outstanding finance on it.
As a budget I would be comfortable paying around £160 per month in buying a new car, but wouldn't want to go too much higher.
Scenario 1 -
Sell my Seat Leon for £3k privately , then take a bank loan out for £5k, i have been quoted by Natwest that the full repayment on a £5k loan would be around £5.8k paid back over 4 years - this would be a monthly outgoing payment of around £120 a month.
I would then have a budget of say £8k and could purchase a Citroen DS3 around a 2012 plate (3years old) with around 25,000 miles on if i shopped around.
I see the pro's of this being that i would own the vehicle outright after 4 years, i would not be losing too much money on depreciation as its not a brand new car, the £120 monthly payment is pretty low.
I see the negatives being - it will require MOT and will no doubt start needing parts, if i bought privatly i run the risk of buying somebody else's problem, it would also need abit of juggling selling my car and being without a car until i bought a new car.
Scenario 2
I have been to Citroen and they have offered me £3k for my Seat (this has made me suspicious as its only worth £3k if sold privatly) - they want this £3k to be used as deposit to finance a brand new 15 plate DS3.
They have stated the new DS3 Would be £13,760
This would be broken downs as follows.....
Deposit of £3,200 - they will give me £3k for mine and want £200 cash.
Monthly payments for 36 months would be £141
They have offered me Guaranteed Future Value of £5,479
I see the benefits of this deal being - 3 years warranty so if anything goes wrong they will fix, no MOT's, i get a brand new car for the first time in my life, i get the option to buy the car in 3 years time at a cheap price as it would not be possible to buy one in todays market for £5,479, i am able to trade the car in after 3 years for another new car.
I see the negatives in the deal being - i dont actually own the car at the end of the 3 years and would have to take out further finances, i will have totally lost the Seat that i have originally traded in, i may incurr fees if i go over any mileage allowance.
Are there any other factors i need to consider please and can anyone tell me which scenario they would go for??
0
Comments
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Get a loan and buy a second hand car outright so someone else has paid for the depreciation and for Gods sake don't buy a French car!0
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worried_jim wrote: »Get a loan and buy a second hand car outright so someone else has paid for the depreciation and for Gods sake don't buy a French car!
Beat me to it! As soon as I saw the thread title..."Citroen!? Noooool!!" :eek:Mortgage remaining: £42,260 of £77,000 (2.59% til 03/18 - 2.09% til 03/23)
Savings target June 18 - £22,281.99 / £25,0000 -
I appreciate your comments guys.
Ive had 2 Citroens before though and have never had any problems so i hate to say i will be going ahead with the DS3!
Its more the mind boggle of whether to go for one a few years old - and be being less per month but end up owning the car outright, or to try PCP and have a brand new.
My best friends change their cars every 3 years and are probably on their 4 car (over 12 years) and they swear by doing it PCP.
For me it just seems a mine field of questions, especially at the end of the 3 years you dont even own the car yet you get to trade it in for another new one..... i just cant get my head around it !0 -
My best friends change their cars every 3 years and are probably on their 4 car (over 12 years) and they swear by doing it PCP.
And therein, I suspect, lies the issue. Are you sure you're not wanting to buy a new one just to keep up with your friends?
Personally, I'd rather own an older car outright than rent a new one for a couple of years then start all over again.0 -
Well kindly stop being abusive and asking me to post further links to disprove the drivel you are currently posting.
Do you think the e90/e92 330i is turbo charged? You posted up an incorrect link, your information is wrong. You don't know the different between American unit system and SI units. Need I say more?
What did you study when you were younger? What do you do?0 -
My advice would be don't listen to people who have fixed views against certain makes/nationalities of car. Most cars are pretty good these days, I don't think there is a single make of car that should definitely be avoided at all costs. The Citroen DS's look great certainly more individual than the equivalent Fords, Vauxhalls etc. I can see why someone would want one and cars are really about individual taste.
But personally as others have said I'd always buy a car a few years old so that the fastest depreciation has already happened0 -
My best friends change their cars every 3 years and are probably on their 4 car (over 12 years) and they swear by doing it PCP.
They swear by it because they're stuck on the PCP treadmill where it's easier to just keep paying the money every month than contemplate the options. It can be an expensive way to rent a car...For me it just seems a mine field of questions, especially at the end of the 3 years you dont even own the car yet you get to trade it in for another new one..... i just cant get my head around it !
There are benefits to not owning a car. Leasing is generally much cheaper than PCP - because the manufacturers can give deep discounts which retail customers don't get, and you're handing the car back at the end.
PCP - there will usually be some incentives ('dealer contributions' for example) - and although you don't own the car at the end, you kind of hope to own enough of the car that you can use it to scrape the deposit for the next one.0
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