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Replacement Car Advice

in Motoring
2 replies 535 views
My 14 year old Citroen Picasso's clutch has gone, so I've decided to replace the car. The car is worth a few hundred pounds and replacement the clutch around £500.

I've owned by Citroen from new, so after 147k it’s done me very well. In hind sight I should have changed a few years ago as its cost a fair bit to keep on the road.

Decided to go for a much smaller car (kids have left home). It’s either going to be a Skoda Fabia or Ford Fiesta.

Next decision is to decide on the best way of financing the car.

I understand the principals of the pcp way, but I'm getting conflicting advice off the car dealers.
I do approx 10k miles a year. Some dealers suggest going for a 5k mileage allowance, a big deposit and agreement over 42 months to get the payments down to £115 a month. They tell me lots of car owners are keen to part exchange after the second service as there are always good offers on and there will be plenty of equity in the car - so when I part exchange I won't have to put much of a deposit down (probably none) to get similar monthly payments. That sounded very good to me.
Other dealers have given conflicting advice. These suggest a small deposit, 10k mileage allowance and take over either 2 or 3 years. The monthly payments on this type of agreement are pushing £200 a month.
So I'm confused!!

Ford seem to want to charge 4.3% APR for a PCP and Skoda 0%.
As a result of the conflicting advice, I’ve now started to look for second hand cars. Looks to be a good saving on new, but then there is always the extra worry of warranty and increased costs of finance.

I've also had a look on the net and a lot of people suggest going to a broker for a new car. Looks to be a saving of around 2-3k.
Can anyone recommend a good broker? I’m not sure if these brokers are just good at discounting for a cash purchase on new or can I use the finance from the main dealers?
Any advice much appreciated.

Replies

  • NasqueronNasqueron Forumite
    7.7K Posts
    If you are looking to trade the car in at the end of the finance period then having a lower mileage rate will mean you pay an excess mileage charge.

    I have a 0% deal with Mazda, I gave them a figure of 8k miles a year (which was realistic based on my average) but I have been driving more than that - I would pay a fee per mile over the limit as the trade-in guaranteed value was based on that mileage limit, so doing more miles affects that. Personally I just talked to the dealer about what monthly payment I wanted to make and adjusted the deposit to accommodate that and as I am not going to trade it in, it doesn't concern me
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  • agrinnallagrinnall PPR
    23.3K Posts
    10,000 Posts Combo Breaker
    Forumite
    I used drivethedeal to get an idea of the sort of discount that is available then took that to my local Ford dealer who pretty much matched the price for a new Fiesta, and of course they are just a few miles away whereas DTD could have sent me to a dealer anywhere. A big chunk of the discount is a contribution from Ford Finance for taking out credit, if you don't need it the trick is to take out the minimum amount (£2500) and pay it back in full soon after it starts.
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