My contract expires with Arnold Clarke, need advise

BoGoF

So if we assume you got in March 15 if its got 3 months to ago you will have paid £6120 (36 x £170). Was there a deposit paid?

wgl2014

As rough calculations:

10k bank loan over 4 years can be had for £220 per month with no deposit. That would get you a 2016 Civic or Focus.

In 4 years time the car will be worth in the region of 3.5 to 4.5k. Whilst some maintenance and repairs are inevitable overall this is s much cheaper way to have what is still a newer car.

Your current deal would see you paying £8400 over 4 years (assuming you went for a similar deal at 3 years and changed cars) and you end up with nothing other than use of the car.

Worth considering even if you decide it's not for you.

brat02

tykesi wrote: »

Why have you changed usernames?

sorry, different internet browser had different login saved and I thought I have lost it forever

brat02

BoGoF wrote: »

So if we assume you got in March 15 if its got 3 months to ago you will have paid £6120 (36 x £170). Was there a deposit paid?

only £100 at the start of each contract so £200 in total

almillar

My main question is what I need to watch out for

If they say the words 'negative equity' just hand the car back (cost £0 unless you're over miles or car is in unreasonable condition), and walk into another dealership, where you start from zero again, instead of 'negative'.

A good way to look at it, if you never intend to own the car, is take the monthlies, multiplied by, say, 35, plus the deposit. Divide that by 36, and that's your real monthly cost, taking the deposit into account.

Cornucopia

rus4u wrote: »

What car do I want? something similar, not big hatchback .... was thinking about Ford Focus, Honda Civic but don't really want to pay more than £200 a month

It's unlikely that you'll get a new Civic for under £200pm.

The slightly smaller Jazz could be leased for c. £175pm, with an initial downpayment of c £1000. Some dealers are also offering a 0% PCP which is £199pm and £199 down over 4 years.

brat02

almillar wrote: »

If they say the words 'negative equity' just hand the car back (cost £0 unless you're over miles or car is in unreasonable condition), and walk into another dealership, where you start from zero again, instead of 'negative'.

can you advise who is out there as good and as big with the same offers as Arnold Clarke please?

almillar wrote: »

A good way to look at it, if you never intend to own the car, is take the monthlies, multiplied by, say, 35, plus the deposit. Divide that by 36, and that's your real monthly cost, taking the deposit into account.

I don't quite get these calculations, can you please explain a bit more?

brat02

Also am I right or wrong here?
New 2018 plates come out February/March and if I get 2016/17 plate car then it will be much cheaper than now?

System

brat02 wrote: »

I don't quite get these calculations, can you please explain a bit more?

Most PCP muppets think their car only costs them the monthly payment, it doesn't. So lets say they have a car on £200 a month on PCP. They seem to think it only costs them £200 a month. But what they're not factoring in is the deposit as well.

Lets say its a 3 year agreement, £3600 deposit, £200 a month. To get the real cost per month you split the deposit over the term so 3 years is 36 months. £3600 deposit divided by 36 = £100 a month over the 3 years. Add the £200 a month you're paying and the REAL COST is £300 a month, not £200, its just that you're paying the £3600 up front to make the monthly cost look better.

Its all about psychology. If you said to someone that their car payments were going to be as much as their mortgage they'd not take out the car finance. However have a deposit and/or a large balloon payment and you can reduce those monthly payments and all of a sudden the same deal looks a whole lot better "Ooh look Johnny, its only £125 a month for a brand new car, that's nothing!"

Cornucopia

Tarambor wrote: »

"Ooh look Johnny, its only £125 a month for a brand new car, that's nothing!"

Sounds like Bus Pass money to me, or at least London Travelcard money.