Hyundai Tuscon Deal of The Century or NOT?!

divdav

A long story short I did find a deal via:
https://www.hotukdeals.com/deals/hyundai-tucson-16-crdi-48v-mild-hybrid-se-nav-ps199-per-month-3681086#thread-comments
The official advert can be found via:
https://www.richmondmotorgroup.com/hyundai-tucson-offer.aspx


Today I have received my PRE CONTRACT AGREEMENT which I have not signed for yet and it states the followings:
--------------------------------------------------------
How much will you have to pay?
The total amount payable under the agreement is £24,681.20 which includes an advance payment of £4,699.00.
The total amount payable less the advance payment is to be paid by:
48 consecutive monthly payments each of £234.05 starting 1 month after the date of this agreement followed by 1 payment of £8,747.80 payable 49 months after the date of this agreement
Your selected Annual mileage is 12000 miles. The rate for each excess mile is 7.50p (excluding VAT) giving a maximum mileage allowance of 48000 miles for this 48 month agreement
--------------------------------------------------------
If you sign, can you change your mind later?
After the agreement has been signed, you will have the right to withdraw from the agreement without providing a reason for doing so. This right begins on the day after you receive a copy of your executed agreement from us and ends 14 days later. You may exercise this right in person at 86 Station Road, Redhill, Surrey RH1 1SR or by informing us in writing, either posted or handed in to Hyundai Capital UK Ltd T/A Hyundai Finance at 86 Station Road, Redhill, Surrey RH1 1SR by email at customerservices@hyundaifinanceuk.co.uk or by telephone on 0800 085 1954 at any time up to and including day 14.
If you withdraw from the agreement you should note that if we have paid the amount of credit on your behalf to the credit intermediary, you must repay this amount (or any lower amount if you have made any repayments) together with interest payable on that amount to us within 30 days, beginning on the day after you give us your notice of withdrawal. Interest will be charged on the amount of credit at £1.64 per day beginning on the date when the amount of credit was provided and ending when the credit and accrued daily interest is repaid.
--------------------------------------------------------






The cash price for the car is £22241.71.
Hyundai is contributing £4500 + my contribution of £199 = £4699 (advance payment).
The Total amount of credit is The Cash Price - The Advance Payment = £22241.71 - £4699 = £17542.71. 
The total credit amount is £17542.71 -  £8747.80 (baloon Payment) = £8794.91 (My finance excluding interest). 
48 Months X £234.05 (inclusive of 4.6% APR) = £11234.40


Here is where things are getting interesting, I have spoken to the dealer regarding the "Settling / Withdrawing" the finance. They have advised that if I do that within the 14 days cooling off period I will be liable to payback Hyundai the £4500 contribution. However they have advised me not to do that and wait at least 3 months. I solely believe that they are intending to preserve the salesman's commission through the finance company.


However I genuinely believe that his advice is incorrect as there is nothing in the contract that states that if I settle the finance within 90 days I will not be liable to pay back Hyundai finance the £4500 which they have contributed to it.



Please share your thoughts with me. 

Thanks a million.  

daveyjp

He's a salesman, the truth can sometimes be a stranger to them.

You can pay a debt off whenever you want.

Grumpy_chap

You have a deal available.
You have all the details of that deal.
If you don't like the deal, you don't have to sign it.
I am confused as to what the question is. 

The deal matches the advert "from £199 deposit and from £199 monthly", it's just with your mileage etc, the actual monthly is higher.  The advert is clear if you scroll down, £199 deposit and £199 monthly is 49 months max 6k miles per year.
You have £199 deposit and £234 monthly for 12k miles per year.  Total 24k extra miles over the term for total £1.7k extra money.
How many miles do you need?

You can take the deal, and then settle the finance early, according to whatever is in the finance terms (which take precedence over whatever the salesman says).  The car salesman is not a finance expert.

BOWFER

A friend of mine is a BMW salesman, he will confirm that if the finance is settled too early he loses the commission.

DrEskimo

divdav said:

A long story short I did find a deal via:
https://www.hotukdeals.com/deals/hyundai-tucson-16-crdi-48v-mild-hybrid-se-nav-ps199-per-month-3681086#thread-comments
The official advert can be found via:
https://www.richmondmotorgroup.com/hyundai-tucson-offer.aspx


Today I have received my PRE CONTRACT AGREEMENT which I have not signed for yet and it states the followings:
--------------------------------------------------------
How much will you have to pay?
The total amount payable under the agreement is £24,681.20 which includes an advance payment of £4,699.00.
The total amount payable less the advance payment is to be paid by:
48 consecutive monthly payments each of £234.05 starting 1 month after the date of this agreement followed by 1 payment of £8,747.80 payable 49 months after the date of this agreement
Your selected Annual mileage is 12000 miles. The rate for each excess mile is 7.50p (excluding VAT) giving a maximum mileage allowance of 48000 miles for this 48 month agreement
--------------------------------------------------------
If you sign, can you change your mind later?
After the agreement has been signed, you will have the right to withdraw from the agreement without providing a reason for doing so. This right begins on the day after you receive a copy of your executed agreement from us and ends 14 days later. You may exercise this right in person at 86 Station Road, Redhill, Surrey RH1 1SR or by informing us in writing, either posted or handed in to Hyundai Capital UK Ltd T/A Hyundai Finance at 86 Station Road, Redhill, Surrey RH1 1SR by email at customerservices@hyundaifinanceuk.co.uk or by telephone on 0800 085 1954 at any time up to and including day 14.
If you withdraw from the agreement you should note that if we have paid the amount of credit on your behalf to the credit intermediary, you must repay this amount (or any lower amount if you have made any repayments) together with interest payable on that amount to us within 30 days, beginning on the day after you give us your notice of withdrawal. Interest will be charged on the amount of credit at £1.64 per day beginning on the date when the amount of credit was provided and ending when the credit and accrued daily interest is repaid.
--------------------------------------------------------






The cash price for the car is £22241.71.
Hyundai is contributing £4500 + my contribution of £199 = £4699 (advance payment).
The Total amount of credit is The Cash Price - The Advance Payment = £22241.71 - £4699 = £17542.71. 
The total credit amount is £17542.71 -  £8747.80 (baloon Payment) = £8794.91 (My finance excluding interest). 
48 Months X £234.05 (inclusive of 4.6% APR) = £11234.40


Here is where things are getting interesting, I have spoken to the dealer regarding the "Settling / Withdrawing" the finance. They have advised that if I do that within the 14 days cooling off period I will be liable to payback Hyundai the £4500 contribution. However they have advised me not to do that and wait at least 3 months. I solely believe that they are intending to preserve the salesman's commission through the finance company.


However I genuinely believe that his advice is incorrect as there is nothing in the contract that states that if I settle the finance within 90 days I will not be liable to pay back Hyundai finance the £4500 which they have contributed to it.



Please share your thoughts with me. 

Thanks a million.  

You'll be fine. I was told the same. 3 months said the salesman...6 months says the finance company.

Once you go through the process you realise it's next to impossible to enforce, as the amount you finance is simply the outstanding amount after your upfront payment, and any additional contributions. They would need some way to increase the settlement by £X only when you chose to settle in 3months, and then the finance would need to know there was a finance contribution in place on your agreement....

Otherwise the only alternative is to send you a bill....

Anyway, I settled a couple of weeks later, paid a few quid in interest and that was the end of it.

Nearlyold

Nothing to add to what DrEskimo has said regarding repaying incentives, however you may like to be aware that the agreement you are looking at appears to be a Fixed Sum Loan based PCP which will not offer you any Voluntary Termination rights as it's neither a Hire Purchase nor Conditional Sale based PCP agreement. Nothing wrong with that in itself if a VT is not something you'd ever consider.

Grumpy_chap

So, this offer appears to be for the 2020 model SE Nav, manual, list price £27k on the Hyundai website.
It is the run-out stock as there is a new model Tucson released - often a way to get great deals.

The deals are presented in a confusing manner, but as I make it (someone please correct me if I am getting this wrong):
Hyundai website is offering the PCP (configured to be close to the Richmond deal):

• 49 months
• 6k miles per year
• Deposit contribution £4.5k
• Customer deposit £200
• Monthly £325 x 48
• Total payable £30k less deposit contribution = £25.5k (assuming the finance runs the term)
• APR 4.6%

Richmond are offering the PCP:

• 49 months
• 6k miles per year
• Discount £5.5k
• Deposit contribution £4.5k
• Customer deposit £199
• Monthly £200 x 48
• Total payable £24k less the deposit contribution = £19.5k (assuming finance runs the term)
• APR 4.6%

Either of the above can be settled early, so avoiding the interest charges.  Need to check the finance T's & C's for precise rules around the deposit contribution £4.5k.

Settling the finance early (immediately):

• Hyundai is £27k - £4.5k = £22.5k
• Richmond is £27k - £5.5k - £4.5k = £17k

On the above basis, the Richmond deal is £5.5k of "good deal", which exactly matches the discount that Richmond Hyundai declare.  Makes sense.

I can't easily get prices from online brokers - quoting the new model.  Awaiting a CARWOW quote for the old model.

Lowest price for cash on Autotrader, brand new for the same spec car is £22.5k:
https://www.autotrader.co.uk/classified/advert/new/202103110018135

Lowest pre-reg 100 miles £20.7k:
https://www.autotrader.co.uk/classified/advert/new/202010034550599

Against these options, the Richmond offer is £3.7k or £5.5k of a "good deal" in return for a bit of admin around the finance deal and early settlement.

If I were the OP, I'd contact some of the dealers with the keenest Autotrader price to see if they have anything more to give via finance etc., but it does seem as though the £17k from Richmond is a bargain.  It can be tested by the OP in exchange for a handful of phone calls.

For comparison, Broadspeed lists a Focus Zetec 1.0 manual 125 for £17,380
Set against that, the Richmond deal is an even bigger bargain.

KimJongUn88

Deal of the century? You’ll probably have to hold off for another 79 years to see if anything better pops up.

Grumpy_chap

KimJongUn88 said:

Deal of the century? You’ll probably have to hold off for another 79 years to see if anything better pops up.

I doubt you'll still be able to buy a Hyundai Tucson brand new for around £20k - £30k in 79 years time.

Grumpy_chap

On the Hyundai website there is an additional offer of £1,750 off for trade in any old car.  If the OP has a scrapper, that may be worth enquiring whether it can be had in addition to the advertised offers.

daveyjp

49 months is far too long to be paying a PCP loan.

In month 48 you will need to pay out for the service, which may be very expensive at 4 years.