Vauxhall 0%

baby.boo_2

not sure if this is the right place to post this!!

Am looking at buying a vauxhall corsa and was just wondering if the 0% finance offer is as good as it looks?

Ive never used finance or a loan or anything so dont understand anything about how it all works and what makes a good deal or not so any help would be great!!!

AdrianHi

That would depend on how big a discount you can negotiate on top of the 0% deal (needs to be really big).
The problem with the Corsa is Vauxhall sell them in volume to leasing firms on the cheap which means the leasing firms can sell them off cheap 3 years later, destroying the residual value of your car. There are also a lot of them about. On a £9,000 Corsa if you could do 0% on the whole £9K compared to using finance at say 6.9% APR you saving around £700-£800 over 3 years. It is pathetic.
The £9K Corsa is worth £3K 3 years later (33% residual) £6K loss. A £9K Skoda Fabia is worth £4500 3 years later (50% residual) £4.5K loss (you are £1.5K better off or £750 accounting for the 0% deal). Mini One 1.4 Pepper Pack £13.5K worth around £8775 3 years later £4725 loss, but the 53mpg fuel economy means it is still the cheapest car here in the long run, if you can deal with the cash flow challenge of financing £13,500.
A Corsa can be leased for a very reasonable price per month, compare leasing with buying and reselling, on this car leasing may be cheaper.
If you are putting your own money into a car with the intention of money saving in the long run clearing that mortgage, use a copy of What Car which lists projected 3 year residuals and find cars that can do 42-45% or better and test drive those.
From memory (did this analysis for my sister recently) the ones to try are the Mini One, Skoda Fabia and Mazda 2. The total cost of ownership on this Mini I am talking about per month over 3 years is about the same as a bottom of the range Skoda Fabia with a nasty 3 cylinder engine in it, even taking into account the cost of having more money tied up in the car (which you are not paying your mortgage off with now).

zeon999

Exellent explaination there and well thought out, I love the Mazda 2 so would also say look at that compared to a Corsa anyways.

Also as mentioned consider leasing a vehicle if you are the type to renew your car every few years as it often works out cheaper and easyer due to the leasing company getting such large discounts in the first place.

I use Total Fleet Services and have done for ages now they provide a very friendly efficient service to me. http://www.lease-hire.co.uk

All the best with finding the right deal for your next vehicles finance.

AdrianHi

Just checked figures properly.
http://www.vauxhall.co.uk/vx/carandvans/customerofferbyoffernameandbrand.do?method=retriveCustomerOffersByBrandAndOffer&vehicleType=C&offerName=&offerId=4501&brandId=924&brandName=Corsa
Looks like you need a 20% deposit, say £1800.
If you borrow £7200 over 36 months the finance charges are 766.77, so that's what the 0% deal saves you assuming you would otherwise take a 6.9% APR loan.
As said above the higher depreciation on the Corsa vs. say a Fabia costs you more than that, unless you can get a big enough discount on the Corsa compared to the Fabia.
Another thing I just checked out is the leasing option. Corsa 1.0 12v Life 8910 on the road price.
Assuming you pay list price 8910, the Corsa is costing 163.35 a month in depreciation. You can lease this same car for 122.24 a month including VAT.
http://www.whatcar.co.uk/contract-hire-results.aspx?pg=2&RT_ID=886
So if you want a Corsa forget the 0% deal, lease one for 36 months and if you want to keep it see if you can buy it off the lease company for 2940 when it is 36 months old. Although you don't have the right to buy the car when you lease, the lease company will just want to sell it on and won't care where it goes if they get their money. If they have to pass it on to auction they will have those costs to pay, you'll be doing them a favour buying it off them.
Another thought is in year 4 of a cars life you still have some depreciation to pay for and other costs come in, MOT, extended warranty, breakdown cover. Add it all up and you get a monthly figure not that different from handing the keys back and leasing another new car.

AdrianHi

Edit: double post deleted

acresbrook

AdrianHi wrote: »

Just checked figures properly.
http://www.vauxhall.co.uk/vx/carandvans/customerofferbyoffernameandbrand.do?method=retriveCustomerOffersByBrandAndOffer&vehicleType=C&offerName=&offerId=4501&brandId=924&brandName=Corsa
Looks like you need a 20% deposit, say £1800.
If you borrow £7200 over 36 months the finance charges are 766.77, so that's what the 0% deal saves you assuming you would otherwise take a 6.9% APR loan.
As said above the higher depreciation on the Corsa vs. say a Fabia costs you more than that, unless you can get a big enough discount on the Corsa compared to the Fabia.
Another thing I just checked out is the leasing option. Corsa 1.0 12v Life 8910 on the road price.
Assuming you pay list price 8910, the Corsa is costing 163.35 a month in depreciation. You can lease this same car for 122.24 a month including VAT.
http://www.whatcar.co.uk/contract-hire-results.aspx?pg=2&RT_ID=886
So if you want a Corsa forget the 0% deal, lease one for 36 months and if you want to keep it see if you can buy it off the lease company for 2940 when it is 36 months old. Although you don't have the right to buy the car when you lease, the lease company will just want to sell it on and won't care where it goes if they get their money. If they have to pass it on to auction they will have those costs to pay, you'll be doing them a favour buying it off them.
Another thought is in year 4 of a cars life you still have some depreciation to pay for and other costs come in, MOT, extended warranty, breakdown cover. Add it all up and you get a monthly figure not that different from handing the keys back and leasing another new car.

Its worth noting that you can get multiple discounts / offers on vauxhalls NOT just 0%.

If you are in UNISON ( and other organisations - ie ASDA etc ) you can get 10% (or family members - eg my sister !)
If you have a GM Card you can get upto £1000 off (assuming you have that many points)
If you have an old banger you can get £1000 scrap allowance (for 1.0ltr and 1.3cdti).
0 % finance

I did all four and got a corsa breeze 1.3cdti (List £10800ish list)
for £7600 WITH 0% finance over 3 years. ie £1500 deposit and £170 a month.

Now, you can get pre registered cars for a discount, but not this much.
I traded in a saxo which was actually worth £400-£500 to get the scrap allowance.

Acresbrook

AdrianHi

acresbrook wrote: »

Its worth noting that you can get multiple discounts / offers on vauxhalls NOT just 0%.

If you are in UNISON ( and other organisations - ie ASDA etc ) you can get 10% (or family members - eg my sister !)
If you have a GM Card you can get upto £1000 off (assuming you have that many points)
If you have an old banger you can get £1000 scrap allowance (for 1.0ltr and 1.3cdti).
0 % finance

I did all four and got a corsa breeze 1.3cdti (List £10800ish list)
for £7600 WITH 0% finance over 3 years. ie £1500 deposit and £170 a month.

Now, you can get pre registered cars for a discount, but not this much.
I traded in a saxo which was actually worth £400-£500 to get the scrap allowance.

Acresbrook

With the combination of discounts you got you've managed to roughly equal the deal I estimate a leasing company gets, which is very good, probably the only way to do a brand new purchase of this car.

acresbrook

Just negates the horrendous initial depreciation of the car....... a bit.

4 months ago, got a £20,500 zafira for 14,500 with GM Points + Big discount.

They have an offer on whereby you can use the GM Card points TWICE if you buy another vauxhall within 12 months of the first. :-)

Little_John

Im not sure but you usually find that the 0% deals don't get discounted from the on the road price most dealerships can offer a finance deal for less that the on the road price.