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Discussion Starter #1
Almost there now.... but before I do, would appreciate the thoughts of those on the forum.

I'm looking to go with the 3-year contract hire arrangement being offered by dealers, which is £2.8k deposit, with monthly payments of £359 for 3 years, free servicing and road tax, 12,000
miles per year.

This seems like a good deal to me. No depreciation and maintenance costs taken care of.

Am I missing something????
 

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What's your final payment - the GFV, also look at your mileage penalty 12K is low for a car like this?

looking at the raw numbers:

2.8K + 36 * 359 = 15724 is what your're paying..

3.2SV V6 = 29250- you not putting any extras on it - blue andme is well worth it if you can for £300.

tax is over 200 / year servicing for 3 years will be 375 so call that another grand...



lets say your paying 6% or so pa = probably another 5K interest..

so you're paying back 16K to get 30K of car + 1K running costs plus interest (5K). I'd say you will owe them around 20K at the end of it and have a car worth under 15K unless the residuals have firmed up heavily, so you will have nothing at the end of 3 years to put towards another car.

So you're borrowing 33K paying back 13K. if you want to get your deposit back for the next car put away about £100 per month that brings the numbers somewhere into sanity...

I'm paying significantly more than that over 42 months on 20K/year with no servicing - and got a good deal at the time although my SV is fairly loaded. I also expect to get my deposit back and probably a bit more -but only paid a very little one.

The only thing I can think of is the dealer needs to get a car out the door and is giving chunks of his profit away - and hopes to make it back on warranty work and vehicle churn

I may of course be wrong as it's late but look at the end of your contract hire as this will be where the sting is....

You are gettign depreciation - you are effectively paying 16K plus insurance/tyres etc to run a car for 3 years with nothing to show at the end -but miles and miles of smiles...

if it works for you - go for it.

HTH

Simes.
 

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Personally I'd buy the car myself or via a bank loan etc as the final payments on theose deals are a killer !! :( And you are paying for a 3 year old car !! :(

Just my opinion Glaffy ;)

Hope you get a 'driving smile' like I have real soon !! ;) :D
 

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Discussion Starter #5
Many thanks for the replies.


I should have clarified that there's no final payment, i.e. just 36 payments of £359 and the inuitial £2,800 deposit.
 

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Effectively, you're losing £16000. It might be worth looking at other finance options and having something to show at the end.

What about a pre-reg and a loan?
 

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The good thing with the deal you are offered is: "You can walk away after three years"!:D

The down side - you have paid 16K the last three years - only to enjoy the ride. It is often hard to return the car at the end of the contract, and more important end up with nothing. :rant: :rant:

It all comes down to your financial situation. It's lot of money just to have a fancy car! I would have asked myself a question: If I had those 16K now what would I have done! You can get a quite nice Alfa second hand for 16K - then use is for three years and sell it for.....you will still get something for it!

Personally I find it easier to swallow those hire contract if you got a car allowance or mileage from your employer.:)
 

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Effectively, you're losing £16000. It might be worth looking at other finance options and having something to show at the end.
I don't look at it that way at all. For sure you won't have any equity in the car at the end of the period - but then you haven't already paid for that equity up-front.

I chose PCP this time (for the first time) because:-

1. the monthly payments allowed me to buy a car I couldn't otherwise afford (!)
2. guarranteed final value (GFV) means I know there's going to be no nasty surprise

Furtehrmore, although there is a final payment required if I want to take the car at the end,

3. if the GFV is too high for the real value of the car I can walk away
4. alternatively, if the car held its price better than predicted, I am going to be able to get a bargain!

Makes good financial sense to me.
 

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I don't look at it that way at all. For sure you won't have any equity in the car at the end of the period - but then you haven't already paid for that equity up-front.

I chose PCP this time (for the first time) because:-

1. the monthly payments allowed me to buy a car I couldn't otherwise afford (!)
2. guarranteed final value (GFV) means I know there's going to be no nasty surprise

Furtehrmore, although there is a final payment required if I want to take the car at the end,

3. if the GFV is too high for the real value of the car I can walk away
4. alternatively, if the car held its price better than predicted, I am going to be able to get a bargain!

Makes good financial sense to me.

Me too. I've just done the same but for a GT.
 

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Discussion Starter #11
Hi Alfared

The spec I'm going for is carbonio black and black/grey, 18 inch hole alloys and blue and me - no other options....
 

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I couldn't persuade you with the blue then? Are you absolutely sure? :p
 

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Go for the red/tan interior...it's not too late... you'll never, ever regret it...!
... you should listen to this man, he's a wise dude! :cool:
 

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The spec I'm going for is carbonio black and black/grey, 18 inch hole alloys and blue and me - no other options....
The Bose option is a MUST....
Blue&Me will give you a great hands free....

Your colour options is great, but in the long run you will get tiered of black leather. Take a closer look at red or even blue leather. It gives the car more character.....you will love the car even more.....
 

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That deal is good - if you buy privately you will spend just as much on servicing, depreciation, tyres and road tax, this way its worry free.
 

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Your colour options is great, but in the long run you will get tiered of black leather. Take a closer look at red or even blue leather. It gives the car more character.....you will love the car even more.....
Couldn't agree more!!!
:D
Especially the 1980s slip on shoe grey stripes.
:vomit:

;)

I think the blue & tobacco would look very striking with the black.
:cool:
 

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That deal is good - if you buy privately you will spend just as much on servicing, depreciation, tyres and road tax, this way its worry free.
Its not bad, running costs plus depreciation on my car is in the region of 19k thats on a cheaper car and I'm not even at 2.5 years though thats on 20k a year, I have never looked at these things before interesting I shall have to look into that further next time, been through a few tyres and brakes etc due to trackdays, I suppose the only problem is its not yours so you couldn't modify it.
 
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