Finance options on new vehicles
0 Comments | Cornish Guardian; Truro (UK), Sep 1, 2010 | by RAY CASTLE
BUYINGa car is exciting. Bothering about the loan you need andwhether you can afford it is a bore. Trouble is, one depends on the other: getting the money right is pretty important.
If you don’t, you could end up paying hundreds of pounds more than you need.
Don’tworry, though, because we’ve scouted around to bring you the best deals, whether you’re buying a new car or a second-hand one.
Peugeot’s Just Add Fuel 308 1.4 Millesim 5dr On the road, new: Pounds 16,245 Initial Rental Pounds 2,078, then 35 monthly payments of Pounds 265. 9.9 per cent APR What Peugeot’s done here is gathered together the main fixed costs of running a car – finance costs, comprehensive insurance, road tax, and breakdown rescue – and rounded them up into a single payment.
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The scheme’s available on most Peugeots and here we’ve chosen the 308 Millesim, one of a range produced to mark Peugeot’s 200th anniversary. It’s based on the entry-model 308 and costs the same, but adds alloy wheels, fog lamps and a sports body kit.The package is available as a lease (as shown here) or as a personal contract purchase (PCP).
With a lease, you simply hand the car back at the end. With a PCP you can do this, too, or you can go on to buy the car. You can also hand it back and take another car on another PCP.
Before you sign for Just Add Fuel, it’s worth checking out the small print. First, be aware that items such as tyres and brake pads are excluded – so it’s likely that you’ll pay to replace them at some point over the three years that this plan runs. Second, the payment shown here depends on an annual mileage of 6,666 miles.
Travel further and you’ll pay a surcharge.
And finally, note that although road tax is included, what actually happens is the dealer gives you a chequewhen you get the car to pay for the second and third years of tax (at current rates). If the cost of road tax rises, you’ll pay the increase.
Citroen C3 range On the road, new: Pounds 10,990-Pounds 16,440 0 per cent loan with Pounds 0 deposit, plus three yrs servicing at no extra cost This is good value if you want a new car but would rather not use any of your cash as a deposit. Bundled with the servicing offer, it’ll save you Pounds 2,000 or more, depending on the model, on what you’d pay if you borrowed the buying price for from a bank and paid a garage for scheduled maintenance.
Any new or second-hand car, costing Pounds 8,000 Pounds 221 monthly over three years 8.8 per cent APR If you borrow from the bank, this is cheap as it gets. At the moment Sainsbury’s Bank, Alliance and Leicester and Santander offer identical deals at this rate.
With each, you’ll face a charge if you decide to repay the loan early, but there are no set-up or administration fees (as charged with many loans). In all, you’ll pay Pounds 951 interest.
Bank loans like these are a good bet because you’re not tied to buying any car and there’s no worries over mileage limits or other conditions hidden in the small print. And, unlike hire-purchase and PCPs, you own the car from the start.
Fiat i-deal 500C 1.2 Pop On the road, new: Pounds 12,465 Deposit Pounds 1,867, then 36 monthly payments of Pounds 169, 3.1 per cent APR With interest at a third of the best rates offered by banks (see above), this offer – on the opentop 500, currently Fiat’s most desirable car – delivers strong value
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