cmyers_uk
Joined: 10 Apr 2005
Location: Near Bristol, UK
Posts: 247
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Quote: The gist of it is that I "do" consumer credit as part of my work, I used to be a business manager (finance bod) for a dealership and was part of the team that rolled out Personal Contract Purchase training to Ford dealerships across the UK in the early 1990s.
Youve got me beat  I only use the stuff! but Im keen to learn!
Humour me if your laptop can stand it because I really dont understand. I was always told even by the finance guys in the garage that PCP is the most expensive way to finance a new car. I appreciate there must be something wrong with my workings but it does not compute 
With this deal in 24 months you have nothing, no equity just an option to walk or pay £17K, So the costs for 24 months of motoring is £20K or £800 a month.
Broadspeed sell a new SE Auto for £36110 so you need your car + approx £16K or £500 over 3 years and you have a car with £20K equity in it (well we can hope  ).
The only advantage I can see is the fact that with this option you get new car with zero monthly payments but then in 2 years your disadvantaged as you have no equity for the next change.
Go for What have I got wrong  I know Ill feel like a  .
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 Mon Jul 07 2008 8:41pm |
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blue meanie
Joined: 04 Aug 2005
Location: nfi !
Posts: 2684
 
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just what I was thinking, appears like a good deal if:
a, your existing D3 is fully paid up at the time of doing the deal
b, you are willing to either have 25 months without paying anything and accept a much larger finance deal when it's time to change to something else..
or c,
you are going to save up the GFV or deposit on the next one in 25months,
either way you're going to pay in the end.... global warming my ars...!!!
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| Mon Jul 07 2008 8:46pm |
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NoDo$h
Joined: 02 May 2006
Location: Dodging peanuts
Posts: 5923
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You still have equity, or should have, as the car is worth what it's worth, not just the Guaranteed Minimum Future Value. That value is set at a conservatively low amount, designed to be less than the realistic value so you will have equity in your car. Any dealer who, when asked what your car is worth replies "what do you owe on it" is to be avoided!
I'd broadly estimate that a 2 year old SE with 50k on the clock will be worth about £20-£22k giving me some equity towards the next car. By not having to find any payments for the next 2 years I can put something away each month. Let's say I choose to put £400pm away, that gives me £9,600 plus any equity in the car towards a new one. Seems pretty good to me   Going, going...... Gone!
Carbon footprint? I neither know nor give a damn
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| Mon Jul 07 2008 8:51pm |
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DiscoDunc
Joined: 08 May 2006
Location: Bristol
Posts: 2586
 
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is there a minimum deposit ? Duncan
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| Mon Jul 07 2008 8:54pm |
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NoDo$h
Joined: 02 May 2006
Location: Dodging peanuts
Posts: 5923
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Malc, combination of a) and c) for me. My car is bought and paid for and I plan on putting money to one side against the time in 2 years when I need to decided to buy or trade.
Nobody gets a car for free and all cars lose money. Where this deal works is in NOT requiring you to pay money each month, which is a cashflow bonus for me as my income is in fits and starts
Oh, and it's 0% APR, so no cost for borrowing. Going, going...... Gone!
Carbon footprint? I neither know nor give a damn
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| Mon Jul 07 2008 8:57pm |
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DG
Joined: 12 Dec 2005
Location: The Gaff !
Posts: 13747
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GMFV is always bullshit as far as equity is concerned ..you never end up with any but the saving grace is that you never owe the difference between the GMFV and the horrendus price the motor has stooped to at trade in.
All I look at are the monthly payments ..as long as they are comfortably within my budget then thats all I care about. You are never onto a winner unless you plan to keep the motor and run it into the ground TBH Powered by............................
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I've been accused of vulgarity. I say that's bullshit 
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| Mon Jul 07 2008 8:57pm |
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countrywide
Joined: 16 Sep 2007
Location: Sunny South Coast
Posts: 1473
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Also if you have the money rather than spend it you can invest the GFV for 2 years and £16K at 5% would give you a compound interest of £1,640.00, which is not to be sneezed at. But of course it has to be 0% to make it worthwhile to do it and you need to have the cash as well.
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| Mon Jul 07 2008 9:00pm |
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cmyers_uk
Joined: 10 Apr 2005
Location: Near Bristol, UK
Posts: 247
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Ive got it , My wife has explained it to me. why is she always right.
The good news is new HSE coming tomorrow now.
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| Mon Jul 07 2008 9:03pm |
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NoDo$h
Joined: 02 May 2006
Location: Dodging peanuts
Posts: 5923
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 'kin 'ell, you don't hang about! Going, going...... Gone!
Carbon footprint? I neither know nor give a damn
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| Mon Jul 07 2008 9:25pm |
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cmyers_uk
Joined: 10 Apr 2005
Location: Near Bristol, UK
Posts: 247
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No only joking but I get the deal now. Me likes 0%.
Good luck when the new baby arrives, cheers for being patient.
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| Mon Jul 07 2008 9:29pm |
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NoDo$h
Joined: 02 May 2006
Location: Dodging peanuts
Posts: 5923
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 Going, going...... Gone!
Carbon footprint? I neither know nor give a damn
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| Mon Jul 07 2008 9:32pm |
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blue meanie
Joined: 04 Aug 2005
Location: nfi !
Posts: 2684
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NoDo$h wrote:Malc, combination of a) and c) for me. My car is bought and paid for and I plan on putting money to one side against the time in 2 years when I need to decided to buy or trade.
Nobody gets a car for free and all cars lose money. Where this deal works is in NOT requiring you to pay money each month, which is a cashflow bonus for me as my income is in fits and starts
Oh, and it's 0% APR, so no cost for borrowing.
well sounds like it works for you then Al global warming my ars...!!!
Last edited by blue meanie on Tue Jul 08 2008 12:39pm; edited 1 time in total
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| Mon Jul 07 2008 10:27pm |
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Dog
Joined: 19 Oct 2005
Location: Scotland
Posts: 176
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I couldn't do it as I have a manual SE and would want the same but they don't exist physical as the SE has gone all HSE about auto. Oh well.
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| Tue Jul 08 2008 12:34pm |
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Pelyma
Joined: 06 Jan 2005
Location: Clymping, Sussex
Posts: 4479
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I thought manual was a nco on HSE DS3 TDV6 HSE
Silver with Alpacca (old one)
DS3 TDV6 HSE
Silver with Alpacca (new one)
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| Tue Jul 08 2008 2:13pm |
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NoDo$h
Joined: 02 May 2006
Location: Dodging peanuts
Posts: 5923
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It is nco, but this offer only exists on built cars, 08.5my. Dog's been told there are no built manual 08.5my SE's available, so game over for him as far as this offer goes. Going, going...... Gone!
Carbon footprint? I neither know nor give a damn
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| Tue Jul 08 2008 2:32pm |
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