[denmade]

BW 10, GT 2.0 TSI (210 PS)

Cash price £24,000
Deposit £2,000
Scrappage £2,000

VW Financed amount £20,000 over 42 months
£430 per month = £18.060
Balloon payment = £9,300

Total cost if I want the car at the end - £29,360.
Seems pretty steep to me.

Looked at personal loan from Tesco £20,000 at 8.4% (money saving expert.com recommendation)

42 months x 548.35 (total repayment = £23,031) when added to deposit is only just over £25,000 for same period to own the car outright.

Dropping off private plate docs to dealer later today - not sure whether I should have a chat and try to improve the finance deal.

Any help / comments / opinions would be gratefully received.

Thanks.

[Cooper]

At least with the Tesco loan the car is yours at the end of the term without having to worry about the balloon. So you should have about 13k equity in the car (based in approx 50% depreciation) rather than the 2-3k you would have after paying the balloon. Also you don't "lose" your deposit if you get the Tesco loan.

[tallguy]

Yes, take the Tesco loan. These 'balloon' deals attract people because of lower monthly repayments but I think they are typically not good value and you finish the initial period with little nett equity in the car.

[denmade]

Thanks for the replies.

Told dealer today that PCP wasn't the best deal for me and that i'd be looking for a personal loan to finance the car. Said fair enough and will get business manager to have a chat with me and see what rates they can offer to keep it all 'in-house'. I doubt they'll be able to match Tesco's 8.4% but will see what they offer.

Thanks again for your advice.

[Thommohawk]

You might find they will be able to take another 500quid off the car or something rather than matching the rate,

[elburna]

I took out loan and bought mine outright. It's mine, I can do as many miles as I want and I can sell it whenever I want. I don't trust car finance people, so I'd go Tesco if I were you.

[latif27]

[quote="elburna"]I took out loan and bought mine outright. It's mine, I can do as many miles as I want and I can sell it whenever I want. I don't trust car finance people, so I'd go Tesco if I were you. [
hi if its a personal hire purchase you get the log book which means the car is tours you can do what
eva you like. i.e sell it pay off finance,agree to settle figure with vw finance hence re- financing its basicly the same hence the apr, mileage.

[insanojackson]

you must be mad to finance 20k on a car, i would buy a cheaper car.

[Evil Derboy]

you must be mad to finance 20k on a car, i would buy a cheaper car.

Isn't that just a bit narrow minded? Different people have different disposable incomes and can afford different things. There's plenty of people out there who finance £100k on a car nevermind £20k. It all depends on your circumstances.

[denmade]

Different people have different disposable incomes

Point well made Evil. Been a qualified doctor for 3 years and this is the first 'present' I have bought myself.

VW PCP £429 pcm owing £9000 after 42 months.

Tesco £488 pcm and the car is all mine at 48 months.

Think i've made my mind up now - wonder if i'll get 20,000 clubcard points??

[denmade]

Rant over, sorry

[viper22]

denmade, go all out and go for an R. your first present to yourself, been studying all that time, go for it!

[insanojackson]

Different people have different disposable incomes

Point well made Evil. Been a qualified doctor for 3 years and this is the first 'present' I have bought myself.

VW PCP £429 pcm owing £9000 after 42 months.

Tesco £488 pcm and the car is all mine at 48 months.

Think i've made my mind up now - wonder if i'll get 20,000 clubcard points??

suppose so but personally i wouldnt be happy paying more than my mortgage on a car. i was lucky enough to be able to pay cash for my rocco though. Ive managed to save for my cars for a good few years, suppose im fortunate to be able to do that.

[denmade]

unfortunately, i'm not well paid enough to go for the R - bloody NHS!!

Should have been a dentist

[insanojackson]

unfortunately, i'm not well paid enough to go for the R - bloody NHS!!

Should have been a dentist

a doctor is not well paid enough to get a 29k car? pfffft? no chance easily affordable

[denmade]

a doctor is not well paid enough to get a 29k car? pfffft? no chance easily affordable

You come out with some crackers 'insanojackson'!

Would be interesting to know what you think a 3rd year hospital doctor takes home each month?

Love it how you presume to know my financial circumstances - not all doctors come from middle-class middle-england families where mummy and daddy pay for uni.

Anyway, enough ranting - i think this topic has reached its end.

[insanojackson]

a doctor is not well paid enough to get a 29k car? pfffft? no chance easily affordable

You come out with some crackers 'insanojackson'!

Would be interesting to know what you think a 3rd year hospital doctor takes home each month?

Love it how you presume to know my financial circumstances - not all doctors come from middle-class middle-england families where mummy and daddy pay for uni.

Anyway, enough ranting - i think this topic has reached its end.

not sure to be honest but if a gp earns 100k plus then i would guess 50k a year ball park figure?

[tommc]

Lets keep things civil