about to buy first time

[03kim]

Hi Newbie here , Hope its ok to ask Iam about to purchase my Ds3 style plus on a 63 plate, its the first Citreon i will of owned. Im finding the finance abit baffling can i ask you lovely lot do you think hp is best ie monthly payments over 5 yrs you own the car at the end. Or the balloon payment at the end of term changing your car after the 3yr term. I have been told needs to be on a newer car I wont be doing many miles under 10 a year.

Perhaps you guys know whats best.

[Wes79]

Hey and welcome to the club. I guess it depends really on personal circumstances and what you can afford etc.
This is my second Citroën but 3rd new car in a row and I have done pcp on all of them. Mainly as I can change the car after a few years and upgrade or swap to something newer.
It doesn't suit everyone though. If you know you want to keep the car beyond the term then maybe the hire purchase over a longer term is the option for you but for me, I like to have the option. Citroën will also re-finance the final balloon payment to make it easier a few years down the road

[03kim]

Oh thanks thats good and helpful to know, to keep the monthly payments low was my plan. Its hard to know whats best as i dont worry about the car being a couple of years old as long as its in top condition. It would certainly incourage you to keep the car in tip top condition knowing you want to get best price in 3 years. Ive learnt to park away from idiots in car parks best i can after i had my Ford scratched right down the side in a supermarket car park last month.

I think these ds3 look fab and inside and out which is hard to find in cars. ��

[Hyperkev]

Mines a 12 plate over 3 years with final payment

[Jo67]

I'd have a personal loan (unsecured), especially since the rates are so low. I worked for a finance company years ago - you default on your payments they repossess your car and you still have to pay off the debt. Obviously you don't anticipate missing payments but nothing's certain in this world.

[Jimbob]

I wont be doing many miles under 10 a year.

Perhaps you guys know whats best.

Hi and welcome.
For under 10 miles a year have you considered walking - it would be a lot cheaper and healthier

Sorry couldn't resist that! My guess is Biggie will post an answer - he is a Citroen dealer and knows a lot about finance.
He should be along soon.

Cheers

JB

[Bigfeet]

Hi Newbie here , Hope its ok to ask Iam about to purchase my Ds3 style plus on a 63 plate, its the first Citreon i will of owned. Im finding the finance abit baffling can i ask you lovely lot do you think hp is best ie monthly payments over 5 yrs you own the car at the end. Or the balloon payment at the end of term changing your car after the 3yr term. I have been told needs to be on a newer car I wont be doing many miles under 10 a year.

Perhaps you guys know whats best.

Your choice is going to come down to where you see yourself in 3 years time, whether you will still be wanting to keep the car or change it. If you opt for the latter you will be better off opting for the PCP finance with the balloon.

The reason for this is that the GFV (final figure) is set by the finance company and they will live and die by this figure, at the end of the three term you will be levelled with three options, first being to pay the car off and as has been already mentioned you can re-finance this figure if need be. Second would be to return the car against the balloon and the car's own value clears the GFV and lastly the third option would be to part exchange against the Balloon.

If your plan is for a long term ownership then the 5 year finance may be the right option but bear in mind that if you want out of it you have to settle against the remaining balance and you could find yourself in a negative equity situation.

[Gatecrasher]

Your choice is going to come down to where you see yourself in 3 years time, whether you will still be wanting to keep the car or change it. If you opt for the latter you will be better off opting for the PCP finance with the balloon.

The reason for this is that the GFV (final figure) is set by the finance company and they will live and die by this figure, at the end of the three term you will be levelled with three options, first being to pay the car off and as has been already mentioned you can re-finance this figure if need be. Second would be to return the car against the balloon and the car's own value clears the GFV and lastly the third option would be to part exchange against the Balloon.

If your plan is for a long term ownership then the 5 year finance may be the right option but bear in mind that if you want out of it you have to settle against the remaining balance and you could find yourself in a negative equity situation.

My PCP comes to an end at the start of next year and I have no (current) plans to change my car for at least 2 years. I have been saving up for the final payment but won't make the total amount. I estimate around £5,000 saved of a £7,800 odd payment. will I be able to pay the £5,000 up front and refinance the £2,800 odd outstanding? or make the refinance and offer to pay up at a later date?

[Bigfeet]

Yes you should be able to, best thing is to speak with the finance company and sort out an arrangement with them.

It might also be worth checking out the loan rate with your bank as the rate may be lower for the smaller sum.

[Gatecrasher]

Yes you should be able to, best thing is to speak with the finance company and sort out an arrangement with them.

It might also be worth checking out the loan rate with your bank as the rate may be lower for the smaller sum.

Cheers, I was planning to give them a call a bit nearer the time. Will also have a look at bank loans.