Advice

[candyboytsi210]

Hey guys,

Well im in the market for a 2.0 TSi DSG scirocco , i've been to look at one today up at £15995. Candy white, Pana roof, All the extra GT options. 19k miles 59 plate, New multi-function steering wheel.

Well over a 60month term (hire purchase) i believe it is...

Im looking at putting in around £2500, and its coming up to £317.94 a month.

I just wanted some advice on what the deal seems like , could i push for a better deal,

Advice much appreciated.

R

[Whinters]

Well £317.94 * 60 months = £19,076.40

£19,076.40 + £2,500 deposit = £21,576.40

So you'll effectively be paying £5,581.40 interest over the entire term.

Seems a bit high to me!!!

With a quick glance on MoneySupermarket you can get a car loan of £13,495 (15,995 - 2,500) over 60 months at:

Payment per month
£256.34

Total charge for credit
£1,885

Total amount you repay
£15,380

Total including deposit:
£17,880

[Mark V]

That is what I call very helpful advice!

There are a number of variables in these cases:

Price agreed for car
Deposit
Cost of financing the balance (APR)

Is that the asking price or the price after negotiation (you say 'up at £15,995' so assume thats the asking price). If so I would not even be talking about finance figures until I had got a substantial discount off the asking price? What APR have they quoted you - it should not be more than 7.1% ?

Is this a main VW dealer?

[candyboytsi210]

Well I've seen another scirocco, and I think I've managed to get a good deal, I'm just about to leave a deposit,

£500 deposit / £300 a month / 60 months

Pana roof, candy white, leathers, black alloys, black mirrors, 46k miles

Up at £14950 ...

And thanks for that advice guys, ill take that into consideration.

If this is a good deal, I'd be glad for some help as soon as

R

[candyboytsi210]

Yes its vw huddisfield mate

[Whinters]

Still seems a bit steep to me.

You'll effectively be buying the car for £18,500 over 5 years.

If you get a bank loan of £14,500, you could be paying £275 per month, and £16,500 overall. I would demand they either match it, or simply get a bank loan and pay for it in cash.

Of course the loan APR you can get will depend on your credit history, etc.

Also, if the car is up at £14,995 I would honestly be cheeky, offer to pay 14k and you'll sign on the dotted line today.

[Mark V]

Thats not cheeky - its just normal dealing - the sales staff will be laughing if anyone pays screen price - you just dont do it! At least a grand off - but you will only get a result if they believe you will sign up at that point..

[Mark V]

By the way - you have to negotiate sepreately on price and finance deal - get the lowest price for the car you can haggle and only then start to haggle on APR's.

[Whinters]

Completely agree.

You have to remember that it's also in their interest that they match the APR you could get from a bank, since they will then get another 2k out of you over the term, instead of that money going to the bank...

[candyboytsi210]

i really appreciate your help guys,

so with the bank loan, i think i may find it hard to get approved ? im on 13k a year at the moment, not the best of salarys i know but thats not the point here.

salesman is asking me to put a deposit down today if i can, by contacting his business manager.

What should i ask him now then? he says the rate is 6% flat? and i asked him about the price of car deposit etc, he said things have changed so much between the start and til now that i cant really calculate that, he said his boss would have to re-stack the figures.

i mean he says he needs a deposit today as another dealership will be taking the car tomorrow? what are your thoughts, whats next ?

[Whinters]

Sounds like dealer bullshit to me

Do not put down a deposit until you have agreed everything (purchase price, APR, etc) otherwise they know they already have you committed (unless prepared to lose your deposit), and therefore don't need to negotiate so hard.

I would ask which dealership it's being transferred to, as you'll look to open negotiations with them once they receive it (show that you won't be rushed into anything). I would highly doubt it is going anywhere...

The key is to seem interested, but not smitten. You have to remember that this is just one example of the car you would like to purchase. If this one slips through your fingers, there will be another exactly like it available next week. No urgency required

Regarding the bank loan - I guess you would have to apply for one and see if they approve you. Don't apply for too many though, as I believe this could be detrimental.

[candyboytsi210]

Thanks mate, yeah i thought it might of been , He is texting me from out of work so god knows how keen he is for this sale to go through.

i mean he said i could put a deposit down and if i didnt want to go through with it could get it back, but i dont want to risk that at all!

So for this deal to go through, what would you reccomend i say to the salesman? i mean £500 deposit seems great to me!! monthly payment wise i wanted anything under 300, and he says its 6%apr flat.

I am really keen on this car i do have to admit, but i dont know how low there willing to go, i said im looking for something around 300 monthly, with around 500 deposit , they straight away have said yes so that makes me think , well hmm..

yeah i guess ill give it a try, ill apply for a couple and see what happends.

[bitmadmax]

Regarding dealer finance APR's - do dealers have control over that? I always thought it was the finance provider that determined the rate, based on circumstances etc.

[Whinters]

I wouldn't feel too persuaded into the purchase because of the seemingly low deposit. In my experience they will accept pretty much anything, since taking a small deposit simply means they will make more money from the credit.

I assume you'll also be visiting the dealership in person, otherwise negotiation might prove very difficult...

I would literally walk into the dealership and state that you're interested in the Scirocco, take it for a test drive, then on returning to the dealership say that you're interested, but you'll only pay 14k for it. If they say no, then give them your contact details (if they don't have them already) and tell them to give you a call if they change their mind, since you have a few other Sciroccos that you're also going to look at that day (pick a couple of similar spec/priced from Autotrader just in case they ask where from, etc).

If they allow you to leave without caving in, then they will usually be in touch within 2-3 days if not sooner.

If they agree to the purchase price then say you'd be interested in finance, and that you've already been approved on a car loan of £13,500 at ~5.5% APR (just pick one from here which you feel comfortable with: http://www.money" onclick="window.open(this.href);return false; supermarket.com/loans/quick-search-results.aspx?PageId=102).

Put the loan figures in your phone / on a piece of paper for you to refer to, so you don't forget. Ask if they would be able to match it / or at least how close to it they would be able to get (if they're offering 6%, then this shouldn't be too bad IMO - around £260 per month). If their offer is ridiculously high compared to the bank loan, then just say you'll go with the bank option, and pay for the car in cash once the loan comes through.

At this point tell them you have £500 as deposit and you'll be happy to put that down and sign on the dotted line at the previously discussed agreement.

If in a worst case scenario you are unable to get a car loan which beats the dealer, then they will be more than happy to provide the credit if you contact them at a later date and ask to proceed with their previously offered credit agreement.

[candyboytsi210]

I cant thank you enough whinters for this help.

your a life saver ...

As for the low deposit, its just i want more money in my bank incase of anything that happends in the unforseen future , where i need money asap etc.

I mean the dealership is about 75miles away from me , in Huddisfield , im from derby so i mean im working all weekend and the pressure the salesman is putting on me ( car going to another dealer maybe sold) is making me think oh no, because its got everything i want, i know i may find another 1 but im actually keen on this particular model as its got a lot more extras for the price its at is great aswell.

I just spoke to him and said look, 6% flat rate shouldnt be worked out at £300 a month, thats more or less 10% if not more, he replied with finance is complicated call in tomorrow before 9:30 and you can speak with the business manager, i just hope i can haggle them to get it to aboout £260 and im a happy guy.

I mean he has said 6% so i dont see how they can go back on this!! 6% is 6% , so im happy with that, but ill use the bank loan on them and see what it brings,

Would this be something i could do over the phone though?? i cant travel up this weekend which is making me think damn, now what!

Should i put a deposit down over the phone tomorrow if the deals ok?

[Mark V]

Only compare finance offers by APR (Annual percentage rate) - a 'flat rate' can be calculated in a number of ways and is not a fair comparison. The dealer/finance company is legally obliged to quote the APR.

You have been given some first class advice above - act on it and good luck!

[candyboytsi210]

Thanks mark, hopefully tomorrow i can say ive got a 2.0 Tsi

[wigit]

got to be honest especially in the current economic climate you got to say is 5 year finance deal with low deposit the way to go, going to be a while till you have some equity in the car, i know halves and thirds apply on hp where you can give it back and walk away, at least a loan means you own the car

if you are committed to the cause maybe leasing is a better option over 2/3 years, only used PCP once for my sh!tty in the city as its the only way i could get a decent discount and practically 0%

[candyboytsi210]

Yeah i did consider leasing, but it is dead money really, 320 a month to something ill never own, but say in for instance, in this car , i would own it no matter what, yeah wigit it is a HP.

I do want to own the car , or even p/x after 3 years maybe if i get into some money buy it outright within the 5year term, i mean how long you reckon it take to have some equity in the car?

what would you consider in my situation ? im smitten over a 2.0 tsi dsg

[Tallguy]

Before you sign for anything, get firm finance and insurance quotes. Responsible finance companies look at your overall financial position, eg income versus outgoings, plus credit history. You mentioned your income (but not other outgoings) and on face value it seems low to buy/run a 2.0 GT?