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SUV - Buying advice sought please - Retroglide

Hi everyone,

Very pleased to have discovered this site, I need some buying advice please.

I currently have a Mitsubishi ASX petrol SUV which i bought originally for cash when it was about 9 months old and is now just over 3 years old and I am looking to part ex it before it gets much older and get another SUV.

I haven't quite decided yet which one I will go for but this time I will probably do it on a PCP or similar rather than getting a loan so I can change cars more frequently.

I think my car will more than cover any deposit needed from the dealer but I really need to know if the credit checks for PCP or hire purchase are, in general terms, very strict. I have no CCJ's or defaults but do have borrowing on cards, all of which I pay on time. I dont want to try applying if the acceptance thresholds are likely to be very high like they arewith some credit cards these days where you need a perfect credit score to get one.

I also wanted to know if you are taking out a PCP etc. is there still room to haggle on the price of the car or the value of my part exchange at all?

Sorry for the slightly long first post but I hope someone can offer some advice.

SUV - Buying advice sought please - Happy Blue!

Sounds like you are their perfect customer.

SUV - Buying advice sought please - RobJP

From what you've said, your credit record shouldn't be a problem, I'd imagine. However, to get a good deal, you may need to play off a couple of dealers against each other, or possibly use a broker to arrange the new car - drivethedeal is highly recommended by HJ, and they do get some pretty blinding deals at times - and sell your old car through something like BCA

SUV - Buying advice sought please - Retroglide

Many thanks Rob, that sounds like good advice, I will certainly look into drive the deal and see how it all works.

SUV - Buying advice sought please - retgwte



SUV - Buying advice sought please - SteveLee

There's no reason why a well maintained Mitsubishi shouldn't last 15+ years – selling yours after three years is madness - if you require credit then you cannot afford a new car. Stick with the one you have unless you want to burn disposable income to appear richer than you are to your neighbours, instead, save or invest the cash like a sensible person would – better still - overpay your mortgage (if you have one) while interest rates are low.

All the “old money” millionaires I know only replace their cars when there's no other option - they stick to the same cars for a decade plus. Unless you desire a particular car and it genuinely completes your life – why burn precious money keeping up with the Joneses? Throwing £300-£500 a month at PCP contracts just to have new metal on the drive (metal which you’ll never own) is bordering on insanity – particularly with the restrictive mileage clauses these contracts carry.

SUV - Buying advice sought please - smallcar

Well said. Borrowing to buy a steeply depreciating asset is madness. You already own a car outright and are now going to go into debt to buy something probably remarkably similar bar the reg plate.

SUV - Buying advice sought please - Manatee

I hope the OP can get over the assault on his (or her) freedom of choice, even if the replies are well-meant.

In general, from a financial perspective it isn't usually a great idea to borrow for consumption - different if it's a money earning asset of course, but he already has one if that is the case.

However - it's his money, and his choice, and he has decided to spend it on a new car. In any case, we don't know the OP's circumstances well enough to give financial advice - he might have expectations of inheriting a large amount for all we know.

To answer the questions, Retroglide -

There are now 'affordability' checks that are supposed to be done for loan applications (which would include PCP). The compliance for the lenders is a bit more stringent than it was a few years ago, but unless you are really stretched that probably isn't going to be a problem.

Yes you absolutely should negotiate the price, regardless of how it will be financed. One of the reasons dealers like PCP is that the buyer can take his eye off that particular ball and focus on the monthly payment. That can be manipulated by fiddling with the deposit and the final payment and comparisons are difficult.

My uncle, whose 11 year old car was failing, showed me a quote for a new car on PCP a couple of weeks ago. He was happy with the payments and ready to go ahead, he just wanted some reassurance.

The quote was based on full list price. He asked me what I thought. Two minutes on the internet reduced the price from £15,700 to £14,000 (Drive the Deal, as it happened). After another hour or so, we knew that we could get a late 2013 one with c. 3,000 miles for about £11,000. On Saturday we actually picked up a 3 month old, 2,100 mile example from a franchised dealer for £11,750 (he paid cash in the end anyway). He's nearly £4,000 better off as a result.

So if you do decide to replace your car, my advice would be -

- remember there is no such thing as an unmissable bargain, take your time. Until you have signed on the dotted line you are the one with the power. Don't be too eager to close a deal.

- separate the negotiation of the price on the new one from the sale of the existing car, so you can see what's going on, even if you decide to part ex it in the end. It helps if you know what you can sell your car for separately before you start.

- Look at nearly-new/pre-reg - the marques usually have a used car database online. Don't discount the idea of travelling for the right car at the right price - I live in Hertfordshire, but on 7th June I bought a pre-reg (registered 30.5.14) car from a dealer in South Yorkshire at about 28% less than list price OTR.

But first, leave it for a couple of weeks to see if the feeling goes away - if it does, it will save you a lot of money. My situation was slightly different as I was replacing a 12 year old car.

Best of luck.

Edited by Manatee on 20/06/2014 at 00:01


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