Just thought I'd seek the opinions of the BR on how me and my friend did yesterday whilst car shopping.
We went out llooking at an older MR2 but ended up in the Vauxhall dealership quite unexpectedly, after sitting in the new Tigra my mate fell in love with it and said that it felt a lot more comforatble to sit in than the MR2, and I have to agree with him that it is an exceptionally nice looking little car.
He ended up getting a brand new 07 reg 1.4 base model Tigra with metallic paint for a £200 deposit and then £230 per month over 60 months.
I originally looked at the PCP deal offered by Vauxhall for him but the payment was only £5 per month less and it required a £1500 deposit which he didn't have.
So, did we get a good deal? I was concerned at the time as I hadn't actually checked out Tigra prices so had no idea just how good or bad the price was, we did ring another dealer over lunch whilst trying to make our minds up and they said that for the same model of car he would be looking between £250 - £260 per month so we went and signed up for it anyway
Will be grateful to hear anyone's opinions on the price, although discussion about the qualities of the Vauxhall Tigra aren't really relevant as that's the car that he wants and nothing else will do! :-)
Blue
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Interest Rate ?
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£14000 pounds that works out as. (if you'll excuse the grammer). Two types listed on t'internet. base 1.4 model :-
Term: 36 months
Recommended Retail Price: £13995.00*
Deposit: £3498.75
Amount of credit: £10496.25
1 Monthly payment of (inc.fees): £451.8¬
34 Monthly payments of: £338.8
1 Monthly payment of (inc.fees): £441.8^
Total amount payable: £15911.55
Charges for credit: £1916.55
Typical APR: 11.9%
So far so good.
Next ddor's link to onlinecarslimited. Shows the same price. Doubt whether he'd get a much better deal eleswhere.
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Can't say whether it's a good deal or not - although I personally can't imagine borrowing money over 5 years to buy a car. If it's what your friend wants and he is happy, then it's a good deal. My only comment would be that the deal would likely to be there today, tomorrow and next week, so what was the rush. You had time to stand back and consider other options first.
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Hmm, a good point Chris, but I have to say that it;s sooo easy to get carried away with the excitement of buying a new vehicle that it's a hard option to take when you want your hands on the keys ASAP! :-)
I just had a look at UK Car Discount and they want about £240 per month with a £1000 deposit, so I'm feeling over the moon with the deal that he got!
Pug - The interest rate was 5% flat I think, although we weren't really interested in that as there was some sort of incentive available to take the finance, and that seems to be reflected in the Total Payable figure which compares very well with some of the others that I have been looking at this morning.
Wish I could afford to go buy one now... :-)
Blue
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I think the success, or otherwise, of the 'deal' will be apparent at the end of 5 years. The monthly 'cost' will be price paid for the car now, minus what it is worth in 5 years time and that figure divided by 60. This could be a surprisingly large amount! At least the money hasn't been borrowed from ??? Car Credit at 29%!
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Yeah, I agree, the fortunate thing with the Tigra is that it doesn't seem to be an exceptionally heavy depreciator. A colleague has the exact same model but two years old and she has been offered £8,800 as a part exchange in April, I don't consider that to be horrendous.
I reckon that when he gets to the 3 year mark he'll be able to flog it on and not be in negative equit if he wants, likewise, I think it'll still be worth more than a couple of grand at the end of the full 5 year term...
Blue
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Just did a quick search - Drivethedeal for the car, Moneysupermarket for the finance, and they come in pretty much bang on what you've paid.
Not sure whether you've had a discount and then paid a (still low) APR or whether you've had 5 years' interest free at list, but the total credit price works out the same. (Better to have as high an interest rate and as big a discount though - that way it costs less to settle early).
I'd be happy enough with the deal either way. It's hardly unrepeatable but it's definitely competitive and has saved you some legwork and agonising also.
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I took a friend to a Vauxhall dealership last weekend to look at a new Corsa and she went all starry eyed over a Tigra in the showroom. I think I managed to convince her it was not a good idea.
Its a terribly girly car though, I can't understand why a bloke would want to buy one unless they were a hairdresser, gay or probably both!
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I took a friend to a Vauxhall dealership last weekend to look at a new Corsa and she went all starry eyed over a Tigra in the showroom. I think I managed to convince her it was not a good idea. Its a terribly girly car though, I can't understand why a bloke would want to buy one unless they were a hairdresser, gay or probably both!
How do you define a "girly car"? Should they be pink?
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There are certain cars who's attributes are far more appealing to women than they are to most men. Pink is not essential. Most small convertibles fall into this category - excluding proper sports cars like an MX-5 and S2000.
Examples include Tigra, 206CC, C3 Pluriel, StreetKa and the new Nissan Micra. I couldn't take any bloke seriously who drove any of them (unless they only occasionally borrowed it from a wife or girlfriend).
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Its a terribly girly car though, I can't understand why a bloke would want to buy one unless they were a hairdresser, gay or probably both!
Well actually now that you mention it, he did study hairdressing for a very short time before deciding he didn't like it, and yes, he's also gay. :-)
Blue
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I reckon that when he gets to the 3 year mark he'll be able to flog it on and not be in negative equit if he wants, likewise, I think it'll still be worth more than a couple of grand at the end of the full 5 year term... Blue
Bear in mind that if it's on a 5 year finance agreement, he'll have difficulty flogging it on, unless he pays off the finance first, technically the car belongs to the finance company until paid off. I know circumstances change, but if he hasn't got £1500 in the bank now for a deposit and he's got a further £230 pm debt, how is he going to save enough to pay the finance off in 3 years time ?
I personally would never buy a car with anything other than a bank loan, that way I can legally sell the car at any time and if I want to buy another and I haven't paid it off, I can just top up the loan or get another loan with a more preferential rate to include the newer car and the outstanding bank loan.
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If it's on a high APR finance agreement, then he may be financially better off by borrowing the money from a bank after a few months and paying it back at a lower rate of interest, having benefited from the manufacturer's subsidy.
Alternatively, even if he stays with the finance agreement he may either part exchange the car in three years and use some of that money to clear the outstanding finance and the rest as a deposit on his next car, or alternatively he may simply borrow money from the bank at that time, pay off the car finance and then use the car proceeds plus any leftover from the loan to buy the next car.
I agree that it's easier to shift a car with no outstanding finance but if the dealer finance is the cheapest way to get the car he wants (and by cheapest I don't mean lowest monthly payment) then there are workarounds to deal with the disadvantages.
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"If it's on a high APR finance agreement"
He says 5% Flat rate, would that be around 10 % APR.Beware of being quoted in loan negotiation, in particular car-loans with the words "flat rate" in front of, behind or anywhere in the sentance when discussing interest rates, horribly misleading.
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I just find it astonishing that someone can't pull as little as £1500 together for a deposit yet goes out and buys a £14k car.....!
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Aprilia,
agreed. Insurance - by monthly payments? Just as well he didn't get the MR2.
JH
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At 5% flat for 60 months (APR 9.5%), £230 monthly payment equates to a loan of £11,040, add £200 deposit = Cash Price of £11,240 so about £2,760 discount based on a OTR list price of £14,000.
Can't say whether it's a good deal or not, though it sounds a good lump off and the finance isn't a rip-off either.
In 1978 I borrowed £500 at a subsidised rate (I worked for a bank at the time) to buy a 4 year old Cortina that had been to the moon and back, and I resented every payment of £21.92 - not that it stuck in my memory or anything - for 2 years. Since then I have only bought the cars I have the cash for - though that doesn't mean I have always been sensible!
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< I just find it astonishing that someone can't pull as little as £1500 together for a deposit yet goes out and buys a £14k car.....!
Staggering in fact! Especially as they are then committed to £230/mth (6mths at £230 ~ £1,500). What happens if they have an expensive month/ (ie washing machine dies at the same time as the holiday CC bill comes in etc)
My solution would be to buy a £499 cheapy to last a year, and then reconsider.
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I find it staggering to even compare a Tigra with a MR2!
One is tin box made on a corsa floor pan ,and the other is a proper car with a cult(ish) status that will last years.
Did the dealer feed him some mistical drink?, I bet the salesmen had to run to the toilet staright after to change his wet trousers.
BTW my 70 year old (female ) neighbour has a Tigra- really frightening car, well the name anyway.
But chjoice is everything in this world- thankfully
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Tigra is surprisingly popular/fashionable. I happen to know at least one current soap star runs one.
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As long as she's happy with it.
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A soap start being happy with a car is as about as much relevance as an endorsement as some failed Deputy Chief Constable advertising up-and-over garage doors, accompanied by his dim dog! The is no worthwhile connection!
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I only commented on its seeming fashionability. Didnt say you had to buy one, did I?
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Your friend wins first prize, finding a dealer wanting to sell a Tigra top off.
Mrs V had a mail out invite from Vauxhall, offering a 'free' posh designer named handbag, for her trouble.
Trouble it was. Took several calls to the local dealer, none returned, before booking an appointment for 8.30 on a Saturday morning!!! They really were THAT booked up.
When she got there, car wasn't the model they said, salesman was off that day, so the helpfull receptionist kept Mrs V company, while she waited.
Short drive later, minimal demonstration of the car, brochure was issued & an estimate of £8000 trade in for her Mx5 was possible. Not that they even confirmed the actual spec/model of her current car.
Anyway, she didn't rate it in comparrison to the Mx5, the handbag was tiny & we're still waiting for the follow up call, to find out what she thought of it. She took the test drive a couple months back!!
VB
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I reckon that sounds like pretty good value. On the grounds that the financed cost over five years is no more than list price, and that you don't need a deposit.
But ONLY if you reaaaaaaallllly want a brand new hairdresser's car for full list price. And you're prepared to keep it for five loooong years.
Frankly even I get bored with a car more quickly than that!
And for three months' worth you could buy yourself an Audi 90 coupé. Quattro for four months' worth. Far more fun, far cheaper, and likely to do you two years for your £few hundreds and depreciation will be near enough nil. Oh yes, and you're driving a car with a list price of well over 14k.
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Well, that's my mind totally at rest now, I wasn't particularly worried to begin with, but it's nice to be sure!
As far as the choice of buying the car on 5 year finance goes, it's not like he needs to keep it that long, the car should never stray too far into negative equity and hence should be easy to part-ex or sell on in the future before the finance is up. It's perfectly legal for him to sell the car provided he pays the finance off, any private buyer would simply write their cheque to the finance company instead of him...
Vansboy - I should probably admit that we were treated fairly well from the start at the Vauxhall dealers as it turns out a former collegaue of mine from my trade days is working there now. We were actually about to walk out and visit the local Vauxhall branch (we were 25 miles from home) when he walked in and I decided that it might be beneficial to have a chat with him rather than buying on home turf! :-)
Thanks guys!
Blue
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Great isn't it, Blue? You post asking about the competitiveness of a finance deal and you get a load of people who can't resist saying your chum is dumb for buying over five years or even for wanting a Tigra in the first place. Glad you got a few answers to your original question.
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Very true Mad Maxy, that's why I tried to put a disclaimer in mhy original posting!
I knew I should expect it though! :-)
Blue
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