I just walked into a Renault dealer and... - DavidHM
.... without so much as an attempt at haggling, paid the full manufacturer's advertised price and signed up for the four year finance deal - not interest free.

Am I mad?
I just walked into a Renault dealer and... - Altea Ego
Yes

good car but you could have done much better price wise with little effort.
I just walked into a Renault dealer and... - DavidHM
Ya reckon?

www.renault.co.uk/offerdisplay.aspx?id=offer1

The 5-Series is starting to play up, it's only a commuter car (I just don't have the heart to drive it further) and frankly I wanted an easy life - well, apart from the keep fit windows.

The only bad point was that, although I originally ordered eclipse (dark metallic grey), I ended up having to choose between Postman Pat red and Tinky Winky purple.

I went for the red, naturally.
I just walked into a Renault dealer and... - Pendlebury
I agree with AE - I reckon there is still fat in that deal and you could get more off.
You could have talked em down a few % points on the APR for instance.
Having said that if your happy with the deal then that is good.
I just walked into a Renault dealer and... - Altea Ego
>Ya reckon?

>www.renault.co.uk/offerdisplay.aspx?id=offer1

yup you didnt buy it either, its a glorified lease

Still a good car tho even the freeway.

Edited by Altea Ego on 05/02/2008 at 21:00

I just walked into a Renault dealer and... - Manatee
Glorified Hire Purchase/Conditional Sale more likely, therefore he has bought it.

If Pendlebury wants to lend me money at less than 5.9% I'll send him my contact details. Interbank 12 month rates are about 5.4%. Looks a good deal to me.
I just walked into a Renault dealer and... - Morris Ox
Ah, I get it.

You bought the Societe Generale special edition!
I just walked into a Renault dealer and... - cheddar
You bought the Societe Generale special edition!



Tre bien !
I just walked into a Renault dealer and... - Pendlebury
But that will not be the rate Renault finance borrowed the money at Manatee - they are still making a profit at that interest rate - I'm sure of it.

It's like Toyota (and a few others) are doing 0% at the mo - they must be managing that somehow - I doubt they are losing money on it.
I just walked into a Renault dealer and... - madf
If you wait 6 months, makers will be desperate with recession looming.

(A Darling is talking tax CUTS so you knopw it's bad)
I just walked into a Renault dealer and... - midlifecrisis
Relative of mine is a Renault car dealer. Even after numerous years in the job, he still can't believe that people come in and pay full list for their cars (and he says a significant number do).

He has one old dear, who walks in on 1st March each year and pays full list for a new Clio. All the salesman fight for who gets to her first.
I just walked into a Renault dealer and... - hugopogo
I bought my little Micra full list price (0% finance) in 2002. First car, not a clue how the industry worked. Needless to say, it won't be happening again. Assuming I ever buy a new car again which given current situation is unlikely. Always wondered why they rushed over to offer me the latest model when I went in for servicing. Now contemplating driving it till the wheels fall off to make amends. Although at 12000 miles a year it's getting a bit uncomfy!
I just walked into a Renault dealer and... - Galad
With the commission from the finance company, coupled with the maximum profit margin they made selling you the car at full list price I'm sure you could have asked for goodies such as 3 years free servicing, alloys, mats, sat-nav etc and they would have happily obliged. I take it you were also charged an admin fee on top (which is an arrangmnet fee by any other name)?

Personally, I would have tried a personal loan from the internet or bank and offered them a straight sale with the aim of saving up to £1k on the deal - better in your pocket than theirs. But if you're happy the so be it
I just walked into a Renault dealer and... - nick
If the OP is happy that's fine, it's certainly the most stress-free way of buying a car. Personally, I'd have arranged a personal loan at the cheapest rate possible, got a price for the car from an internet broker and used that as a bargaining lever at the dealer.
I just walked into a Renault dealer and... - DP
A good deal is simply when all parties concerned walk away happy.

Cheers
DP
I just walked into a Renault dealer and... - Happy Blue!
Exactly The OP simply walked into a dealership, put less than £200 down and drove a new car out. Seems good to me.
I just walked into a Renault dealer and... - nick1975
And me

£7k from Renault, financed
£7.2k from Drive the Deal, finance on top
I just walked into a Renault dealer and... - jbif
IIRC the O.P. is somewhat of an expert at car finance deals.

I just walked into a Renault dealer and... - isisalar
Good for you david.I wish there had been more customers like you when I was in the retail motor trade.Just remember that now you have bought a Renault you will now need a kennel to keep it in.
I just walked into a Renault dealer and... - MichaelR
Jeez its even got windup windows.

Madness.
I just walked into a Renault dealer and... - DP
Just remember that now you have bought a Renault you will
now need a kennel to keep it in.



Yawn.... ;-)

Edited by DP on 07/02/2008 at 08:59

I just walked into a Renault dealer and... - cheddar
Just remember that now you have bought a Renault you will
now need a kennel to keep it in.


:-(

Edited by cheddar on 07/02/2008 at 09:22

I just walked into a Renault dealer and... - barney100
I agree with the yes vote...or have you won the lottery?
I just walked into a Renault dealer and... - cheddar
OK, you wheeler dealers ..

.. if I wanted a 5dr Clio - say a 1.6 with elec front windows and aircon on the same kind of deal what would it cost me?

I just walked into a Renault dealer and... - nick1975
Could someone (Number_cruncher?) calculate the NPV here.

I think it's about £6k, which is very cheap for a brand new clio isn't it?
I just walked into a Renault dealer and... - cheddar
Could someone (Number_cruncher?) calculate the NPV here.


Depends on how long he plans to keep it I guess.
I just walked into a Renault dealer and... - nick1975
I'm thinking more along the lines of the cash outflows in yrs 1, 2 3 and 4

Basically £7k is paid out, but over 48 months, with a £2k chunk at the end

Because of the time value of money this outlay can be discounted to a present value, which i reckon is something around £6k but would like a second opinion on these figures.

If i'm close to the mark and then you estimate you could sell the thing at 4yrs old for £3k, you have enjoyed a brand new, half decent car for £750 per year. Which is cheap cheap !!
I just walked into a Renault dealer and... - madf
"I i'm close to the mark and then you estimate you could sell the thing at 4yrs old for £3k, you have enjoyed a brand new, half decent car for £750 per year"

You are comparing apples and pears: a dscounted cashoutflow and a Future Value of £3k. You either discount both or neither.
If I use a discount rate of 10% pa,and £1250paid pa with £2k at end, the NPV is approx £5.70k
The NPV of £3k at the end is £2.2K.
So the Discounted Current cost is appox £3.5K.

The actual £s cost is of course £7k-£3k =£4k.


Edit: i would add I'v assumed annual costs and not calculated monthly cashflows etc.. so my numbers could be redone and give a (slightly) different answer.


Edited by madf on 07/02/2008 at 15:26

I just walked into a Renault dealer and... - nick1975
Thanks for the calcualtion and correction.

So am I right in thinking if I have cash on deposit at 6.5% you are effectivelty buying this car for £6ishk?

Edited by nick1975 on 07/02/2008 at 16:03

I just walked into a Renault dealer and... - madf
"So am I right in thinking if I have cash on deposit at 6.5% you are effectivelty buying this car for £6ishk"

Yes.

Free credit when you have the cash is very good.
BUT you are balancing interest saved/gained against how much you could save if you bargained the price down.

My local Audi dealer is selling cars new at dealer cost (yes I know about discounts etc) and 0% finace: but with an upfront deposit.



I have to reiterate: with the economy slowing car sales WILL fall and delaers will offer some great bargains in the next 6 months. Just do not buy from a financially weak dealer: as they may very well go bust in a tough financial climate.
I just walked into a Renault dealer and... - Number_Cruncher
Could someone (Number_cruncher?) calculate the NPV here.


Sorry Nick, not my kind of sum. I've no idea what NPV actually is.

Number_Cruncher
I just walked into a Renault dealer and... - madf
NPV = NetPresent Value.
You take the payments each year and discount them on the basis that £1,000 NOW is worth more than £1,000 in a year's time.
Discount rate varies: 10% pa is a rough guide.
So £1,000 now is warth only £900 if you got it in a year's time and want a Value of that future £1,000 today.

And £1,000 in 2 years' time is £810 (£1,000 x90%x90%)

Major financial projects are usuually evaluated like this to see if they pass financial hurdles. At least in business.
I have no idea what Governments do. I know they use Value Analysis based on Social factors. I assume they used it when they built the Dome:-(

Edited by madf on 07/02/2008 at 16:14

I just walked into a Renault dealer and... - Number_Cruncher
That's interesting, thanks madf!
I just walked into a Renault dealer and... - jbif
Major financial projects are usuually evaluated like this to see if they pass financial hurdles. At least in business. I have no idea what Governments do.


The full range of factors taken in to account and their meaning is listed at
greenbook.treasury.gov.uk/glossary.htm
e.g.
Discounted Cash Flow (DCF) A technique for appraising investments. It reflects the principle that the value to an investor (whether an individual or a firm) of a sum of money depends on when it is received.
Discount rate The annual percentage rate at which the present value of a future pound, or other unit of account, is assumed to fall away through time.
Net Present Value (NPV) The discounted value of a stream of either future costs or benefits. The term Net Present Value (NPV) is used to describe the difference between the present value of a stream of costs and a stream of benefits.
Real option theory This presumes that decision making is sequential and that decision makers may benefit from choosing options that may seem sub optimal today but which increase flexibility at later times, leading to better decision making when more is known about the project.

I just walked into a Renault dealer and... - Mapmaker
YOU bought a shopping trolley, David?

Has somebody else hijacked his ID?
I just walked into a Renault dealer and... - DavidHM
No, it really is me.

I am well aware of the usual folly of buying a Eurobox at full list price, but when the manufacturer?s price is £1k below the broker price, I don?t see any purpose in being greedy ? if there is any margin in the deal at all, I?d be haggling over trifles. With a finance APR 2% below the best realistic bank loan, there wasn?t much point in trying to beat that element of the deal either. For reference, the national stock ordering system showed two Clio Freeways available ? I?m having the one that?s not purple. If there were money in it, there?d be much better availability.

As for the wind up windows comment, Michael, I was gutted about that but I?ve never had them before, not even in my first Renault (a 1989 R19). I am now commuting by train and not really doing any long distance driving, plus finding it very inconvenient to do either DIY or taking the car to a back street garage so I needed something that would need relatively little attention.

The BMW is going through the auction at the end of the month, ideally needing a clutch and an ABS sensor to make it solid ? and quite a lot more spending to make it mint, which is the only way for a car like that to be. Even if I had the time and the inclination, it would be easier and cheaper to buy one that was right already ? but easier still to get a newer, blander car ? so that?s what I?ve done.
I just walked into a Renault dealer and... - Round The Bend
The ad is in the Metro this morning. I might have pushed for the traditional tank of petrol but looks like a very good deal to me so long as the 10k miles per annum restriction is OK.

Good car. I drove one last year and was impressed. Certainly better than the Fiesta that I drove at the same time. With this deal it makes a perfect second car

Va Va Voom!

Edited by Round The Bend on 08/02/2008 at 08:09

I just walked into a Renault dealer and... - Pugugly {P}
David,

I'm starting up a Former BMW Owner Support Thread soon. Hope you sign up !

Enjoy it. I've barely regretted selling mine in all honesty.
I just walked into a Renault dealer and... - Alby Back
"Enjoy it. I've barely regretted selling mine in all honesty."

Pah ! :-)
I just walked into a Renault dealer and... - T Lucas
It is cheap motoring and comes back to the thread about changing a car every 3 years.This route really is hard to beat.
I just walked into a Renault dealer and... - Peter S
I'd agree that for cheap, reliable motoring it sounds pretty much unbeatable. My only question is, if the 'new shape' Clio is now available at these sort of prices, what's the point of the 'old shape' Clio Campus? Or has this now been discontinued I wonder?

Peter

Edited by Peter S on 09/02/2008 at 16:17

I just walked into a Renault dealer and... - Wills
I've been offered one of these on the renault deal, choice of red white or blue, all non metallic. Total paid price will be £7083 but you will have £6000 (decreasing by £99 per month) invested somewhere earning roughly £500 - £600 interest over 4 years. Therefore your cost is roughly £6500 for a small car with 3 years warranty etc. This seems to me to be a good deal but are there better ones out there? Is a new Grand Punto 1.2 Active a better option at £6918?

Is this a good car for around town driving and school runs? It probably won't do more than 4000 miles a year. Will this car provide worry free motoring for at least 3 years or should we avoid Renault and Fiat?
I just walked into a Renault dealer and... - paulas99
I have just secured an 18% discount off my new Renault Clio.

Edited by paulas99 on 19/06/2008 at 11:45