"Just add fuel" - Ben 10

Has anyone on here taken up Peugeots' Just Add Fuel car offer. If so can you give me your experiences, pros and cons, of the experience?

Top Reply

"Just add fuel" - Problem_Polo :-/

Having just read through Peugoet's website, I'm slightly baffled at how they've managed to market such a wobbly deal quite honestly. If you opt for a modest base-spec 207, you pay an initial rental of just over £1500, then monthly rental of £179. At the end of the deal, you can hand it back - and presumably find out how picky your friendly local dealer is when it comes to the dreaded vehicle inspection and excess charges - or you opt to KEEP - but not OWN - the car. This entails paying what Peugeot consider the car to be worth - in this case around £4.5k - but not actually owning it, instead continuing to pay an annual fee equivalent to your previous monthly fee. Put simply, you pay what the car is worth as if buying it, but it still belongs to Peugeot! Brilliant! Why on earth don't they just let you have the thing, are they really that desperate for a couple of hundred quid a year?! What isn't detailed is how long this arrangement will last, so if you wanted to keep it for another then years would you continute to pay them all that time, or do they eventually take it off you and leave you with nothing?

As ever, the headline figures and prices are for the bottom deal, so the stated £179 per month for a 207 limits you to just 6500 miles per year or thereabouts, which isn't great considering the average mileage tends to be quoted as somewhere around the 10k mark. Also worth considering is that the 'free servicing' includes only the basic routine stuff - so when it comes to your tyres, brakes, clutch and fluids etc, you helpfully pay for Peugoet's car to be kept in tip-top condition so it's all spick and span when they eventually get it back! Remeber, it's never going to be yours regardless of how much you spend on it! Also bear in mind the insurance is not available to under-25s, or under-30s on some of the juicier models, with a minimum of 2 years NCB and certain other restriction. So work out how much you'd actually save as your premiums shouldn't be all that much on a basic car at that age.

Personally, I'd take my money down to the local used dealership and actually buy something!

Edited by Problem_Polo :-/ on 14/06/2011 at 13:09

All Replies

"Just add fuel" - daveyjp

Read the smallprint - you will never own the car, even when you have paid all that is due.

"Just add fuel" - Ben 10

Yes I know. It's like leasing. You hand back the car after 3 years. I just wanted to know if anyone has had a good experience with the inclusive insurance and servicing without any problems. Or are there hidden pitfalls?

"Just add fuel" - Problem_Polo :-/

Having just read through Peugoet's website, I'm slightly baffled at how they've managed to market such a wobbly deal quite honestly. If you opt for a modest base-spec 207, you pay an initial rental of just over £1500, then monthly rental of £179. At the end of the deal, you can hand it back - and presumably find out how picky your friendly local dealer is when it comes to the dreaded vehicle inspection and excess charges - or you opt to KEEP - but not OWN - the car. This entails paying what Peugeot consider the car to be worth - in this case around £4.5k - but not actually owning it, instead continuing to pay an annual fee equivalent to your previous monthly fee. Put simply, you pay what the car is worth as if buying it, but it still belongs to Peugeot! Brilliant! Why on earth don't they just let you have the thing, are they really that desperate for a couple of hundred quid a year?! What isn't detailed is how long this arrangement will last, so if you wanted to keep it for another then years would you continute to pay them all that time, or do they eventually take it off you and leave you with nothing?

As ever, the headline figures and prices are for the bottom deal, so the stated £179 per month for a 207 limits you to just 6500 miles per year or thereabouts, which isn't great considering the average mileage tends to be quoted as somewhere around the 10k mark. Also worth considering is that the 'free servicing' includes only the basic routine stuff - so when it comes to your tyres, brakes, clutch and fluids etc, you helpfully pay for Peugoet's car to be kept in tip-top condition so it's all spick and span when they eventually get it back! Remeber, it's never going to be yours regardless of how much you spend on it! Also bear in mind the insurance is not available to under-25s, or under-30s on some of the juicier models, with a minimum of 2 years NCB and certain other restriction. So work out how much you'd actually save as your premiums shouldn't be all that much on a basic car at that age.

Personally, I'd take my money down to the local used dealership and actually buy something!

Edited by Problem_Polo :-/ on 14/06/2011 at 13:09

"Just add fuel" - Falkirk Bairn

Put simply, you pay what the car is worth as if buying it, but it still belongs to Peugeot! Brilliant! Why on earth don't they just let you have the thing, are they really that desperate for a couple of hundred quid a year?!

As a lease deal Peugeot gets tax allowances on their asset to set against their tax bill - they cannot sell you the car as this goes against HMR&C rules and regs. They can let you rent it for longer charging a reduced fee.

"Just add fuel" - Problem_Polo :-/

Well, obviously tax savings abd suchlike are great news for businesses, however I think it represents a poor deal for the punter.

"Just add fuel" - jamie745

You pay what its worth but Peugeot still own it?

Genius!! Wish i'd come up with that one.

"Just add fuel" - Problem_Polo :-/

Yeah, it looks that way. And because they still own it, you stil pay them £170 a year for the luxury of driving it, even though they've already recovered its full value!

Shall we start a car dealership?! ;-)

"Just add fuel" - bonzo dog

I can't figure out why everyone is baffled by this offer.

It is simply a lease purchase or lease scheme with a guaranteed minimum future value with servicing, RFL & insurance included.

Buy a car on "normal terms" & on each anniversary you get an insurance cost, RFL cost & a servicing cost; this scheme allows you to budget monthly for it all. My current car is on a similar lease scheme as have ben others in the past with various companies I've worked for. Peugeot are extending this to the retail customer.

Yes, the idea of paying off the GMFV on the lease scheme & NOT owning the vehicle is hardly appealing, but it ain't compulsary! And you can guarantee that if Peugeot did not offer this option, someone on this forum would be complaining.

If I've misunderstood anything about the offer which is contrary to what I've said, please corect me

"Just add fuel" - Problem_Polo :-/

I appreciate that there is some merit in the idea of leasing the vehicle with certain costs covered etc, but the idea of paying out a substantial sum of money (circa £4.5k for a Pug 207 for example) which would in most cases buy you the car concerned - but still not owning the car in this case - just seems stupid to me. Do companies which lease their vehicles pay out this final sum upon return of each and every vehicle vehicle?! I bet they b***** don't!

"Just add fuel" - concrete

You pay what its worth but Peugeot still own it?

Genius!! Wish i'd come up with that one.

As already pointed out: any lease deal precludes the leasee from buying the car, even at the end of the lease period. This is because of the tax break allowed by HMRC to the leasing company to write down the asset ( the lease vehicel) against their tax liability. If they sell you the vehicle then a benefit has accrued and you would have to pay tax on the benefit. It is a minefield which requires a sharp accountancy brain to negotiate and best left to professionals. However a good keen lease deal should be economic by virtue of the fact the depreciation is usually more than you actually pay over the period. You pays your money........... Cheers Concrete

"Just add fuel" - zippoman

Dont touch the deal, run away now!

whatever the math looks like on ownership, just wait till end of term and you want to hand it back !!

my wife entered one of these deals three years ago, now its timeto hand it back! peugeot wont even discuss it with you until the last payment is made, so the last payment date comes and now you can call them, only problem is, their special dpartment that collects the car (nothing to do with dealer network so dont think that friendly guy will help) cant collect for another month and a half.

now the insurance has to be renewed, car has to be MOT'd all your responsibility. you basically have to store the car for as long as it takes them to arrange collection ! then the inspection..mm we still have that one to come.

dealing with them is a complete nightmare! and the collection team can only be contacted after 3pm on a working day!

oh, and he way these cars are thrown together for the general consumer life of three years? by the time the MOT is due, (whilst still your responsibility) there are a lot of things need doing, we only put 11000 miles on in three years but the breaks had to be done as the pads had started to degrade (not worn out) tyre walls showed signs of perish, brake hoses, power steering fluid change (not on the service schedule) all sorts of stuff.

so i think if you aim to take this sort of deal out, and not just swap for another one at end of term, kepp a few grand to one side to allow for the sucking of peugeot when you want to hand it back.

"Just add fuel" - Ben 10
Thanks for that zippoman.
My interpretation was that the parts and servicing done over the three years is free? Is that the case?

You would think that wear and tear would be taken into account after 3 years, and you only need to hand the car back whatever condition. So you might be hit with a bill when it's retrieved?

Not as good as it first seemed. Hopefully the pitfalls will put people off enough for them to have a better system in place.
"Just add fuel" - brum

Just add fuel....light the blue touch paper and......stand well clear!!

They say the UK are world leaders in marketing....

"Just add fuel" - Smileyman

I would have thought you would park the car off road, declare SORN and advise Peugeot of the car's status (ie bring low loader as the car has been SORN'ed)... with a demand that it be collected before you start to charge rent for use of the parking bay - also cancel the direct debit mandate!

"Just add fuel" - mike88smith

similar issue to zippoman.

Insurance about to run out and still awaiting a collection date. Had the MOT done

im stuck on what to do as all the insurance quotes are really high.

Anyone else had similar problems?

"Just add fuel" - Dogfuzz

It's just marketing. at the end of the day you will end up paying just as much as any other "options" style deal -if not more.

Why not go to a bank, borrow as much as you can afford on a 36 month loan deal--then shop around sticking to your budget,negotiating and offering cash. You then own the vehicle straight away. No hogwash/smoke and mirrors sales talk/ silly admin fees and buy back rip-offs.

"Just add fuel" - Bianconeri

It's just marketing. at the end of the day you will end up paying just as much as any other "options" style deal -if not more.

Why not go to a bank, borrow as much as you can afford on a 36 month loan deal--then shop around sticking to your budget,negotiating and offering cash. You then own the vehicle straight away. No hogwash/smoke and mirrors sales talk/ silly admin fees and buy back rip-offs.

Or better still, don't borrow to fund a depreciating asset and just buy what you can afford - applies to most things, not just cars.
"Just add fuel" - Paul Robinson

don't borrow to fund a depreciating asset and just buy what you can afford - applies to most things, not just cars.

I'd say that's too simplistic - a depreciating asset needs to be funded - you can do this in lump sums (buy a car outright, no more capital cost until you need to find the money for the next one...) or by instalment (pay for a car on a monthly basis), but depreciation is only part of the cost of motoring and you need to look at individual circumstances and the motor expenses in total. Sometimes it can be worth incurr more capital cost (including a bit of interest) in return for much lower, fuel, insurance, vehicle tax, service and particularly repair costs...

"Just add fuel" - brum

On a new car over three years, depreciation is 90% of the motoring cost I would say, especially a French car.

"Just add fuel" - Dogfuzz

All cars bought new and doing 10k a year average should,repeat SHOULD last ten years if properly maintained and cared for. Do a total budget on that first-then compare the "never never " deals.

"Just add fuel" - Bianconeri

On a new car over three years, depreciation is 90% of the motoring cost I would say, especially a French car.

I have a French car that's worth about ten times what it cost new and a Brit that's worth maybe forty times what it cost new. But I'm not selling. And I won't borrow money to buy anything. My choices.
"Just add fuel" - slkfanboy

>now the insurance has to be renewed, car has to be MOT'd all your responsibility. you >basically have to store the car for as long as it takes them to arrange collection ! then the >inspection..mm we still have that one to come.

Remember you don't own the car your the registered keeper. Simply send the V5 saying that the owner is the new keeper. SORN the car off the road and don't use it. It really their issue. Don't MOT or Ins, return keys and let them sort their car out.

"Just add fuel" - barney100

As a general rule big companies not give anything away, maybe once in a while a great deal will come along I suppose. Remember a bloke years ago used to take a loan on a Triumph Spitfire and exchange it every two years and the payments stayed the same after trade in. This didn't last very long and payments went up and trade in prices went down.

"Just add fuel" - Terry W

Superficially attractive (you get a new car) for those with no capital and not that much sense.

But it is no great financial deal - probably the reverse with lots of drawbacks and risks:

1. Your cicumstances may change but you are locked into a deal

2. You may end up with end of contract nit-picking for costly minor fettling and mileage surcharges.

3. Embedded in the rate paid is interest, admin and marketing overheads, bad debts and profit wich inflate the monthly cost.

If you can't afford a new car outright, get the best low rate bank loan and buy what you can afford, not what you would like.

 

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