New Fiesta Zetec

[steveo]

I am buying a new fiesta zetec in september, but am between 2 idea

Should i take it on 2 year option deal

or

3 year finance

any thoughts on what is best too do

[AntonyJ]

I am buying a new fiesta zetec in september, but am between 2 idea

Should i take it on 2 year option deal

or

3 year finance

any thoughts on what is best too do

Options has a lower APR (4.9% vs 8.9%) and because of the balance outstanding at the end, much lower monthly payments. At the time I bought mine, there was also an extra £450 cashback for choosing Options, but I don't know if that promotion is still running. But at the end of the 2 years you don't own the car and still owe the balance (aka MGFV). You can just pay off the balance (which I plan to) or use the difference between what the car is worth as a trade in and the MGFV towards the deposit on a new car. It's unlikely, but if the car is worth less than the MGFV you can just hand it back, but you have to pay a charge for any damage and if you exceed the mileage you agreed to.

So Options is good if you see it as a cheaper (lower APR) way of buying and have the discipline to save up to pay off the balance at the end; or if you want a new car every 2 years and don't mind paying every month forever to have one (so just like an expensive mobile phone contract). Avoid it if you think it's a way of getting a more expensive car than you can really afford and are just looking at the monthly payments...

[steveo]

thanks for the info.

think it might be better going the options route.

Will have to sit down and work out al figures

[Paul_S]

This might be helpful from the Ford Website:

Option 2 - Return your Ford

Your pre-agreed GMFV gives you protection against any unexpected fall in used car prices. If you would like to return your car, your Ford Dealer will complete a vehicle appraisal. As long as your car meets our fair wear and tear standards, is within the agreed mileage, and your account is up-to-date, there will be nothing further to pay. Additional charges will be made if you exceed the agreed mileage or if your car does not meet our fair wear and tear standards.

[zetec bevvie]

The Ford Options is available as 24 months or 36 months.

I had mine on the 36 months Options with an APR of 7.8% Granted I pay slightly more interest, but the monthly payments were lower & it suited me better.

On the 36 months the MGFV is obviously lower.

[steveo]

thanks for all you replies

decided to cash in an investment, and then pay myself back.

a bit like an interest free loan to myself

just got to decide on colour, already have the one in avalon. thinking about one in vision blue