Is This A Good Deal?

[BrumBrum]

Hi all,

Ive been looking at the New Fiesta for weeks now, i'm interested in the Zetec EcoBoost 1.0 100ps. I have test drove it a couple of times and its a great car to drive. It's alot quicker than i expected and cruising at 60mph seems like no trouble for this little engine even in 4th gear.

What i would like to know, which i'm not sure if my dealer is trying to 'fob me off' - do new cars from Ford include a free service after a year?

Lets Talk Figures

Firstly, i'm not sure if you are allowed to post how much you bought your car for on here, so i apologise if im breaking the rules!

What
I have been offered is:

Ford Fiesta

Zetec

1.0 EcoBoost 100ps

Race Red

3dr

Spare Wheel

Payment on Finance

£126 per month

£1000 deposit

4.9% APR

2 Years

Is this a good price, or could i get lower?

[Electric_Orange]

If it was me I think i'd half the deposit and think about pushing those monthly payments up toward the £200 mark (or more if you can afford it) otherwise you might find yourself in all sorts of problems with negative equity in 24 months time.

Think of it this way the 100PS Zetec is a £13000 car. Even if they knock £1000 off the list price that will still be £12000. If you put in £1K and then pay £126 x24 you'll still have at least £8000 (when not even thinking about interest) left to pay on a car that might struggle to fetch that value if you wanted to sell it.

By putting the monthly payment up to £200 it will potentially take £1800 off at the end of the deal. Plus if you consider that the more you contribute now, if you wanted a new car in 24 months you might even have some equity to put towards it.

[E5GDM]

Are you sure that £126 isn't over 36 months?

As I wouldn't have thought they'd have financed it if you'd end up in negative equity.

[Jack92]

Is there a rather large payment due at the end? Personally it sounds cheap and if you plan on changing to a new car after two years it might be best to put a little less deposit down. Totally depends what your after.

[BrumBrum]

If it was me I think i'd half the deposit and think about pushing those monthly payments up toward the £200 mark (or more if you can afford it) otherwise you might find yourself in all sorts of problems with negative equity in 24 months time.

Think of it this way the 100PS Zetec is a £13000 car. Even if they knock £1000 off the list price that will still be £12000. If you put in £1K and then pay £126 x24 you'll still have at least £8000 (when not even thinking about interest) left to pay on a car that might struggle to fetch that value if you wanted to sell it.

By putting the monthly payment up to £200 it will potentially take £1800 off at the end of the deal. Plus if you consider that the more you contribute now, if you wanted a new car in 24 months you might even have some equity to put towards it.

I see what you mean, but i dont think i'll intend to buy the car after the two years, instead swap it for another one. I was under the impression that its around £6900 Minimum future value, does that mean that if the car is more than that after the two years, i would get the profit to put towards another car?

Is it a decent deal at £124 for £1000 deposit then? (The deposit is coming from a part exchange)

Are you sure that £126 isn't over 36 months?

As I wouldn't have thought they'd have financed it if you'd end up in negative equity.

Yeah, its 2 years. I chose this because its less APR at 4.9%

Is there a rather large payment due at the end? Personally it sounds cheap and if you plan on changing to a new car after two years it might be best to put a little less deposit down. Totally depends what your after.

As far as i can remember, its around the £6900 mark.

Might be me being stupid; but why should i put less deposit down if i was to get a new car after the two years?

Thanks for all your replies. :D

[JoeyG]

To start, that is a good deal, I am not sure what happens at the end of the two years though, will you have to pay the over-mileage (assuming you go over the 6K a year miles) or would you have to pay some sort of fee or something? not sure.

If you can pay the 1K deposit and the £126 per month for 2 years, then hand the car back and not have to pay anything afterwards then that is a good deal.

[JoeyG]

To start, that is a good deal, I am not sure what happens at the end of the two years though, will you have to pay the over-mileage (assuming you go over the 6K a year miles) or would you have to pay some sort of fee or something? not sure.

If you can pay the 1K deposit and the £126 per month for 2 years, then hand the car back and not have to pay anything afterwards then that is a good deal.

worked it out, all together it is £5.99 a day to have the car (including the deposit).

It's all about what happens at the end, talk to your dealer, I would personally like to know the outcome.

[cuke]

Hi, can I ask who the dealer is please?

[Toppy]

I see what you mean, but i dont think i'll intend to buy the car after the two years, instead swap it for another one. I was under the impression that its around £6900 Minimum future value, does that mean that if the car is more than that after the two years, i would get the profit to put towards another car?

Is it a decent deal at £124 for £1000 deposit then? (The deposit is coming from a part exchange)

Yeah, its 2 years. I chose this because its less APR at 4.9%

As far as i can remember, its around the £6900 mark.

Might be me being stupid; but why should i put less deposit down if i was to get a new car after the two years?

BrumBrum

I presume this is on ford options?

From memory at the end of the 2 years you have 3 options

1, hand the car back and walk away with nothing

2, pay the remaining finance £6900 and the car is yours

3, use the equity in the car as a deposit for your next ford, doing this they will normally offer you more than the future minimum value.

Remember that talking out an agreement like this there is a maximum number of miles you can drive it each year without getting charged a per mile premium. You can choose how many miles you are allowed to drive but increasing the allowed mileage will change your finance payments and minimum future value.

4, another option at the end of the 2 years is to change to another make of car, if they are offering you a better trade in price for your car. Just as in No 3 above they will pay off the finance with ford and you can use the balance as a deposit.

But in answer to your original question, yeah I think that this is a good deal & I agree why should you pay less of a deposit. A larger deposit means less finance.

[chrsmi]

You won't be in negative equity - if its worth less than the £6900 you just hand it back, no questions. if it's worth more, PX it and you keep the difference.

the mileage overage of 6p a mile will apply if you hand it back mind, so PX normally best. Your dealer will be able to help, but im reckoning on them doing you the car at about £10500. Good deal.