Any ideas on financing my new car?

[wantaskoda]

Good afternoon.

I now know what I want to pay for the car, just dont know how I am going to pay for it.

I am a high mileage driver, so Skoda will not finanance it on a PCP type solution.

The dealer I spoek to last week offered my a special of 2.5% so long as I put down 10% and paid over 3 years, whcih is somehting I cant do.

I know it is about haggling, but can anybody let me know the sort of rates that they are paying?

I am looking at the 2.0 L&K estate.

thnaks.

Edited 27 April, 2010 by wantaskoda

[Hannibal]

The dealer I spoek to last week offered my a special of 2.5% so long as I put down 10% and paid over 3 years, whcih is somehting I cant do.

Because you don't have 10%, or because you can't/won't pay over three years?

[Raglits]

How high a mileage?

The other option, is tell them you're doing 25K a year for the PCP agreement, and put money to one side over the 3 years and pay the final payment instead of taking the hit for the excess mileage...

[foo]

0% But I put down 50%

[wantaskoda]

I could put 10% down, but the monthly payments are too high for me to do it over 3 years.

With the PCP, again, you are only about to do 20k a year with Skoda (BMW is 25k), so I am looking at straight finance.

Car is 20.8k deposit I am looking at is about £1500.00

I think the dealer offered me somehtign like 10.8% apr.

This seems high, and I am looking to negotiate, but just wondered if anybody else had a good APR.

Woudl prefer to use dealer finance, especially as I am just getting rid of my 2 year old 407 by using the '50% paid' clause.

[Keith Lard]

Look at getting a cheaper car/model if the finance is too expensive? Surely if the finance is too high then you can't afford that car and should look further down the range instead maybe?

(Only speaking from hard earned experience of taking cars I couldnt afford on finance and regretting it big time)

If you do loads of miles then you'll kill any residual value (Skoda don't have good residuals with ow miles!) 10% APR sounds high.

Edited 27 April, 2010 by Keith Lard

[g_tee]

Bank loan?

7.9% APR from my bank (HSBC)

[wantaskoda]

Thanks Guys.

My budget is about £450 a month, and I think that I shoudl be able to get to that based on 4 years.

The problem with a bank loan is that you miss out on some of the early opt out options that car finance gives you.

I would be aiming for between 5% and 8% should get me to where I want to be.

Thanks for the advice.

[fraserpants]

0% But I put down 50%

If he can't put down 10% deposit and pay back over 3 years he won't be able to put down 50% deposit and pay back over 2 years!!!!

['daiking']

Try another dealer?

But £540ish a month (by my fag packet) for a Skoda? Ouch.

[Raglits]

Different dealer is a good option (as is looking at a less expensive model).

I'm on the Skoda (Volkswagen Finance) PCP and I told them 25000 miles a year so either the dealer is telling you porkies or VW finance have changed the rules.

Does that £450 a month budget include servicing and insurance as well? It does sound like you're maybe stretching yourself if it's that borderline...

[wantaskoda]

Doesnt include servicing or insurance, just the straight finance of the car.

Just seen a deal on the Skoda website which is 7.9%.

I am popping in to a dealer on Friday, so I will see what they offer.

I can stretch to £450 a month, but I dont want to.

I could also lower the spec of the car, but again, I like the L&K for what it has in it, although I knwo that the Elegance is about 2k difference.

[Keith Lard]

I can stretch to £450 a month, but I dont want to.

+maintenance and insurance. Thats a high monthy cost for a Skoda, way more than I would be comfortable with.

Only you know if you can afford it so good luck with whatever path you choose....

[Raglits]

The 7.9% will be the options package which is the PCP... I'd look at getting the price of the car down as much as possible by beating the dealer round the head with the Drive The Deal price, and then go for the finance package...

[wantaskoda]

Keith - somehow or other the car has a price to it, and whether I pay 3 years, 4 years, PCP or not, I will still end up paying ofr the car.

I currently pay £300 a month for a 407, and that was done over 5 years. I am trying to bring it down by a further year as the price of the car second hand falls so much anyway.

For me the car is a busienss tool, and for once I want to spend decent money on a nice car, and I think the skoda is.

The L&K with the spec that I want on DTD is 20800 so it is just a case of the finance now.

The finance on the skoda website is true HP (not balloon) but looks like it needs about 25% and has an apr of 5.8.

They alwasy have room to manouvre.

[theandywaite]

I bought a very low mileage TFSI vRS with lots of options, in pristine condition from a dealer last year.

I got a private bank loan and pay just over £200 a month for it.

Why not go second hand?

[wantaskoda]

The reason I want new is that I do high mileage, and I want to spec it to how I want it.

I have looked on the Skoda site, and with the 17.5% off at the moment, I think I can get a new one for less than a second hand one.

With regards to the bank loan. I have severe negative equity on my car at the moment, but with car finanace, once you have paid back 50%, subject to the car being in 'reasonable' condition, I can just hand it back.

By the time I order, and take delivery of a new car, I woudl have reached the 50%.

As I use the car for work, I jsut look at the monthly finance as a business expence, and know that I will never own a car.

Also, I get bored after 2 years, but to lease the car for that amount of time is so much more expensice than paying car finance.

[loskie]

The reason I want new is that I do high mileage, and I want to spec it to how I want it.

I have looked on the Skoda site, and with the 17.5% off at the moment, I think I can get a new one for less than a second hand one.

With regards to the bank loan. I have severe negative equity on my car at the moment, but with car finanace, once you have paid back 50%, subject to the car being in 'reasonable' condition, I can just hand it back.

By the time I order, and take delivery of a new car, I woudl have reached the 50%.

As I use the car for work, I jsut look at the monthly finance as a business expence, and know that I will never own a car.

Also, I get bored after 2 years, but to lease the car for that amount of time is so much more expensice than paying car finance.

Why ask the questions when you know all the answers? Do not take this in offence but it seems you have made up your mind already. The sums you have quoted do not seem to add up for a business expense.

[wantaskoda]

Why ask the questions when you know all the answers? Do not take this in offence but it seems you have made up your mind already. The sums you have quoted do not seem to add up for a business expense.

The reason I have posted is to find out if anybody could let me know what rates they got from a Skoda Dealer, so that I can use that to beat up the dealer that I go to.

When I talk 'business expence' I get a car allowance, and although it doesnt cover the whole amount, I know that a car will always cost me.

[Herschel]

The reason I have posted is to find out if anybody could let me know what rates they got from a Skoda Dealer, so that I can use that to beat up the dealer that I go to.

I've got recent experience of this having ordered my new one a week ago yesterday......and unfortunately, i think you're going to struggle mate.

i took the 3 year, 5.4% apr deal on offer, straight HP.

but when they tried to offer me the demo car I drove (the one from the 'privacy glass' thread), they couldn't then offer the same APR, instead offering over 9%

so, I bought new, BUT they wouldn't extend the 5.4% over 4 years instead of 3 (although it didn't bother me because I was happy with the 3 year cost anyway).

sorry to say, I don't think you'll get close to 8% personally let alone the 5% at the lower end of your stated range - the other issue is that residuals are falling massively on deals like yours, as finance companies protect themselves off the back of recent experience, so your monthly payments are higher.

as others have said though, try other dealers.

When I talk 'business expence' I get a car allowance, and although it doesnt cover the whole amount, I know that a car will always cost me.

on a separate note, i'll never understand this way of thinking myself - you could get a cheaper/more affordable car and pocket the difference, no? :S

Edited 27 April, 2010 by Herschel

[wantaskoda]

I've got recent experience of this having ordered my new one a week ago yesterday......and unfortunately, i think you're going to struggle mate.

i took the 3 year, 5.4% apr deal on offer, straight HP.

but when they tried to offer me the demo car I drove (the one from the 'privacy glass' thread), they couldn't then offer the same APR, instead offering over 9%

so, I bought new, BUT they wouldn't extend the 5.4% over 4 years instead of 3 (although it didn't bother me because I was happy with the 3 year cost anyway).

sorry to say, I don't think you'll get close to 8% personally let alone the 5% at the lower end of your stated range - the other issue is that residuals are falling massively on deals like yours, as finance companies protect themselves off the back of recent experience, so your monthly payments are higher.

as others have said though, try other dealers.

on a separate note, i'll never understand this way of thinking myself - you could get a cheaper/more affordable car and pocket the difference, no?

Thanks for that.

If I only used my car allowance, I would end up having a basic Fabia!!

[wantaskoda]

On the Allams Skoda website, I have used their calculator, and with a £1500.00 depsoit they are showing an APR of 11.8%.

Monthlyu payment of £493.00

Looking at another website, if I can get it down to 7.5 I woudl end up paying £464.00

Might have to change from the L&K to the Elegance, and just spec it up.

[loskie]

On the Allams Skoda website, I have used their calculator, and with a £1500.00 depsoit they are showing an APR of 11.8%.

Monthlyu payment of £493.00

Looking at another website, if I can get it down to 7.5 I woudl end up paying £464.00

Might have to change from the L&K to the Elegance, and just spec it up.

Those figures are frightening it's more than my mortgage payment and hopefully my house is not a rapidly depreciating asset like your car will be.

Edited 28 April, 2010 by loskie

[tyros2]

I would go for the Elegance and add just a couple of options you really want but wouldn't go over the top with extras.

I specd my Elegance up to the old L&K spec except for the leather. 3 Years later and its not worth any more on a part ex than a standard fit. a loss of about £1K.

If you really want all the bells and whistles, go for the L&K, and you'll not lose as much on resale.

[wantaskoda]

I could get somehting much much cheaper, but want a nicer car as I am doing more mileage.

I have now found an affordable way via the Skoda PCP over 42 months at 7.9%.

I have the risk that when I go over the allocated mileage it may cost me, but I will have to see what happens in 3 years as I never keep the car that long.

The problem with a car allowance is that it gets taxed, so my £300 a month ends up being a lot less, and I really dont want to stick to another 407 pre reg.....