High depreciation car

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Thu 30 Jan 2003 21:21
High depreciation car - Ben79
What is the cheapest way of running a 1yr old car with relatively high depreciation and looking to change in 2 or 3 years when the warranty is out? Say for example, a Citroen C5 diesel.

I have looked and Personal Contract Hire and Personal Contract Purchase are similar prices to other cars that size, eg Laguna, Mondeo etc.

Been quoted a minimum guaranteed future value / final payment of just under £3k in 3 yrs on a 02 car at £11k now. (£300/mth 36mths £550 deposit)
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Thu 30 Jan 2003 22:04
High depreciation car - DavidHM
www.smartermotoring.com is usually a good way to get low interest finance on that kind of scheme. It also lets you play one dealer off against another as you are effectively a cash buyer.

It's basically a bank loan with a balloon payment. With a £500 deposit on £11k, you'd borrow £10,500, paying back £220 a month over 3 years. Unfortunately, you'd still have a balloon payment of £4,200, which is quite an optimstic value for what would then be a 4 year old C5, so you might have a small amount of negative equity on the car. As the value of the balloon payment is independent of the car, there is not much you can do about that. Total cost works out at £12,600.

If you don't do much mileage, it might make more sense to buy a brand new Mondeo Mistral or Vectra 1.8, either of which can be had for £11495 (or even an 02 Mondy for less than £9k from Motorpoint).

Even so, assuming you want the C5, you could get a personal loan from Lombard Direct for £322.73 (on £10500) with no balloon payment. That's £12,100 over three years, APR 6.9%. Both of these compare very favourably with the quotes you've been given, which work out at £14,350 (!) at £300 per month and £3k at the end.
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Thu 30 Jan 2003 22:25
High depreciation car - Ben79
That should have been £550 deposit, £270 a month for 36 mths and £3k final payment.
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Thu 30 Jan 2003 22:47
High depreciation car - DavidHM
That's still about £600 off the money from Alliance and Leicester (smartermotoring) and £1100 off Lombard Direct though. It is better, although I would probably save £3k and get myself an 02 C5 1.8 LX from Motorpoint if you like the Citroën - then the numbers make a great deal more sense.

£157.36 per month with £3k outstanding from smartermotoring, or £230.52 outright with Lombard Direct.
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Fri 31 Jan 2003 19:01
High depreciation car - Ben79
The 1.8 is a dog compared to the 2.0 HDI 110.
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