Hi
Looking at whether its worth me doing the type of deals where you buy a car on finance for 3 years, and then return it to them. Cars I am considering inc Suzuki Vitara - as they are doing 0% credit.
I currently drive a old Pajero - done me well, but thinking now I fancy a nice bit of creature comforts and wondered if anyone does what I am thinking.
Any advice appreciated.
Scott
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Did it with a smart, but over 2 years and had no problems. Check how much it will cost you, check the annual mileage limits and look after the vehicle. Attractive schemes usually have low mileage - an Audi A6 for less than £200 a month - no probs, but mileage is limited to only 5,000 a year.
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A lot if not most HP/Finance deals let you return the car with no prejudice if you have paid over half the total amount payable.
I did this when I wanted to pay off 5 year HP at the end of year 3 (I'd saved up along side paying the monthly) and realised the outstanding balance after the 3 years was still 1000 pounds more than it would cost to go out and buy a similar car. I reasoned that it wasnt in my interest to pay 4.5 grand out to buy a 3.5 grand car so I told 'em to come and take it away. Which they did. On a transporter one day.
I'd paid just over half the total amount payable and the small print on my standard HP deal said I could. So I did.
The interest is obviously front loaded so the priciple sum goes down slowly whilst the vaule of the car drops quickly. At year three / halfway on the T.A.P it made sense to get shut.
HTH
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Also watch out for cancellation charges if you try and return the car before the 3 years are up - for example your circumstances can change and what was a good idea today might not be suitable in 12 months time. A 3 year contract is fine intil you try to change something.
The pig and chicken set up a partnership in a "Breakfast Business" the difference was the pig was committed.
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If they are doing 0% it is for a reason.
Why not try "the Brokers" and Supersites such as Motorpoint - 0% is fine but £?,000 off on a bank loan might be cheaper - 6 months ago Motorpoint were cutting up to £4,000 off list and including leather seats in some models
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