Ford Fiesta (2009 - ) - Help need on this deal from Ford

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Tue 3 Nov 2009 11:15
Help need on this deal from Ford - Ravs
Hi Guys,

I need your help in making a decision regarding upgrading my car. Ford has offered me this deal out of the blue and I have been thinking ever since.

I have a 16 month old Fiesta Zetec Climate (3 Door). I bought my car on Passport finance scheme and pay £170 per month. The scheme works in such a way that you pay £170 per month for 34 months and at the end you get a guaranteed future value, which is around £2900. At the end of the term, you can either clear off this and keep the car or refinance the amount, or give the car away to Ford altogether (provided it is in decent condition)

Now, I have already made a payment of 16months and got remaining 18months to pay before I reach the guaranteed future value part.

Ford has recently called and offered me an upgrade to the brand new Fiesta (the new design which has 5 star ratings everywhere). It will be the same Zetec model with Metallic paint, 5 Doors this time and the same 1.25lt engine as my current Fiesta but has more BHP and less engine weight.
The offer is that I hand over the keys to my old car and they give me the new car @ £200 per month, again for the next 34 months with a higher guaranteed future value, which is around £4800.

This deal gives me the newer car which has got good ratings, has extra knee bags, 5 doors, good future value, free bluetooth (don?t care much for this), USB port along with standard AUX for music system.

The -ve points are it looks like I have paid these 16 month instalments for just renting the car and will be loosing both time and payments.

So guys, I would like your advise on this. Given a situation like this, what do you do?

Personally, I feel that upgrading my car at this point will be more like a passion for the new one and nothing else. My 3 Door Zetec climate perfectly fits my life-style, but just now and then I keep missing the extra 2 doors!!

Thank in advance..
Regards,
Ravs
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Tue 3 Nov 2009 11:24
Help need on this deal from Ford - Bill Payer
The -ve points are it looks like I have paid these 16 month instalments for
just renting the car and will be loosing both time and payments.

That's effectively what a PCP is - you're renting the car for the duration of the agreement.

Did you pay a deposit when you got your current car? If so. then that's "lost" when you switch deals. Arguably it's gone anyway.

Just remember that if you take on the new deal you'll have quite a lot more to pay if you want to keep the car. That's not the idea of PCP's though - what you're "supposed" to do is roll into another PCP.
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Tue 3 Nov 2009 11:34
Help need on this deal from Ford - daveyjp
£2,900 to buy your current car at the end of three years looks like a bargain.

Current prices for 3 year old Fiestas are £4-5,000.
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Tue 3 Nov 2009 11:41
Help need on this deal from Ford - Ravs
This guaranteed future value is set just as a marker and even Ford advises that it will be low compared to what you get when you sell your car outside after 3 years

Cheers,
Ravs
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Tue 3 Nov 2009 11:40
Help need on this deal from Ford - Ravs
I paid £500 as deposit and I dont know if that will be transferred to the new deal

Thanks for your reply :)

Cheers,
Ravs
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Tue 3 Nov 2009 12:01
Help need on this deal from Ford - jbif
deal from Ford >>


If you want a new Fiesta for (34x£200)+£5000 = £11800 then go for it.

It means that, as you say, the value of your current Fiesta is zero because you have been effectively renting/leasing it for the last 16 months at £170 per month, plus the £500 initial deposit.

Edited by jbif on 03/11/2009 at 12:02

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Tue 3 Nov 2009 12:12
Help need on this deal from Ford - Ravs
@ jbif

Excellent...thanks for your valuable suggestion!!

Regards,
Ravs
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Tue 3 Nov 2009 11:40
Help need on this deal from Ford - OldSock
If you take the deal, no doubt they'll send you another 'upgrade' offer in 16 months' time....

The "and only ten shillings a week more" boys will love you :-)
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Tue 3 Nov 2009 13:50
Help need on this deal from Ford - Bill Payer
Our old Jazz at £1000 per year for 6 years is looking like it was a bargain!

No wonder the industry loves PCP's - who could really figure out if the deal being offered is "good"?

I *think* I understand them, but after the dealer had talked us through PCP for our new Jazz I was feelling dizzy.

Oh and forget about the £500 deposit - that's gone.
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