£xxx per month
Discussion
Is there a rule on how big the deposit can be when manufacturers/dealers are advertising these monthly headline deals? Be it PCP or lease.
For example, just caught an ad for the Renault Zoe - headline £199/month; but small print briefly flashed up an initial £8900 payment...
And I'm sure I saw some C Classes on a forecourt a while back with £149/month plastered on their sides, sure the deposit was 5 figures.
Hey, could get a new Bugatti for £199/month if the small print deposit is big enough.....
For example, just caught an ad for the Renault Zoe - headline £199/month; but small print briefly flashed up an initial £8900 payment...
And I'm sure I saw some C Classes on a forecourt a while back with £149/month plastered on their sides, sure the deposit was 5 figures.
Hey, could get a new Bugatti for £199/month if the small print deposit is big enough.....
I've long been amazed that they get away with these misleading headline figures too. The monthly figures can be infinitely small dependent on the size of the initial deposit.
I find it similar to the three-figure MPG figures that get thrown about for plug-in hybrids. You can get as much MPG as you want if you plug it in enough. Claiming a car does a certain number of miles per gallon on petrol is irrelevant if said car spends most of its time running on a completely different power source.
I find it similar to the three-figure MPG figures that get thrown about for plug-in hybrids. You can get as much MPG as you want if you plug it in enough. Claiming a car does a certain number of miles per gallon on petrol is irrelevant if said car spends most of its time running on a completely different power source.
https://www.burrowsmotorcompany.co.uk/toyota/new-c...
A Supra Pro for only £299 a month!!!
Small print - £10500 deposit
£350 a month and £12k if you want the proper one...
A Supra Pro for only £299 a month!!!
Small print - £10500 deposit
£350 a month and £12k if you want the proper one...
It's mad but so many adverts are like that.
I actually think the bigger "crime" is the way they show a fully loaded top spec version of the car, and then often the finance deal they quote is for the entry level in base colour etc.
I get that they often say "from £xxx per month" but often the difference between the base car and the one they show is enough to argue its a completely different car. I'd argue its worse at the lower end where the car near doubles in price once all the options are added.
I actually think the bigger "crime" is the way they show a fully loaded top spec version of the car, and then often the finance deal they quote is for the entry level in base colour etc.
I get that they often say "from £xxx per month" but often the difference between the base car and the one they show is enough to argue its a completely different car. I'd argue its worse at the lower end where the car near doubles in price once all the options are added.
Most PCP packages have a maximum deposit limit of 30%. Most manufacturers are advertising headline rates at very low payments to entice customers in (marketing ploy). As you said, these involve some hefty deposits which are pointless.
You're better off putting just £2k as a deposit, and hope for the best that you'll see some of that in return as positive equity. If on a 36 month agreement, don't wait till the end of the agreement to change the car, start enquiring for your next car on month 24-26. I've done enough calculations/analysis over the years to know that the largest amount of "equity parity" (positive equity vs settlement) on a typical prestige brand small to mid sized car (Audi A3/A4/A5/Q3/Q5, BMW 1, 2, 3, 4 series, Mercedes A, C Class etc) in recent years is usually between month 24-26. Typically, your £2k deposit should be back as equity at that time (settlement vs. residual value), which you can put towards your next car, without having to fork out another £2k deposit again. This is all based on new PCP agreements.
Used PCP isn't a good option, rather high rates, no deposit allowancew, and very low GFV's (balloon payment) makes the repayments rather high. Quite often makes better sense to buy new, rather than nearly new/used. New car PCP will usually have subsidised interest rates, FDA (finance deposit allowances) as in the manufacturer will put in £xk towards the deposit, and quite often service plans included too.
PCH (personal contract hire leasing) seems to be a good way forward at the moment if you're not fussed about owning the car at the end of the agreement. Manufacturers are pushing PCH heavily at the moment, with very low rates and low payments, quite often even lower than PCP. Especially if its a stock vehicle and not a factory order (leadtimes for new vehicles are crazy long at the moment across all manufacturers). Again, I wouldn't put much down as a deposit. 3 or 6 months upfront, nothing more. Otherwise it doesn't actually work out financially beneficial.
I've spent 15 years plus in the automotive industry, in sales early on and with OEM head offices for the past 10 years. I work as a Finance Data Analyst with a major prestige OEM (can't disclose who), so if you need any further advice, do get in touch.
You're better off putting just £2k as a deposit, and hope for the best that you'll see some of that in return as positive equity. If on a 36 month agreement, don't wait till the end of the agreement to change the car, start enquiring for your next car on month 24-26. I've done enough calculations/analysis over the years to know that the largest amount of "equity parity" (positive equity vs settlement) on a typical prestige brand small to mid sized car (Audi A3/A4/A5/Q3/Q5, BMW 1, 2, 3, 4 series, Mercedes A, C Class etc) in recent years is usually between month 24-26. Typically, your £2k deposit should be back as equity at that time (settlement vs. residual value), which you can put towards your next car, without having to fork out another £2k deposit again. This is all based on new PCP agreements.
Used PCP isn't a good option, rather high rates, no deposit allowancew, and very low GFV's (balloon payment) makes the repayments rather high. Quite often makes better sense to buy new, rather than nearly new/used. New car PCP will usually have subsidised interest rates, FDA (finance deposit allowances) as in the manufacturer will put in £xk towards the deposit, and quite often service plans included too.
PCH (personal contract hire leasing) seems to be a good way forward at the moment if you're not fussed about owning the car at the end of the agreement. Manufacturers are pushing PCH heavily at the moment, with very low rates and low payments, quite often even lower than PCP. Especially if its a stock vehicle and not a factory order (leadtimes for new vehicles are crazy long at the moment across all manufacturers). Again, I wouldn't put much down as a deposit. 3 or 6 months upfront, nothing more. Otherwise it doesn't actually work out financially beneficial.
I've spent 15 years plus in the automotive industry, in sales early on and with OEM head offices for the past 10 years. I work as a Finance Data Analyst with a major prestige OEM (can't disclose who), so if you need any further advice, do get in touch.
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