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Buying a brand new car - Finance


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Nice one I drive past it every day but can't see the small print

 

I'll help you out..........it says 0% "Representative"

 

That is sales speak for 'We will ask you for around 50% deposit and then charge you interest on a discounted balance. The repayments work out the same as if it had been 0% on the full balance, had we not discounted it'

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citroen are particularly good on their finance, no idea why

 

Because they have a higher dealer mark up than say Ford, Vauxhall, VW etc.... the higher mark up gives them more leeway to offer attractive looking finance deals. The problem is that further down the line, in say two or three years, the residual value will be akin to a bag of marbles.

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Just look out for the extra hidden costs - usually a fee for setting up the finance and a fee to end it. Evans Halshaw tried to match my Tesco loan a few years ago when I was buying a car from them.

 

Yes, they got the monthly repayments to work out the same over 18 months but these hidden charges added £500 to the total.

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