i am looking at a new 1.5 Sprt Nav in Soul red. New cars sold by Mazda have a £1,500 contribution as long as you take out PCP. I always pay cash and never financ on any new cars. The dealer informs me that after 3 payments I can pay the remaining off in a single payment without any penalties apart from a small amount of interest. I have been looking at some preregistration cars with less than 100 miles on the clock which avoids pcp but I was keen on a new car. I will wait for your replies before making a decision.
Hi,
Its an ND rather than NC. I know of someone on another forum I frequent who has done exactly that with no issues:
"OK, update.
Car was £22,500 odd RRP.
Cash deal was £20,500 odd.
PCP offer (before interest) was £16,250 odd.
Deposit of £4,750 made leaving £11,500 to finance.
Car was delivered on 11/6/18.
We contact PSA on 12/6/18 for the settlement figure…
£11,564 to pay off the car.
Paid 13/6/18. Car bought for £16,314.
Sorted."
Think you mean a new ND.
I know nothing about PCP - but I’m sure it means you pay more in the end - and do you even own the car?
My advice, for what it’s worth, is NEVER to buy brand new, unless you absolutely MUST have a brand new car, and are prepared to take the not inconsiderable depreciation hit.
Far better to find a dealer demonstrator on a big discount - or better still, keep a sharp eye out for a one-year old privately owned sale - preferably from an enthusiast. You may have to wait a while, though.
Good luck.
Might be worth getting quotes from companies like Drive The Deal who often claim they can get discounts of up to 20% on new cars.
Even if you didn’t buy from them, their quotes would be a good bargaining tool to take to any main dealer.
I don’t understand this fully? I always assumed there is a ballon payment at the end of these things (or GFV) which is used to calculate the amount of finance. So, unless a deal has been done with a zero GFV at the end, you’re still only paying the difference! Or putting it another way, financing the depreciation. To buy the car, normally at the end, you pay the GFV or send the car back. Is my understanding of this wrong?
Barrie
EDIT;
just found this, which explains it better.
https://www.moneysavingexpert.com/car-finance/personal-contract-purchase/
Still mentions the final payment, don’t understand Gareth’s example as no mention of a GFV. If it’s true, I might get one with that amount of discount
Barrie
Yes check out Drive the Deal. Rough quote here
https://www.honestjohn.co.uk/cars-for-sale/search/New/Mazda/MX-5/
You can do it more accurately on DTD’s website if you enter some details. Note that the DTD price as quoted here also depends on taking the PCP, no doubt they will advise you on paying it off etc.
Strictly speaking you do not have to wait 3 months to pay it off. Nobody can stop you paying off a loan (which is essentially what it is) and I have never heard of anybody having to pay back the extra discount. It might however be the case that the dealer gets some commission clawed back. More likely they are just being as vague as dealers usually are.
I must say the current deals look pretty good. DTD were doing the SE-L Nav last year for about what the Sport Nav is now (£18985). That price probably doesn’t include metallic paint - it will be apparent from the DTD website.
Copied from Auto Express:
""PCP deals are a popular option for buying a car because they can be very flexible. Here’s how they work…
A personal contract plan (PCP) is a popular way of getting behind the wheel of a new car. A PCP deal will come with flexible terms, including low monthly payments and usually a low rate of interest, too. But the negatives can have an impact if you’re not careful. That’s because the small print of the contract can include financial penalties for minor damage to the car while it’s in your custody, and if you exceed the pre-agreed mileage limit, there will be a penalty to pay there, too. You need to be fully armed with the facts when taking out a PCP, because sometimes it might be cheaper to take out a hire purchase agreement instead.
Still, PCP deals are proving popular with UK motorists, and in recent years have fuelled the boom in UK consumer credit. That’s because big manufacturers such as Ford, Nissan, BMW and VW have the financial clout behind them to make PCPs offordable and available to more buyers looking to change their car for a new one.
With so many dealers offering PCPs, there will be one to suit your next new car purchase, whether you’re buying a supermini, crossover, hot hatch, estate or SUV. You can even get PCP deals on used cars, which will make your money go even further. As with all forms of credit it pays to be aware of the advantages and disadvantages of taking out a PCP. The flexibility and guarantee of a future value of the car when you come to the end of the plan are appealing, but dealers love PCPs too, because the way they are structured means that buyers will come back to the same brand every three years or so and trade into another car." (END)
From personal experience, I had the cash available to buy a new car, but the salesperson I dealt with had a MAZDA FINANCE deal sign in his desk, and I assumed (never assume anything!) that he was avidly pushing a Mazda finance deal, which sounded attractive. Cutting a long story short (for a change) I drove the car home once it had been prep’d and taxed ( a week later) and then the documents arrived in the post a day or so after that. From Mazda - NO. from a major finance company instead. Long read , then reality sunk in. Seemed they were guaranteeing a final price for the car of £7,000 odd for the car, after a period of time. Also, as the above article says, my mileage was limited, exceed that and there’s additional costs. An accident - even worse, you had to cover that possibility with your own insurance, at no cost to the finance agreement. But - because it may affect the final valuation, you could be held liable for any loss to that figure. Worst part was - it turned ut to be a lease hire agreement, so after the initial period, I could either trade in the car at final valuation (with another agreement to buy that new car), or If I wanted to keep it, I had to pay them that sum to assure ownership. By the time I finished reading all the why’s and wherefore’s - I felt sick as the proverbial Parrot. I rang the head salesperson at the dealer and told him I wanted to pay in full, and asked if there was more commission to pay (they get commission for selling a policy) He did say no - if I payed in full, but it was too late already as the agreement was now with the finance Co. and out of their hands.
I rang the finacne Co. then, and spoke eventually to a senior figure in that organisation, who told me that on checking, they had not (critically) received the documents yet from the dealer, so were open to further discussion, but suggested I rang the dealer back, which I did, and told him the agreement was not yet received. (I did suspect instant panic at the dealer) but after some searching, it appeared they were still sitting on someones desk. They had no choice then but agree I could still pay for the car in full,which I did, as the actual price was better than hoped for, with them accepting my previous car as a trade in - at a loss to me btw. (It was on sale for a £1,000 more than they allowed me) Yes - I could have sold it independently, but I was busy, and didn’t want the hassle. Afterwards, I rang the finance Co. back, and told them the agreement was void, and payment had been made in full, and I thanked them for their co-operation in the matter. ( I never did get an explanation as to why their documents went out to me before they actually received them from the dealer!)
The above article seems to confirm most of what I also experienced, so I’m left wondering the above post really believes he’s got the car for less than it was actually sold at:- Another bill at some future date? - possibly.
All up, Never bought a car with finance before (except in Canada) where it was a straight deal - no small print. However will never again use any finance plan - no matter how good it sounds at the time - it’s a con.
At the dealer - or his representative is concerned about is their commission. Beware the big friendly smile!
They are more concerned about their loss than yours.
Just to add, that the deal I posted was for a Peugeot I believe but the principal should be the same anywhere.
Hello,
I sell cars (not Mazda, but the same principle).
Manufacturers will often ‘support’ registrations when finance is used. Where I work (big German brand), this support is available if PCP is used OR if HP is used. If you are dead set on ideally paying cash (i.e. you don’t really want to use the finance, but would to make it cheaper), then yes what your dealer has told you is certainly a good idea for you, it is effectively using a loophole to pay less overall. The manufacturer knows that the vast majority of PCP customers will run their agreements through, and not pay them off, hence why the support is given to these financed deals rather than straight forward cash sales.
If you work out the overall cost of doing this (paying your deposit, paying the 3 payments, and settling the contract), and then compare this to the cost of the pre reg car you were also considering, you will know whether it is worth (to you), going new rather than used. Where I work, the costs involved in doing this (the interest and settlement charge) would be very minimal (maybe £200 in total), meaning you would be £1300 better off rather than buying that car cash.
The other recommendations here regarding using tools such as drive the deal, although a headache for dealers, may give you more bargaining power to get a stronger deal in the first place. The deposit contribution should be available whatever the discounted price of the car may be though, so getting a good deal on the car plus using the deposit contribution could indeed get you a great deal on your new car.
The overview of PCP posted above really only applies if you are looking at running the contract through, rather than simply taking it out in order to settle.
Let me know if you need anything else
John - You and me are a rare breed, I always pay cash too. I bought a new VW last September and once the dealership had got their head round the idea of a cash sale I got a massive discount. I had to pay with a debit card though and had to set up voice recognition with my bank first in order for the payment to go through.
Gra
Maybe not so rare.
I’ve always paid cash for cars, and always haggled the price down, usually helped by ringing around first. Also a good time is just before model facelift/change, old stock is often pre-reg.
I was fortunate to get our Mazda3 as a pre-reg (one month old and 40 miles) listed at 3000 below retail and another 500 off, as well as free mats, full tank of fuel, one years tax. Chose not to have a service plan, nor special finish, nor valeting, nor that price fix insurance etc. The sill kick-plates I fitted were much cheaper than the Mazda ones they tried to sell me and offer a lot more protection. Our car still has a proper handbrake, and decent thick 60% tyres, unlike its immediate successor.
I paid the deposit with Credit card for payment protection. It was frighteningly easy to use the Debit card for the balance when we collected the car; the money went from my account to theirs in seconds, while I watched their account on their screen!
I immediately spent some of the extra 500 discount on a full Dinitrol treatment elsewhere.
just been looking on auto trader used mk 4’s going for £12000 ,less than mk3’s what’s going on
I was told by a dealer, not Mazda, it was 12 months you had to pay, bought the car with 1k extra off (above matched dtd deal) and 3 years free servicing as part of the finance offer, drove out of the dealers and phoned the finance VAG the same day and paid off the balance no penalty no interest and 3 years servicing and 1k better off
More leg room in NC, and its PRHT makes a big difference. Two of several reasons why I still have the NC.
I find the ND to be much more comfortable to drive than the nc, head not scraping roof lining less cramped etc at 6’1"
Interesting, I’m 6’2" with normal proportions, and found it was the other way round. My back hurt after only a few minutes in the two (1.5l and 2l) NDs I tried. My NC has height adjustment on the heated leather seat as well as the usual slide and rake, and fully adjustable steering wheel. I can drive for hundreds of miles in the NC and still be fresh at journey’s end. I felt crippled after both twenty minute ND test drives, I even stopped to play with the seat adjustments - in vain. I did like the higher top gear on both NDs but if the comfort is no good then there is no point in buying.
In the words of Savoy Brown (and others) “Taste and Try Before You Buy”.
I had noticed that the last Mk3’s are if anything showing higher sticker pricing than early Mk4 cars.
Notice, I say sticker prices, do we know if these late Mk3 cars are selling anywhere near these notional higher prices or are they just not selling at dealers at all at these prices.
The problem with different Mks of MX’5s is that they assume different limb ratios between different models. A long body friend fitted in a MK2 but did not fit in a MK3 as he could not get the seat back far enough.
Under EU law you have 14 days to cancel the contract without penalty. Sign up get the deposit contribution then phone and cancel, they cannot charge any penalty. All this have to pay 3 or 12 months is internet rubbish - I did exactly this with a Mercedes I bought, salesman advised it was common practice! Oh and I didnt have to settle at 14 days they gave me another 14 days! If you have any doubt phone the finance company themselves and ask, they are used to it!
Oh and just to put a spoiler in ask about the £2000 extra discount on a 2.0, I have just bought one, £600 carwow discount, £1500 deposit contribution and £2000 discount on a 2.0 SEL Nav…worked out same a s a 1500 SE!
BTW fabulous car wife actually prefers it to her long gone MK1