Finance Honda Finance Offer

[Keasden]

Hi all, total newby on here, I just registered to do a bit of research following our decision (well SWMBO decision) to swap our Jazz for a Civic.

Anyhow, thought I may as well try and make my first post a useful one.

I went into the stealers I used to buy the Jazz (Wigan Honda) and started discussing prices and options and mentioned I was interested in the Honda finance offer of £750 contribution towards a Honda PCP.

This PCP has a decent interest rate of 6.9% APR but the £750 discount is only available on the 1.4 and 1.8 SE models.

Anyhow, onto my point, the salesman assures me that the £750 discount is also available on the 1.8 Sport but this fact has not yet been advertised by Honda UK, so anyone looking at a new purchase of a petrol Sport may want to look into this further.

This is my preferred spec (in Galaxy) and I was quoted an OTR price of £14500 for this model taking into account the £750 contribution.

Does this seem a decent deal?

[vtec-hungry]

Originally Posted by Keasden

Hi all, total newby on here, I just registered to do a bit of research following our decision (well SWMBO decision) to swap our Jazz for a Civic.

Anyhow, thought I may as well try and make my first post a useful one.

I went into the stealers I used to buy the Jazz (Wigan Honda) and started discussing prices and options and mentioned I was interested in the Honda finance offer of £750 contribution towards a Honda PCP.

This PCP has a decent interest rate of 6.9% APR but the £750 discount is only available on the 1.4 and 1.8 SE models.

Anyhow, onto my point, the salesman assures me that the £750 discount is also available on the 1.8 Sport but this fact has not yet been advertised by Honda UK, so anyone looking at a new purchase of a petrol Sport may want to look into this further.

This is my preferred spec (in Galaxy) and I was quoted an OTR price of £14500 for this model taking into account the £750 contribution.

Does this seem a decent deal?

is the interest rate 6.9%? can u give more detail as my bank hsbc wants 7.9% so might just use hondas

[cnicolini]

You can still get a loan with a higher interest rate but pay less! I think that Honda hammer you with the insurance with the loan, I can get a unsecure loan at 7.4% with no insurance and pay around £30 less per month. Do you have to take out the Honda insurance on their loans????

[Bog]

Originally Posted by cnicolini

Do you have to take out the Honda insurance on their loans????

I shouldn't think so, lenders are currently having to pay back thousands of £'s due to mis-selling PPI.

[DerekR]

Take a look at the AA website, last time I looked it was 6.9% for an unsecured loan & no ties

Derek

[Keasden]

The £750 'contribution' is only applicable if you use the Honda finance, so in a straight comparison with a loan with a 6.9% APR surely the Honda deal is £750 better?

As for them making you take out insurance, I am almost sure that this is not allowed, I certainly wouldn't be interested in any insurance on the loan anyway.

[cnicolini]

OK thanks I'll ask them. The Honda website does mention Bronze, Silver and Gold insurance protection, I'll see if they can take this off the quote that they gave me. Thanks.

[Keasden]

Originally Posted by vtec-hungry

is the interest rate 6.9%? can u give more detail as my bank hsbc wants 7.9% so might just use hondas

Hi, just to clarify the interest rate is 6.9% APR but this is for a PCP, the rate may well be different for a straight loan from Honda.

The PCP requires a deposit of 20%, you then get another £750 towards your deposit from Honda UK and you pay £199 per month (based on a full list price of £14927 for a 1.8SE). There is then £5802 outstanding at the end of the 3 year loan period which can be paid, or the difference between that and the cars real value used as a deposit on a new car.

Obviously these figures will vary if (when) you negotiate a discount off the list price from your dealer. The one I have visited so far was quoting an OTR price of £15250 for a 1.8 Sport (I believe full list with metallic is around £16100). This price is then obviously reduced by a further £750 by Honda UK if you use their PCP scheme.

[TTDegs]

Always always shop around for a loan, and then sit down with a calculator, pen and paper (or pencil if that works for you )

The Honda deal, as mentioned by Keasden, includes a 'balloon payment' at the end.
This means that whilst the monthly repayments will be lower, at the end of the loan, you still owe Honda a chunk of cash - typically equivalent to the (expected) value of the car. Meaning that you can (if you wish) simply hand the car back, and owe them nothing.
This is particularly handy if the 2nd hand value of the car has dropped significantly (due to, say, a new model coming out).

Other variables are indeed the cost of payment protection insurance (and the levels of cover they offer) - but you have said you're not doing that, so at least that's one thing less to worry about!


All in all - the APR is a good indication - but make sure you compare apples with apples, or at least know which ones are pears

[cnicolini]

Today I have spoken to the dealer again, they can now do me a personal loan which is nt attached to the car, for £5 more than what Northern Rock are charging. I may as well go for this. They can also do all the paper work for you and sort out all the money transfer.

[Nitehawk]

Originally Posted by vtec-hungry

is the interest rate 6.9%? can u give more detail as my bank hsbc wants 7.9% so might just use hondas

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