Finance good deal or not? Civic 1.8 EX

[mrh339]

Originally Posted by HappyMan

so the dealer is using the potential discount he would offer you to pay the interest on the loan you are to take. I don't want to get into a religious argument or anything like that, but aren't we just playing semantics here. I am not sure of the financial implications but realistically speaking if you take the figures from 'TheFace' then you should be able to get the car for £16000 against £17200 you will pay, so the dealer is using the £1250 difference to fund interest so aren't you paying interest anyway?

Again, I don't want to offend you in any way I am simply confused and I apologise now if I have offended you.

According to the Koran, it is forbidden for Muslims to pay interest and therefore it is impossible for them to borrow money in the traditional way.

[dylang652]

Originally Posted by HappyMan

so the dealer is using the potential discount he would offer you to pay the interest on the loan you are to take. I don't want to get into a religious argument or anything like that, but aren't we just playing semantics here. I am not sure of the financial implications but realistically speaking if you take the figures from 'TheFace' then you should be able to get the car for £16000 against £17200 you will pay, so the dealer is using the £1250 difference to fund interest so aren't you paying interest anyway?

Again, I don't want to offend you in any way I am simply confused and I apologise now if I have offended you.

I think that this is not a matter of semantics, the important thing for Faz is that HE pays no interest. There are many instruments set up by religious groups in this country that provide ways for religious communities to stay within their own laws on paying and receiving interest. They are agreed by Lawyers and religious leaders as being within both spheres of law (secular and religious)

(I also do not wish to offend anone - I am just trying to help people understand)

[HappyMan]

Dylang652 & MRh339,

So it is ok for the dealer to pay the interest but not the person? But in the deal described compared to the deal someone else could get on a car isn't there a form of interest payment made by Faz? So in fact this deal would not be good for Faz as part of what he is paying is going to go on interest payments? Or am I missing the point?

Again, I am not wanting to offend anyone, it is actually quite interesting to me.

[mrh339]

Originally Posted by HappyMan

Dylang652 & MRh339,

So it is ok for the dealer to pay the interest but not the person? But in the deal described compared to the deal someone else could get on a car isn't there a form of interest payment made by Faz? So in fact this deal would not be good for Faz as part of what he is paying is going to go on interest payments? Or am I missing the point?

Again, I am not wanting to offend anyone, it is actually quite interesting to me.

The point is that Faz is a religious man and will not pay interest as it is forbidden. The important thing is that Faz can buy and enjoy his car with a clear conscience. If the dealer pays interest then thats is his business not Faz's.

[HappyMan]

Originally Posted by mrh339

The point is that Faz is a religious man and will not pay interest as it is forbidden. The important thing is that Faz can buy and enjoy his car with a clear conscience. If the dealer pays interest then thats is his business not Faz's.

ok fair enough! I will ask a friend of mine who is the leader of a mosque to explain the details for me. I was simply interested in the subject that's all.

[lee_g3]

Originally Posted by faz100

many thanks to some thoughtful replies,

but i am only looking for 0.0% finance and the dealer claims he cant offer me any more discounts as he will have to subsidies my interest?

is this how it works on 0.0% which is being offered by the dealer rather than honda

many thanks

Hi faz100

Going back to your original thread, you are correct, the dealer will be covering the interest that would need to be paid on the 50% of the money you are borrowing.

From what I can see, the list price is £17,227 (although you mentioned the £200 increase, so Honda's website may still be out of date). If you were to be borrowing £8500 from a bank and paying interest, over say 3 years, you would pay (online quote from Abbey):

Monthly payment £306.75 x 36 months = £ 11,043 payed back to the bank.

£11043 - £8500 = £2543 in interest you would pay.

So if the list price is £17427 for instance, with the dealer covering the cost of borrowing half of the value of the car, you are effectively getting the car for approx £14900 or so.

These are only example figures, and I don't know the term of the loan, but you are probably still getting a fairly good deal.

I hope that helps.

[faz100]

wow what a discussion!

Many thanks to all the replies

To clear up the issue on interest, i am only concerned with what i will end up paying for the car, my concern is on my side, not what the dealer will be doing to get the car.
If i buy the car for 17,000, then at the end of the payment term i should have paid only 17,000, the arrangements on the dealer side are his concern. By the way not offended at all

one thing not clear to me is that when people say they got the car for 16,000 or 16,500 is this the full value they will pay for the car at the end of their payments or is this without the interest payments?

one last thing ... i just got a call from the dealer offering me the car at 17,000. . will probably go ahead with the deal

[lee_g3]

I can only speak for myself, but it probably applies to many people. Although I have 'bought' my car for £15884, I am still financing this over 3+ years. I will pay about 2/3 of the car (plus interest) over 3 years, and then still have to pay for the final 1/3 of the car if I want to keep it longer.

So at the end of the day, I am probably paying 19 - 20k for my car by the time I own it. Your way, you will own the car at the end of 2 years and you will only have paid £17,000 and no more.

And it sounds like your dealer was desperate to do the deal, it is often said that if you have the patience to walk away and say that you will 'think about it', the dealer will end up coming back to you with a better deal. You have done well, I think.

Still waiting for mine to arrive, probably got another couple of weeks to go. How quick did your dealer say you would get your car?

[faz100]

He was saying something between 2 - 3 weeks, will find out for sure when i go in to finalise paperwork

just to mention on the 08 model details, i asked him about changes. He says they are changing the footrest shape on the driver side slightly, but not adding sensors as standard on the EX.

[FWH]

Originally Posted by faz100

my faith/belief does not allow me to deal with interests in any form, whether it be mortgage, credit cards etc

Ah! Sorry, didn´t think of that.

[HappyMan]

Originally Posted by faz100

wow what a discussion!

Many thanks to all the replies

Also many thanks for understanding that I wasn't trying to be negative towards you I just found it interesting as it was something new to me.

Although, by the sounds of what people are saying you are getting a good deal actually. I hope you enjoy your car!

[peterex]

hi there ive just taken delivery of a 2.2 es in alabaster silver with lifeshine and car mats for 15500 he drive is great as is the performance. its just reaat to look at

[peterex]

to anyone outthere who is negoitiating a deal please please read this, its a link to a great site Buying A New Car - free guide be cheeky and have confidence it worked for me. it takes some reading so please take th time.