Finance Finance Agreement.

rambo · 22nd November 2007, 16:41

Dear All.
Firstly before i rant on,just to say thanks to Pottsy and everybody for a fantastic Forum.Very informative and ive learned a great deal about my car in the last year.
On the subject of my Finance Agreement,Ill give you all the details first then see what you think.
My car is a Civic 2.2 deisel 06 reg, purchased from Honda Grantham on the 09/10/06.
Purhase price= 17575
Deposit= 6000.
Credit charges=2812.68.
Acceptance fee=125{included in 1st installment}
Credit Facility fee=75{payable at same time as last installment}.
Agreement is option to own, 44 instalments,split down as below.

1st installment = £125.
41 installments at £210.98
Final installment=£5737.50.
So at the end of 43 months i have 3 choices, Hand the car back and walk away.2.Use the car as deposit on a new Honda.3.Pay £5737.50 and i own the car.
I havent fully decided yet on what i want to do as in 2 years time,my financial situation may be different.As anybody else on the forum got a similar deal to this. I would welcome any opinions on it. The deal is with Capital Bank{Royal Bank Of Scotland].Also i have been told by RBS that if i choose non of those above options and want to continue paying for the car after 43months,the agreement will be re-evaluated into a loan agreement,not a finance one,ie, a whole new agreement will have to be drawn up.
Give me your opinions guysand gals however good or bad.
By the way,Honda Grantham are a Fantastic Dealership.
PS;APR on agreement is 9.9%.

TTDegs · 26th November 2007, 14:14

I did a similar deal several cars ago, and it worked well for me

In the 3 years I was paying for it, the second hand prices plummeted, which meant that option 1 (hand it back and walk away) saved me about £2K.
At that point I still owed them about £9K, but the car was worth about £7K

Which option you take will depend very much on how much the car is actually worth in 41 months time

PJdali · 26th November 2007, 19:09

Might be reading the figures you posted wrongly, but the charge for credit seems fairly high in my opinion.

I've personally tended to opt for straight forward loans from banks \ building societies and stay away from car finance wonder deals........ as in the past I tended to add up all the unadvertised fees, e.g. acceptance fee?!?

admin fee??

documentation fee??

etc etc you get from car finance companies and to be honest on top of the actual interest charged it can work a fairly expensive way to buy a car. I've seen fees alone hitting £295 before I've paid a penny of interest.....pure bonkers

But plenty of cars are on the road as part of those deals so it must work for plenty of folk

A quick check online just now for a cheap loan of £11575 over 48months @ £274 month means you only pay £1,602 for credit......

I know the figures look great when you can put a new car on the road for £200 a month but I'm just not convinced by the hefty charges\fees and the fact you are kinda tied to the finance company \ car.......with a a hefty final payment.

Works for some if you get 0% over 2 or 3 years and can come up with the dough at the end of the term to keep the car but not everyone has that kinda dosh lying around.

Whatever works for you mate........as per the usual advice just need to make sure the payments are sensible for your budget and if you're likely to keep the car for the full term.

22nd November 2007, 16:41	#1 (permalink)
rambo Valve Cap Join Date: 24th October 2006 Posts: 10 Thanks: 0 Thanked 0 Times in 0 Posts	Finance Agreement. Dear All. Firstly before i rant on,just to say thanks to Pottsy and everybody for a fantastic Forum.Very informative and ive learned a great deal about my car in the last year. On the subject of my Finance Agreement,Ill give you all the details first then see what you think. My car is a Civic 2.2 deisel 06 reg, purchased from Honda Grantham on the 09/10/06. Purhase price= 17575 Deposit= 6000. Credit charges=2812.68. Acceptance fee=125{included in 1st installment} Credit Facility fee=75{payable at same time as last installment}. Agreement is option to own, 44 instalments,split down as below. 1st installment = £125. 41 installments at £210.98 Final installment=£5737.50. So at the end of 43 months i have 3 choices, Hand the car back and walk away.2.Use the car as deposit on a new Honda.3.Pay £5737.50 and i own the car. I havent fully decided yet on what i want to do as in 2 years time,my financial situation may be different.As anybody else on the forum got a similar deal to this. I would welcome any opinions on it. The deal is with Capital Bank{Royal Bank Of Scotland].Also i have been told by RBS that if i choose non of those above options and want to continue paying for the car after 43months,the agreement will be re-evaluated into a loan agreement,not a finance one,ie, a whole new agreement will have to be drawn up. Give me your opinions guysand gals however good or bad. By the way,Honda Grantham are a Fantastic Dealership. PS;APR on agreement is 9.9%.

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This thread is about: Finance Agreement., it's in Buying, Dealers and Servicing at the Honda Civic forum Civinfo; Dear All. Firstly before i rant on,just to say thanks to Pottsy and everybody for a fantastic Forum.Very informative and ive learned a great deal ...

26th November 2007, 14:14	#2 (permalink)
TTDegs Super Moderator Civinfo master Join Date: 4th August 2006 Location: Cardiff Posts: 5,638 Thanks: 0 Thanked 0 Times in 0 Posts	I did a similar deal several cars ago, and it worked well for me In the 3 years I was paying for it, the second hand prices plummeted, which meant that option 1 (hand it back and walk away) saved me about £2K. At that point I still owed them about £9K, but the car was worth about £7K Which option you take will depend very much on how much the car is actually worth in 41 months time

26th November 2007, 19:09	#3 (permalink)
PJdali Valve Cap Join Date: 7th September 2007 Location: Edinburgh Posts: 27 Thanks: 0 Thanked 0 Times in 0 Posts	Might be reading the figures you posted wrongly, but the charge for credit seems fairly high in my opinion. I've personally tended to opt for straight forward loans from banks \ building societies and stay away from car finance wonder deals........ as in the past I tended to add up all the unadvertised fees, e.g. acceptance fee?!? admin fee?? documentation fee?? etc etc you get from car finance companies and to be honest on top of the actual interest charged it can work a fairly expensive way to buy a car. I've seen fees alone hitting £295 before I've paid a penny of interest.....pure bonkers But plenty of cars are on the road as part of those deals so it must work for plenty of folk A quick check online just now for a cheap loan of £11575 over 48months @ £274 month means you only pay £1,602 for credit...... I know the figures look great when you can put a new car on the road for £200 a month but I'm just not convinced by the hefty charges\fees and the fact you are kinda tied to the finance company \ car.......with a a hefty final payment. Works for some if you get 0% over 2 or 3 years and can come up with the dough at the end of the term to keep the car but not everyone has that kinda dosh lying around. Whatever works for you mate........as per the usual advice just need to make sure the payments are sensible for your budget and if you're likely to keep the car for the full term.