Recently went to Mitsubishi for a Test drive of the EVO X... Awsome...simply awsome....

 

Then started talking figures....AWSOME simply AWSOME...

 

Get this

 

Car = 30000

Deposit = 6000

Ballon Payment or residual value = 11500

Monthly payments = 540.00 (36 of them)

 

So lets sort this out:

 

540.00 * 36 = 19440

plus 6K = 25440

plus ballon payment = 36940

 

Meaning that you pay over 20% extra for the car over the three years.

 

WHAT A COMPLETE CON...WHO in their right mind would do this sort of deal...and the best bit of this is that you can only do 8K miles a year. the depreciation on the EVO is also staggering....64% of the cars value will vanish. Thats 19200...I can't be arsed working out the Pence per mile you'd be wasting....

 

Cracking Car though....

 

My advice, get an evo 7, 8 or 9....As according to Mitsubishi they're only worth around 11K after 3 years.... BUT YOU TRY FINDING ONE FOR THAT PRICE.

 

No wonder this country is on the brink of financial ruin.

Thats pretty good actually! 20% premium for using a car that isnt yours for 3 years is pretty impressive.

 

Dont buy a car on tick, its not a good plan!

 

Why should anyone lend you money and not charge interest? Its just economic sense... Besides you must be mad to think about buying a car new i know i never would!

That's why I will never buy a car on finance........;)

 

Does that include any maintenance though - some PCPs do provide for service and repairs?

 

Looking at those costs, it is quite apparent that the car is expected to depreciate heavily - look at a similar contract for something like a Boxster and the total repayments may not appear so extortionate.

 

You are paying for the depreciation of the car - the balloon payment is supposed to represent the future residual value. £11.5k after 3 years is only 38% of its new cost. I reckon the Boxster, along with various Mercs etc, are still worth at least 50% (or more) of their new cost after 3 years.

 

Hence the repayments work out more economical.

 

Richard:smw:

Residual values are kept low to increase repayments.

The car companies know that a 30K car is going to be worth more than it's residual value.

Plus you're not going to keep the car after three years instead you'll trade it in for a new one or walk away, so you've paid 6K plus the 19K replayments = 25K meaning that the balloon payment should be 5K as they already make their profit from selling the car in the first place.

 

The same car in Japan is 17K, in the US it's 18K, so why do we pay 30K Parts and materials come from the same place. The car isn't manufactured in the UK, so why the excess.

 

I'm all for PCP plans, as it does make sense, as lets face it cars are an expensive comodity, but I'd like the car companies to charge less for repayments, by putting a higher residual value which reflects what the car is actually going to be worth.