New car finance

scoobymunster

Can anyone explain this:

Finance available from CITROËN Financial Services, written quotations available on request from CITROËN Financial Services subject to status. Over 18’s only. If you choose to pay off the optional final rental at the end of the contract, you can keep the vehicle but you will not own it – you will pay an annual rental equivalent to one of your monthly rentals. If you exceed your agreed annual mileage you may incur a charge. A guarantor may be required. Terms and Conditions apply.

Taken from the small print of a Citroen flyer that came through the door. The financial deal in it outlines the deposit/monthly payments/optional final payment, which when you total up adds to a few thousand above the OTR price thus the car + interest have been paid in full. I had a look at the T+C's for Peugeot and there's similar wording there so I assume it applies to other manufacturers aswell. My question: if you paid the final huge repayment of a few grand, keep the car for a few years, what happens when you try to sell it? technically you don't really 'own' the car according to such T+C's?

I'm not looking to buy a new car, just wondering about the legalities of trying to buy a new car outright.

Miscreant

Sounds like a lease agreement to me TBH but I could be wrong. You never own the car so when you are getting rid of it you may have to actually hand it back to Citroen.

si_guru

Wow... that's a new one on me. So you have to pay 1 months payment every year afterwards even if you pay teh final rental?

Must be a lease.