Hyundai Tucson on finance

Denzo

Looking for info

Thinking of buying a 161 Tucson on Hire Purchase

I do a lot of driving for work (roughly between 40-50k miles per year) and would need to change my car every 3 years

I currently have an ix35 and will be trading this as deposit 9000 towards 161 Tucson and get remaining value back as cheque, I also currently have a Credit Union loan of 250pm which will be cleared before hand

i stopped in to dealer and what they have suggested is i go on hire purchase for 5 years at 350pm (only 100 more than loan i have currently) for the 161 and every 2 and a half-3 years i would get an upgrade, trade in the car i have which would cover the remainder of the hire purchase im on and also cover the deposit for newer car and start the term of 5 years again

it sounds good as i need to change every 3 years anyway and it means I wont have to pay a lump some every few years in order to do that, also because of my mileage if i fork out thousands im loosing money everytime as my car doesnt hold value, i would rather have a newer car under warranty and be at ease knowing every 3 years it will be changed

Also i know i technically wont own the car but i will always be paying a loan anyway with no benefit as i will always need to change up
And i know evetually i will have to pay the full 5 year term to own a car at the end if i dont decide to trade up

however me being a sceptic and not having dealt with Hire purchase before im looking for any advice on following

watch out for?
Hidden fees?
is it good value for someone with excessive mileage?
do they try catch you out in anyway?

Thanks in advance

Toyotafanboi

It won't work IMO. There's no way a 161 Tucson with 150k+ miles will be carrying enough equity in three years time to cover the difference in finance and get you a deposit to go again.

Then if you decide to not go that route, 5 years is too long an ownership experience for the miles you are doing.

colm_mcm

Agreed. Figures don't add up.

What year is your in and what's it costing you to change?

Redfox25

Your better off buying the car with a loan from the cu. Running it for 6 plus years and putting a regular amount aside each year to cover the next jump up. A diesel if serviced properly will eat that milage and not even blink.

You might also get stung for ending the contract early.

Denzo

Its a 2012 ix35, value 10,500, costing me nothing to change, the dealer will take trade in 9000 of the value for deposit and give me a cheque for the remaining 1500

Denzo

Toyotafanboi wrote: »

It won't work IMO. There's no way a 161 Tucson with 150k+ miles will be carrying enough equity in three years time to cover the difference in finance and get you a deposit to go again.

Then if you decide to not go that route, 5 years is too long an ownership experience for the miles you are doing.

thanks for replying

the dealer said he will contact me every 6 months to keep an eye on mileage, as my mileage would vary but on average is about 40k miles per year,

Also he said he would give me in writing that he can trade me up every 2 and a half to 3 years with the trade in covering all costs

colm_mcm

Denzo wrote: »

Its a 2012 ix35, value 10,500, costing me nothing to change, the dealer will take trade in 9000 of the value for deposit and give me a cheque for the remaining 1500

Yeah but the finance? €21k?

Denzo

colm_mcm wrote: »

Yeah but the finance? €21k?

yeah, the 161 Tucson is valued at 26500

so paying quite a bit on interest

but at least i would have the comfort of the warranty and regular change

is there any other way besides this for high mileage?

celtic_oz

sell it private and borrow 10K to buy something with low mileage in the uk

https://www.cargiant.co.uk/car/toyota/rav-4/MV14WLB

https://www.cargiant.co.uk/car/ford/kuga/SD15JOV

https://www.cargiant.co.uk/car/mitsubishi/outlander/EN16MXV

Denzo

celtic_oz wrote: »

sell it private and borrow 10K to buy something with low mileage in the uk

https://www.cargiant.co.uk/car/toyota/rav-4/MV14WLB

https://www.cargiant.co.uk/car/ford/kuga/SD15JOV

https://www.cargiant.co.uk/car/mitsubishi/outlander/EN16MXV

What warranty will these dealers give though?
Will they stand over it if the engine goes whack after 10 months?

celtic_oz

Denzo wrote: »

What warranty will these dealers give though?
Will they stand over it if the engine goes whack after 10 months?

the price your paying off that dealer would cost the same as changing the engine .. twice

colm_mcm

Denzo wrote: »

yeah, the 161 Tucson is valued at 26500

so paying quite a bit on interest

but at least i would have the comfort of the warranty and regular change

is there any other way besides this for high mileage?

Weren't they selling new diesel tucsons for that with the trade and upgrade? Surely hire drive 171s would be that price too?

jimmycrackcorm

The dealer is suggesting the HP option as he gets a kickback from the finance company.

I'm not sure about the guarantee he can give you to do a straight swap. At least a PCP has specific contact terms around time and mileage.

bazz26

171 one here asking less than 26k:

http://www.carsireland.ie/detail.php?ad_id=1838233&r=s.php%3Fm%3D34%26o%3D983%26r%3D2017%26g%3D0

Toyotafanboi

There's a bigger screen on my watch than there is in that Tucson. That interior is dated now, never mind 3-5 years down the line.

I know gadgets arent the be all and end all but that would annoy me.

Denzo

colm_mcm wrote: »

Weren't they selling new diesel tucsons for that with the trade and upgrade? Surely hire drive 171s would be that price too?

the comfort line probably, definitely not higher spec executive

bazz26

Toyotafanboi wrote: »

There's a bigger screen on my watch than there is in that Tucson. That interior is dated now, never mind 3-5 years down the line.

I know gadgets arent the be all and end all but that would annoy me.

To be fair the Executive model up has a larger screen with built in Sat Nav.

dil999

Denzo wrote: »

thanks for replying

the dealer said he will contact me every 6 months to keep an eye on mileage, as my mileage would vary but on average is about 40k miles per year,

Also he said he would give me in writing that he can trade me up every 2 and a half to 3 years with the trade in covering all costs

There is no way he can guarantee that. If he doesn't deliver, you are the one who is liable to repay the finance. I would be very wary of that dealer.

For that sort of mileage and for a new or nearly new car, your yearly cost (without any interest) for changing every 3 years would be minimum 20% of the value of the car. There is very little you can do do change that. the rest is smoke and mirrors by the dealer.

Get the lowest interest rate you can, don't go near the credit union.
The other option is to go the 3 year old import from the UK, but if you are driving 40K per year you probably don't have time for that.

PCP might be an option, but your mileage will have a negative impact.

Investigate financing options independently before going near a dealer. Also don't take information on financing from the dealer's websites etc. Take what you read on forums with a pinch of salt also.

The link below is a good starting point for all forms of car finance:
https://www.ccpc.ie/consumers/money/loans/paying-for-your-car/


Don't take financial advice about buying a car from the dealer who is trying to sell it to you. You will not get advice in your interest! Good luck

Lantus

As what others have said you need to break out the spreadsheet and compare the financial models available.

And if you have it in writing that you can get a new car with no real world effects of depreciation or car price increases or interest rates go for it. First time for everything, I'll take 2!

Squatman

If you are doing that much mileage, why dont you have a company car?

Denzo

dil999 wrote: »

There is no way he can guarantee that. If he doesn't deliver, you are the one who is liable to repay the finance. I would be very wary of that dealer.

For that sort of mileage and for a new or nearly new car, your yearly cost (without any interest) for changing every 3 years would be minimum 20% of the value of the car. There is very little you can do do change that. the rest is smoke and mirrors by the dealer.

Get the lowest interest rate you can, don't go near the credit union.
The other option is to go the 3 year old import from the UK, but if you are driving 40K per year you probably don't have time for that.

PCP might be an option, but your mileage will have a negative impact.

Investigate financing options independently before going near a dealer. Also don't take information on financing from the dealer's websites etc. Take what you read on forums with a pinch of salt also.

The link below is a good starting point for all forms of car finance:
https://www.ccpc.ie/consumers/money/loans/paying-for-your-car/


Don't take financial advice about buying a car from the dealer who is trying to sell it to you. You will not get advice in your interest! Good luck

thank you for your reply, good info, its something that requires a bit of research before making any move, much appreciated