My daughter is looking to buy a small new car in the region €20 to €22 K, about the size of a Fiesta , Yaris or Nissan Micra. She has about half the money in cash, just wondering if any cars in this segment are offering 0% HP deals on the balance. The only one she could find was the Nissan Leaf Electric car but its way beyond her price point. Any suggestions welcomed.
Very difficult to 0% finance on brand new small cars even at the best of times due to their price point. With demand currently outstripping supply due to the chip shortage, manufacturers don't need to try as hard to sell whatever stock becomes available. The reason the Leaf is on 0% is because it's struggling to sell now due to the superior choice in alternative EVs now with better range.
Seat are offering 1.9% PCP on the Ibiza (assuming you can find one in stock) at present which seems to be probably as good as you may find.
Thank you Bazz for the information, yes I was thinking that the zero% finance for this class was history, She is thinking now of borrowing the balance from the Credit Union as she is not to keen on balloon payment after 3 years.
It true what you say about the waiting times although I see that Skoda have a facility for potential customers to search which models they have in stock, which is a good development, not sure if other brands provide this facility.
Also there are quite a few pre-registered garage cars with Zero mileage on them, as far as I know they will have 221 plates on them, and coming in between 1500 and 2,000 less than the retail price of a 221 model. Something to consider.
Thanks for your input.
I wouldn't rule out PCP especially if the interest rate is lower than a standard HP or Credit Union loan. If she has the spare income then she could always put aside some money every month into a deposit account for the next 3 years to put towards the balloon payment. Keep it as an option, just do some maths with the figures.
Suzuki swift? 0% finance
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I wouldn't let the interest rate be the only factor in your consideration, or even the main one necessarily.
What will the residual value on that Suzuki Swift be like for example in 3 years compared to a more popular model like a Yaris? Could be a false economy. 0% finance deals are often given on older models when a new version is imminent for example.
Would it not be better for your daughter to buy a car she really likes rather than basing her choice on an interest rate?
My wife bought a Hyundai i20 two years ago for 22k and the finance was 5.9%, she borrowed more than what your daughter needs to and the cost of finance wasn't a huge amount over the course of the loan.
My point being is if your going to treat yourself to a new car that costs a fair bit and that you are going to have to live with for a few years at least, it might as well be something you are really glad you got.
Happy and safe motoring to your daughter .
Ibiza and new fabia are well worth a look. Re the finance don't be driven by feelings. Crunch the numbers on a spreadsheet and see what puts more in your pocket.
Thanks for all the input folks. Much appreciated.
The Renault Clio is a great car too. The sister has one and loves it. Its very quiet and very good over bumps as well as smooth around corners. The Peugeot 208 and Citroen C3 are two more she should consider. Both good cars.
Ain't nothing wrong with Swift if she likes it. The Suzuki Ignis is a funky little car but maybe smaller than she wants to go.
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