What would you do in this situation?

[benanderson89]

Ford UK (and potentially the rest of Europe at this point) have recently released their finance options for the new Mustang, and boy howdy are they restrictive.

With my deposit down (old car + £3k in cash) I'd be looking at £334 a month over three years or £344 a month over two years. That's actually pretty cheap considering my Hot Hatch is £360 a month.

The downside is that its a PCP (US: lease) agreement. After the term is over I need to hand the car back to Ford. That means no modifications (or pay a hefty fine to get them reverted to stock) OR I pay them £17,000/$26,500 in cash upfront to buy the car from them and sign it over in my name. I can use that £17k value to trade it in for a new Ford if I want, too.

Alternatively, I can grab a bank loan at £430 a month over five years. The car will be 100% mine the second I sign the bit of paper, meaning I can mod it if I feel like it, but my residual value wont be protected and its a solid £116 extra a month for a longer period of time.

What would you do in this situation? "Rent" the car via PCP or outright own it for considerably more cash?

Cheers. :cheers:

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[Lone Survivor]

Don't land yourself with a 5 year loan, you'll regret that. PCP, have some fun, hand it back and get another or different model. It may be the best option or not, not knowing your financial circumstances.

I'm in a bit of a better position, a little bit of finance, but the car will be mine in 2 years. Let's hope residuals are good, but in saying that, if the car is that good, it may be a keeper.

I'm trying to figure out a way of keeping my Nismo (currently no finance on it), might be a future classic, definitely be sorry to see it go.

 

[benanderson89]

Don't land yourself with a 5 year loan, you'll regret that. PCP, have some fun, hand it back and get another or different model. It may be the best option or not, not knowing your financial circumstances.

I'm in a bit of a better position, a little bit of finance, but the car will be mine in 2 years. Let's hope residuals are good, but in saying that, if the car is that good, it may be a keeper.

I'm trying to figure out a way of keeping my Nismo (currently no finance on it), might be a future classic, definitely be sorry to see it go.

Friend made a suggestion that I should just get it on two years then trade up to a 2017 Mustang when I hand it back. By that point the £17k value I'd get on the PCP + whatever cash I have by that point toward a new car would go a long way.

I just don't like the idea of renting a car from the manufacturer. I know that Ford UK gets a lot of abuse because they themselves abuse the Fair Wear and Tear policy on PCP cars when you hand them back in. I could be landed with a giant bill regardless.

I can afford both forms of payment, it'd just be nice to have my cake and eat it, too. I'm looking at comparison websites of different car financing packages, already gotten it down to £400 from £450. You are right, though, in that a five year loan might be something I regret down the line.

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