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Discussion Starter · #1 ·
Hello All,

Let's pool the combined knowledge of the forum and see if we can collectively save each other a few pennies? After all, that's one of the great advantages of the Internet - the ability for little people to share knowledge and rebalance the power away from the big corporations.

So.... how can we get the best possible deal on our dream cars?

There's absolutely no discounts available on the F-Pace for the foreseeable future, so let's forget that option.

Let's look at the financing options. If you have a pile of cash and you're paying for your car outright from savings then there's no need to brag and waste valuable space on this thread. Secondly, we don't need anyone hijacking the thread with their take on 1950s austerity economic theory and telling the rest of us that financing is evil and PCP is worse. Let's assume that we're all responsible adults. I have sufficient funds to buy the car outright but don't want to leave a massive hole in my savings, so there are many reasons why one might want to access financing.

Jaguar's PCP scheme isn't great. 6.7% and no contribution offer. GFV is okay but I would expect to realise a better residual on the car at the end of the PCP.

I bank with Halifax Bank of Scotland. They have a PCP deal call flex loan for cars and the representative APR is 4.6%. Some applicants get a lower rate, some higher depending upon your credit score. The GFV is lower but the monthly like4like payments are a fraction lower than Jaguar's PCP and you would be better off at the end of the term with the bank's offer.

My dealer has said that perhaps some form of incentive or improved APR might emerge at the start of every quarter, which is when the stuff is reviewed by Jaguar. My car is on order for March 2017 for a 17 plate and to take advantage of the final option of the lower VED road tax before the new system kicks in on 1 April 2017. We're a patient family! If the UK votes to stay in the EU then Sterling will appreciate immediately against the other major currencies because perceived risk will be lower (not a political statement but an accepted fact from economists - so vote however you wish or don't vote, your choice). And with the UK economy still being sluggish I don't think BoE base rates will be increasing anytime soon.

What about lease, as opposed to PCP? Is that better?

What about straight borrowing from a bank with a deposit on the car, not tied to your house. So, unsecured then.

Anything else?

Let's share thinking and see where this takes us.

Arianne
 

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I had a look at JLRs PCP and almost burst out laughing when I worked out the interest and depreciation.... after the salesman had been giving me his speech about excellent residuals expected on the FP, I couldn't understand how the PCP was predicting just over 50% depreciation over 3yrs.

Anyway, I've ended up going for a deposit made up of from selling my current car plus some savings topped up with a whopping bank loan for 3.3% which is saving me £'000s in interest but puts the depreciation risk on to me (which I have no issues with the GFV from my dealer was taking the mickey).
 

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My stocks and shares ISA is doing pretty well at the moment (last 6 months after contributions it grew 6.7% so decided not to touch that.)

Dealer PCP deal was laughable both the GFV and rate.

Shopped around various other PCP and had only slightly better results.

Looked at a number of lease only and they definitely weren't cheaper than PCP.

In the end I've gone for my bank's (Lloyds) Flex Car Finance. With my Evoque as deposit (£20k) they are offering finance at 4% and a final payment after 4 years of £16k which is £6k less than the GFV offered by the dealer PCP but the monthly payments are almost identical. Not hard therefore to work out I am £6k better off and will have more towards the next car.

Amused to discover the JLR finance is also Lloyds yet there seemed to be no room for negotiation.
 

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Check the PCP rate as I have been offered 4.9% through JLR finance with Stratstone which means I get a load of cash back from my Evoque's trade in which will nearly meet the GFV payment in 4 year's time and savings/investments are not touched.
 

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Hmmm interesting Saski thanks. If JLR finance can get close to the 4% I've been offered I would consider.

Explain your other quantum to me. The money you are getting for your Evoque isn't all going as a deposit towards the FP? You are reinvesting some to pay off the GFV? Did I get that right? If so you must be getting more than 4.9% after tax. Tell me more! I'd like to get some of that action :)
 

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It's an interesting point not just how to get the best rate but maybe how to completely change the way we think about finance.
I'm going to just pay for it as now I can I don't like having a debt or regular fees - rather just get out of the way and enjoy things but there are ways of saving a fair bit of cash.
Somebody mentioned a loan with final payment - this is the old ballon payments if I understand (haven't looked at car loan market in many years !).
If we take this approach then the ballon payment of nothing can work in an investment for 3 years and the rest should be able to match or outperform the interest rate.
There is part of me that can't be bothered with it all but could,be a decent wedge to make / save over 3 years
 

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JLR number5: Less than half the value of the Evoque will be used for a deposit which means that I can invest the remaining cash in the best earning account for 4 years and either pay off the GFV (with a small top up) and keep the FP (if it behaves itself!) or trade it in. The Evoque is fully paid for which does help and has a good trade in value.
I've not used PCP before but it does means that those essential extras appear more affordable when spread over 4 years (still paying for them though!!!).
 

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Thanks Saski that's what I thought you meant. So that means you must be getting more than 4.9% (after any tax assuming it's not an ISA) on the remainder from the Evoque to make it worthwhile. Is that correct? If so .. Where?!
 

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Sadly nowhere near 4.9% but who knows what will happen following the remain/Brexit vote next month- much can happen within that 4 year time frame !
I also do not want to commit any more deposit to a finance deal, PCP is only one option without touching savings/investments, a simple loan (3.9% from TSB) is another or I could just pay for it.
 

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I decided to do additional on my mortgage and spread the costs. The hire option was pretty dear and the savings I make from doing it this way can be used to pay down the additional borrowing quicker. Jaguar quoted me close to £700/month and with the additional borrowing its a fraction of that. With the property still under the 60% loan-to-value post the additional borrowing, this seem liked a win-win for me especially with the costs of borrowing under 2%. The plan will be to make additional payments once bonus seasons arrives.

Zane
 

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Discussion Starter · #12 ·
Zane said:
I decided to do additional on my mortgage and spread the costs. The hire option was pretty dear and the savings I make from doing it this way can be used to pay down the additional borrowing quicker. Jaguar quoted me close to £700/month and with the additional borrowing its a fraction of that. With the property still under the 60% loan-to-value post the additional borrowing, this seem liked a win-win for me especially with the costs of borrowing under 2%. The plan will be to make additional payments once bonus seasons arrives.

Zane
Yes, I understand the logic of that approach with mortgage rates so low at the moment. However, we recently became 'mortgage free' and psychologically that's the way it will stay. It's all in the mind but that's how we are!

To the forum member that suggested using savings because it's not possible to secure a savings interest rate that exceeds the rate of finance, I would say that it is wise to always have some capital available for any 'shock' that might come along.

Hmm, will need to keep researching to find the very best combination of options. Thanks so far for your ideas though. If anyone has any other suggestions?

Arianne
 

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If your mortgage is paid off AND you feel the need for keeping your savings to one side whilst financing your car then I'd say your risk profile doesn't match Jaguar ownership!

Sorry. Couldn't resist ;-)
 

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Discussion Starter · #14 ·
JLRnumber5 said:
If your mortgage is paid off AND you feel the need for keeping your savings to one side whilst financing your car then I'd say your risk profile doesn't match Jaguar ownership!

Sorry. Couldn't resist ;-)
Fair point! No offence taken. We currently own a Volvo ;) Says it all really...

Arianne
 

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Santander are doing personal loans at 3.5% for 123 customers (great bank account - 3% interest on up to £20,000 and you can have one, a joint one and your partner can have one for £60,000 worth!)... or 3.6% for other customer borrowing up to £20k which is probably the way I'll go with mine after some cash, some trade in and some back handsers from Jag to say sorry about my XE experience!
 
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