Okay, so I was already out and about in the snow. Decided to head to a dealer to poke around at some cars. We talked through some figures but would appreciate some input from here.
Currently, ED30 is on finance. Will be paying off in full around August 2011 (though can do so earlier). Its three years are up at the beginning of January.
Value of new car = £34,000
Part exchange on ED30 = £13000*
Finance remaining of ED30 = £11000**
Deposit = £1000
Installments = £611*36 (£22000)
No balloon payment.
Total price paid = £36,000
*I know it's worth more than this but this is what the dealer offered and is what we're working with. The car could be sold for a much higher price.
** If paid off now, which is something I can quite conceivably do.
The figures are a little imprecise but enough for the above estimation. Paying £36000 for a £34000 car may be better than any loan I can obtain in terms of rates. I'm tempted to increase the deposit in order to reduce the payments (willing to go up to £8000, payments down to £400pcm). The deal includes free servicing for the three years too.
Just bouncing ideas around. Nothing's in confirmation, though they can green light it as soon as I say yes. The car will be ordered and won't arrive until next year some time and I can drive the ED30 until then.
What do you reckon? Please feel free to mention things I haven't considered.
