Elect 3 (citroën Finance)

[kirkie]

I am thinking of purchasing the Citroen C4 Picasso as I have had Citroen's for the last 3 cars and have been very happy. I usually buy a car that is around 6 months old then trade it in just before it's MOT.

 

I have been reading about Elect 3, but wanted to know what people thought and if anyone had 1st hand experience of it...

 

DRIVENOW ELECT3

 

If you want a new Citroën car every two or three years with monthly payments structured to suit your budget, DRIVENOW Elect 3 is for you.

 

With DRIVENOW Elect 3, you pay a deposit, between 10% and 35% of the vehicle price, and then fixed monthly payments over a term of 25, 31 or 37 months, best of all there’s no need to worry about the car’s future value as we’ll guarantee it.

 

Elect one of three options at the end of the agreement to suit your own particular needs. You can make the final payment and own the car outright, return the car to Citroën or part exchange your vehicle for a new Citroën using any equity as the deposit in a new DRIVENOW Elect 3 package.

Don’t forget, DRIVENOW also offers excellent optional protection to cover your finances against unforeseen circumstances, with DRIVENOW Payment Protection and DRIVENOW Shortfall Insurance as well as perfectly tailored DRIVENOW Motor Insurance.

 

Find out more about DRIVENOW Elect 3

Finance subject to status. Finance available from Citroën Financial Services, written quotations available on request from Citroën Financial Services. Over 18’s only. A guarantor may be required. Terms and Conditions apply.

 

Citroën Financial Services is a trading style of Banque PSA Finance UK which is authorised and regulated by the Financial Services Authority for the conduct of UK business. Registered address: Quadrant House, Princess Way, Redhill, Surrey, RHI 1QA. Registered in England No: FC023556. Banque PSA Finance is a limited liability company registered in France.

[citroeneddie]

Kirkie

 

I have always bought Citroens on Elect 3 with no problems, but just remember that you are paying interest in the first months so you need to stick with it.

 

I like to change often so normally opt for a 2 year deal with about a 10% deposit.

 

Don't put a big deposit down as although the repayments are lower, you don't get much back at the end.

 

Let us know how you get on.

 

ReEgards

 

Eddie

[ritbitboy]

Decide how long you are going to keep the car.

 

If it's going to be up to 3 years then go with Elect 3. Monthly payments will be lower. If the NEXT car you are likely to buy will also be on finance then you may as well opt for lower monthly payments on this car and have the car for 3 years, rather than buy the whole thing outright. Then just change in 3 years and go again with another new car.

 

If you're going to keep it longer than 3 years then look at taking finance over a longer period. BUT 5 year finance on a car is really not a good idea - it's a long time and circumstances can change.

 

I have been selling cars for 9 years - people who use PCP's correctly (Personal Contract Purchase - it's the "proper name" for Elect 3, Peugeot have Passport, Ford have Options etc etc) change quite successfully every 3 years providing they do not put too much in at the beginning. If you decide to keep the car at the end it can be more costly.

 

Mind you...there is 0% at the moment. A PCP cannot touch that for value !!

[kirkie]

I will go in and see what they say. I have a C4 to part ex so hopefully they will give me a good price and use this for the deposit.

[ritbitboy]

Car values this year have had a bad time. Your C4 will have taken a hit in value - it will have de-valued heavier than in previous years. If it's diesel then it won't be so bad.

 

BUT

 

On the plus side for consumers the price of new cars and the offers that are on will also be in their favour.

 

Concentrate on the COST TO CHANGE, not necessarily what you are getting for your car.

 

Forgive me if this is obvious, but lots of people do not look at the whole picture and miss out on stonking deals because they are so set on what they want for their car.

 

Try to get one this Sept so you get the £250 service package.

 

If you can - be flexible about colour. The dealer will possibly have "overage stock". Ask them what they have to shift this month. You could be surprised.

 

The dealer has an Elect 3 target...they will welcome you with very open arms - but don't bother about haggling on the finance rate - this is set by Citroen and is very low.

 

For a valuation check this out: http://www.vauxhall.co.uk/vx/finance/valueyourcar.do

It is a link to Glasses Guide and is a free version !!!

Parkers guide is total rubbish and way off the mark. NEVER use Parkers.

Look at the "average" condition value and you won't be far off.

 

Good luck.

[kirkie]

Cheers for that. According to that I will be offered less than what I owe on it so I hope the garage are desperate to sell.

 

So in a nutshell are we saying definitely go for the elect3 over finance?

[ritbitboy]

Go for Elect 3 IF you think you might change it in 3 years time and you just need the lowest monthly payment.

 

Don't worry too much about your car being less than the settlement...there is a clause in car finance called the halves and thirds rights. In a nutshell, once you have paid MORE THAN HALF THE TOTAL AMOUNT PAYABLE on your existing finance agreement, you can hand the car back with nothing further to pay.

 

So if your settlement is £5000 and your car worth £3000 you can hand the car back.

 

Look on the paperwork for your current car - "Total amount payable" will be there somewhere. Halve it. Then, separately, add up the deposit paid, how much you have paid monthly and see where you stand.

[kirkie]

Thanks I will take a look.

[citroeneddie]

And because Citroen tend to use the cashback as part of the deposit in the finance paperwork, then a 50% owing will be easily achievable.

 

Good point about the 50% car return, well done Rtbitboy, I've used that clause before.