Hi - I have a deal on the table from my local Vauxhall dealer and wondered want people think. I've been offered 10% of the list price ofr a brand new Corsa. This takes the car under the "whatcar" target price so I'm happy with that. I've also been offered a pretty good trade in price for my current car (based on Glasses guide) so again happy with that. At this point I would probably deal as I intend to pay the remaining balance in cash.

However, the dealer said I should think about taking out Vauxhall's finance for part of the balance payment. If I take out a finance agreement with Vauxhall he can reduce the car by a further £1500. The minimum finance I need to take is £1501 for the dealer to make this contribution. In taking the finance he also said I should pay it of immediately. In doing so I will only incurr redemption fees estimated at about £200. I am in a position to pay ealry and if I can do so the deal could potentially save me another £1300. Obviously if you do the math this is a fair bit of a brand new car.

I know the saying if something looks too good to be true but wondered what others think, or indeed have done similar. Obviously this is all wthout reading the finance agreement small print re early redemption.

Well done for getting th discount that you did in the first place.

I am guessing that if you take the finance the salesman get some kind of bonus/ commission that is why he is telling you to take it out then pay it straight off. Sounds like a great idea in principle but you must read the small print and also have the discipline to pay it off immediately otherwise it wont be of any benefit in the long run

Good Luck!

Hi I'm a business manager for a Vauxhall Dealer. I would take the the FDA (Finance Deposit allowance) as it is the best offer on the whole marketing schedule for this quarter and has been for a while. My financee bought a corsa last year and took the FDA because it was the cheapest way to buy the car.

I assume you work for an Associate company (there are millions of companies that quailify) hence the massive discount and the fda amount. The dealer wont make any comissions from this deal due to the low balance and GMAC's new rates. FDA's also work out cheaper than 0% providing you have the minimum deposit required.

There are other manufacturers that have this type of offer on too and it is as good as it appears. Sounds silly but it's the same principle as 0% credit cards, they hope you'll not pay attention and pay them a bit of interest back I suppose.

Do you really see 10% as a massive discount? I work for a competitor of Vauxhall and unless it's a special order, 10% is nothing that the man in the street can't expect just by turning up in the showroom...!

JJ

Hi there,

I am intending to go down the route of taking the FDA but have been given different advice from different vauxhall advisors...one says the minimum amount to leave o/s is £2000, and there is a penalty for paying this off early, but if I leave £3,600 o/s I can pay it off at any time. The other says I have to leave £2,500 o/s but there is a penalty for paying this off before 6 months. Also no one seems to know what the penalty would be??

Can you help please!

Beazl

Beazl,

All depends on which finance company and method they use. Get the number for the finance company in question and ring them to see what their rules are.

I have seen a min balance of £2000 and no early repayment penalty (aside from a month's interest) before so it's certainly possible.

Check with the funders...

JJ