bubble payment

[Ian Paisley]

Anybody ever used one to buy a new car ? The sort where you get a new motor but pay for half.In 3 years you either give it back or take out a new one.I suppose its like renting or leasing but with the depreciation on cars does it really matter if you own it all.The local merc dealer is offering it on secondhand cars as well.Thoughts ?

 

[FantasyIreland]

I've just bought a motor doing similar,i got a fantastic deal.

 

[Lavinda Past]

Any value in the deal invariably depends on the number of miles you put on the clock over the 3 years.

Work out how the deal fits with your current annual mileage x 3 + 10% (you'll do more miles in the new car)... You may find the residual value will be less than the 50% than they'll want back.

Remember, there's no such thing as a free lunch.

:)

 

[Prestwich_Blue]

I've done this a few times. The things to watch out for are excess mileage and damage at the end of the contract. Last one I had I actually bought the car as the bubble payment was far less than the car was worth. So I paid it, have driven it for another two and a half years and should get back pretty well what I paid for it.

 

[Hamann Pineapple]

With any hire purchase agreement you are legally entitled to hand the car back after half way through the term of the agreement. A little known fact the car dealers don't generally advertise.

 

[Pubteam Lomas]

With any hire purchase agreement you are legally entitled to hand the car back after half way through the term of the agreement. A little known fact the car dealers don't generally advertise.

The bubble payment is a good way of buying, but as mentioned choose your mileage band carefully and try and ascertain what they class as 'reasonable wear and tear.'