Ford's Options Scheme

[mikey4444]

I am just about to start my first 3 year Options deal, to buy a Fiesta from Fords. With discount, the price worked out as £11,500. My own car was worth £2900 as a deposit and I will be paying £160 a month, for three years, presuming an average of 18,000 miles a year. The Dealer says that my Guaranteed Future Value will be £4890.

At the end of the 3 years, I can either leave the keys and catch the bus home, pay the £4890 and the car is mine, or I can start a new three-year deal.

These figures appear to be quite good, as my nephew is a manager at the Dealers, so I get quite a lot of discount. The chap in the Dealership reckons that the car will be worth much more than the £4890 at the end of the three years, although he can't say for sure, so I might only have to add a small amount of my own money in as deposit for a new three year deal.

Is there anybody on AB that has taken one of the these Fords Options out and what was the situation after the three years was up ? Also were you generally pleased with the deal.

[Zacs-Master]

Mikey, my daughter got a year old Fiesta on a very similar deal. Very recently they contacted her after 2 years and, long story short, she's just swapped it for another year old one which has the new Ecotec engine so she's avoided an MOT and a major service, has a more economical car which is £15 a month less insurance, does more MPG and is only £30 a year tax, so it was a 'no brainer'. This was with Polar.

[mikey4444]

Thanks Zacs. I have gone for the 1.5 turbo diesel engine, because I do quite a lot of mileage every year, and its zero car tax. It was the principle of the PCP plan that that I was concerned with. I can't really see much wrong with the scheme in principle and am looking forward to my first "New" New car on May 1st !

[Zacs-Master]

Should be quite nippy. Enjoy. I was just trying to demonstrate that the 'situation after 3 years' might not even arise.

[ToraToraTora]

Noooooooooo, Mikey, mate, please no! Take a stack of money and set fire to it! Guarenteed value? PMSL, NO, guaranteed price for you to buy it, try and sell it for that, after 3 years it won't be worth anything like that. Please give me 10K and I'll get you something spectacular and you'll own it. Please Don't!

[=rizla=]

I'm in the middle of a PCP at the moment, although on 0%apr.

Still have a little over a year left to make the decision, but so far so good. It isnt woth ford, although they all seem to do the same deal.

Tora, unsure why the pmsl?, its doesnt matter what the cars worth at the end of the 3 years, the dealer will pay the 'bubble' amount if you decide to hand it back, so if the cars worth 50p then you can easily walk away a winner, if the cars worth £10k then you'll make £5k for it etc etc.

[ToraToraTora]

Oh dear! the dealer will not be paying any money. The guaranteed value is what they will sell you the car for at the end not what they'll give.

After 3 years (36x160+2900), ie £8660 the dealer will let you "Buy" it for £4890. After 3 years it won't be worth that and mikey will have basically hired a car for 3 years and have nothing to show unless he pays the £4890 having now "bought" the original £11500 car for £13550! That's 2050 on top, tasty APR! He's better off getting standard finance knock a grand off for cash and pay £10500 and own it.

Monumentally terrible way to buy a car.

[GRUMPY]

I totally agree with the comments made by Tora,do not go near this deal the gfv is on the side of the dealership.You will pay £160 per month for three years and then hand it back because you can't afford £4,800 I know I have been there,i repeat do not go there you are better off with a loan whichever way you take it is better than Ford options.

[=rizla=]

Ahh, ok Tora, i see where you're comming from now, i thought you were trying to say if the dealer wouldnt give the cars value at 4890 and at the end you'd would be liable for any 'shortfall'

I may be wrong on my maths but 11500 for the car, minus the px, minus the 'bubble' payment, thats 3710 so for a 0% deal thats £103/month.

Using an online apr calculator its says 36% so no definitely not a good deal, in fact you'd probably be better off using a credit card to buy the car!!!

I think a lot of people do see PCP as long term hire/lease, with no thoughts of keeping the car at the end or the 3 years, but just getting a new one, so they always have a new(ish) car and just pay a monthly amount.

[ToraToraTora]

a) never buy a new car,completely mental.
b) even if you do, don't do it like this.

[black_cat51]

i have been doing this (not with Ford) for the past 12 years. It suited me. This time, owing to changed circumstances, at the end of the three years i took out a loan to buy the car. I think it's ok if you think of it like leasing a car on a long term basis, knowing that the car will never be yours, and you'll have to make sure all the servicing is done on time. Overall it works out cheaper than getting a loan and owning the car (over the same period) but more expensive if you are planning to buy it at the end. At the end of the 3 years, you have nothing to actually show for what you've paid, apart from the fact you've been driving a nice car for 3 years (whereas if you paid more in loan payments, you'd actually own the car)
It's good if you want a new car every 3 years. I found it good becasue i had a "better" car than i could have afforded if i'd been buying it