Citroen DS Offers

[Azbubu]

Saw the ad on TV but the fine print was too fine so decided to visit the site.


http://www.citroen.co.za/offers/ds-line-offer/

Ignoring that it's a Citroen, and that you have to purchase another in 3 years, are these offers actually worthwhile? Doesn't look like it to me.

 

[Quantum Theory]

Not worthwhile for me, as I do about 45000km's a year... limit is 60000km's over 3 years. Can you stay within that limit?

 

[Azbubu]

Let's assume that you can stay within the limit, would it be worthwhile?

 

[Quantum Theory]

When they buy it back 3 years down the line, do you get something out as a deposit for the next one?

 

[diabolus]

Well it's like all advertised car deals these days. If i see a "*" on that billboard/advert i know:

1. 10% Deposit
2. 30%+ Balloon payment (In this case it looks like 45% balloon)

That's the only way they get the monthly installment so low. So they can call it a "guaranteed trade-back value" or whatever they like, it is STILL called a Residual/Balloon payment.

The interest rate is very good though, but you will get it anywhere (especially BMW likes to do it) if you buy a car under similar terms. You are essentially leasing the car.

So knowing this is a standard deposit+balloon payment type of deal, why not shop around and see whether the deal is really that good?

Thing with balloon payments is, and especially with this deal, if you actually want to keep that car after 3 years, you need to come up with a rather huge amount of cash. Don't make the mistake alot of people did (probably still do) , they buy their cars with balloon agreements and every 3 years they need to trade it in (to pay off the balloon) and they're forced to buy another car. The problem is, everytime you do this your monthly installment is higher and your balloon grows (if you continue to do it like that) . Whereas if you bought a car under traditional terms, you might be paying the same installment for 5-6 years and continue to have ownership of it.

So at the end of the day, you actually never ever manage to own a car outright and your monthly car payments will continue to go up. It's like renting a house vs. buying it.

 

[Fazda]

Looking at it briefly, it's not a bad set of deals at all!

You must realise, however, that you will never own a car this way, as you are basically leasing it for 60 000/35months - which is not necessarily a bad thing.

It will also keep you in the Citroen family unless you want to buy yourself out at some future date - those buy back prices are always based on several factors, and one of them is the fact that the car will come back to a Citroen dealer.

The Citroen is a very nice car, despite all the SA nonsense about French cars being cr@p. I would certainly take a good hard look at this scheme if I was in the market.

 

[AchmatK]

Bought the DS5 HDI a month ago. Decided not to go with these deals as i do about 25 000km per year. I also managed to get the interest rate fixed at prime -1 and got about R80k as a trade in on my 2008 C4 coupé.
Sent from my RM-821_im_south_africa_250 using Board Express

 

[ponder]

When they buy it back 3 years down the line, do you get something out as a deposit for the next one?

Look at the trade back values in table by the OP, i'm assuming that will would/could be used towards your next deposit which yoy will only know in 3yrs time.

 

[Chevron]

As Fazda said, if you're the type of person to buy a new car anyway every 3 years it's a good deal.

 

[Nangi]

who drives 60 000kms in 3 years? Im a student and i do alot more than that... that DS5 looks awesome though...

Another thing, according to the fine print you have to buy another Citroen after the 3 years is up.

 

[Fazda]

who drives 60 000kms in 3 years? Im a student and i do alot more than that... that DS5 looks awesome though...

Another thing, according to the fine print you have to buy another Citroen after the 3 years is up.

SA average mileage for trade in purposes is based on 20 000 km/year. You may do more, but the majority of SA drivers, don't.

If you see what I said above, this is a way of tying you to the brand - go this route and you will have to keep buying Citroens unless you can buy yourself out.

 

[Azbubu]

Every time I consider buying a new car I think to myself "R5k pm, that's R20k in 4 months for something I spend < 30min in per day. I'd rather use that money to travel somewhere."

 

[ponder]

I'd rather use that money to travel somewhere."

You can travel in your car

 

[Joker]

Thread will now degenerate into how stupid it is to buy expensive cars and we should all be driving 10 year old Astras.

 

[Quantum Theory]

Look at the trade back values in table by the OP, i'm assuming that will would/could be used towards your next deposit which yoy will only know in 3yrs time.

I might be wrong, but I believe that is how much you will still owe (residual) and they guarantee that they will give you that amount. Will they give you more? I don't know...

I think it is better to buy without that massive residual.

 

[Fazda]

I might be wrong, but I believe that is how much you will still owe (residual) and they guarantee that they will give you that amount. Will they give you more? I don't know...

I think it is better to buy without that massive residual.

Correct - those are "Buy Back" prices, so you won't have any extra money to use as a deposit.

You will simply go into the next "Buy Back" deal after 3 years.

I don't have a problem with it, you must just realise that you will never get to own the car in the end, but on the plus side you will always be driving an almost new car that is covered by some sort of maintenance plan.

 

[TriggerTRD]

Bro, buy a DS, you wont be disappointed.
I have a DS5 and my wife a DS3, awesome cars through and through

 

[Quantum Theory]

Correct - those are "Buy Back" prices, so you won't have any extra money to use as a deposit.

You will simply go into the next "Buy Back" deal after 3 years.

I don't have a problem with it, you must just realise that you will never get to own the car in the end, but on the plus side you will always be driving an almost new car that is covered by some sort of maintenance plan.

Problem is that you have to put down a R30k+ deposit on this deal. Now you will probably need to put down a R40k+ deposit on the next one in 3 years. If you don't get that from the buy back, you need to put away an extra R1k+ every month. Add that to the monthly payments, then rethink this deal...

 

[Fazda]

Problem is that you have to put down a R30k+ deposit on this deal. Now you will probably need to put down a R40k+ deposit on the next one in 3 years. If you don't get that from the buy back, you need to put away an extra R1k+ every month. Add that to the monthly payments, then rethink this deal...

Yes, so effectively, you are having to fork out 30 or 40 k each three years to keep driving a new car. Still reasonable to me, but I guess it depends on one's priorities!

 

[Quantum Theory]

Yes, so effectively, you are having to fork out 30 or 40 k each three years to keep driving a new car. Still reasonable to me, but I guess it depends on one's priorities!

To me, that is still a bad deal... Even if you buy a car over 72 months, with no deposit, you should still be able to settle in full when trading in 3 years later. That way, you do not have to fork out for a deposit every time. You might even get something out, depending on the mileage you do. Also, there is no limit to that mileage.