T5 0% finance deal?

[Transporter]

Not that I would be rushing to get one, but I've noticed what a deal it is with the 0% finance $119/per week with the residual payment of over $16,000 for the base model. I remember the driveaway price lower than what the fine print says; that the total payable over 48 months is $42,000. Considering it's a base model with no option, I think the price is a bit inflated.

Buyer be aware!

[DkN]

It'll be a cold day in hell if 0% interest from the dealer is really free. It's the same concept with all things like Harvey Norman 36 months interest free etc - price is inflated and they will budge much less if at all when you negotiate with them, so I would avoid all such deals (not just this one) if you're really looking for value.

[SGG]

....I think the price is a bit inflated..Buyer be aware!

No such thing as free finance (or lunch) .... even the exorbitant finance application and monthly repayment fees are an implicit interest rate charge in themselves. Its called hide the profit under the deal shell ... the profit will (has to) be made in either the financing (great purchase price but high interest rate) or the sale of the car (lousy purchase price but zero interest rate) .. just a question of where really

[Umai Naa!!]

When they're finished with that, they'll offer you a paltry sum for your trade-in, and hammer you to spend up on accessories.

Do the math first, then negotiate. Damned if I'll pay $42,000 on a base model.

[Tornado T5]

Wait a bit longer, and "last years" models will need to be off-loaded more urgently and you'll get a far better deal on the vehicle, saving much more then a 0% offer on a highly inflated sale price.

[Transporter]

Oh, I'm not buying, only saw the banner add with the deal and clicked on it.

I'll wait for the T6, no point of changing well going 128kW 4Motion for the 4 cylinder version of the same and fork out $40k.

[Rebuild]

T6 will be 1.5 litre triple turbo

[Sunny43.5]

Three Turbo,s ? sounds like a recipe for disaster . I know yeh it will go like hell but at what cost down the track . VW should have stayed with the good old 2.5 diesels and the good old 2.5 petrols downsizing engine capacity is not the way to go . Its the old saying there is no substitute for cubes .

[wai]

Be very careful. From the same people who brought you the "basis point", we now have this absurdity of the "comparison rate".

The basis point was introduced by economists because they could not understand decimals, now they have dumped the comparison rate on us.

Just look up "comparison rate" and you will see how absurd it actually is.

[Transporter]

T6 will be 1.5 litre triple turbo

Yes, it could even be the 3 cylinder.

There is always V6 Vito.
...or even 4 cyl. 2.2CDI Vito would be more gutsy then and you could actually tune it for more power with less risk.

Just look at the Amarok, if they would've realeased it with the V6 engine, it would be the success from the day one, and it would stay in people's mind like that, but now they missed the boat, most people will remember it as 4 cylinder diesel, that was not as strong as they thought.

[Dutch77]

I doubt there are figures on it, but I wonder what percentage of buyers who initially looked at a deal because the 0% finance looked attractive actually end up paying the full price and taking the finance package with it.

I suspect it's more a marketing tool, especially on work vehicles - surely most people if they don't understand ring their accountant/business adviser? (I cop this query now and then).

On a Toyota Corolla being sold to young kids or older people.. maybe that's a different story (sadly).

[IN2VWS]

I must be a bit slow......but what does a 'comparative interest rate" mean?

[Sunny43.5]

I am with you on that one IN2VWS it really irks me "comparison rate" ? what comparison are they on a about its either an interest rate or not at all !!!! and no you are not slow if so move over and I will join you .

[Dutch77]

Per wai, there is plenty of comment on the net about it.. but basically it re-calculates the interest rate to incorporate things like monthly fees, and amortises up front establishment fees over the life of the loan (which is where things can get creative, especially as the size of the loan will impact how this calculation changes).

The idea is, a 5.5% rate may at first look better than a 5.7% rate - but if the 5.5% rate loan also comes with a monthly account fee, perhaps a large establishment fee and so on, the higher rate loan may actually be the better choice for the consumer.

The problem as wai alluded is there are so many variables it can become fairly meaningless at times.

It probably has a much greater impact home loans however due to the size and length of the loans, car loans are a bit simpler because they are for short term (relatively speaking) and smaller amounts.

Either way though the comments here are spot on - there is no free lunch and all these discounted finance rates come with strings.

[Tornado T5]

Oh, I'm not buying, only saw the banner add with the deal and clicked on it.

I'll wait for the T6, no point of changing well going 128kW 4Motion for the 4 cylinder version of the same and fork out $40k.

I'm sort of in the same frame of mind now as my Transporter has reached 169,000km. I got excited when I saw the new Ford Transit Custom, great featues etc..and hoped it would get the I5 diesel as in the Ford Ranger but sadly sticking with updated current power plants.