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VW Fox on Finance, only £7969.82!

How can that possibly be an appealling prospect?! The retail cash price is £6650, which is around £200 cheaper than the base Toyota Aygo, however, it's around £2650 more than a 1 year old VW Lupo, a much cuter car, which is valued at £4280 (in good condition) by Parkers. Buy the VW Fox on Finance, for only £1319 more than cash price, at a total price of £7969 (9.6% apr*), and you've ended up paying £3689 more than the 1 year old Lupo! The deal is you only pay £139 a month (for 3 years) for the brand new VW Fox, and you get 3 years free servicing, saving you £150 on the usual cost of an (expensive VW) annual service. You then get to pay a final payment of £2965 so you own the car outright, yet the car is barely even worth £3000 after three years, so even if you want to sell it to someone else, you don't get the money, the finance company do, so overall you've lost around £5000. Wow, where do I sign up?! Alternatively your one year old Lupo for £4000 is now worth around £2000 and you've lost £2000 over 3 years. If you really must buy a car on finance, then you may as well get a loan from someone with competitive rates, 6.9% from Tesco for an example, and buy the car outright.

Sorry VW, I'd rather have the iPod. (and an older car bought outright with savings that have been making me interest, rather than your finance company).

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