VOLKSWAGEN Finance Solutions is offering the new VW Golf SE 1.4-litre TSI 122 PS 5dr for £199 per month.
A Golf with the great turbo- and super-charged engine for under £200 a month?
Yes, I’ll have some of that.
Hmmmm, are you sure?
Headline rates aren’t all they appear
On the surface this seems a great deal. But it comes at a hefty cost. You need to put down a deposit of over £4000. Given how tricky credit is at the moment, that doesn’t seem so clever to me.
How about a Personal Contract Hire deal instead?
Well, that’s not on offer from Volkswagen Finance Solutions. But it is from Concept Vehicle Leasing, a BVRLA approved leasing broker – and a contributor to this website. But, the monthly cost is £328 a month. That’s a lot more. But in terms of cash flow it’s a lot easier. Even though you need a £900 downpayment.
However, it’s not the best deal. A look at CompareContractHire.com reveals the same Golf on offer for £291 a month from JamJar Cars. With an initial downpayment of £873.
Which is all well and good. But I thought the best way to work out which was best value was work out the overall cost per month over 36 months. And here are the calculations:
- 1, JamJar £307
- 2, Volkswagen Finance Solutions £320
- 3, Concept Vehicle Solutions £328
All of which proves that it pays to look around and not believe headline rates. And, of course, what’s best for your cash flow. Which is why I’d go for the JamJar or Concept deal.
