With the budget finally out of the way (thank god) and the decision to follow other European countries and offer a car scrappage scheme, Kia have announced details on how you can buy a new Picanto 1.0 from only £10 per week.
Whilst the final details are yet to be ironed out, the car scrappage scheme basically means anybody owning a vehicle over 10yrs old, providing they have owned it for more than a year, can get £2000 off a new or nearly new vehicle.
The government’s contribution, or shall we say the tax payers contribution, is £1000 with Kia stumping up the rest.
The latest offer from Kia applies to a new Picanto 1.0 5dr in conjunction with Kia’s Access finance package or PCP (Personal Contract Plan). This is where the new car’s future value is calculated in advance and then defered until the end of the agreement. At the end of the agreement the consumer can either purchase the vehicle for that amount or simply walk away.
The advantage the car scrapping scheme offers is that a larger amount of deposit (£2000 in this case) can be put down on the vehicle reducing the Picanto 1.0 down from £6195 to only £4195. The guaranteed minimum future value (GMFV) of the Picanto (approx £2500 over a typical 3yr agreement depending on mileage) is taken from the remaining balance. Kia are also advocating an additional £1000 from the consumer which would leave a small balance resulting in a low monthly payment of £40 per month or roughly £10 per week.
Given that the vast majority of consumers who drive an older car do so because a new car was previously beyond the purse strings, it’s unlikely they’d want to stump up an additional £1000. Still even withut the extra deposit a Picanto 1.0 would still only be around £80 per month or £20 per week.
Still it illustrates how affordable and appealing a new car is to those of us who have had to drive in an older car for the last few years and had the repair bills to go with it.
One thing to bear in mind when looking to purchase through PCP schemes is they are tailored to annual mileage. Most manufacturers will quote the lowest monthly payment based on the lowest allowed mileage (usually between 7 – 10,000 per annum). However these packages are flexible so you need to be aware of this to avoid additional mileage charges when it comes to the end of the agreement.
