Quote:
Originally Posted by MattyC
Ok so I'm between a Mazda 3 and a Golf City. Both similar price and similar features. But I would left over with a few thousand left to pay after my financing period is over due to a different way they do financing. Is the Golf worth it?
Thoughts pls thanks
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What vehicle did you like more? This review I found online seems to suggest that either would be a good choice.
http://www.caranddriver.com/var/ezfl...3111ea0665.pdf
May I recommend you inquire what the cash purchase price would be for the vehicle and look to finance with your financial institution of choice before you sign papers? The discount the dealership would offer might make it worth your while.
The reason you are left owing money at the end with VW is because of their VW select program, where they give you smaller payments to make something more affordable, but at the end of 5 years you still have a principle balance owing. This would be simular to a 5 year term, 6-8 amortization. Doesn't seem like it makes much sense to me.
Base model, regular VW financing (not the VW select crap) over 5 years at 0.9% is about 300/month. Over 5 years Mazda offers 0% right now and it works out to about 300/month.
Again check for a cash purchase price rather than a finance price... If either give you $2,500 off for paying cash, finance it somewhere else for $270/month at 6% or lower and get a bank draft to pay them. At least that way you aren't paying extra principle so if you make extra payments they are actually worthwhile.