Peugeot has launched a range of car finance offer across its 208 hatchback range, with both PCP and leasing options.
With newer vehicles arriving in rival showrooms – like the new Ford Fiesta, Volkswagen Polo and SEAT Ibiza, to name a few – Peugeot will be hoping that the new finance offer keeps 208 sales trucking along through the new number plate change in September.
The PCP offer is based on a contract of up to 37 months (three years of regular monthly payments plus the final balloon payment) with an APR of 2.9%, which is a very competitive interest rate. The offer also does not require any upfront deposit from the customer, which is better than most low-rate offers.
A deposit contribution of £2,000 is included, which effectively means a £2,000 discount on the car price but is conditional on you taking out the finance offer. If you want to pay cash for a new 208, the dealer does not have to offer you a £2,000 discount.
All Peugeot 208 models are included in the offer, including the top-spec GTi models and packaged specifications like the Black Edition and Allure Premium Special Edition models.
Peugeot is also advertising leasing offers for the 208 range if you prefer to rent rather than own the vehicle. The advertised examples are not like-for-like, but you can ask a dealer to provide PCP and leasing examples on the same car, same term, same deposit and same mileage to see how they compare. The results should be pretty similar.
The Car Expert says… always check the fine print on finance offers
Peugeot refers to its personal contract purchase offers as “Passport”. Confusingly, personal leasing products are referred to as “Passport Lease”.
PCP customers can also choose Peugeot’s “Just Add Fuel” package at extra cost, which also includes three years’ car insurance, road tax and routine servicing costs. If you are under 21 years of age, you are required to take a Peugeot telematics device if you want the Just Add Fuel package.
The Just Add Fuel package is certainly convenient, but you may find it cheaper to arrange your own insurance and servicing rather than using Peugeot’s preferred providers.
The PCP deals are advertised with an APR of 2.9% representative, with a fixed interest rate that is also 2.9%. That means that there should be no fees anywhere on the finance agreement (apart from excess mileage fees).
The offers set out on the Peugeot website are only examples, and you are entitled to adjust the term, deposit and annual mileage to suit your own needs. The annual mileage used in all of the examples provided is only 6,000 – which is lower than most people drive in a year, so bear that in mind.
The excess mileage fee is 6p/mile. That’s £60 for every 1,000 miles you go over your limit, so make sure you allow yourself enough mileage when setting up your finance agreement. The fee only applies on a PCP if you are giving the car back and claiming the guaranteed future value (GFV). On a lease, you definitely have to give the car back with no option to pay off the finance and keep the car.
The finance deal only applies to new cars, which does not include dealer demonstrators or pre-registered cars.
Cars have to be ordered by 31 August, but no delivery date is specified on the website. That means you can get one this month with a 17-plate, or wait until September and get one with the new 67-plates that start from 1 September. If you are planning to keep the car for three years or less, you may be better off waiting for the 67-plates, as it may be worth more at the end of the agreement.
The finance offers are provided through Peugeot dealers by PSA Finance UK. If a dealer offers you a finance deal that does not match these details or from another lender, it is not part of this offer.
As with any car purchase, work out your budget before you visit the showroom and don’t be persuaded to go beyond it – regardless of what the smiling sales executive suggests. They don’t have your best interests at heart, but The Car Expert does!