Golf: monthly finance cost
Few cars feel as natural on a British driveway as the Volkswagen Golf, and its finance figures are part of the appeal. Priced at £27,995, a representative hire purchase deal with a 10% deposit of £2,799.50 and a 9.9% APR over 48 months comes to £637.81 a month, with a total amount payable of £33,414.38. That monthly payment is fixed from day one, so budgeting is straightforward - though insurance, servicing and road tax are extra.
The Golf is one of the UK's most popular PCP cars as well, thanks to strong retained values that keep monthly personal contract purchase quotes keen. PCP typically lowers the monthly figure in exchange for an optional final balloon payment, while HP means every payment takes you closer to outright ownership. Either way, a figure of around £638 a month is the benchmark for putting a new Golf on finance.
Total payable: £33,414.45 · Interest: £5,419.45
The headline £637.81 a month assumes a modest deposit, and this is the figure you have most control over. Raising the deposit to 20% - £5,599 on the Golf - trims the amount borrowed, cutting both the monthly payment and the interest charged over the agreement. Extending the term has the opposite effect: spreading the balance over 60 months would lower the monthly payment but raise the total interest paid.
On the question of HP versus PCP, the Golf suits both. HP is the simpler promise: pay for 48 months and the car is yours, with no mileage limits to watch. PCP usually asks less each month and hands you a choice at the end - pay the balloon, hand the car back, or part-exchange it. Verdict: the Golf's figures are competitive, though the actual APR you are offered will depend on your credit status.