Mazda Mx 5 Finance Deals

The Mazda MX-5, a beloved roadster known for its affordability and driving experience, is a tempting purchase for many. However, financing is often a necessary consideration. Several options are available to help you get behind the wheel of a new or used MX-5.

Personal Contract Purchase (PCP)

PCP deals are among the most popular ways to finance a new car. They involve paying an initial deposit, followed by fixed monthly payments over a set period (usually 2-4 years). Crucially, these payments only cover the depreciation of the car, not its full value. At the end of the agreement, you have three choices:

• Return the car: If you no longer need the car or prefer not to pay the final lump sum.
• Purchase the car: By paying the pre-agreed “optional final payment,” sometimes called a balloon payment.
• Part-exchange the car: Use any equity (the difference between the car’s value and the optional final payment) as a deposit for a new car, potentially another MX-5!

PCP offers lower monthly payments compared to other financing methods, but the optional final payment can be substantial. Mileage limits are typically included, and exceeding them incurs extra charges. PCP is suitable for those who like to drive newer cars and change them frequently.

Hire Purchase (HP)

HP is a more traditional financing option where you pay a deposit followed by fixed monthly payments. Unlike PCP, these payments cover the entire cost of the car, including interest. Once all payments are made, you own the car outright. HP usually involves higher monthly payments than PCP, but you avoid a large final payment. This is a good option if you want to own the car at the end of the agreement.

Personal Loans

You can secure a personal loan from a bank or credit union to purchase the MX-5 outright. This gives you immediate ownership and avoids the restrictions of PCP or HP, such as mileage limits or potential charges for damage. Interest rates on personal loans can vary, so it’s essential to shop around and compare offers. Personal loans are often a good choice if you have a good credit history and can secure a competitive interest rate.

Manufacturer Finance

Mazda often offers their own finance deals on new MX-5s, often with attractive interest rates or incentives. These deals can be worth exploring, as they may be tailored to make purchasing a new MX-5 more appealing. Always compare manufacturer finance with other options to ensure you’re getting the best deal.

Used Car Finance

Financing a used MX-5 is similar to financing a new one, with PCP, HP, and personal loans being viable options. Interest rates on used car finance may be higher than on new car finance. It’s crucial to have the car inspected by a qualified mechanic before committing to a purchase to avoid unexpected repair costs.

Before making any decision, compare APR (Annual Percentage Rate) across different finance options. Consider the total cost of credit, including interest and fees, rather than just focusing on the monthly payments. A lower monthly payment doesn’t always mean a cheaper deal in the long run. Finally, always read the fine print of any finance agreement carefully before signing.