Dacia announced today that the Sandero is now Britain's most affordable new car with monthly payments from £69. On paper that looks a fantastic deal - The Sandero Access 1.2 16v 75 costs £5,995.
This has been reported widely as a continuation of Dacia's incredible affordability. The headline figure has been screamed across the headlines of the UK motoring press.
But something's got to give. For a start the deal is over 48 months which is a hell of a long time to own a car. But, some people do keep them that long, so we'll forgive that. Now multiply 48 by 69. The answer is £3,312. That means after 4 years you'll still be short of £5,995 by £2,683. Oh, and add in the fact you have to put down a deposit of £1,845 in the first place. And a £99 acceptance fee. And if you want to own it after 48 months you'll need to pay another £1701 and a £149 option to purchase fee on top of that.
You might be feeling confused after reading that last paragraph. Here's how it all stacks up:
| Deposit | £1,845 |
| 49 monthly payments of £69 | £3,312 |
| Acceptance fee | £99 |
| Total payment | £5,256 |
And after 48 months you don't own the car. You'll have paid an average of £110 per month, not £69. If you want to own the car, in order to realise it's used value, you'll need to pay another £1,850. That brings the average cost per month up to £145.
If you end up buying a Sandero, on a £69 per month finance deal, at the end of 48 months you will have paid a total of £7,106 (and will have paid an average £145 per month). That means you've paid £1,111 in interest and other fees - Dacia charge 9.4% interest on the loan. Given the only loan you are taking from Dacia is the £3,312 in monthly payments then that £1,111 in interest and fees represents 33% of the total credit.
So don't be fooled by the headlines. The Sandero is a fantastic car for the money but if you buy one make sure you enter into the deal with your eyes open.
Don't think £69 per month. Think £145 per month.