To buy a Cheap Corsa, or go for a lease?

aaron

aaron

aaron

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Hey guys,

Just looking for a bit of advice and objective opinion here.

Had my licence for over a year now but have just managed to get myself in a financially secure enough position to get a car.

Bearing in mind im 19 and this will be my first car Im struggling to decide what the best option would be to be honest.

I can get myself a cheap as chips 1.0 litre Corsa with which I will have to make an upfront payment of around £1800 for insurance and then all the maintenance, tax, MOT, breakdown assistance etc on top. Its a big upfront cost but inevitably is cheaper in the long run for a banger to get me from A to B.

The other option I have is to pay £230 a month for a Citroen DS3 1.6 litre brand new on lease for a three year period with the option of buying it cheaply at the end of this term (however i probably wont do this as it will still be a fair ammount of money to pay). This price includes maintenance,
breakdown cover, tires, MOT, road tax and most importantly insurance...literally everything bar fuel.

I shouldnt have any problems affording either and generally come home with about £1200 a month with about £1000 saved in the bank. Also have plans of moving into a much better position around the end of the year.

Obviously on the one hand if I choose the corsa ill come out with more money in my bank account at the end of each month, on the other hand I could have a nice brand new car (possibly/proabably the only oppertunity ill have in my life to do this with the way things are going).

Just wondering if you guy's were in my position what would you realistically choose as im honestly finding it hard to decide which is the best option.

Cheers for taking the time. :)
 
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If it's your first car, get something used and reliable (maybe around £1500, that way if you hit something you won't be gutted and you'll have a lot more money to spend on fuel and going out! :)

Or you can find '07 Corsas for around the £3000 mark, so seems pointless in buying a brand new Corsa when they seem to depreciate pretty quick!

Just my 2p :)
 
Does that £230/m for the DS3 include insurance?

I'm not that familiar with these deals.
 
No claims bonus is like gold these days, account in for that too as most lease companies won't give you a certificate for NCB on their policy.

When you equate that sum into your figures the Corsa will be the better option. I can get the new appeal of being young and having a brand new car buzzing and all that, but bear with it, it will pay off in the long run and trust me you will have plenty opportunities in the future to have a better car than a 1.6 DS3!!
 
numatic.nathan said:
If it's your first car, get something used and reliable (maybe around £1500, that way if you hit something you won't be gutted and you'll have a lot more money to spend on fuel and going out! :)

Or you can find '07 Corsas for around the £3000 mark, so seems pointless in buying a brand new Corsa when they seem to depreciate pretty quick!

Just my 2p :)
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Hehe, thanks for the reply Nathan....itd be a cheap second hand corsa if i got one, probably 2004 reg for around £1000.

Also with the DS3 im not too worried about crashing etc, im careful, the roads around ours are pretty quiet and i wont be driving in snow etc. Also forget to mention ive worked out my average mileage which ill be doing and it wont be very expensive really even with the DS3.

I understand the reasoning behind getting a used car for my first but i just think so long as im sensible and keep money aside for any reapairs I may as well go for a new car. As I said any manufacturer issues such as the engine going or things falling off are free to repair. Also as i mentioned earlier this will most likely be the only time i have the oppertunity to get a brand new car so im trying to take that into consideration as well.

im probably contradicting myself a lot in these posts by the way so i apologise, its just im really in two minds about what to go for and keep veering one way or the other.

Imy said:
Does that £230/m for the DS3 include insurance?

I'm not that familiar with these deals.
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Yes it does :)

rossk26 said:
No claims bonus is like gold these days, account in for that too as most lease companies won't give you a certificate for NCB on their policy.

When you equate that sum into your figures the Corsa will be the better option. I can get the new appeal of being young and having a brand new car buzzing and all that, but bear with it, it will pay off in the long run and trust me you will have plenty opportunities in the future to have a better car than a 1.6 DS3!!
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Also includes no claims.
 
If you're buying a new car, get a Polo, or if a used car, a Polo ;)

They are very reliable and keep their value very well. The new one is around £9,999 for the base model, but 3 door in white, pfffffft, love it!
 
Brand new Vauxhall or Citroen is one of the most pointless things a private buyer can purchase. They are both depreciation magnets.

Either get a banger that's genuinely within your means or get a bank loan and go nearly new (for predictable costs).
 
Insurance and tyres included for £230 a month? Link?

I'd advise picking something up for 1500 quid or so as your first car. It doesn't need to be a 1 litre Corsa.
 
[TW]Fox;21511876 said:
Insurance and tyres included for £230 a month? Link?

I'd advise picking something up for 1500 quid or so as your first car. It doesn't need to be a 1 litre Corsa.
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Its through the NHS unfortunately so cant, Just im in a fortunate enough position to get it...could even go for an Audi A1 for £260 but thats a bit too much tbh for me. Thanks for the input though Fox :).

Uriel said:
Brand new Vauxhall or Citroen is one of the most pointless things a private buyer can purchase. They are both depreciation magnets..
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Thing is I probably wouldnt be buying it so its not really an issue.
 
aaron said:
Its through the NHS unfortunately so cant, Just im in a fortunate enough position to get it...could even go for an Audi A1 for £260 but thats a bit too much tbh for me. Thanks for the input though Fox :).



Thing is I probably wouldnt be buying it so its not really an issue.
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£30 more a month? DO IT! Nice cars.
 
Ah, that makes sense now. Usually a privately obtained lease wont include either of those things, but as its presumably a Salary Sacrifice lease car scheme I guess it will.
 
If you are talking about the "Just Add Fuel" deals, then you are out of luck - they won't insure anyone under 25 (May be 21 ?) - I remember looking on behalf of a friend when they first came out.

Edit : Beaten , seems I am barking up the wrong tree!
 
[TW]Fox;21511924 said:
Ah, that makes sense now. Usually a privately obtained lease wont include either of those things, but as its presumably a Salary Sacrifice lease car scheme I guess it will.
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Exactly that Fox, Salary sacrifice but a pretty good deal nevertheless.

Nomisf said:
If you are talking about the "Just Add Fuel" deals, then you are out of luck - they won't insure anyone under 25 (May be 21 ?) - I remember looking on behalf of a friend when they first came out.
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Already spoke to the company and they seem happy to put me on despite my age so all seems good.
 
Up to you really, the DS3 insured for £230 pm would be a bit of a deal imo. Very nice car for a young person to have, my biggest worry would be how many little dings you'll pick up in it and have to have repaired. Other than that it makes a bit of sense (for once) over the likes of a used corsa costing upfront cash, excessive insurance and ongoing costs.

Personally I wouldn't bother with the A1 for the extra cash, you're already talking about a very good first car.

edit * would you take some sort of benefit in kind hit despite giving up salary on a monthly basis too? I've only ever had fully expensed company cars
 
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If it includes insurance and you get your NCB at the end of it then I'd be very tempted also. I'd rather that £1,800 going towards the car than insurance. It sounds like you're living with your parents also so have a large disposable income. If you think this will remain the case for the next 3 years then I see no reason why you couldn't afford it. Just make sure you build up a bit of a buffer in case you are out of work for a while.

No comment on the DS3 itself other than I think they look nice.
 
rodenal said:
Up to you really, the DS3 insured for £230 pm would be a bit of a deal imo. Very nice car for a young person to have, my biggest worry would be how many little dings you'll pick up in it and have to have repaired. Other than that it makes a bit of sense (for once) over the likes of a used corsa costing upfront cash, excessive insurance and ongoing costs.

Personally I wouldn't bother with the A1 for the extra cash, you're already talking about a very good first car.

edit * would you take some sort of benefit in kind hit despite giving up salary on a monthly basis too? I've only ever had fully expensed company cars
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With regards to the last point, I completely agree. The DS3 will do me just fine :) As mentioned as well I have £1000 set aside for any repairs etc that need to be done that are not covered by the lease.

Also as you mentioned i begrudge spending ridiculous sums of money on insurance for what is not a very expensive/good car which is why im considering the lease as I get a brand new car and insurance included in the price.

The only other hit apart from the salary is it deducts slightly from the pension, However as pension in the NHS is only based on the last 3 years that you work this isnt an issue luckily :)

Imy said:
If it includes insurance and you get your NCB at the end of it then I'd be very tempted also. I'd rather that £1,800 going towards the car than insurance. It sounds like you're living with your parents also so have a large disposable income. If you think this will remain the case for the next 3 years then I see no reason why you couldn't afford it. Just make sure you build up a bit of a buffer in case you are out of work for a while.

No comment on the DS3 itself other than I think they look nice.
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Hehe precisely my point Imy. and your exactly right, still living with parents and will be for the forseeable future im afraid...at least until i move up in the world or get in the military. Plus ive got the 1000 odd pounds buffer in case of emergency.
 
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£8,280 over thee years without a car to show for it at the end seems a bit much. It may seem a good deal now, but what about in a year or two when you might be contemplating moving out or need/want the money for other things?
 
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