Car finance... what would you do?

[darknite]

Thought I would put this in General rather than motors as it is more of a life/finance question than what car to get question.

Basically I want to get rid of my Vauxhall (will never get another) The only capital/deposit I have is the value of my current car which I believe is £7500 - £9500 minus £2600 ish outstanding finance. Now I need a decent car not one that has "electrical issues" every few months costing me extra funds. So my thought is something new/newer with warranty.

So would you look at a new car on a 0% interest deal?
Would you look at a PCP agreement? Though seems expensive, fairly sizeable deposit and monthly fee.
Would you look at leasing? Maintenance plan included.
Would you buy something secondhand and buy a warranty for it?

My car requirements are this. Needs to be mid size family car, focus size. Ideally diesel as my daily commute is 25 miles each way pretty much 50-70mph roads and just under 15k a year. Can comfortably afford £200 a month loan/lease costs.

Too many options. Just after best value for money.

What would you do?

 

[platypus]

So would you look at a new car on a 0% interest deal?
Would you look at a PCP agreement? Though seems expensive, fairly sizeable deposit and monthly fee.
Would you look at leasing? Maintenance plan included.
Would you buy something secondhand and buy a warranty for it?

What would you do?

Not sure how much help this is really, but you asked and I'm just waiting for my next meeting in 2 mins....but I wouldn't bother with any of the finance options for a car. They all just seem like a terrible financial investment.

Of course, I'll never have a brand new car either .

 

[cheesyboy]

For best value, I'd just buy a £7k golf or focus outright and pay for repairs as they come up. no need for a warranty.

In fact, that's more or less what I do for my cars. Spent less than £1,000 each on maintenance (outside of tyres) on my two cars spread across the last four years.

Generally, friends and colleagues who buy new cars seem to have more regular maintenance issues than those who buy used.

 

[darknite]

I know you never win with finance. But would newer mean less car issues? Guess no one can answer that...

Buying out right does make sense in my head, but my current car is costing me between £200 and £700 every few months in electric issues so had enough. The car before that needed a new ecu? No idea but that was another £700 + vat bill. Might just be my bad luck though!

 

[balky12]

Get a Diesel Focus on lease. With your deposit £200 a month should be easy for a decent spec model (Titanium possibly).

Had 3 now. Can't fault them, especially the brand new models. (mine have been petrol).

Cheapish/ hassle free motoring. Plus I like getting a new car every 9-12 months

 

[craig_t]

New car - wasting money. You'd spend more to loose more if that makes sense. Yes you might have a 3 year warranty but you've lost 7k driving the first 10 miles as an example.

Get a used car. From a garage, if possible who will issue a warranty. but do NOT get it on finance, go see the bank and get a bank loan. It's the difference between (some are offering around 3% now, where finance is most likely 10% and above. Get it over the smallest term possible, that you can afford so you pay less interest.

That being said, if you have 5K real money from your current car after sold and remaining finance paid off then you have a good start and could get a decent car for that money with a warranty. Or, like I said get a loan to increase your budget but take that loan within your means but to the max of your comfortable living ability... OR overpay where you can.

Lease - Pointless. Wow you get a new car every year/2 year... So? After 6 year @ £200p/m and 3 cars what do you have? £14400 out of pocket and nothing to show for it but an empty space on your drive. Unless of course you pay a big balloon payment, making your car cost even more leaving you 20K out of pocket with a 10K car.

My two cents anyway*

*the two cents is not for give away for contribution towards car purchase

 

[darknite]

Get a Diesel Focus on lease. With your deposit £200 a month should be easy for a decent spec model (Titanium possibly).

Had 3 now. Can't fault them, especially the brand new models. (mine have been petrol).

Cheapish/ hassle free motoring. Plus I like getting a new car every 9-12 months

New car on lease every 12 months? Do you mind if I ask 1 what car, 2 how much deposit/monthly fee? 3 how many miles?

My worry would be 15k miles on lease would be expensive per month. Nice low deposit but not cheap month.

 

[balky12]

New car on lease every 12 months? Do you mind if I ask 1 what car, 2 how much deposit/monthly fee? 3 how many miles?

My worry would be 15k miles on lease would be expensive per month. Nice low deposit but not cheap month.

Believe my current Focus Titanium 1.6ecoboost is £205 a month w/ £3k deposit over 36 months. They give you the option to change after a year however. 10k a year I think I have it down as.

 

[platypus]

Believe my current Focus Titanium 1.6ecoboost is £205 a month w/ £3k deposit over 36 months. They give you the option to change after a year however. 10k a year I think I have it down as.

What costs on top of the lease though? Tax? Fuel? Insurance?

 

[Haggisman]

Thought I would put this in General rather than motors as it is more of a life/finance question than what car to get question.

Basically I want to get rid of my Vauxhall (will never get another) The only capital/deposit I have is the value of my current car which I believe is £7500 - £9500 minus £2600 ish outstanding finance. Now I need a decent car not one that has "electrical issues" every few months costing me extra funds. So my thought is something new/newer with warranty.

So would you look at a new car on a 0% interest deal?
Would you look at a PCP agreement? Though seems expensive, fairly sizeable deposit and monthly fee.
Would you look at leasing? Maintenance plan included.
Would you buy something secondhand and buy a warranty for it?

My car requirements are this. Needs to be mid size family car, focus size. Ideally diesel as my daily commute is 25 miles each way pretty much 50-70mph roads and just under 15k a year. Can comfortably afford £200 a month loan/lease costs.

Too many options. Just after best value for money.

What would you do?

If you want a new(er) car, buy a new(er) car, but do so knowing that it will cost you more.

If you want to save money, buy a used car (or keep your current one) and put the £200/month towards repairs.

You say that it's cost you £200 - £700 "every few months", but surely maybe spending that every few months (which is unlikely if you've now fixed those issues) is still going to work out cheaper then definitely spending £200 every month?

 

[balky12]

What costs on top of the lease though? Tax? Fuel? Insurance?

Tax is £130. Insurance I pay ~£300 a year (I'm 26 with 7 years no claims). Fuel, well it's about £50 to fill up and averaging about 35mpg, I'm not exactly economical either.

EDIT; want something a bit cheaper look at the 1.0 ecoboost focus. Still pretty nippy and ~£30 road tax I believe.

 

[wingman]

Generally, friends and colleagues who buy new cars seem to have more regular maintenance issues than those who buy used.

Doubtful.

Having said that, I think maintenance issues is a term open to interpretation. Whilst I know new cars aren't always 100% free of anomalies by any stretch of the imagination, it can be assumed that they are much more reliable than used in many regards. After all, all the components will be new also.

 

[darknite]

Believe my current Focus Titanium 1.6ecoboost is £205 a month w/ £3k deposit over 36 months. They give you the option to change after a year however. 10k a year I think I have it down as.

So every 3 years another 3k deposit and £200 a month. So its really £290 ish a month?

I just got a quote on a Fiesta 1.0T 140bhp zetec s £1495 depost, 24 months £124 month, no maintenance, 10k miles. Free road tax. Now getting quote on a focus.

 

[darknite]

If you want a new(er) car, buy a new(er) car, but do so knowing that it will cost you more.

If you want to save money, buy a used car (or keep your current one) and put the £200/month towards repairs.

You say that it's cost you £200 - £700 "every few months", but surely maybe spending that every few months (which is unlikely if you've now fixed those issues) is still going to work out cheaper then definitely spending £200 every month?

I guess its own it outright but know it is making a loss of whatever a month, or pay monthly and hand it back. Either way it is costing money each month.

 

[balky12]

So every 3 years another 3k deposit and £200 a month. So its really £290 ish a month?

I just got a quote on a Fiesta 1.0T 140bhp zetec s £1495 depost, 24 months £124 month, no maintenance, 10k miles. Free road tax. Now getting quote on a focus.

Well yes, but it all depends how well sales are doing, once I got a brand new car after 12 months without a deposit or any extra on my monthly payments. Guess that just needed to shift units.

 

[Haggisman]

I guess its own it outright but know it is making a loss of whatever a month, or pay monthly and hand it back. Either way it is costing money each month.

Well yes, but at the end of one of those options you still have a car and will have most likely paid less over the time period

 

[Closing]

I would be patient and pay off the remaining debt then sell the car or even part-ex it for a better runner for a similar amount.

 

[neil3k]

I can't understand how people can pay £200 a month and not own it.

 

[balky12]

I can't understand how people can pay £200 a month and not own it.

Depends how it's set out. Lease works just like rent.

Although finance, you would eventually own it.

Depends how you look at it. In 7 years I have had 6 brand new cars.

Helps that I split with the mother 50/50 seeing as Monday – Friday 9-5 I have no use for it (work). Where she would use it for her local job.

Come weekends it’s whoever needs it. We have a 2nd family car (Jag XKR) so on the rare occasion mum needs the car I drive the Jag (she doesn’t like driving the jag)

Now me and my partner are on the verge of moving out me and her are splitting the cost.

But basically in 7 years we have paid £16,800 maximum monthly payments (as our earlier cars were cheaper fiestas) plus the deposits for roughly £24k a year. £12k each over 7 years.

Never had to worry about MOT or anything going wrong or changing tyres. Yes I never ‘own a car', but it’s cheap peace of mind driving.

 

[[TW]Fox]

I can't understand how people can pay £200 a month and not own it.

I can't understand how people can not understand that a car loses money and all these options are simply different ways of paying that loss of value on a monthly basis.

I generally believe that unless you get an exceptional deal, leasing is over-rated and the most expensive option but it's not as if buying it yourself is free, is it? A recent model Focus is going to lose thousands of pounds a year, its just up to you whether it's your thousands of pounds a year or somebody else's who you pay monthly for the privilege.

I think the best value option is to purchase a 1 year old Focus and bin it at 3. This will likely give you the lowest monthly TCO. If you can't afford a 1 year old Focus then a personal loan has never been cheaper.