Car financing

I'm looking to get a new car and tempted to get something on finance. What are the pros and cons? Can anyone explain in layman's terms why it would be better to get a nicer car on finance rather than buy something cheaper out right?

I've never liked being in debt (mortgage aside) and always felt like renting was money down the drain a bit (I know that's a backwards way of thinking) so need convincing this is the way to go.
 


I'm looking to get a new car and tempted to get something on finance. What are the pros and cons? Can anyone explain in layman's terms why it would be better to get a nicer car on finance rather than buy something cheaper out right?

I've never liked being in debt (mortgage aside) and always felt like renting was money down the drain a bit (I know that's a backwards way of thinking) so need convincing this is the way to go.

With interest rates what they are now: buy the fucker outright. What else are you gonna do with your money: put it on an ISA to earn a pitiful amount?
 
Buying outright is money wasted imo, unless you want to keep the car for ever or buy a car that holds its value (there are not many Focus RS is one).
 
I’d recommend leasing. Yes it does feel a bit like money down the drain but your just paying off the depreciation. If your buying a new car on the cheapest finance, your not going to own it anyway till about year 4/5, once you’ve paid off the bubble payment. If you have to lend to cover that then your looking about year 8 by the time you own an 8 year old car, having also paid for 8 years of servicing and repairs in that time.
 
If you're planning on keeping the car for about 5 years, get a bank loan. There will be a canny difference between the rate of the loan and the dealers finance company.
But.... If you go through a Ford Credit, Mercedes-Benz Finance etc. (Especially before year end) they’ll chuck huge deposit contributions at you and maybe even 0%.
 
For the past 10 years or so I have bounced along finance getting a new car every 3 years or so. The car is then handed back to start the next finance. Quite happy to continue doing that but fully aware that I will get stung on my last deal. Either I will need to pay off the deal and keep the last car or I'll walk away with no car having lost out overall.

I get the advantage of new cars, reliability and it is an incentive to keep them clean. Whether that is worth the extra money? Probably not, but I don't have many extravagances. Most money goes to pension so I can retire on my 55th birthday.
 
Unless you want a brand new car buy outright is the cheapest option ( if you already have a few £k to buy)

Depreciation on a 2/3 year old car is far less than the lease cost
 
I'd be very wary of any small print, most dealers push PCPs nowadays.
I know it inside out, 0% is 0% simple as that. A deposit contribution is exactly as it says.

PCP isn’t bad if it suits your circumstances. In fact there are a whole range of products available which allow you to finish the agreement however you want.
 
We needed a new car for her when the boy was born - nowt flash like but she saw one she liked so we paid for it out of our savings - paid it back over 18 months so basically we just saved the interest on a finance agreement
 
I'd get a car loan from somewhere like tescos we paid 3.3% interest over 4 years which works out less than £800 interest on top. We bought a 8 month old car as well so it'll still be newish when it's paid off and it's still has part of the warranty
 

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