Car financing

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box2box said:
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
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Na not when i have looked at cars. I would be happy to buy outright with loan, PCP or lease, whichever is the cheapest

For example I looked at 5 door Seat Leon FR 1.4. target price from What Car was £20k. A 2 year old version is retailing for £13k so part ex will have been in region of £10-11k therefore losing £9k in 2 years.

To lease the equivalent model was £209pm (1+23 rental profile) with £24 service,mainenance and tyres so in total for the same time period it will have cost £5.6k.

To buy would be mental as it will cost you an extra £4k in depreciation
 


Kent_Mackem said:
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.
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Get it spent now man, when you can enjoy it!

Waste of time being the richest corpse in the graveyard.
 
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bennett83 said:
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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this. unless you are buying something mega the interest paid will be pretty trivial in comparison to the total costs of ownership.

pavarotti1980 said:
Na not when i have looked at cars. I would be happy to buy outright with loan, PCP or lease, whichever is the cheapest

For example I looked at 5 door Seat Leon FR 1.4. target price from What Car was £20k. A 2 year old version is retailing for £13k so part ex will have been in region of £10-11k therefore losing £9k in 2 years.

To lease the equivalent model was £209pm (1+23 rental profile) with £24 service,mainenance and tyres so in total for the same time period it will have cost £5.6k.

To buy would be mental as it will cost you an extra £4k in depreciation
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spot on, it varies so much from deal to deal.
 
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pavarotti1980 said:
Na not when i have looked at cars. I would be happy to buy outright with loan, PCP or lease, whichever is the cheapest

For example I looked at 5 door Seat Leon FR 1.4. target price from What Car was £20k. A 2 year old version is retailing for £13k so part ex will have been in region of £10-11k therefore losing £9k in 2 years.

To lease the equivalent model was £209pm (1+23 rental profile) with £24 service,mainenance and tyres so in total for the same time period it will have cost £5.6k.

To buy would be mental as it will cost you an extra £4k in depreciation
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Nope, what I said was if you want a brand new car lease is the best option, however if your happy to get a car 2/3 years old purchasing is the cheapest option as like you say often 50% of the car value has gone after 3 years
 
box2box said:
Nope, what I said was if you want a brand new car lease is the best option, however if your happy to get a car 2/3 years old purchasing is the cheapest option as like you say often 50% of the car value has gone after 3 years
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Read it a few times and now get what you mean! ;)
 
If you go the PCP route remember the idea is they want to keep you as a brand customer for life.
You'll (hopefully) get trouble free motoring for 3 years which includes free servicing.
 
pavarotti1980 said:
Na not when i have looked at cars. I would be happy to buy outright with loan, PCP or lease, whichever is the cheapest

For example I looked at 5 door Seat Leon FR 1.4. target price from What Car was £20k. A 2 year old version is retailing for £13k so part ex will have been in region of £10-11k therefore losing £9k in 2 years.

To lease the equivalent model was £209pm (1+23 rental profile) with £24 service,mainenance and tyres so in total for the same time period it will have cost £5.6k.

To buy would be mental as it will cost you an extra £4k in depreciation
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If your maths are correct then the lease company have just took the £4000 hit, there's surely no way that would happen!
 
Gutmackem said:
If your maths are correct then the lease company have just took the £4000 hit, there's surely no way that would happen!
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The finance company is VW Financial Services so they are financing their own products. They wont be paying list price and they will be selling at full market value at the end of the term and the lease price is worked out on the depreciation cost to them plus their profit
 
pavarotti1980 said:
The finance company is VW Financial Services so they are financing their own products. They wont be paying list price and they will be selling at full market value at the end of the term and the lease price is worked out on the depreciation cost to them plus their profit
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Link to that deal?
 
We've just bought a 1 yr old car on 4 yr pcp. Will be using voluntary termination and handing back after 34 months at the half way finance point.

We've always had finance/loans for cars a few year old and never made a penny. pcp takes away the hassle of selling it on at the end for us.
 
Gutmackem said:
If your maths are correct then the lease company have just took the £4000 hit, there's surely no way that would happen!
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Don’t forget, they’re also fueling the second hand car market.

box2box said:
Nope, what I said was if you want a brand new car lease is the best option, however if your happy to get a car 2/3 years old purchasing is the cheapest option as like you say often 50% of the car value has gone after 3 years
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Aye, but then the warrenty has ended and the servicing/ repair costs begin to increase.
 
I always buy outright now.... I dont pay over 2k for a car and run it for 3 years. I had my last car on HP it was a nightmare with things going wrong so handed it back at the half way point. Paid 2k for my current car and its been no bother (touch wood) it all depends on your circumstances I suppose? We don't do much mileage so this works for me.
 
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