second hand car or new lease car

[Rainhill]

So what is peoples opinion ?

New lease car from work meaning a very low tax code and paying £350 from my wage each month but a nice new shiny car that is covered for any break downs,tyres etc

or

Pay about £2500-£3000 for a second hand car and have all own maintanence and insurance to pay for but would be better off each month by about £350

opinions welcome even stupid ones

I was in the same boat earlier in the year. Even ordered the lease car.

2 weeks and they hadn't even acknowledged the order which was long enough for me to change my mind and decide to buy instead.

I think I made the right decision

 

[yamar1]

So what is peoples opinion ?

New lease car from work meaning a very low tax code and paying £350 from my wage each month but a nice new shiny car that is covered for any break downs,tyres etc

or

Pay about £2500-£3000 for a second hand car and have all own maintanence and insurance to pay for but would be better off each month by about £350

opinions welcome even stupid ones

Buy one and save the money. You will be a lot better off in the long run.

 

[Goat Eyes]

A fourth kid on the way too... Money in the bank all day.

 

[Deleted member 559]

Go to a back street dealer, pay £400 for a decent old runner with full MOT.

After eleven months scrap it, get a few quid back.

Rinse and repeat.

 

[Smoke Me a Kipper]

85 quid per week for at least 3 years??

I'd rather buy a second hand one

 

[AndyGray1985]

Buy a small Korean car with a long warranty and swallow your pride

 

[HANDSOME_DAN]

I think your work are screwing you over. Your tax code gets hammered when work pay for the car ie BIK. Doesn’t make sense at all that you pay 350 out of your wage and get the tax code reduced. Are you sure work aren’t deducting your wage and it’s not just the effect of a reduced tax code?

 

[Jasper]

It's not a deal, it was to give an idea that even with a piss poor interest rate over 3 years he could borrow 8k. I'm not saying pay 20% but it was to show even at loan shark rates he'd still pay 300 pounds per month and keep the car.



Exactly! Yet another option and the car would be his.

Why would he want to own a depreciating asset?

 

[peil]

I think your work are screwing you over. Your tax code gets hammered when work pay for the car ie BIK. Doesn’t make sense at all that you pay 350 out of your wage and get the tax code reduced. Are you sure work aren’t deducting your wage and it’s not just the effect of a reduced tax code?

Nah, had a similar scheme at my old place.
The take the full lease cost off your gross pay, so you pay BIK on the tax you've dodged PLUS you get bilked for a high lease cost as well.

Knew a lad who was paying £420 p.m. after tax for a Volvo, insurance and servicing all included. Silly shite could barely afford the fuel to get him into work

 

[Beery]

lloyds customers - they are doing a good finance rate at moment

 

[yamar1]

Why would he want to own a depreciating asset?

To have a car he owns at the end of the loan id imagine. Or take the work car deal, hand it in after 3 years and have nothing to show for all the money.

Il take choice 1 all day long thanks.

Nah, had a similar scheme at my old place.
The take the full lease cost off your gross pay, so you pay BIK on the tax you've dodged PLUS you get bilked for a high lease cost as well.

Knew a lad who was paying £420 p.m. after tax for a Volvo, insurance and servicing all included. Silly shite could barely afford the fuel to get him into work

But the car looked great on his drive.

 

[ravydavygravy]

Buy something 2-3 years old as mentioned previously on PCP/HP whatever.

New-ish/problem free and you wont be paying the massive chunk of depreciation which is what lease payers do.

 

[Wearson]

General rule ,
if something appreciates (grows) in value - buy it,
If something depreciates in value , then lease it.

To pay interest on the loan whilst the value goes down is a double whammy loss.

 

[S.S.R..]

Imagine paying £350 a month to drive a Cactus.

 

[ravydavygravy]

If something depreciates in value , then lease it.

The second hand car market would not exist following that logic.

Imagine paying £350 a month to drive a Cactus.

Think you can get them for about £100 a month like.

 

[SPUFF]

Buy a small Korean car with a long warranty and swallow your pride

Could do worse than a Carens for the 7 seats. Not a thing of beauty I know!

 

[Napoleon Dynamite]

Hew @The soap powder do you know @mux

 

[Forrest Gump]

@The soap powder is it true he is the youngest to do his job ever in NP?

 

[AndrewP]

So what is peoples opinion ?

New lease car from work meaning a very low tax code and paying £350 from my wage each month but a nice new shiny car that is covered for any break downs,tyres etc

or

Pay about £2500-£3000 for a second hand car and have all own maintanence and insurance to pay for but would be better off each month by about £350

opinions welcome even stupid ones

Is the option of a newer used car not an option for you?

Or if you have a good credit rating £300/m bank loan at say 20% apr over three years could borrow 8k ish and get a good car which should last for years

Why would anyone with a good credit rating take on a loan at 20 percent Apr? Madness.

 

[pavarotti1980]

So what is peoples opinion ?

New lease car from work meaning a very low tax code and paying £350 from my wage each month but a nice new shiny car that is covered for any break downs,tyres etc

or

Pay about £2500-£3000 for a second hand car and have all own maintanence and insurance to pay for but would be better off each month by about £350

opinions welcome even stupid ones

It depends on what the lease car is for a start. It may even be cheaper getting a lease through broker/main dealer with maintenance and it could be cheaper than salary sacrifice and not impact on tax so much. In addition to car leasing on salary sacrifice there is less benefit now than before HMRC changed the rules.