Best wat to finance new car??

motorguy

eschaton wrote: »

Jesus, Paul really has a bit of the old jealousy syndrome :rotfl:

Trying to pick at everything to try and win but failing miserably.

Seriously mate, on what planet do you live on if you think someone could be jealous of a 308 :rotfl:

bigjl

I am jealous of 308 drivers, as they obviously are much richer than me so are able to chuck money at a french monstrosity without having to worry about the financial implications of buying such a pig, lol.

I have bought cars on finance, I have bought cars cash, I have bought them from dealers and from private ads, also loads from the car auctions.

I used to think cars where the be all and end all, I had to have the big flashy performance motor, when using the car to earn a living I bought as new as I could, and that had advantages for the tax situation.

Now that I have grown up I see them as a tool, a commodity, nothing more.

My car does what it needs to do, doesn't cost much to run, is still worth more than I paid for it nearly 2 years ago.

If you can afford a new car, then great, but after several years of paying for a car on the dribble to be faced after 3 years with having to trade a car in that is hardly worth what is owed on the finance. Not for me anymore, thanks.

The OP is in a position to want a new car, for long term use, so depreciation is irrelevant, he wants to own it so leasing is irrelevant, he wants the cheapest way to get ownership of his car, to me that can only be cash, or if available a 0% deal through a dealership.

My dad purchased the majority of his cars over the years with an interest free deal through his employers, after retirement he waited for interest free deals, his current car was bought with cash after getting £2000 through the scrappage scheme.

If he leased he would never own it, if he financed he would pay interest.

For pgilc1 leasing is his preferred choice, and it would appear to suit him perfectly, some folk like to chance every three years and have a pain free way of doing this. My wife has a Care Agency and if vehicles are needed in the future they will be leased through the company, as this also has some tax benefits.

If it wasn't for the tax benefits and the improved cash flow that leasing allows then they would be purchased used for cash.

Though a 4 yr lease deal with the clause to dispose at the end of the term and give a certain amount back to the lease company would also be considered, but I haven't seen those kind of lease deals recently.

Everybody has a solution based on their needs, my given solution seems to fill the OP's situation.

motorguy

bigjl wrote: »

stuff

Have to agree, and for the record i have a car on finance and another one thats paid for. I dont have any particular preference other than what suits me best at that time and that offers VFM.

I guess i'm open minded enough to look at all the options.

eschaton

pgilc1 wrote: »

Have to agree, and for the record i have a car on finance and another one thats paid for. I dont have any particular preference other than what suits me best at that time and that offers VFM.

I guess i'm open minded enough to look at all the options.

Or it's all you can afford :rotfl:

Game over.....

motorguy

eschaton wrote: »

Or it's all you can afford :rotfl:

Game over.....

You keep believing that, but i'm not the one in the £25,500, sorry £15000 Peugeot. ;

I seriously cant believe the misplaced smugness you have. You seem openly proud that you've suffered £60,000 worth of LOSS on your previous cars, and that you with your eyes wide open spent £25,500 on a Peugeot 308 which has by your admittance dropped by £10K since you bought it, which you seem quite gleeful about, but are telling us that your some sort of car buying master just because you got 0% finance?

You really really seem to have no grip on reality.

Inactive

pgilc1 wrote: »

i am happy to pay the interest - i have no issue with that.
.

Then you are a mug.;)

motorguy

Inactive wrote: »

Then you are a mug.;)

But smart enough to know that indirectly its the customer who ultimately pays for the interest on 0% finance deals, via the discount they would otherwise receive.

I cant see how you think Peugeot Boy got a great deal at £25.5K on a car that 5 months later is probably worth £15K or £16K at best just because he got 0% finance, yet someone who does their homework, gets a great discount, negotiates a superb finance rate on a car that totally meets my day to day requirements is a mug?

I really suspect you are one of those people who has to validate their own financial situation (or lack thereof) by considering everyone else who doesnt live as you have to live as a 'mug'.

motorguy

Inactive wrote: »

Then you are a mug.;)

So, as i put in a previous post there, should i have bought the car with cash and then subsequently had to pay 17.5% VAT on the fittings of our house when i gathered up the money further down the line? Would that have made sense?

(given that fittings are VAT free with a new build)

So, again, how does that make me a mug?

Cortinaa_GTR

Right, some advice here from all the protagonists above would be appreciated.

I'm currently in a job with a company car. I have the potential of new job with a car allowance of £375 a month which I've never had to deal with before. I have called around to see the cost of leasing (i think) the car I currently have as a guide. I reckon the allowance won't come close to the monthly costs which also cover insurance,service etc. What would be the best option? Ta. I do have 5k savings but I like to have that to cover 6 months of bills for any disaster situation.

motorguy

Parnott wrote: »

Right, some advice here from all the protagonists above would be appreciated.

I'm currently in a job with a company car. I have the potential of new job with a car allowance of £375 a month which I've never had to deal with before. I have called around to see the cost of leasing (i think) the car I currently have as a guide. I reckon the allowance won't come close to the monthly costs which also cover insurance,service etc. What would be the best option? Ta. I do have 5k savings but I like to have that to cover 6 months of bills for any disaster situation.

Are there any restrictions around the age or type of car that you have to own? For example with my last company company scheme, i had an allowance but was able to buy a four year old 535d BMW, rather than use it to lease / buy a standard A6 TDI. Also are you being taxed on the car allowance? (i take it you will be)

With that in mind, there are various options :-

Lease new - check out the likes of https://www.lingscars.com as a starting point. Advantages to leasing are set monthly payments, may be more competitive than a finance deal, low deposit. Disadvantages - may be expensive to get out of if you changed jobs, you never 'own' the car.

Use your CASH savings to buy a car, and top that up with the net value of the £375 to top up your saving again. You own the car immediately, your savings will be depricated, you wont pay any interest charges but you'll lose the interest on your savings.

Finance the car via a LOAN. Use moneysupermarket to find the best rates. Pick the car you want and negotiate hard!

Finance the car via a PCP deal. Deposit, monthly payments, balloon payment. Cheaper monthly payments than loans, BUT some people struggle with the notion of a balloon payment. Interest rates often not as competitive.

0% finance - usually available on some new cars. Can be an indicator of poor residual values on the car OR of the manufacturer having to support a weak car on the market (or both!). Often less or no discount is available when you take this option.

Ultimately, decide what suits YOU best. There is noone on here who can make that call for you (or judge you stupid or a mug) as they dont know your own personal circumstances.