Need to get a car, panic!

wee_den

My lease is up in my car in March and they collect it on 01/04/11.

I currently drive a Mazda 3.

So I need to get a car, always been told to not buy new, true/false?

Dont think I should lease again as I think I could safely run a car for 5 years as my current one I got new with 600 miles on the clock and today it has 23k on clock and nearly 3 years old.

I really fancied the Megane Coupe but told to stick with Japanese.

Get a £350 car allowance through work (which is around £230 after tax) and current lease is £179. Dont do mileage for work it was just another way to do a pay rise!

Any advice on what to do would be gratefully appreciated. I am just getting myself in such a tizz over this as I do not have a male partner and my dad is no longer with me.

Wee Den

lawrie28

Do you have cash for a deposit?

Don't buy new, if you want a new car, get a 6 month old one.

With your mileage a well looked after 2/3 yr old car should see you through easily.

If you want to lease, then a low mileage option may be cheaper, but the cost of leasing has gone up since you took the last one, but you could get a maintenance package which would mean yo had one monthly payment to make and no worries of any repair bills.

If you do lease, then beware of any return conditions, and the fact that you may have to pay for damage on the return.

If you like the mazda three, have you thought of asking the leasing company how much it owuld be to buy it?

KingElvis

I would just buy a second hand car, savings if you have them or a loan if you're good with money.

Leasing is just giving your cash away.

lawrie28

Sorry King, leasing is not just giving your cash away. It can be a very economical way to run a car, one of the main benefits is the fact that you don't tie up a lump of capital so it can be used elsewhere.

One of the things that everyone forgets is that with car ownership, you never know the cost of running the car until you sell it, because you can't predict the price you sell it for. There are plenty of people who have negative equity on vehicles because the value of them has fallen faster than they expected, and plenty of people who have lost more than they expected on a car. At least with leasing, you have a monthly repayment and that is it, no more worries.

It is not for everyone, I agree, but is a cash efficient way of driving a new car.

It's a bit like saying renting a house is giving moeny away. It can be, when prices are rising, but if you sold up 3 years ago and rented a house, yes you may have paid maybe £12k a year in rent, but the value of your old home will have fallen by more than that in the same time period.

Every case is different.

KingElvis

^^^ fair enough, I don't do the whole new car thing so I guess if you MUST have new, it's a good way of doing things.

I normally buy low mileage cars at two or three years old, run them for about three years and sell them before they need expensive repairs. Doing this I've managed to work my way up nicely and have a decent car which could, in an emergency, be sold and the cash pocketed.

Each to their own I guess :-)

ILW

lawrie28 wrote: »

Sorry King, leasing is not just giving your cash away. It can be a very economical way to run a car, one of the main benefits is the fact that you don't tie up a lump of capital so it can be used elsewhere.

One of the things that everyone forgets is that with car ownership, you never know the cost of running the car until you sell it, because you can't predict the price you sell it for. There are plenty of people who have negative equity on vehicles because the value of them has fallen faster than they expected, and plenty of people who have lost more than they expected on a car. At least with leasing, you have a monthly repayment and that is it, no more worries.

It is not for everyone, I agree, but is a cash efficient way of driving a new car.

It's a bit like saying renting a house is giving moeny away. It can be, when prices are rising, but if you sold up 3 years ago and rented a house, yes you may have paid maybe £12k a year in rent, but the value of your old home will have fallen by more than that in the same time period.

Every case is different.

Whe I looked at leasing, the payments were not much different to an HP agreement. over a 3 year term the lease cost around £1000 less on a car of around £10k. Just did not add up financially.

Clive_Woody

Mazda 3 available on 0% finance

http://www.mazda.co.uk/showroom/offers/search/#mazda3%20mps

KingElvis

Would like the MPS version but it's a bit rich for me LOL

Clive_Woody

KingElvis wrote: »

Would like the MPS version but it's a bit rich for me LOL

Love the WhatCar review of it...

The MPS has the ASBO styling that hot-hatch fans crave, and it’s also blisteringly fast. It’s practical enough for the hooligan with a family, and it’s stuffed with kit.

wee_den

lawrie28 wrote: »

Do you have cash for a deposit?

Don't buy new, if you want a new car, get a 6 month old one.

With your mileage a well looked after 2/3 yr old car should see you through easily.

If you want to lease, then a low mileage option may be cheaper, but the cost of leasing has gone up since you took the last one, but you could get a maintenance package which would mean yo had one monthly payment to make and no worries of any repair bills.

If you do lease, then beware of any return conditions, and the fact that you may have to pay for damage on the return.

If you like the mazda three, have you thought of asking the leasing company how much it owuld be to buy it?

Dont really have a deposit but could put something on a 0% purchase card and pay that off (but then is it worth it, potentially two bills to pay then). I was told I couldnt buy from the lease company as they just send them to auction?

lawrie28

Your right about not buying the lease car. Legally the lease company can't sell it to you, but often they have an arrangment through an intermediary to sell them on, and sort something out.

If you don't have a deposit, then a lease may work again, as your only looking at 3 rentals up front, whereas HP would normally need a 10% deposit.

Ask you current provider for a quote on the car you would like, go visit your renault dealer and see what they suggest re the coupe.

Putting something on the card may not help you, as you said,

If you don;t have much time, ask your provider about extending the lease, they will normally do this for the same monthl payment as it makes them lots of money, but would give you a bit more time to find a replacement.