Should I buy a used car or one on finance?

wyndham_2

Ok, so i'm trying to work this out, we haven't had a car for a while as i'm a motorcyclist by heart, but with an impending family we have decided to buy a car.

in the past i've found that buying a secondhand car out right the monthly spend is around £300 with servicing, tax, mot, insurance, tyres etc...

I've been looking at various financing options and it looks like you could buy a new car with a 'deposit' of about the cost we'd be looking at spending on a used car, then monthly costs of around £150 to £200, less than the £300 we already spend, they say the insurance is included?? and servicing / tyres and you don't pay mot on new cars?

I've not looked far, but does anyone know, what makes of car would work well with this etc.. or if i'm missing something obvious?

Thanks in advance

Ben

NMSE12

Hi, I have been looking into this as we car share at the moment and i have now got a job!
Peuguot are offering a 207 at £159mnth incl. insurance etc... its called just add fuel, its a pretty bogstanndard car and don't think it even has alloys.... Still for me whos insurance is about £1300 on most cars this sounds perfect... trying to find out the catch!

flea72

nattprice wrote: »

Hi, I have been looking into this as we car share at the moment and i have now got a job!
Peuguot are offering a 207 at £159mnth incl. insurance etc... its called just add fuel, its a pretty bogstanndard car and don't think it even has alloys.... Still for me whos insurance is about £1300 on most cars this sounds perfect... trying to find out the catch!

there is no catch

well other than having to do under 6500miles year, you need to hold 2yrs NCB, no points on your license, road tax is only included for the 1st year, excess is usually extortionate, and the fact that £159 a month only rents you a car for 3yrs

F

dickyseville

Hi,

I've had a similar decision to make. I've never bought a new car before because of my perception that I'd lose to much money in the first year or 2. I needed a car for my wife and she liked the new shape Fiesta. I went down to Ford who offered me a 59 plate Fiesta Zetec with 11,000 miles on the clock. With a £1500 deposit I'd pay £200 per month over 2 years then have to pay £5000 to buy at the end or term or just hand it back at no cost or trade in for a different one.
When I looked into it further I could actually get a new Fiesta Zetec for less. After a bit of negotiating I pick up the new car tomorrow for which I will be paying £135 per month for 2 years with £5400 to pay at the end or hand it back or part exchange for another new one. There was also the option of doing it over 3 years with lower payments but I'd prefer to get a new card at the end of the 2 years so I don't have to contend with repair, tax and service costs.

If this sounds like something you'd be interested in my advice would be to shop around and play franchise dealers off against each other, because they're desperate for your business. I know they made a £430 loss on the car they've sold me because I snuck a peek at the paperwork on his desk when he copied my password.

Another couple of tips I picked up are as follows -
- Ask around if anyone knows people who work or have worked for Ford. If you find them try to get a discount voucher which can save you between £750 and £1500. Some people will even pay someone £100 to get the discount voucher. This is assuming you're interested in a Ford.

-Even if you don't want to take out finance and have the cash, take out the finance because you'll get a bigger discount (because they want your return business) then pay off the finance the day after you get the car. You'll pay one days interest but also have a big discount.

-Take a look at the DriveTheDeal website. They have got some good offers but finance tends to be more expensive than with Ford for example. I got a quote, took it into Ford and they matched it, then beat it to get my business.

Good luck.