Contract Hire Eco Car Vs Old 7 year old petrol Car

toomsie

Contract Hire Vs Old 7 year old petrol Car

I have a 7 year old Ford Focus 1.6. I use it for mainly city driving( South London)
I drive about 14k a year. I am considering Contract Hire on next car. I am wondering
ff it would work out cheaper in the long run if I get a Eco Car such as Golf MK7 BlueMotion on Contract Hire. Or should I keep my old car until it dies.

I was forced to think this when I had my car in for repair. I had a courtesy car for a week. A fiesta Econetic 1.0. It cost me half the mount in petrol. I know the Golf MK7
Is bigger and better on petrol.

GJ_WRX

Great questions.

The focus will be cheaper overall as you own it outright so don't have the monthly payments coming out. However you don't know when the next big bill is coming.

The Golf is a good one to compare as despite its higher price tag it can be cheaper then some on a monthly basis due to its high residual value.

I've just had a quick look on the VW websie and you can get a basic bluemotion for around £300 a month with a smallish deposit.

I'm guessing your Focus currently does around 30mpg verses the Golf at 50mpg. Over your 14,000 miles a year this would save you around £950 based on £1.35 a litre. (Focus fuel cost £2376, Golf fuel cost £1425).

You would also save on road tax, £170 verses £30. You may well save a bit on insurance.

So fuel and tax should save you enough to make 4 payments a year. Sure if you factor in MOT's and unexpected bill you could come up with another £300 or so.

Once you look at all of that it starts to add up. I'd be tempted to change to the golf.

toomsie

I might save something on being a registered business also.

forgotmyname

Dont see the manufacturers figures and assume you will get anywhere near that.

If you drive through London at 3am and get every green light and all roundabouts are clear, You may get close.

Short winter journey's in my car = less than 30mpg. at 70mph on the motorway i can get 60+ mpg.

Small 1L engine is great for city work. But a bigger engine could do better on longer faster journey's.

£3000 - £4000 a year to rent a car to save half that on fuel?

Ultrasonic

Insurance would presumably cost more on the new car as well, plus there is the risk that the contract hire company will charge you something extra for any damage to the car at the end of the contract. From a purely financial point of view I think sticking with the Focus is the best option.

If you could cope with the smaller car, something like a second hand Citroen C1 would be another way of significantly improving fuel economy for city driving, along with cheaper insurance and road tax.

plane_boy2000

You state most of your driving is in the city so you really need to avoid a diesel or you run the risk of DPF problems.

I like driving a new car, so its not just as simple as which option is cheaper, there is a feel good factor associated which I am prepared to pay an amount for.

Also factor in that a new car will be under warranty, contract hire usually includes road tax for the term and breakdown cover