New car advice

nickwilks7

Hi all
I am looking into buying a new car as my current 1 is nearly dead!

I've been looking at getting a car on finance, hopefully 0%, over 3 years then sell it at the endo of the term and start a new deal.
Is this wise or would I be paying over the odds?
I like the look of the Kia Rio, which will cost £225 a month for 3 years then 1 final payment of £4,700.
Is this a decent deal?

Also, where are the best places to buy? The main dealerships I.e. ford, vauxhall, etc or companies like lookers?

Any advice would be brilliant as I have never bought a new car before

Thanks
Nick

OddballJamie

You could save your self the hassle of selling it at the end and just lease one for 2/3 years. Then just hand it back when the contract is up.

Have you considered a Jazz? Some excellent lease deals at moment
http://www.lingscars.com/Honda/Jazz/1877334-1.2_i_VTEC_16v_%2888bhp%29_S_%28AC%29_Hatchback_5dr_1198cc-personal.html#models

forgotmyname

Biggest depreciation is the 1st year, Years 2 and 3 also suffer a fairly large drop in value. 3 to 5 years are a better option and 5 years + is better still.

Depends on your annual mileage. If you do 70,000 a year than you probably wont want a 5 year old car. But you will lose a lot of money on a new one with that mileage.

Do a low yearly mileage then you car buy a high miles but younger car and lose little when it comes to selling it.

I buy at about 5 years old, Approx £2000 with approx 100 - 130,000 miles. Works for me.

Ultrasonic

nickwilks7 wrote: »

Is this wise or would I be paying over the odds?

Buy a new car if you want a new car, but it won't be the cheapest option. So whether it is wise depends on what is important to you.

Also, one of the selling points of Kia is their seven year warranty. If you've run your current car till it's 'nearly dead', then if you do buy one new then why not hang onto it rather longer than 3 years? Assuming you're not doing 50,000 miles a year or something!

nickwilks7

The main reason behind only keeping it for 3 years is the fact I wouldn't have £4.700 to buy it outright, so would part exchange it for another new car.

OddballJamie

Looks like the Kia finance is 4.9% over three years with a balloon payment at the end.

Another option is a Sainsburys loan at 5% over 4-5 years and you end up owning the car with no balloon payment.

forgotmyname

Get a normal loan, where you pay it for 3 or 5 years and run the car forever.

Or get a lease car for 2 /3 years where you just rent it. Hand it back when its up and get another. And forget about depreciation.

worried_jim

I agree with the above. Get a Sainsbury's loan and just buy a nice reliable but boring Japanese car, no messing about.

nickwilks7

Thanks, think I will get a loan out and buy a car outright.
Value for money wise, is it best to get a brand new car, or a car a couple of years old where the high depreciation has taken place?

Don't really want to buy a car 5 years or older because that's what I did last time and I've had endless problems with it!

Cheers

worried_jim

Just buy something Japanese that is about three years old. It has already depreciated and being Japanese you should, touch wood, be good.
Don't go wasting your money on a new car.

KTF

OddballJamie wrote: »

You could save your self the hassle of selling it at the end and just lease one for 2/3 years. Then just hand it back when the contract is up.

Have you considered a Jazz? Some excellent lease deals at moment
http://www.lingscars.com/Honda/Jazz/1877334-1.2_i_VTEC_16v_%2888bhp%29_S_%28AC%29_Hatchback_5dr_1198cc-personal.html#models

6k over 3 years with nothing to show at the end of it? Hardly a 'deal' imo.