Buying/ Leasing New Used Car

coldasfire

Hi Every One,
I have a secondhand Peugeot (2001) which I bought back in 2005. It has soldiered on for the last 8 years I have it but now it has developed a habit of broken down every few days . I must admit, I wanted to change it sooner but due to other high priority things, I always delayed it. But now it seems I have no excuse left. This is a second car which I have and is currently used for trips around 30 Miles (and back) every day. I have 3 kids and this car is in use by my wife. I am thinking of changing it to a second hand Or a New car and thinking of leasing it this time. I don't want to spend too much money on the car as we are about to go for mortgage as we need a bigger home and the cost involved for a decent second hand family hatchback means around 6-8K which want to safe for the house rather than spending on the car. I am thinking of getting a lease (PCP or something) for 3 years with a deposit of around 1.5-2K (Max). I have also seen some advertisements for new cars @ 0% APR but not sure whether to buy a brand new car or a used one. If I can get a decent car, it will be good for (at least) 3 years if not more. Am I thinking right? Please advise also for family of 5 (3 kids), which option would be best. Please note, I have a outstanding 12K loan which is now on a 0% APR credit card from Natwest (Thanks to MSE).:money:. And I am trying to finish it of in the next 12-15 months (hopefully). With the current circumstances, what should I do. Appreciate your advice and if possible any good links as well please. Appreciate All the responses :A

coldasfire

Really appreciate if some one can give me advise

R_P_W

How much money do you have saved to move house? What is your income?

The fact you already owe 12k on a loan and will likely be looking to borrow a similar amount if not more for buying a brand new car is .....well madness is my opinion

GAZ237

My advice would be to spend a little on your existing car to make it reliable.

If you already owe 12k and hope to have that paid off in 15 months.

Pay that off first before borrowing another 12k

bodgerx

With a 12k loan I wouldn't even be thinking of getting into a 'flease'. You will basically be handing them the 1.5k deposit and watch it disappear. Take that 1.5k add another 500-1000 and go and see what you can buy used, maybe even privately.

Something reliable like this:

http://www.jaggersgarage.co.uk/used/toyota/corolla/20-t3-d-4d/bradford/west-yorkshire/14386953/

Watch this:

http://www.youtube.com/watch?v=iIgLyl66QxQ

albionrovers

New Lease

bodgerx wrote: »

With a 12k loan I wouldn't even be thinking of getting into a 'flease'. You will basically be handing them the 1.5k deposit and watch it disappear. Take that 1.5k add another 500-1000 and go and see what you can buy used, maybe even privately.

==

If you budget 250/month then your down payment on a 3+35 lease becomes £750. As long as there is no admin fee, check the small print.

bodgerx

albionrovers wrote: »

bodgerx wrote: »

With a 12k loan I wouldn't even be thinking of getting into a 'flease'. You will basically be handing them the 1.5k deposit and watch it disappear. Take that 1.5k add another 500-1000 and go and see what you can buy used, maybe even privately.

==

If you budget 250/month then your down payment on a 3+35 lease becomes £750. As long as there is no admin fee, check the small print.

It is still a big hole. The lease companies don't lose in this game. If the OP has 1.5k it would be far better to buy a car with that then to throw any money at a lease.

albionrovers

New Lease

Agree, leasing is still clearly throwing money away. Pay as you go, peace of mind motoring comes at a cost. But it does work for some.

coldasfire

Thanks every one for your kind replies.
I myself am still thinking a used car reliable but due to the current situation don't want to spend too much.
As I mention, I didn't wanted to get any thing but due to the problems developed in my car I am thinking of buying another one.
I can afford to make upto 150/month. For the house, I am having my property in the market and we are expecting the equity raise to help us with the other house. With the current viewings it look quite promising.
With the kind comments, I think I will go for a second hand car. A good second hand car with low miles I can find for 5-6K but I don't want to put that money right now, rather want to get advantage from my 0% (deal finishing in a month) for 26 months and some from pocket. Do you guys think that it would be a better option?

CFC

I entirely financed my last new car via 0% finance cards. Wise option, interest free, what's not to like.

bodgerx

CFC wrote: »

I entirely financed my last new car via 0% finance cards. Wise option, interest free, what's not to like.

Indebtedness to credit card companies for a thing that depreciates like nothing else you will ever buy?