Used car finance or new car lease?

thecassman86

Hey everyone,

This is my first time posting on this particular forum so i hope this isn't a commonly asked question! I apologize in advance for it's inevitable length

I currently drive a 1.2 petrol 2008 Renault Clio - it's a great car; never had any trouble with it and it's still getting MOT's with no advisories!! I got the car on a 5 year finance deal about 3 years ago; the repayments are much less than what i could afford so all is well.

However, my wife doesn't drive and relies on me to get her to and from work (i work from home), this has been fine for years but she's recently had to relocate her job and now works 22 miles away which means the 2 return journeys to take her and pick her up total 88 miles a day (4 days per week).

Now, my current car only gets 39 MPG, on average, so it's costing me a small fortune in fuel every month. We're looking for a new job for my wife but that's separate for now. I have started looking at other cars on the market and am amazed by the difference in economy to my car. For example, modern cars of a similar size regularly get 70+ MPG, which would HALVE my fuel bill!

The thing is, if i'm lucky, my car has no equity at all and part-ex would just pay my finance off... If i'm unlucky then i'm still in negative equity in which case all of this is irrelevant at the moment! I have no savings and no real likelihood of being able to afford a car outright, so, i'm trying to decide what is best...

I *could* go and part-ex it for another car on finance... I wouldn't want to spend more than required so i'd expect to be looking for a car around 3 years old again (the age of this car when i got it). The problem with finance though, as i'm finding now, is your car loses all of it's value before you finish paying it off!! So you're sort of stuck with it for 5 years and own nothing of worth at the end, also, the final payment is always massive.

Or, I *could* go and get a brand new car on lease... Now, i know that the monthly payment here will be higher and i'll need a deposit, but, it would mean a brand new car, no MOT or servicing costs, no tax (if i picked right!) and no worries about depreciation... But, the higher payments bother me a bit.


So, which should i do?? (If any)... Any advice will be really appreciated. As i said, if my car is in negative equity then i'll do nothing. The car is great, but it's just not ideal for my needs and i could save over £100 per month just in fuel bills by switching!

Thanks

Herzlos

thecassman86 wrote: »

For example, modern cars of a similar size regularly get 70+ MPG, which would HALVE my fuel bill!

No they won't. They'll claim that but in order to achieve it you need to take 2 minutes to get up to 50mph on the motorway and stay there. You'll be overtaken by tractors.

You may get some improvement with a newer car or a diesel (mine claims 74mpg, I've never seen more than 48), but in reality what you'd save in fuel is spent on repayments and maintenance.

It's almost always cheaper to keep the car you've got; you've presumably looked after it and know it's history. Especially if the wife if looking for a new job, you don't want to commit to another 5 years of payments on a new diesel to find that her commute has dropped back down and the 1.2 petrol would have been cheaper.

Also a new car will depreciate worse than an old one. Much worse. So any saving you make on tax and fuel will be wiped out by depreciation.

thecassman86

Herzlos wrote: »

No they won't. They'll claim that but in order to achieve it you need to take 2 minutes to get up to 50mph on the motorway and stay there. You'll be overtaken by tractors.

You may get some improvement with a newer car or a diesel (mine claims 74mpg, I've never seen more than 48), but in reality what you'd save in fuel is spent on repayments and maintenance.

Ahh, i see. After your post i've just searched online and found that my car *should* be getting 48 MPG, and mine only gets 39 MPG as i said - so that definitely backs up what you're saying!

Herzlos wrote: »

It's almost always cheaper to keep the car you've got; you've presumably looked after it and know it's history. Especially if the wife if looking for a new job, you don't want to commit to another 5 years of payments on a new diesel to find that her commute has dropped back down and the 1.2 petrol would have been cheaper.

Yes i totally agree. Perhaps i should leave as is now then ... I actually really like the car, and i do know it's history (most of it is me, previous owner only did 8kpa mileage)... And as i said, it's still got no MOT advisories so only needs money spent on a timing belt which is due.

Thanks very much for your advice and for reading. I think i'll stick with this car

Cheers!

rexmedorum

Would it be worth her learning to drive? That would also halve your fuel bill

neilmcl

rexmedorum wrote: »

Would it be worth her learning to drive? That would also halve your fuel bill

You think.

thecassman86

rexmedorum wrote: »

Would it be worth her learning to drive? That would also halve your fuel bill

It would be the perfect solution, totally agree with you... But sadly she's been under the hospital for a couple of years now investigating regular syncopal episodes (losing consciousness) so she's not currently allowed to drive. It wasn't a problem before this new job, but yes, it would usually be the obvious solution

iolanthe07

Manufacturers' MPG figures are the result of mandated EU tests where cars are run indoors on a roller with everything electrical switched off, even the alternator disconnected. The advantage of the EU tests is that every manufacturer is testing in identical ideal conditions, so it is easy to compare. The disadvantage is that the figures produced are often meaningless in the real world. Some people on here claim to get near them, but they must drive like a vicar on valium.

forgotmyname

I think my best is 68.4mpg on my Mondeo. Filled up with superdiesel and drove home so barely a touch on the throttle.

4th gear at a touch under 40mph is the best for economy on my car. It was over 70mpg at some points. But those pesky traffic lights and roundabouts soon eat away at that.

Yet when we had the seriously bad winters i got less than 30mpg. Engine running whilst clearing snow off the car = ZERO MPG.

missile

Whichever car you choose, I would suggest you check other user figures rather than relying on manufacturer. Although the test is closely controlled, in the real world some cars seem to closely match claims whilst others fall well short.


At say 50mpg versus 38 mpg, how much could you save on fuel?


5 year finance at ?% APR. Have you considered how much you are paying in finance charges?


Your current car is reliable, keep it until it is not would be my advice.

Hintza

http://www.honestjohn.co.uk/realmpg/

Take a look at this site and add your figures, the more people that do the more accurate they will be.