Help Fiat 500 on hp or lease

debsdolphin

Looking to buy a Fiat 500 for my daughter. She is adamant she wants to buy one so its her own but trying to find the best deal. Found one for £7488 and only 11months old. She could put a fairly large deposit down and wipe out her savings and spread rest over 3 years to pay off car. Leasing looks a good option though as worked out over the 3 years would be paying £3000 more if buy the car. Do you think car would be worth £3000 being 4 years old? Suppose she owns it but wont be long before she fancies upgrading so would she be aswell leasing?/Other good thing about leasing is the £3000 difference would stay in her bank for rainy days.
So confused and am I missing anything?

martinthebandit

3k could easily be wiped out by excess mileage and repair charges when she hands it back.

Mercdriver

How long has she been driving, and what is her normal annual mileage?

Looking at Parker's a 500 bought 3 years ago would be worth over 4k

debsdolphin

She has just passed her test. I think annual mileage wouldnt be high. Say 8000

Strider590

What happens if she crashes it and/or it gets written off? Let's face it, it's a good possibility.

Your going to be paying for a car that's now scrap, the insurance won't pay the full amount that you still owe AND then your potentially paying for another car on top of that.

All of this sounds ridiculously stupid to me.

My latest acquisition cost me just 4k, I looked at my bank balance, I divided it by an undisclosed amount, I went looking for cars and I paid one single lump sum.
The whole time my family were trying to tell me about all the nice cars I could get on lease/PCP/etc, but why the hell do I need a 60k motor?

"Buy only what you can afford" it's a life lesson that far too many people ignore these days.

arcon5

Strider590 wrote: »

What happens if she crashes it and/or it gets written off? Let's face it, it's a good possibility.

Your going to be paying for a car that's now scrap, the insurance won't pay the full amount that you still owe AND then your potentially paying for another car on top of that.

All of this sounds ridiculously stupid to me.

This country has loads of useful products... Like insurance for example. Maybe you've heard of it?

gardner1

Strider590 wrote: »

What happens if she crashes it and/or it gets written off? Let's face it, it's a good possibility.

Your going to be paying for a car that's now scrap, the insurance won't pay the full amount that you still owe AND then your potentially paying for another car on top of that.

All of this sounds ridiculously stupid to me.

Lets face it if she is young she will properly have bump in first 6-12 months......far better buying a cheap car first

Mercdriver

Strider590 wrote: »

What happens if she crashes it and/or it gets written off? Let's face it, it's a good possibility.

Your going to be paying for a car that's now scrap, the insurance won't pay the full amount that you still owe AND then your potentially paying for another car on top of that.

All of this sounds ridiculously stupid to me.

My latest acquisition cost me just 4k, I looked at my bank balance, I divided it by an undisclosed amount, I went looking for cars and I paid one single lump sum.
The whole time my family were trying to tell me about all the nice cars I could get on lease/PCP/etc, but why the hell do I need a 60k motor?

"Buy only what you can afford" it's a life lesson that far too many people ignore these days.

No need to be alarmist. As Arcon5 says, there is insurance available and properly researched GAP insurance would be a good idea if the OP decides on a lease or PCP.

Personally I'm with the daughter, I would buy a car at this stage rather than get committed to a lease. See if she can get something suitable with the money she has to begin with.

thescouselander

I don't think there's much in it TBH. There are some really good deals on 500s so the cost of leasing a new one looks to be almost the same as the depreciation on the nearly new one.

If it was me I'd be tempted by the lease because of the extra warranty cover and the consumables like tyres would be starting from new.

That said I would be worried at the potential for the car to pick up a bump or two.

arcon5

Buy it is my suggestion

JamesGreene

I think lease is better option then buying a car.