Advice on Next Car

oligopoly

Hi, I’m looking at replacing my current car. It’s getting tired and is starting to cost more and more money through repairs. I want something safe and a bit newer and nicer to drive. I really like the Qashqai – seems to tick all the boxes and I loved the one I test drove last week.

I do a lot of miles – around 25,000 per year. Looking back at the history of my current car, which I bought 3.5 years ago, it’s cost me around £1,000 per year in tyres, servicing and repairs. I’ve also lost over £150 each month through depreciation (mainly due to the high mileage…)

There are 2 scenarios I’m looking at and was interested to get other people’s thoughts:

1. Use a credit card to buy a used Qashqai (2012/2013)
£10,000 - Buy car
£3,000 - Sell current car
£2,000 – Savings
£5,000 – Debt via balance transfer (plus £100 balance transfer fee)

This would cost me £212.50 in repayments over 24 months.
As it’s a newer car than my current one, I’d estimate around £50 per month in maintenance/repairs/tyres etc
Once paid off, the car would likely have around 100,000 miles on the clock and I estimate to then be worth around £6,500
= Just over £400 per month inc maintenance and depreciation


2. Get a new Qashqai with Maintenance package on lease
Leasing Options quote the car I’m interested in at:

£3,690.90 initial rental (which would comprise selling my car plus some savings)
48 month term
= £410.10 per month including maintenance (servicing, maintenance, tyres, brake pads etc) or £314.52 without maintenance, which might be a better option as it’s a new car…
Plus putting aside £75 each month for deposit of next car (either buying or leasing)
= £485 or £390 without maintenance

I have no other debt (other than mortgage) and am in full-time employment.

If my figures are correct, then the lease seems worth the slight extra money considering it's a brand new car? I know there are factors to bear in mind - the 48 month is a contract, what if damage occurs to the lease car etc...

Thanks in advance.

oligopoly

A bit more info (and hopefully a bump to get some replies!) - I think I'm right in saying the Qashqai comes with 3 year warranty, so not sure the maintenance package would be needed. I'd need to cover servicing on a lease (I'd hope that this would be inexpensive as the car is new) with only the tyres needing paying for - which i'd say is £300 per year (both front tyres once a year and rear tyres every 2 years based on 25,000 miles per year).

So now figures are looking like:

£3,243 Initial payment (from selling current machine plus savings)

Which would leave £1,500 as some savings for next car/lease

£338 per month for 36 months

Plus
£25 Tyre allowance per month
£40 Allowance to top up savings for next car

= £400 per month (with no road tax either)

I know I won't have an asset worth around £6.5k at the end of the lease but I'm not sure that really matters. At the end of the 36 months I just start a lease again or buy a second hand car with my almost £3k saving pot again.

Any thoughts?

Strider590

£400 a month? That's a crazy sum of money for a Nissan, you can probably get a Range Rover for that much..........

Robisere

I am changing my C-Max 2.0 TDCi in April and was looking at alternatives. It came down to the Quasqai and the Hyundai Tucson. The Tucson I was doubtful about until I road-tested both twice, then I was convinced. The Tucson is more comfortable and feels much smoother on the road. Don't take my word for it: read the reviews here:
http://www.carbuyer.co.uk/reviews/hyundai/tuscon/suv/owner-reviews

And a 5 year warranty. It was a no-brainer for me.

Check the manufacturer deals:
http://www.hyundai.co.uk/offers/model/all-new-tucson

When I road-tested the Quashqai, the dealer rep came with me. The Hyundai rep just gave me the keys: "You tested a Quashqai?" (smiles) -"You will find it's no contest. Drive where you like, have it back within the hour."

sillygoose

I would go down the purchase option but look for something a shade newer.

Downside of a lease
Its for a long time!
Its difficult financially to get out of if you find after a year the car is gradually giving you a bad back.
You will have to return it despite 100K miles looking almost as good as new, forget all that BVRLA stuff about fair wear and tear, most companies will sting you for every penny they can on top.
If the contract includes tires you will have to take it to their agreed supplier to be inspected and changed if they agree, usually have to be below 2mm. Driving around on wet days on 1.8mm tires is not fun.
The used car someone else will have taken its biggest depreciation hit already, the lease one you are buying a brand new one, the lease company will get a huge discount but it tends to aid their profits rather than your lease price.

I financed the last car I bought largely with a Virgin balance transfer credit card taken out specifically, there are various versions but got something like 0% over 32 months with just a small one off fee to transfer the money into my bank to pay the dealer. Set up a direct debit to pay it off during the 0% term, cut up the card and forget about it.

Billy_Bullocks

Robisere wrote: »

I am changing my C-Max 2.0 TDCi in April and was looking at alternatives. It came down to the Quasqai and the Hyundai Tucson. The Tucson I was doubtful about until I road-tested both twice, then I was convinced. The Tucson is more comfortable and feels much smoother on the road. Don't take my word for it: read the reviews here:
http://www.carbuyer.co.uk/reviews/hyundai/tuscon/suv/owner-reviews

And a 5 year warranty. It was a no-brainer for me.

Check the manufacturer deals:
http://www.hyundai.co.uk/offers/model/all-new-tucson

When I road-tested the Quashqai, the dealer rep came with me. The Hyundai rep just gave me the keys: "You tested a Quashqai?" (smiles) -"You will find it's no contest. Drive where you like, have it back within the hour."

Why would you be concerned about the wattanty?

oligopoly

Strider590 wrote: »

£400 a month? That's a crazy sum of money for a Nissan, you can probably get a Range Rover for that much..........

Sounds great; send me the link! :rotfl:

oligopoly

Robisere wrote: »

I am changing my C-Max 2.0 TDCi in April and was looking at alternatives. It came down to the Quasqai and the Hyundai Tucson. The Tucson I was doubtful about until I road-tested both twice, then I was convinced. The Tucson is more comfortable and feels much smoother on the road. Don't take my word for it: read the reviews here:
http://www.carbuyer.co.uk/reviews/hyundai/tuscon/suv/owner-reviews

And a 5 year warranty. It was a no-brainer for me

Interesting. Looks a nice car. Not sure I could afford a new or nearly new car though.

oligopoly

sillygoose wrote: »

I would go down the purchase option but look for something a shade newer.

Thanks for the advice. I think that deep down a used car makes most sense but I'm already stretching the budget. The new 2014 shape would be great but looking at £13.5k minimum.

oligopoly

Update - for those that have already replied and for anyone else looking at this. I'm now looking at leasing again (I find it difficult to make a decision when it comes to money!). I'd still need to test drive the 1.5 engine but I can get a 1.5 N-Vision on a 3 year lease (on a 25k mile package) with 12 month down payment (£3k / current car value) for £267. With the cheaper insurance, road tax and fuel economy, in real terms it's costing £183 per month. Seems a good deal at this price ?

I was almost ready to buy a 2nd hand QashQai for around £10k but then realised that my high mileage would depreciate it much faster and in the end would cost a similar amount to the lease option...