Looking to buy a new car - options?

Shoxt3r

Hi there,

So for a while now I've been looking into getting a new car, especially since the last winter months when mine has been struggling to start and is nearing 100,000 miles. I've also found that I need something a bit bigger to carry stuff from the garden to the tip on a regular basis and my 15 year old 307 isn't really up to it.

So far I haven't set myself on a specific car but I'm looking to spend about £8-9,000 at a maximum which is likely to get me a 3 year old car.

My next thought is how to pay for it - I have around £200-300 disposable income a month and buying outright won't be an option. Having looked into some options it seems the best ways are to go with finance or a bank loan. There is also an option I've heard for new cars only which is leasing but that I suspect means shelling out more money per month, but does give the flexibility to change cars every few years?

There is also the question of insurance and how the situation works should I have an accident. I've heard stories of people taking out a finance deal to then write the car off and still have to pay the rest of the finance deal despite no car because it was their fault.

I've tended to keep hold of my cars for a few years so the option to buy it outright would be good but not if it's going to cost thousands at the end of it - hence why finance or bank loan seems to be the most attractive options.

I typically don't drive very much (only at weekends, some evenings or over the holidays) so my mileage is only around 6,000 a year but it would be nice to know that when I do need the car that it will be reliable enough for me to start it without issue.

Any thoughts?

Cheers,

Andrew

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Shoxt3r wrote: »

There is also the question of insurance and how the situation works should I have an accident. I've heard stories of people taking out a finance deal to then write the car off and still have to pay the rest of the finance deal despite no car because it was their fault.

Gap insurance- shop around online, rather than take the (expensive) one the finance offer.
This will cover any shortfall between the value of the car and the outstanding finance. You end up with not a bean, nor a car, but no debt either.

Shoxt3r

Thanks for your help facade.
Do you have any recommendations regarding leasing, financing or bank loans in general and which may be the best option in my case?

daveyjp

As its now summer start by saving that £300 a month you would pay on finance and run your old car. By winter you will have a couple of grand saved and you are then in a position of only having to borrow £6-7k.

Shoxt3r

Good common sense plan there daveyp - I haven't bought a new car in quite a while though, are there any specific times of the year that are best such as when the new models come out as the older ones will be cheaper or company fleet selloffs etc.?

I'm not looking to get a convertible or anything (winter would be best price-wise for that I've heard) - more of a large hatchback or saloon like an Insignia or Mondeo so I'm unsure when would be a good time to buy for them.

kmb500

I personally wouldn't dream of financing a used car given that it could go wrong etc and if you had to sell it you'd still be paying back the loan - that's up to you though.


If you're looking to spend £200-300 a month on a car then you could actually get a nice, new car. If you want to pay less than that then yes I would have thought a bank loan is the best idea.


Leasing turned out to be much cheaper than I thought it would be. I am starting a lease next week, paying £200/month for a new car with an RRP of £21,000, and the agreement is for 3 years. I get 12,500 miles limit though so if you did less than that it would be cheaper.


For example I just did a quick search for a Vauxhall Insignia, you can get a 2.0 Diesel Grand Sport (whatever that is) for £230/month for 3 years -- https://www.whatcar.com/car-leasing/deals/vauxhall/insignia/diesel-grand-sport-2.0-turbo-d-sri-5dr/personal/1443385/?price_id=15710371 - and I'm sure you can find them cheaper than that. I know you can get a VW Passat on lease for similar money too. Note that with new cars, a more expensive retail price doesn't always mean a more expensive lease, because if it has a higher resale value then they can give you a better lease deal, since they take the car back at the end and sell it on. You can potentially get a Volkswagen for the price of a Vauxhall.


Also be aware most of these lease deals include road tax and often breakdown cover. They can usually give you a deal for a service package so you can pay monthly for that. And with a new car you obviously won't be spending money on repairs etc. as its under warranty and is new.


Have a look on that website, it has a decent search function. There's also a good search on the Parkers website.

Herzlos

Point 1 - if you're just needing a new car to carry random loads of garden waste to the tip, you should look into getting a little trailer. Will cost about £200 for the tow ball + electrics, and maybe another £300-500 (depending on size/condition) for the trailer, and then you can keep the inside of the car nice tidy and undamaged, and potentially get away with a much smaller car.

Point 2 - there's no guide to whens best to buy, you can try and catch old models etc, but you just need to keep an eye open. You can normally get the petrol insignias pretty cheap because no-one wants them as they are scared of the fuel economy which is largely irrelevant.

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Herzlos wrote: »

Point 1 - if you're just needing a new car to carry random loads of garden waste to the tip, you should look into getting a little trailer. Will cost about £200 for the tow ball + electrics, and maybe another £300-500 (depending on size/condition) for the trailer, and then you can keep the inside of the car nice tidy and undamaged, and potentially get away with a much smaller car.

Good advice, there is nothing worse than taking a bag of garden waste to the tip, and then the car is infested with deadly redbacked spiders after- also, NEVER load the car the evening before to take to the tip first thing in the morning.


Only thing to watch is now the tip is called a recycling centre, they won't allow trailers unless you book an appointment, which is free, but inconvenient (they won't allow pick-ups or vans either)