Car written off; buy or lease again?

chelseablue

From 2016 we had a lease car for 2 years, a Hyundai i30. Lovely car!

Anyway in March this year it had to go back and we decided to buy a car, spent £5,000 on a 2012 BMW 3 series.

Last week husband had an accident in it and found out today its being written off.

They have offered to pay out £7,600.

Don't want to buy a car quickly on a whim so husband will get the train to work until we decide what to do (I have a car so we're not totally without one)

Very tempted to use the pay out to clear a lot of our credit card debt or stash it in a savings account and get another lease car instead of buying again.

Not sure what the best course of action is?

DoaM

Pay off CC debt rather than stashing it in a savings account ... the interest charged on your CC will far outweigh any interest earned in a savings account.

You're really getting back £2,600 more than you paid for it?

chelseablue

DoaM wrote: »

Pay off CC debt rather than stashing it in a savings account ... the interest charged on your CC will far outweigh any interest earned in a savings account.

You're really getting back £2,600 more than you paid for it?

The credit cards are both 0% until 2020

Yes, we bought it from husbands work, it was a company car they wanted to sell on so they gave us a good price

Herzlos

The lease will cost you a lot more over the ownership term than a car you're buying outright with the £7,600 payout.

chelseablue

Herzlos wrote: »

The lease will cost you a lot more over the ownership term than a car you're buying outright with the £7,600 payout.

Do you mean its cheaper to buy a car in the long run rather than lease?

Saw a Ford Focus lease online, £190 a month for 2 years. So £4,560 over the 2 years. But then hand it back and start again.

Sorry for the stupid question!

diesel_dog

How about buy another car from Husbands works and then pay of cc's with the remainer of the payout. Win- win :beer:

chelseablue

diesel_dog wrote: »

How about buy another car from Husbands works and then pay of cc's with the remainer of the payout. Win- win :beer:

They don't have any for sale at the moment plus they only buy BMW's and I don't want another one of those :rotfl:

knightstyle

Is the car repairable? Ask the insurance Co. how much they want for the wreck.

foxy-stoat

Clear debt and buy a cheaper car.

DONE

DoaM

chelseablue wrote: »

Saw a Ford Focus lease online, £190 a month for 2 years. So £4,560 over the 2 years. But then hand it back and start again.

So £4,560 down with no asset to show for it after 2 years.

System

chelseablue wrote: »

Very tempted to use the pay out to clear a lot of our credit card debt or stash it in a savings account and get another lease car instead of buying again.

You mean very tempted to clear credit card debt and get yourself into a mountain of debt via a lease agreement.

Not sure what the best course of action is?

Settle the finance, buy a car outright with the remaining money.